Permian Highway Pipeline Construction Will Begin Soon

The construction on the $2 billion Permian Highway natural gas pipeline, comprised of 430 miles of 42-inch pipeline carrying up to 2.1 billion cubic feet per day of natural gas from the Waha hub in Pecos County to the Gulf Coast will start soon.

The pipeline project is a partnership between Kinder Morgan, Midland's EagleClaw Midstream and Apache Corp, and the completion is expected in the fourth quarter of 2020.

According to Allen Fore, vice president, public affairs for Kinder Morgan, the pipeline will directly generate about 2,500 local construction and 18 full-time jobs, and the new facilities that are part of the Permian Highway project will generate approximately $42 million in increased annual revenue to state and local taxing authorities.

As part of beginning the construction, stakes have been placed in the ground and pipe stacked in yards.

Source:
chron

Trans Mountain Pipeline Construction Work Restarts

A year after the project’s latest regulatory setback, construction on parts of the Trans Mountain pipeline is restarting, Trans Mountain Corp said on Wednesday. The pipeline was bought last year by the Canadian government to help ensure the completion of the expansion to 890,000 barrels of oil per day after years of delay and strong disapproval by environmental and some indigenous groups.

“We are very happy that people will be in the field, digging the ground and installing the pipe,” Canada’s Minister of Natural Resource Amarjeet Sohi said at a news conference in Edmonton.

In the fourth quarter of 2019, approximately 4,200 workers are expected to be employed along the pipeline corridor and the company has issued notices to some contractors to mobilize construction equipment and crews, Trans Mountain Chief Executive Ian Anderson said in a statement.

Work is restarting at the Burnaby storage terminal where the pipeline terminates, and the Westridge marine terminal, where crude is loaded onto tankers. It will also soon begin in communities along the pipeline’s right-of-way in Alberta between Edmonton and Edson, and in the Greater Edmonton area.

Given a reason that the company failed to adequately consult indigenous groups, last year a Canadian court overturned the federal government’s 2016 approval of the project. But after a new regulatory review that gave a huge relief to Canada’s oil industry, Justin Trudeau’s Liberal government re-approved the pipeline in June.

Source:
reuters

$3.3 Billion Deal to Acquire Kinder Morgan Canada, Cochin Pipeline by Pembina

Houston-based Kinder Morgan has agreed to sell Kinder Morgan Canada and the U.S. portion of the Cochin Pipeline system to Calgary-based Pembina Pipeline Corp in a US$3.3 billion deal.

The deal will expand Pembina's crude oil storage capacity and is expected to close late in the fourth quarter of 2019 or in the first quarter of 2020, subject to customary closing conditions, including KML shareholder and regulatory approvals.

The sale includes a significant crude oil storage and terminal business in Western Canada's key energy complex, including the Edmonton storage and terminal business and Vancouver Wharves, a bulk storage and export/import business.

The transaction includes 100% of the Cochin Pipeline system, including the Canadian portion owned by Kinder Morgan Canada and the U.S. portion, which accounts for nearly half of the deal US$1.54 billion. The Cochin pipeline system consists of 1,180 miles of pipeline that can transport 95,000 barrels per day.

"(The acquisition) represents an ideal opportunity to continue building on our low-risk, long-term, fee-for-service business model while extending our reach into the U.S. through a highly desirable cross-border pipeline, said Mick Dilger, Pembina's president and CEO. "Further, it will enhance our diversification as well as Pembina's customer service offering as a leading provider of integrated services to hydrocarbon producers in Western Canada."

This is an attractive transaction for (Kinder Morgan) KMI and (Kinder Morgan Canada) KML stockholders,” said Steve Kean, CEO of Houston-based Kinder Morgan. “It enables KMI to reduce leverage and gives us the flexibility to create additional value for shareholders through share buybacks, project investments, or both.”

Source:
pgjonline

Elevate Midstream Plans to Build Gas Gathering Pipelines

Houston based Elevate Midstream Partners, LLC announced that it has entered into an eight-year gas gathering and treating agreement with Sabine Oil and Gas Corporation.

The company plans to build approximately 19 miles of 16 inch gas gathering pipelines plus associated laterals, including amine, dehydration and compression facilities in the Carthage area with interconnections to downstream takeaway markets.

“We are pleased to announce the execution of this agreement with Sabine and commencement of this project,” said Roger Fox, Chief Executive Officer of Elevate.

He added, “With our existing assets strategically located in the core of the Haynesville and Cotton Valley formations, this new pipeline will both expand our footprint and provide access to the competitive Carthage hub markets for our customers. We are delighted that Sabine, our anchor customer, has entrusted us to build our pipeline and continue to service their ambitious needs...”

