Grand Prix NGL Pipeline started up from Permian to Houston

The $1.4 billion Grand Prix natural gas liquids pipeline project that stretches from Permian Basin to the Houston area has been started up, Targa Resources said on Thursday. The pipeline can currently move 300,000 barrels per day, which can be expanded to 500,000 barrels daily.

"Our Grand Prix NGL pipeline recently commenced deliveries into Mont Belvieu, realizing the long-run strategic goal of integrating our leading gathering and processing position with our premier NGL logistics, fractionation and export platform," said Targa Chief Executive Joe Bob Perkins.

The pipeline system is also getting expanded to stretch into Oklahoma and that effort is under construction. The company also plans to expand the western portion of the Grand Prix pipeline into New Mexico.

Natural gas liquids products like propane, butane and ethane will flow through the pipeline from Permian Basin and will be separated into their individual components at processing facilities, called fractionators, in Mont Belvieu.


Altus Midstream Acquires 33% Stake in Shin Oak Pipeline

Altus Midstream acquired 33% equity interest in the 658-mile Shin Oak natural gas liquids pipeline owned by Enterprise Products Partners L.P. Both companies announced the closing yesterday.

The pipeline transports growing NGL production from multiple basins, including the Permian and will ultimately have capacity to transport up to 550000 barrels per day of NGLs by the fourth quarter of 2019.

“We are very pleased to have Altus as a partner in the Shin Oak Pipeline, which facilitates continued growth of Permian Basin NGLs that are expected to more than double by 2025,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.

“Altus is pleased to partner with Enterprise on the Shin Oak Pipeline,” said Clay Bretches, CEO of Altus Midstream.

With a long-term NGL sales agreement committing 100% of NGLs for Shin Oak system’s, the natural gas liquids are sourced primarily from Enterprise’s Orla natural gas processing complex in Reeves County, Texas, as well as Apache Corporation’s Alpine High play.


Natural Gas and NGL Infrastructure Expansions Announced by ONEOK

The plans to expand its natural gas and natural gas liquids infrastructure between now and 2021, was announced by ONEOK, Inc.

An expansion of a 200 million cubic feet per day Bear Creek natural gas processing facility and related infrastructure in the Williston Basin is expected to cost approximately $405 million and expecting to be completed in the first quarter of 2021. Following the completion of the Bear Creek expansion, ONEOK's Williston Basin natural gas processing capacity will increase to more than 1.6 billion cubic feet per day.

The 65,000 barrels per day expansion to ONEOK's Mid-Continent NGL fractionation facilities are expected to cost approximately $150 million. The expansion includes 15,000 barrel per day expected to be completed in the third quarter 2020 and 50,000 barrel per day expected to be completed in the first quarter 2021. 

The West Texas LPG pipeline expansion will add an additional 80,000 barrel per day on the West Texas LPG pipeline system and is expected to be completed in the first quarter 2020. The cost is expected to be approximately $145 million.

In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure will be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines.


Indian Tribe in Wisconsin Sues Enbridge

A lawsuit against Enbridge Inc. was filed on Tuesday by the Bad River band of Lake Superior Chippewa aimed at forcing the company to shut down Line 5 pipeline that crosses tribal lands in northern Wisconsin.

Line 5 pipeline transports oil and natural gas liquids from Canada to Michigan. This includes a controversial section that runs along the bed of the Straits of Mackinac between Lake Michigan and Lake Huron. 

Enbridge is seeking to build a tunnel beneath the straits for a new pipeline, but tribal officials say that they no longer want Enbridge to operate the pipeline on tribal lands and fear that a rupture would pose grave environmental damage to the Bad River and other waters that flow to Lake Superior.

“As a community, we are sick of having to bear the fear and anxiety of this line being a constant threat to our community and resources,” said Dylan Bizhikiins Jennings, a tribal member. An Enbridge pipeline spill in 2010 on the Kalamazoo River in Michigan took years and more than $1 billion to clean up. 

“Enbridge has been in good faith negotiations with the Bad River band of Lake Superior Chippewa tribe regarding these easements since 2013,” said Enbridge spokeswoman Juli Kellner in a statement. Line 5 pipeline crosses about 12 miles of reservation lands, according to court documents.


Service Started on Orla 3

Enterprise Products Partners announced that the service began on the third train at its Orla cryogenic natural gas processing plant in Reeves County, Texas. This will increase the company’s natural gas processing capacity at the facility to 900 MMcfd and will allow Enterprise to produce in excess of 140,000 barrel per day of natural gas liquid.

“The three trains at Orla that have been brought online over the past year reflect Enterprise’s agility and commitment to providing timely and efficient solutions for facilitating production growth in the prolific Permian Basin,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.

