Caliber Midstream Expands Operations in North Dakota

Caliber Midstream Holdings, L.P. acquired assets previously owned by American Midstream Partners, L.P, in North Dakota. With the acquisition, Caliber now owns and operates 368 miles of pipeline across its four service lines in McKenzie County, North Dakota.

The acquired assets will widen Caliber’s area of operations within McKenzie County, North Dakota that includes a FERC-regulated 47-mile pipeline and related facilities with the ability to transport crude oil to the Tesoro High Plains Pipeline and the Energy Transfer Dakota Access Pipeline.

“This bolt-on acquisition is another step in executing our growth strategy. Our goal is to become a top-tier midstream company,” said Caliber Chief Executive Officer and President Daniel Werth. The company is scheduled to add 11 miles to its crude gathering and transmission system by year end.


$145 Million Deal to Buy Shell Canada Gas Assets by Pieridae Energy

Pieridae Energy, based in Canada will buy gas assets from Royal Dutch Shell for 145 million, Pieridae said on Wednesday. This will secure supply for Pieridae’s proposed Goldboro LNG plant in Nova Scotia, which will be Canada’s first east coast LNG project, producing 10 million tons per year.

“Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry,” said Pieridae Chief Executive Alfred Sorensen.

All of Shell’s midstream and upstream assets in the southern Alberta Foothills area is included in the deal and these assets will produce 29,000 barrels of natural gas, natural gas liquids and condensate. Also Shell said in a statement that Pieridae will retain all site-based Shell employees and some Calgary-based employees who support the Foothills assets.

“We are pleased they (the assets) are going to a buyer with a strong focus on safety, community and environmental stewardship, and one that is well placed to take these assets to the next stage of their development,” Shell Canada President Michael Crothers said.


Stake in Magellan's Longhorn Crude Oil Pipeline Up for Grabs

Magellan Midstream Partners is exploring a sale of a 35% stake in its Longhorn crude oil pipeline in Texas, according to sources familiar with the matter. The evaluation could be as much as $2 billion, and the source spoke on the condition to remain anonymous as the information is confidential.  

The operator is working with investment banks to sell the 35% stake in a new business unit containing the Longhorn pipeline in addition to some storage assets on the coast of the Gulf of Mexico.

Magellan would continue to own the remainder, the sources added. The final bids are expected to be lodged next month.

A spokesman for Magellan said: “We are pleased with our existing assets and our strong financial profile. While we are always open to opportunities to optimize our portfolio, we can’t speak to any particular rumors that may be in the marketplace.”

The 275,000-barrel-per-day Longhorn pipeline transports crude from the West Texas part of the Permian Basin to refining and export facilities in Houston.


Breakwater Energy Partners Launches Midstream Division

A new midstream division has been launched by Breakwater Energy Partners to build and operate pipelines and other equipment to move freshwater and wastewater to and from oil and gas sites in the West Texas shale play.

The company has already pushed to boost oilfield wastewater recycling in the Permian Basin and the move to launch the midstream division is to unify its water sourcing, transfer and recycling businesses under the Breakwater name

"We are looking forward to providing our customers even more solutions as we continue our commitment to the quality of our work, integrity and continuous improvement," Breakwater CEO Jason Jennaro said in a statement.

The company’s headquarter is in Houston and has more than 400 employees. It recycles more than 16.8 million gallons of oilfield wastewater per day and has more than 350 miles of lay flat hose and 140 transfer pumps.


Bakken NGL Pipeline Extension Announced by ONEOK

Natural gas liquids pipeline lateral connecting the northern portion of the Bakken NGL Pipeline with a third-party natural gas processing plant in eastern Williams County, North Dakota, was announced by ONEOK, Inc.

The company is planning to invest approximately US$100 million to construct the 75 mile lateral and is expected to be complete in the fourth quarter of 2020. The pipeline project is supported by long-term dedicated NGL production, including a minimum volume commitment, which will provide NGLs to ONEOK's Elk Creek Pipeline.

As a leading midstream service provider and owner of one of the nation's premier natural gas liquids systems, ONEOK, Inc. connects NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers. The company has as extensive network of natural gas gathering, processing, storage and transportation assets.


Tioga Gathering System to Be Acquired by Hess Midstream Partners

Hess North Dakota Pipelines agreed to purchase the crude oil and gas gathering assets of Summit Midstream Partners’ Tioga Gathering System for about $60 million gross or $12 million net to Hess Midstream.

The acquisition includes 73 miles of crude pipelines and 79 miles of gas pipelines. In a separate deal, Hess Midstream’s sponsor, Hess Infrastructure Partners (HIP), agreed to acquire the water gathering assets of the Tioga System from Summit Midstream Partners which includes 75 miles of produced water gathering pipelines.