Source:
worldpipelines

10K Gallons for Crude Oil Flows into Alberta Creek Due to Pipeline Rupture

Calgary-based Bonterra Energy Corp’s crude oil pipeline ruptured and spilled approximately 10,000 gallons (40,000 liters/250 barrels) of crude oil into Alberta creek, Alberta Energy Regulator said.

According to Alberta Energy Regulator, the spill occurred 14 kilometers (8.7 miles) south of Drayton Valley, Alta last week and the line was shut in and depressurized, and that containment booms were installed. Also regulators said that no impacts to wildlife were reported.

The company said in a news release that it began investigating a problem with the pipeline at 8 a.m. Thursday, and at 1 p.m. it discovered a rupture that was leaking into Washout Creek. The cleanup and recovery is expected to continue for the next three weeks.

As an extra precaution, Bonterra has placed additional booms where the Washout Creek meets the North Saskatchewan River, which is the source of Edmonton's water supply. The company is removing the oil with booms and vacuums, and is mitigating the effect on wildlife by setting up barriers as well as visual deterrents that include having people present.

Source:
cbc

Works on Mountain Valley Pipeline Suspended

Three days after a lawsuit that raised questions about the impact of Mountain Valley Pipeline on endangered species, developers of the pipeline have voluntarily suspended work on parts of the embattled project. It is not clear how much of the 303-mile natural gas pipeline will be affected.

“MVP’s voluntary suspension is not a matter of miles, it is a matter of doing the right thing,” spokeswoman Natalie Cox said in an email. “The voluntary suspension pertains to areas along the route that may potentially have an impact related to the Endangered Species Act; however, MVP expects to continue with construction, where permitted, in other areas along the route,” she said.

In a letter to Federal Energy Regulatory Commission, the company said that it has already laid about 238 miles of pipe, and work suspension will have no “material impact” on the number of workers employed, nor does it push back an expected completion date of mid-2020.

The letter also says that the suspension covers “new activities” that could pose a threat to the lives of endangered bats and fish, or potentially destroy their habitat. Most work will be halted on a 75-mile stretch, along watersheds in the counties of Giles, Craig, Montgomery, Roanoke, Franklin, and Pittsylvania. Works on another 20 miles that includes some streams and rivers in West Virginia are halted too.

Source:
roanoke

Ethane and Ethylene Pipeline Projects Announced by EPIC

Affiliates of EPIC, EPIC Y-Grade Pipeline and EPIC Olefins, will construct ethane and ethylene pipelines to support the steam cracker being built by Gulf Coast Growth Ventures in San Patricio County, EPIC announced.

“We are extremely proud to be a key supplier and service provider to Gulf Coast Growth Ventures as they construct a world class ethane cracker in the lower Gulf Coast,” said Phillip Mezey, Chief Executive Officer of EPIC.

The 130 miles 12 inch pipelines will be expected to be completed by the third quarter of 2020. The transportation agreements between EPIC and Gulf Coast Growth Ventures are multiyear and are underpinned by minimum volume commitments.

Source:
pgjonline

New Permian Pipeline to Gulf Coast Ships First Crude

San Antonio-based EPIC Midstream Holdings Inc., began shipping crude oil on its 400,000 barrel per day pipeline from the Permian Basin to the U.S. Gulf Coast on Thursday. EPIC is the second pipeline operator this year to open a major line from the top U.S. oil field to the Corpus Christi, Texas, area.

Plains All American Pipeline LP’s 670,000 barrel per day Cactus II pipeline stated its initial operations this week. Both new pipelines will help alleviate a crude oil bottleneck that has weighed on prices in the Permian of West Texas and New Mexico for more than a year.

Terminal operator Moda Midstream LLC confirmed it would be accepting the Permian crude from the EPIC line at its facility in Ingleside, Texas, by Friday. Oil prices in Midland, the heart of the Permian shale field, rallied to 50 cents per barrel over U.S. crude futures.

Source:
reuters

$170 Million Expansion Projects Announced by Kinder Morgan

Kinder Morgan is planning to invest $170 million in several expansion projects along the Houston Ship Channel.

"The announced improvements only serve to enhance our position as the market-leading refined petroleum products storage hub on the U.S. Gulf Coast," Kinder Morgan President of Terminals John Schlosser said.

The expansion projects includes $125 million investment to boost pipeline connections and speed up loading at its Pasadena Terminal and the nearby Jefferson Street Truck Rack. A butane-on-demand blending system for 25 storage tanks at its Galena Park Terminal will be build using another $45 million.

Schlosser added, "This offers our customers unmatched supply optionality and liquidity and modal efficiencies as they aim to maximize storage and blending economics and access domestic and global energy markets in the most cost effective manner possible."

