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.


Binding Open Season Announced for Thunder Creek NGL Pipeline

A binding open season to secure volume dedications for the proposed construction and development on its existing Thunder Creek NGL Pipeline system was announced by Meritage Midstream. The binding open season started at 8:00 AM MT on June 10, 2019 and is scheduled to conclude at 5:00 PM MT on July 10, 2019.

The pipeline will transport NGLs from two processing plants in Campbell and Converse counties, Wyoming, to an interconnection point with ONEOK's Bakken Pipeline in Converse County.

Meritage said the open season seeks to obtain volume dedications from shippers to the following proposed new movements:

1. Originating from Thunder Creek Gas Services' 50 Buttes Process Plant in Campbell County with a destination at an interconnection with ONEOK Bakken Pipeline in Converse County, and

2. Originating from Thunder Creek's Steamboat I Natural Gas Plant in Converse County, with a destination at an interconnection with ONEOK Bakken Pipeline in Converse County, Wyoming.

The proposed new origin and destination points will allow potential shippers to move product from Thunder Creek plants in the Powder River Basin to a newly established interconnect with ONEOK Bakken Pipeline at Well Draw in Converse County.

It will then provide access to ONEOK’s Niobrara Lateral, which will ultimately access newly created capacity on ONEOK’s Elk Creek expansion. The new movements is expected to be completed in the third quarter of 2019, subject to shipper demand.


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.


Williams and Targa to Construct Nearly 300 Mile of NGL Pipe in New $600 Million Investment

Williams and Targa Resources Corp. have announced that they will be working on a new NGL pipeline. The agreement will have the project link the Conway, Kansas, and Mont Belviue, Texas NGL markets.

The 188 mile Bluestem Pipeline will be built by Williams from its fractionator in Conway, Kansas and the terminus of Overland Pass Pipeline to an interconnect with Targa’s Grand Prix NGL Pipeline in Kingfisher County, Oklahoma.

Targa will be responsible for construction a 110 mile extension of Grand Prix which will connect southern Oklahoma and the Sooner Trend oilfield, the Anadarko basin, as well as Canadian and Kingfisher counties in Central Oklahoma where it will finally connect with Williams’ new Bluestem Pipeline.

“Expanding our NGL pipeline business to interconnect with Targa’s strategically-positioned Grand Prix Pipeline will provide Williams and our customers with access to Mont Belvieu while opening up additional markets for Conway,” said Alan Armstrong, President and Chief Executive Officer of Williams.

 “The further expansion of our Grand Prix NGL Pipeline into the STACK is an attractive extension of a highly strategic asset for Targa and will direct significant incremental NGLs over the long-term from Williams and other third parties to Grand Prix and to our downstream assets in Mont Belvieu and Galena Park,” said Joe Bob Perkins, Chief Executive Officer of Targa.

An expected investment of $350 million to $400 million will be made by Williams in these NGL logistics projects, and an expected cost of $200 million will be made by Targa’s Grand Prix extension, which will have an initial capacity of approximately 120,000 bpd.

For both the Grand Prix extension and the new Bluestem Pipeline, the target in-service date set is first quarter of 2021, according to Targa and Williams.

Williams also plans to expand the DJ Lateral of the Overland Pass Pipeline and make improvements at its Conway NGL Storage facility, as part of this project.

World Pipelines

Energy Transfer To Attend Hearing Regarding Mariner East 2

Energy Transfer LP representatives will be attending a hearing on Thursday to defend the company’s plan to put the Sunoco Mariner East 2 natural gas liquids pipe into service by year end.

The company wants to temporarily connect an existing 12-inch pipe from the 1930’s to the part of its long-delayed 20-inch Mariner East 2 pipeline that has been already completed in order to start transporting liquids for customers.

Customers have been waiting for more than a year to ship liquids on Mariner East 2. The original planned service date for the $2.5 billion project that began in February 2017 was third quarter of that same year.

Mariner East 2 has been under scrutiny for being one of two Energy Transfer projects that have amassed over 800 state and federal permit violations while being built.


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

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.