Hess Midstream Partners chief operating officer John Gatling said, “We are excited to extend our infrastructure footprint with the agreement to purchase the Tioga System’s crude oil and gas gathering assets.”

The Tioga System, located in Williams County in western North Dakota, is complementary to Hess Midstream’s infrastructure and is delivering volumes into Hess Midstream’s gathering system. The completion of the acquisition is expected to take place in the first quarter of this year.


Two Houston Pipeline Companies Joining Forces to Add Crude Oil, NatGas & Saltwater Lines in the Permian

Five Point Energy of Houston and Matador Resources of Houston are partnering to form San Mateo Midstream II LLC. This will allow their customers to move more crude oil, natural gas and produced water on the New Mexico side of the Permian Basin.

"The Delaware remains one of the most promising producing basins in North America, yet it lacks sufficient permanent 'in-basin' midstream infrastructure," Five Point Energy CEO David Capobianco said in a statement.

The joint partnership plans to process 200 million cubic feet of natural gas per day, by building a cryogenic natural gas plant near Carlsbad, New Mexico. There are also plans to build two saltwater disposal wells and pipelines to move crude oil, natural gas and produced water from remote wells to nearby storage tanks.

San Mateo Midstream II is the second joint venture between Five Point Energy and Matador Resources. Matador Resources will own 51 percent of San Mateo Midstream II and Five Point will own 49 percent. The companies already launched San Mateo Midstream I LLC in Feb. 2017 to build pipelines and other infrastructure in Eddy County, New Mexico and Loving County, Texas.


$1.5 Billion Valley Crossing Pipeline Placed Into Service

Canadian midstream giant Enbridge filed a Thursday morning notice with FERC stating that the company has placed the Valley Crossing Pipeline into service on Feb. 14.

This $1.5 billion pipeline will move 2.6 billion cubic feet of natural gas stretching 165 miles from the Agua Dulce hub near Corpus Christi to customers south of the border in Mexico.

Valley Crossing Pipeline has been completed since October and had been waiting for the Sur de Texas-Tuxpan pipeline to be completed, which stretches from the U.S./Mexico border to the State of Veracruz and power plants in the Mexican interior.

Valley Crossing Pipeline will be connected to the Sur de Texas-Tuxpan pipeline several feet below the sea floor.

Mexico is importing around 6 billion cubic feet of natural per day from the United States and roughly 85 percent of that imported natural gas is delivered via cross-border pipelines while the rest is shipped to liquefied natural gas import terminals.


$4.6 Billion Mountain Valley Natural Gas Pipeline to Be Completed by Fourth-Quarter 2019.

The 303-mile Mountain Valley Pipeline  from West Virginia to Virginia is expected to be completed in the fourth quarter of 2019 despite remaining legal challenges against the project, EQM Midstream Partners revealed on Thursday.

Mountain Valley is about 70 percent complete while it works through the project’s remaining legal challenges, including securing a Nationwide 12 Permit from the U.S. Army Corps of Engineers for stream and waterbody crossings, the company said.

The pipeline is designed to deliver 2 billion cubic feet per day and is one of the biggest pipelines under construction to connect growing output in the Marcellus and Utica shale basins in Pennsylvania, West Virginia and Ohio with customers in other parts of the United States and Canada.


Longhorn Midstream Partnering with Old Ironsides Energy for Future Midstream Ventures

Longhorn Midstream Holdings LLC. has announced that it has partnered with Old Ironsides Energy LLC., a private oil and gas investment firm investing in private equity and drilling joint ventures. 

Longhorn Midstream Holdings is a newly formed Dallas based midstream oil and gas company and has been successfully developing and acquiring midstream assets in many regions including the Midland Basin, Ark-La-Tex, the Mid-Continent, and most recently the Denver-Julesburg and Delaware Basins, across all commodities.

Mike Davis, the Managing Partner & President of Longhorn Midstream Holdings said, "The extended team has proven our ability to cost-effectively and reliably provide integrated midstream services to our producer clients."

"Old Ironsides has successfully partnered with members of the Longhorn team across multiple ventures since 2009. We are thrilled to form another company around this impressive group to continue pursuing their proven midstream strategy," said Sean O'Neill, a Managing Partner at Old Ironsides Energy.


Noble Midstream Invests Nearly $500 Million in EPIC Pipeline

Noble Midstream Partners has purchased a 30 percent stake in the EPIC Crude Oil Pipeline as well as a 15 percent stake in the EPIC Y-Grade Pipeline. The stakes purchased are part of projects that will move crude oil and natural gas liquids from the Permian Basin to the Port of Corpus Christi.

