Binding Open Season Announced by SCM Crude

The binding open season to solicit binding commitments for priority crude oil interstate gathering and transportation service was announced by SCM Crude, LLC. SCM Crude is a wholly-owned subsidiary of Salt Creek Midstream, LLC.

The binding open season was announced on its proposed Delaware Basin crude oil gathering and transportation system. The binding open season started on 2 August 2019 at 8:00 am CT, and will end on 31 August 2019 at 5:00 pm CT. Based on the results of the open season, the final volume of capacity of the project will be determined by SCM.

An opportunity will be provided by the open season for shippers to demonstrate support for the project by making acreage dedications for priority service, thereby becoming priority shippers for the term of their crude oil gathering agreements.

With interconnects to certain takeaway pipelines, including pipelines with direct, long-haul transportation to the Midland, Texas area and the Corpus Christi, Texas area, the crude oil gathering and transportation project will be constructed and operated by SCM, across multiple segments spanning from various tank battery receipt points in Eddy and Lea Counties, New Mexico, to SCM’s Wink Terminal and Orla Terminal.


Open Season Extended for the Proposed Voyager Pipeline

An extension of the open season to solicit commitments from shippers for the proposed Voyager Pipeline was announced by Magellan Midstream Partners, L.P. and Navigator Energy Services. The pipeline will transport crude oil from Cushing, Oklahoma and Midland, Texas to Houston.

The proposed Voyager Pipeline would include construction of 20 inch diameter pipelines from both Magellan’s Cushing and Midland terminals to Magellan’s terminal in Frost, Texas and a 24 inch diameter pipeline would be constructed from Frost, Texas to Magellan’s terminal in East Houston.

The Pipeline is expected to have an initial capacity of up to 400,000 barrels per day, with the ability to expand if necessary by industry demand. It is expected to be operational in early 2021, subject to receipt of sufficient customer commitments and all necessary permits and approvals. Binding commitments are now due by 12:00 pm CDT on 30 August 2019.


Stonepeak Buys Oryx Midstream in a $3.6 Billion Deal

In a $3.6 billion deal, New York private equity firm Stonepeak Infrastructure Partners bought all of Permian Basin-focused pipeline operator Oryx Midstream’s assets, the two companies announced the deal on Tuesday.

Oryx is publicized as the largest privately-held crude oil pipeline and storage terminal operator in the Permian Basin of West Texas and New Mexico, with more than 1,200 miles of pipeline and 2.1 million barrels of storage.

"As we begin our next chapter and new partnership with Stonepeak, we look forward to the operational and capital support they will provide our team as we continue to aggressively grow our footprint in the Permian Basin," Oryx Midstream CEO Brett Wiggs said in a statement.

"Our critical focus will be on continuing to provide Oryx's diversified customer base with best in class service offerings to accommodate their growing production while also pursuing new commercial opportunities across the value-chain," Stonepeak partner and energy business head Jack Howell said.

The Midland pipeline operator recently completed construction on the first phase of a crude oil gathering system in an area of the Permian Basin known as the southern Delaware Basin, which includes parts of southern New Mexico and West Texas. Oryx will be able to keep its name and headquarters in Midland, under the deal with Stonepeak.


Targa Pipeline Explosion That Killed 3-Year-Old Caused by Hole in Pipeline

An August explosion that killed a 3-year old girl in Midland was caused by a natural gas pipeline which had been leaking “for some time,” according to a report from Energy and Environmental News.

The leak was caused by a dime-sized hole according to a Railroad Commission of Texas incident report. The report also states that the gathering line owned by Targa Pipeline Mid-Continent WestTex was “compromised”. The steel wall of the line and the tar coating was supposed to protect the line.

The 3-year-old died two days after the initial incident, and her sisters and parents were badly burned in the explosion, according to the report.

Gas in the 10-inch-diameter pipeline was not odorized and the line was about 20 feet from the front of the family’s mobile home.