Enterprise now has the capability to process 1.3 billion cubic feet of natural gas and produce approximately 200,000 barrel per day of NGLs throughout the Permian Basin.

The company’s Mentone cryogenic natural gas processing facility in Loving County, Texas, is on schedule for completion in the first quarter of 2020 and will have the capacity to process 300 MMcfd of natural gas and extract in excess of 40,000 barrel per day of NGLs.

The two cryogenic natural gas processing facility, Orla and Mentone, extends Enterprise’s value chain in the Permian and Delaware basins, linking customers to the company’s integrated pipeline network, including the recently completed Shin Oak pipeline and the Texas Intrastate natural gas system.


$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.


ONEOK Bakken NGL Pipeline Permit Approved by North Dakota

ONEOK Bakken Pipeline, LLC, got approval from North Dakota’s Public Service Commission to build 77-mile long natural gas liquids pipeline, in a statement released by PUC.

The pipeline will start at the company's natural gas processing plant in McKenzie County and connect with another pipeline in Richland County, Montana.

The project is estimated to cost $125 million and 20-inch steel pipeline is designed to carry a maximum of 1,680,000 gallons per day.


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.


Sunoco's Mariner East II Delayed as Regulatory Issues Linger

Sunoco’s Mariner East 2 pipeline has been delayed as the company works to overcome “regulatory issues.” Sunoco targeted the end of September as their starting date for the natural gas liquids pipeline.

“ME2 is not in service at this time due to regulatory issues we continue to work through. These issues have slowed our construction in a few areas along the route. We will put the line in service once it is mechanically complete,” Vicki Granado, a spokeswoman for Sunoco’s parent, Energy Transfer Partners said in a statement.

Although the issue was not specified, a Pennsylvania PUC spokesman said that there are “numerous ongoing matters” regarding the project that are before the PUC and have yet to be resolved.

According to Whyy, the issues include:

·       A PUC injunction that blocks construction at two sites in Chester County’s West Whiteland Township;

·       A complaint to the PUC by state Sen. Andy Dinniman (D-Chester) and others, seeking to stop construction in West Whiteland;

·       An investigation into the June spill of 33,000 gallons of gasoline into Darby Creek near Philadelphia from an existing ETP pipeline that the company plans to use temporarily as part of ME2 while the new pipeline is being completed;

·       An investigation into a strike on a section of ME2 by a water contractor at Middletown, Delaware County, in May;

·       A joint federal-state investigation into “allegations concerning weld inspections.”

In late August, the PUC said it was looking into reports of “improper” weld inspections.
PHMSA said it was concerned about how the x-rays were taken rather than on the welds themselves.


Targa Resources to Build 635-Mile NGL Pipeline in Texas

Energy company Targa Resources plans to build a 635-mile natural gas liquids pipeline in Texas from the Permian Basin to Mont Belvieu.

The pipeline, called "Grand Prix," will transport natural gas from the Permian Basin and from Targa's North Texas system to the company's fractionation and storage complex in the Mont Belvieu NGL market hub.

The pipeline will mostly run through gateways where other pipelines already exist. Some additional land acquisition is possible, but that information will not be known until surveying is complete.

Grand Prix will have a capacity of about 300,000 barrels per day and will be expandable up to 550,000 barrels per day.

The pipeline is expected to be in service by the second quarter of 2019.

"We are excited to be moving forward with Grand Prix, which will enhance our ability to move our customers' volumes from the wellhead in the Permian Basin and North Texas to key petrochemical and export markets," said CEO of Targa Joe Bob Perkins.

Houston Chronicle

Enbridge Finds Worthy Alternatives to Prevent Pipeline Leaks in Great Lakes

Enbridge on Friday endorsed two different alternatives to replace a 4.5 mile stretch of its Line 5 pipeline that carries crude oil and natural gas liquids from Superior, Wisconsin to Sarina, Ontario.

Local officials suggested the pipeline be removed in order to prevent any spills in the surrounding lakes, but the state of Michigan proposed that Enbridge evaluate other alternatives that would keep the lines under the lake, such as placing it through a tunnel.

Enbridge concluded that using horizontal directional drilling to push pipes underground was not feasible but has honed in on two other options.

One option is a half-billion dollar project that could take five to six years to complete. It would require a concrete-lined tunnel that would be 350 feet under the lake surface. The depth would be sufficient to prevent oil leaking into the lake in the case of a pipeline spill.

Another option includes an open-cut trench that could save up to 250 million dollars compared to the first alternative and even take one or two years less than the first alternative. It would prevent spills by making a thicker second pipe around the original pipe. The outer pipe would have a leak detection system.