Natural gas liquids from the Permian Basin of New Mexico and West Texas will be moved to a facility in Robstown through the 700-mile EPIC Y-Grade Pipeline project. Crude oil from seven terminals in the Permian Basin and Eagle Ford Shale of South Texas will be moved to a facility in Robstown through 650-mile EPIC Crude Oil Pipeline project.

The company will be investing between $330 million and $350 million in cash for its stake of the crude oil pipeline and another $165 million to $180 million for its stake of the EPIC Y-Grade Pipeline.

San Antonio pipeline operator EPIC Midstream Holdings LP will be developing the two Permian Basin-to-Corpus Christi projects.

By January 2020, construction of the crude oil pipeline is expected to be completed.

"Both projects remain on schedule and are critical to the continued development of the Permian Basin and Eagle Ford Shale," EPIC Midstream Holdings CEO Phillip Mezey said in a statement.


Summit Midstream Partners Announce New Executive Vice President

Summit Midstream Partners LP announced on Monday that its executive vice president and CFO Matthew Harrison will be departing the company on January 4th to pursue other interest.

The company will be promoting Marc Stratton to fill Harrison’s position.

Marc Stratton joined Summit in 2009 and most recently served as senior vice president, treasurer and head of investor relations.

In his place, two managers are being promoted and Stratton’s responsibilities will be divided among them. Former director of strategy Blake Motely will become vice president of strategy and head of investor relations while the company’s director of finance, Bill Mault, will become vice president of finance and treasurer.

Houston Chron

WhiteWater Midstream Looking to Sell Company, $2 Billion +

WhiteWater Midstream LLC is looking to sell its company at an estimated valuation of over $2 billion, including debt, people familiar with the matter said on Wednesday.

The confidential source cautioned that reaching a deal is not guaranteed despite efforts to sell the company.

The Austin-based company was founded in 2016 and is backed by Denham Capital Management and Ridgemont Equity Partners.

Denham declined to comment. Ridgemont and WhiteWater did not immediately respond to requests for comment.

WhiteWater’s main asset is a stake in the Agua Blanca natural gas pipeline in the Delaware portion of the Permian Basin. Commercial operations for the pipeline began earlier this year.

The capacity of the pipeline is 1.25 bcf/d. WhiteWater holds the majority stake in the project with WPX Energy holding on to 20 per.


600-Mile Permian Gulf Coast Pipeline to Cost Nearly $2 Billion

Magellan Midstream Partners LP projected on Wednesday it would spend nearly $2 billion to construct a proposed crude oil pipeline from the Permian Basin in West Texas to the U.S. Gulf Coast. 

"We have binding commitments that give us very attractive economics. But what we don't know is the full demand," which would dictate the project’s final cost, Magellan's chief executive Michael Mears said at the Barclays energy conference in New York. 

The project cost for the Permian Gulf Coast pipeline won’t be made clear until after shippers commit to volume capacity during the open season, Mears said. The bidding process for additional shipper commitments will be launched later this week.

The new partnership by Magellan, Energy Transfer Partners, and others adds another project to the race to build crude oil pipelines from West Texas’ booming Permian Basin to refining and export hubs in Houston, Corpus Christi, and Beaumont.

Due to the lack of pipelines carrying oil, Permian oil drilling and well completions are slowing down. Until new pipelines start coming in the middle of 2019, companies are relying on trucks and trains to move crude.

The pipeline would come online in mid-2020 and would stretch to Magellan’s East Houston terminal and to Energy Transfer’s Nederland terminal near Beaumont.


EagleClaw Midstream To Pay $950 Million to Buy Rival Caprock

Blackstone-backed pipeline company EagleClaw Midstream Ventures LLC said on Wednesday it would buy rival Caprock Midstream Holdings for about $950 million.

Midstream companies are investing in the Permian Basin as a surge of oil and gas production has outstripped transport capacity.

EagleClaw will buy Caprock from Dallas-based private equity firm Energy Spectrum Capital and Caprock Midstream Management.

Caprock will be renamed to EagleClaw Midstream II and operate as a sister entity to EagleClaw after the deal closes this year.

EagleClaw Midstream is a portfolio company of Blackstone Energy Partners, Blackstone’s energy-focused private equity business.


Houston Pipeline and Storage Company Gets Investment from Former Moda and Lotus Investors

Houston-based Candor Midstream LLC, a pipeline and storage company, announced on Tuesday that it received a $200 million equity commitment from San Antonio-based investment firm EnCap Flatrock Midstream.