Apache Corp Signs on as Anchor Customer of 538-Mile NGL Pipeline

Apache Corp said it will be an anchor customer of Enterprise Products Partners' 658-mile natural gas liquids pipeline in Texas, which will serve as a long-term outlet for the producer's large volume of NGL it plans to produce in West Texas.

Enterprise's Shin Oak NGL pipeline will run from Reeves County, Texas to the pipeline company's storage hub east of Houston in Mont Belvieu. Pipeline construction is expected to be complete in mid 2019.

Apache Corp also signed on as a major customer of the planned EPIC Crude Oil pipeline that will run from Apache's Alpine High development to Corpus Christi.

Apache will move more than 200,000 barrels of NGLs per day on the Shin Oak, which will have a starting capacity of 550,000 barrels per day.

Fuel Fix

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 Asks Pennsylvania Regulators to Allow Restart of Mariner East 1 Pipeline

Energy Transfer Partners filed with Pennsylvania utility regulators Friday to restart its Sunoco Mariner East 1 natural gas liquids pipeline in hopes the line will come back online this week.

Operations were suspended on the pipeline in early March after sinkholes were discovered near the project in residential areas.

A spokesperson for the pipeline company said integrity testing for the pipeline is complete and that it will continue to operate safely.

Energy Transfer Partners is also building its $2.5 billion Mariner East 2 pipeline, which will boost total capacity of the Mariner East project to 345,000 barrels per day and open the line up to more suppliers.

Delays as a result of more than 50 notices of violation from Pennsylvania regulators related in part to spills have pushed the start date of Mariner East 2 to the end of the second quarter this year.


North Dakota Regulators Approve $1.8 Million Cherry Creek NGL Pipeline

North Dakota regulators have approved a $1.8 million natural gas liquids pipeline project that will be developed by ONEOK Rockies Midstream in the northwestern area of the state.

ONEOK will convert an existing natural gas gathering pipeline and part of another gathering pipeline into a natural gas liquids transmission line, or the Cherry Creek Pipeline.

North Dakota's Public Service Commission said in its approval that the pipeline would be a safer transportation option as well as help reduce excess natural gas flaring.

The pipeline will transport up to 50,000 barrels of natural gas liquids from McKenzie County to Williams County, where it will then go into the Bakken Pipeline.

The pipeline conversion will involve little construction and is expected to be in use by the end of 2019.

The Washington Post

First Phase of EPIC 400-Mile NGL Pipeline Now in Operation

Midstream company EPIC announced that the first phase of its 700-mile NGL pipeline project is now in operation.

The 40-mile segment went into operation last month as EPIC continues moving forward on the project that will eventually carry Permian NGLs to Corpus Christi.

The second 250-to-275-mile segment is expected to be completed in July, according to the San Antonio-based company.

The third and final segment is expected to be completed in the last half of 2019.

The full EPIC NGL Pipeline is designed to have a throughput capacity of 350,000 barrels per day of NGLs.

The pipeline will run parallel with EPIC's proposed crude pipeline that also will also extend from the Permian Basin to Corpus Christi.

Houston Chronicle

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.


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

Pennsylvania Fines Sunoco More Than $12 Million, Allows Mariner East 2 Construction to Resume

The Pennsylvania Department of Environmental Protection has allowed construction of the Mariner East 2 pipeline to resume after fining the pipeline builder approximately $12.7 million.

The state DEP ordered Sunoco in early January to halt construction of the Mariner East 2 pipeline across the southern part of the state, noting a series of spills of drilling fluid and other violations against the terms of its permit.

Of the 350-mile long project, 6.5 miles goes through northern Lancaster County, Pennsylvania.

In the DEP's order in January, it required that Sunoco fully explain the failures that led to the violations and then come up with a plan to fix those failures.

The consent agreement that came Thursday means Sunoco can now resume construction on the project that will run from the Marcellus Shale natural gas formation in western Pennsylvania to an export near Philadelphia.

The DEP said it would be monitoring Sunoco's activities closely to ensure that the company meets the terms of the agreement.

Lancaster Online