Both options would mean that 15 state and federal permits would be required, and the entire project would require oversight from both the U.S. Army Corps of Engineers and Michigan environmental agencies.


Pennsylvania PUC Judge Orders Shutdown of Mariner East 1 Pipeline Yet Again

Just weeks after Pennsylvania regulators allowed Energy Transfer Partners to restart its Mariner East 1 natural gas liquids pipeline, a Public Utilities Commission administrative law judge on Thursday ordered the company to shut it down again.

PUC hearing examiner Elizabeth Barnes issued the emergency order requiring Energy Transfer to suspend service on its Mariner East 1 pipeline in West Whiteland Township.

Barnes also required the company to halt construction of two new Mariner East pipelines in West Whiteland.

The order comes after a complaint from State Senator Andy Dinniman about the safety of the construction in West Whiteland. Dinniman said the Mariner East project has potentially endangered the safety and “very way of life” in nearby communities, including the local environment and water resources.

Energy Transfer Partners said the order disregards the law and the PUC’s procedures. Legally, the pipeline company has seven days to request the PUC to review the judge’s order.

Earlier this month, the PUC had allowed Energy Transfer to restart operations of the Mariner East 1 pipeline after it ordered a shutdown in March when sinkholes appeared during construction of the new Mariner East 2 pipeline along the same route.

Energy Transfer said it would continue construction in all areas of the project except the 3.5-mile segment in West Whiteland.


Enterprise Products Announces Two Pipeline Expansion Projects

Enterprise Products Partners on Thursday announced two pipeline expansions that will bring natural gas liquids from Colorado to a storage facility in Texas.

Enterprise Products' 435-mile Front Range pipeline expansion will move liquids from northeastern Colorado to Skellytown in North Texas and expand the original pipeline by an additional 100,000 barrels per day.

The second expansion will connect Skellytown to Mont Belvieu with another natural gas liquids pipeline, adding 90,000 barrels per day to a line that will stretch 583 miles.

Both expansions are expected to be in service by middle of 2019.

Together, both expansion projects will make up a natural gas liquids network that will stretch from Colorado to the Gulf Coast.

Fuel Fix

Energy Transfer Plans 600,000-bpd Crude Pipeline from Permian Basin to Texas Coast

Energy Transfer Partners said Thursday it is building a crude pipeline from the Permian basin to the Houston Ship Channel and Nederland, Texas to serve growing export markets at coast ports.

The pipeline will have an initial capacity of 600,000 barrels per day and will be expandable to 1 million barrels per day, according to the company. The pipeline is planned to come online by 2020.

Energy Transfer Partners is also asking federal regulators for permission to put the full Rover natural gas pipeline in service by June 1. The Rover pipeline is designed to carry 3.25 billion cubic feet per day of gas from the Marcellus and Utica shale fields to the U.S. Midwest and Ontario, Canada.

Energy Transfer Partner's Mariner East 2 natural gas liquids pipeline in Pennsylvania has been delayed to come online in the third quarter of this year. Mariner East 2 is designed to expand capacity of the existing Mariner East from 70,000 to 345,000 barrels per day.

Energy Transfer is also planning an expansion called Mariner East 2X that will add another 250,000 barrels per day to the Mariner East project. The expansion is expected in 2019.

The company also said its 1.4 billion cubic-feet-per-day Red Bluff gas pipeline in the Permian will enter service later this month.


Pennsylvania Regulators Allow Restart of Mariner East 1 Pipeline After Two-Month Shutdown

Pennsylvania regulators on Thursday allowed Energy Transfer Partners to restart operations on its Sunoco Mariner East 1 natural gas liquids pipeline after a shutdown was enforced in March due to sinkholes that opened up around the pipe.

The 87-year-old pipeline will begin operations immediately, according to Energy Transfer who is also currently constructing the new Mariner East 2 pipeline along the same route.

The Pennsylvania Public Utility Commission on March 7 forced the shutdown of the Mariner East 1 after sinkholes exposed the pipe's steel in residential areas and caused concerns of a potential pipeline rupture.

Energy Transfer last week asked the commission to allow the restart of the 350-mile pipeline, saying that the company had complied with the commission's emergency order of filling the underground cavities and inspecting the pipeline.

The two-month shutdown cost Energy Transfer millions of dollars in revenue and reduced outlets for Marcellus Shale producers to move their products to market.

The Inquirer

Energy Transfer Partners Offers to Relocate Families Affected by Sinkholes From Mariner East 2 Pipeline Construction

Pipeline developer Energy Transfer Partners said it would relocate five Philadelphia families affected by sinkholes in their backyards that formed last month during construction for the Mariner East 2 natural gas liquids pipeline.