Targa hired a contractor to remove a 19-foot section of the pipe, and it was taken to a Targa location under “lock and key,”. The pipe will reportedly be sent to a laboratory for examination. RRC officials wrote that only Targa lawyers have access to the damaged pipe.


Medallion Midstream Asks for Bids for New Expansion

Irving-based Medallion Midstream announced an open season on Monday and is asking for bids as it anticipates a planned expansion.

The West Texas crude oil pipeline system will make a major expansion in the Midland Basin. The oil field is part of the larger Permian Basin, which has seen enormous growth in oil and gas production over the last few years.

Medallion said that the plan was to place new 16-inch pipes along its existing pipeline system, without specifying how many miles would be added, nor the capacity.

Currently, the system runs approximately 700 miles of six-inch diameter pipe.

The expansion comes a week after Oryx Midstream Services announced its own expansion of regional crude oil pipeline in which it will add 180 miles to its existing system.

Houston Chronicle

Enterprise Products Partners Finishes 416-Mile Oil Pipeline Expansion

Houston-based Enterprise Products Partners finished the 416-mile crude oil Midland-to-Sealy, Texas pipeline that is designed to move crude out of the Permian Basin.

The pipeline has a capacity of 540,000 barrels per day and connects in Sealy to another Enterprise pipeline that will bring oil to Enterprise's terminal in southeast Houston.

Enterprise Products predicts the oil production in the Permian will grow by 60 percent of the current production in the next four years, to a large 5 million barrels per day.

The Midland-to-Sealy pipeline is expected to be fully operational in May, according to Enterprise.

Houston Chronicle

Enterprise Products Partners Talks of Expanding Capacity of its Midland-to-Sealy Crude Pipeline

Enterprise Products Partners said on Wednesday that plans are underway to potentially expand capacity on its Midland-to-Sealy crude oil pipeline by more than 20 percent as a way to transport even more oil from the booming Permian Basin.

Flows on the pipeline averaged 330,000 barrels per day when it came online in November and are expected to hit 450,000 barrels per day as soon as April when the pipeline is fully operational.

The company said studies are being done to measure exactly how much the pipeline capacity can be increased. Currently the company has an increased estimate of 540,000 to 550,000 barrels per day.

Enterprise's announcement to potentially increase capacity on its Midland-to-Sealy pipeline comes as ExxonMobil and other players map out growth for Permian operations, which would demand more transport to move the crude to refining and export facilities near the Gulf Coast.

Enterprise is also building an ethylene pipeline from Mont Belvieu to Bayport, Texas and expects the project to be in service in 2020.


Enterprise Products Partners Announces Additional Contracts for its Midland to ECHO Pipeline System

Enterprise Products Partners on Wednesday announced additional long-term contracts to provide transportation services on the Midland to ECHO crude oil pipeline system.

The additional agreements brings capacity on the Midland to Sealy section of the pipeline to 335,000 barrels of crude per day, which is approximately 83 percent of the segment's ultimate committed capacity of 405,000 barrels per day.

The Midland to Sealy pipeline is expected to begin limited commercial activities during the forth quarter of 2017 and full service by the second quarter of 2018.

"We are very pleased to announce these additional commitments," said A.J. Teague, CEO of the general partner of Enterprise.

Enterprise Products Partners

Agency Discovers 20 Billion Barrels of Oil, 16 Trillion Cubic Feet of Natural Gas in Texas

The U.S. Geological Survey discovered that the Wolfcamp Shale in West Texas could yield 20 billion barrels of oil and 16 trillion cubic feet of natural gas.

A statement was released from the agency on Tuesday about the finding in the Midland area of the Permian Basin, one of the most productive regions for oil and gas in America.

According to reports by The Associated Press, the discovery is three times larger than the shale oil discovered in 2013 in the Bakken and Three Forks formations in North and South Dakota and Montana.

In order to extract the oil trapped in the shale, drillers will have to use more advanced tactics, such as hydraulic fracturing, to obtain it.