Candor Midstream’s President and CEO was a former executive with Crestwood Midstream Partners LP and Enbridge. The newly invested money could be used to acquire existing assets or to start new projects.

EnCap Flatrock Midstream also funded two Houston energy firms that spent $2.6 billion on assets owned by Occidental Petroleum, also known as Oxy. Oxy sold its crude oil export Ingleside Energy Center Terminal to Moda Midstream and its Centurion pipeline system from West Texas to Cushing, Oklahoma to Lotus Midstream. Both Moda and Lotus are backed by EnCap FlatRock Midstream.

Occidental was expanding its Ingleside export terminal to handle greater volumes, resulting in the sale. Oxy has been focusing on oil and gas production in West Texas’ Permian Basin oil field, and has been selling other assets.

Houston Chronicle

Oxy to Sell Ingleside and Crude Oil Infrastructure to Moda and Lotus Midstream

Moda Midstream, LLC announced on Wednesday that it has entered into a definitive agreement to acquire the Oxy Ingleside Energy Center (IEC) and certain crude oil and LPG infrastructure form Occidental Petroleum Corporation. The transaction is expected to close in the third quarter of 2018, subject to customary closing conditions.

Strategically located in Ingleside, Texas, IEC resides near the mouth of Corpus Christi Ship Channel with minimal transit times to the Gulf of Mexico.

Oxy is also selling the Centurion pipeline system to Lotus Midstream. The pipeline extends from the Permian to an oil storage and transportation hub in Cushing, Oklahoma.

The combined $2.6 billion transaction are part of an effort for Oxy to focus on its growing production in the Permian. Oxy is easily one of the largest producer’s in the Permian.

Chief Executive Vicki Hollub emphasized the company’s focus on the Permian

“The Permian is now the foundation and the growth of our company,” Hollub said. “The bulk of our growth capital will continue to go to the Permian Resources business.”

The transactions by Moda and Lotus are the largest in their companies’ history.

Houston Chronicle
World Pipelines

Enbridge to Sell Midcoast Operation Business for $1.1 Billion

A Houston-based Midcoast Operating business owned by Enbridge is being sold to Boston-based ArcLight Capital Partners for about $1.1 billion.

Included in the sale are 11,900 miles of gas and NGL pipelines, 25 processing plants, 12 treatment plants and more.
ArcLight said that the business will still be ran from Houston.

Enbridge is also selling multiple renewable energy assets to the Canada Pension Plan Investment Board for close to $1.5 billion.

The sales of its ancillary units and assets are to make sure Enbridge focuses on its pipeline and utility businesses.

"Together, these transactions support our strategy to move towards a pure pipeline and utility business model and provide the company with significant additional financing flexibility as we fund our industry leading secured growth program," said Enbridge CEO.

Rob Bond has been hired to lead ArcLight’s new Midcoast business and has brought with him other executives who worked with his senior leadership at PennTex Midstream Partners.

Houston Chronicle


Exxon Mobil, Plains All American Plan Pipeline Project in Permian

Exxon Mobil is planning to build hundred of miles of pipeline in a joint venture with Houston’s Plains All American Pipeline that would stretch from west of Midland to the Houston and Beaumont areas.

The multibillion dollar pipeline network will be designed to deliver crude oil from the Permian Basin to refining and port hubs near Houston.

This news comes after an early 2018 statement by Exxon that said it plans to triple production in the Permian by 2025.

Despite the proposed project, lack of pipelines in the prolific Permian is creating increasing bottlenecks in the area and could hamper growth as well as cause discounts on Permian-produced oil.

With Permian oil production at a record high and rapidly increasing, Plains and Oklahoma-based Magellan Midstream Partners expanded their BridgeTex oil pipeline from West Texas to the Houston region.


Enbridge, Williams Consolidate Respective Pipeline Assets After New Tax Policy

Enbridge Inc and Williams Cos are consolidating their respective pipeline assets after the Federal Energy Regulatory Commission in March proposed a tax overhaul that removes specific benefits for master limited partnerships.

Enbridge plans to bring its independent units and liquids and gas pipeline assets under a single listed entity valued at US$8.94 billion.

Williams said it would buy out the remaining stake in its MLP Williams Partners LP in a $10.5 billion deal.

These decisions come after FERC said in March that MLPs, specifically oil and natural gas pipeline companies, would no longer be able to recover an income tax allowance as part of the fees they charge to shippers as a cost of service.

Enbridge also added that it would buy outstanding shares of Spectra Energy Partners and Enbridge Energy Partners, to name a few. The transaction will not affect the stakes held by shareholders in those companies, Enbridge said.