After the sinkholes were reported, the Pennsylvania Public Utilities Commission ordered a temporary halt to Energy Transfer's Sunoco Mariner East 1 pipeline, which runs parallel to the Mariner East 2 that is currently under construction, while Energy Transfer and regulators assess the integrity of East 1.

The 87-year-old Mariner East 1 carries as much as 70,000 barrels of natural gas liquids daily across Pennsylvania to Marcus Hook.

The families have been offered relocation for up to six weeks as well as reimbursement for food while Energy Transfer conducts geotechnical studies in their backyards related to the sinkholes.

The $2.5 billion Mariner East 2 pipeline is designed to run for 350 miles spanning Ohio, West Virginia, and Pennsylvania and will carry propane, butane, and ethane from the Marcellus Shale formation to the Marcus Hook facility near Philadelphia for both domestic distribution and export.

NBC Philadelphia

Mariner East 2 NatGas Liquids Pipeline Spills More Drilling Fluids in Pennsylvania

Pennsylvania regulators issued another notice of violation to Energy Transfer Partners on Monday after its Sunoco Mariner East 2 natural gas liquids pipeline spilled drilling fluids into a wetland.

Energy Transfer said it spilled less than one gallon of drilling fluids into a wetland in Shirley Township and that the incident was associated with horizontal drilling.

Drilling has temporarily stopped at the site until the Pennsylvania Department of Environmental Protection gives the company permission to resume.

Since May 2017, the Pennsylvania DEP has issued 46 notices of violation to Energy Transfer for various releases during construction.

The company's last spill into this wetland happened in October when it released between 5,000-10,000 gallons of drilling fluid, which is usually a mixture of clay and water.

Several work stoppages by Pennsylvania regulators have delayed the original expected completion date for Mariner East 2. Energy Transfer hopes to complete Mariner East 2 by the end of the second quarter.


Mariner East 2 Pipeline Spills Fluid in Creek Again, Pennsylvania Regulators Issue Notice of Violation

Pennsylvania state regulators on Friday issued a notice of violation to Energy Transfer Partners' Sunoco Mariner East 2 natural gas liquids pipeline after the company notified the department that it had released drilling fluids into a stream.

Energy Transfer Partners told the Pennsylvania Department of Environmental Protection that it released about 50 gallons of fluid into the Snitz Creek on Thursday while drilling underneath it in West Cornwall Township.

This incident marks the pipeline company's third inadvertent release of fluid into the Snitz Creek after one spill in August 2017 and another in September 2017.

The DEP said it would need to give Energy Transfer Partners its approval before drilling could begin again at the site.

The Mariner East 2 is designed to expand the total capacity of the Mariner East project to 345,000 barrels per day. Mariner East 2 is expected to be complete by the end of Q2 2018.


Pennsylvania Regulators Seek to Stop Flow on Mariner East 1 Pipeline After Sinkholes Found

The Pennsylvania Public Utilities Commission is seeking to stop the flow of natural gas liquids on the Mariner East 1 pipeline after a series of sinkholes were found in a Philadelphia suburb.

The Commission believes construction on Sunoco's twin Mariner East 2 pipeline has caused the sinkholes and are calling for the pipeline developer's Mariner East 1 pipeline to be shut down while Sunoco and regulators assess the integrity of the 87-year-old line.

Sunoco has been boring a tunnel under the Pennsylvania neighborhood by way of horizontal drilling through which to thread the Mariner East 2 pipeline.

One house in West Whiteland Township was evacuated as a sinkhole developed only 10 feet from the house’s foundation wall. The sinkhole was 15 feet wide and 20 feet deep.

A Sunoco spokesperson said on Monday that the company took immediate measures to stabilize and secure the affected areas by injecting an “approved liquid concrete mix” into the sinkholes.

The $2.5 billion pipeline is designed to run for 350 miles spanning Ohio, West Virginia, and Pennsylvania and will carry propane, butane, and ethane from the Marcellus Shale formation to the Marcus Hook facility near Philadelphia for both domestic distribution and export.


Andeavor Logistics Buys Wamsutter Pipeline System for $180 Million

Andeavor Logistics said Thursday it has purchased the 575-mile Wamsutter Pipeline System from Plains All American Pipeline for $180 million.

The Wamsutter Pipeline serves the Salt Lake City refinery market as well as Andeavor's Salt Lake City refinery.

The pipeline and storage company said it is also planning on spending nearly $150 million to build and operate a natural gas liquids transport and storage system called the North Dakota Logistics Hub that would tap into North Dakota's shale oil field. Andeavor expects the system to be complete by early 2019.

Andeavor Logistics' parent company Andeavor, formerly known as Tesoro Corp, said it also plans to offer its recently acquired Rangeland Energy II assets to Andeavor Logistics.

San Antonio Express-News