Source:
chron

Permian Crude Shipment Started on Cactus II Pipeline

Crude oil shipments started from Permian basin to the Buckeye Texas Partners oil hub in Corpus Christi through the new Cactus II pipeline system, Global commodities trader Trafigura AG said on Monday.

A long-term agreement between Trafigura and the pipeline operator, Plains All American Pipeline LP was signed last year to transport a total of 300,000 barrels per day of crude and condensate on the Cactus II pipeline, which has a capacity of 670,000 barrels per day.

The Cactus II pipeline is expected to alleviate a bottleneck that had depressed regional prices for more than a year. Also the pipeline is first of three large pipelines expected to start up this year from the Permian Basin and the biggest in the United States.

Source:
reuters

PHMSA Approval Needed to Restart Texas Eastern Pipeline

The U.S. Pipeline and Hazardous Materials Safety Administration issued a corrective action order last week to Enbridge Inc., on its Texas Eastern pipeline in Kentucky that was damaged in a blast on Aug. 1. The company has to perform several tasks before the regulator will allow any flows through the blast site, near Danville, Kentucky.

Enbridge said in a release on Friday it was “working diligently to comply with the requirements identified by the PHMSA, and to return to service two adjacent natural gas pipelines near the incident site that were taken out of service as a precautionary safety measure.”

Texas Eastern pipeline system includes three lines, Lines 10, 15 and 25, between its Danville and Tompkinsville compressors in Kentucky that make up its 30-inch system. According to PHMSA, despite the fact that the blast occurred on Line 15, Enbridge could not restart Lines 10 and 25 without further investigation, as the blast might have also damaged Lines 10 and 25.

Enbridge must uncover and inspect parts of the lines and perform mechanical and metallurgical testing, among other things, before restarting gas flows through the blast site, PHMSA said. The blast killed one person, injured at least six other people, destroyed multiple structures and caused a fire that damaged about 30 acres.

Source:
reuters

Oryx Midstream Services Secures $550 Million Investment

Qatar Investment Authority has acquired a $550 Million stake in Oryx Midstream Services from an affiliate of Stonepeak Infrastructure Partners. Oryx Midstream Services is the largest privately-held midstream crude operator in the Permian Basin.

"The significant investment and commitment from QIA alongside Stonepeak's strong operational and capital support will allow us to continue to grow our footprint in the Permian Basin and deliver the highest level of service to current and future customers. We are thrilled to lead Oryx in partnership with these world-class investors." said Brett Wiggs, CEO of Oryx.

"We believe that Oryx represents a strong midstream platform with tremendous growth potential, and we look forward to working with our new partners at Stonepeak. This acquisition is a further demonstration of QIA's strategy to increase the size of our US portfolio, and to invest more in major infrastructure projects." said Mansoor Al-Mahmoud, CEO of Qatar Investment Authority.

The Oryx system currently operates 500 miles of gathering pipelines and transports crude oil to market hubs for ultimate delivery to the Gulf Coast. Upon completion of the remaining 680 miles of gathering pipelines, which is currently under construction, Oryx's total transportation capacity will exceed 900,000 barrels per day.

Qatar Investment Authority has committed to invest in the development of Oryx alongside Stonepeak. While Qatar Investment Authority’s partnership and total investment in Oryx will be approximately $550 million, it plans to invest $45 billion across the US in the coming years.

Source:
pgjonline

Energy Transfer Plans to Build VLCC Capable Crude Export Facility

Energy Transfer LP was in discussions with potential shippers to build an offshore crude oil export facility in Texas capable of handling Very Large Crude Carriers (VLCCs), which can transport about 2 million barrels of crude in a single shipment, the company said on Thursday.

Chief Financial Officer Thomas Long said during a quarterly earnings call for the company that the future export facility would be connected to its Nederland, Texas, crude terminal and a final investment decision has not yet been made. The company said it expects to take at least two or three years to begin construction on the VLCC project.

"We're very excited about this," Energy Transfer President Mackie McCrea said. "It's going to be a great market opportunity for our Nederland and Permian Express systems but also more importantly, for our customers bringing volume into Nederland." The company's next step is expected to be filing for a permit with the U.S. Maritime Administration.

Data from last week showed that U.S. crude exports jumped to a monthly record of 3.16 million barrels per day in June as South Korea bought record volumes and China ramped up purchases.

Source:
reuters

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.

Source:
chron

Construction on $100M Alberta Oil Pipeline Will Be Start Soon

Inter Pipeline Ltd., said that its new $100-million crude oil pipeline project, Viking Connector will commence immediately. The pipeline will connect Inter Pipeline’s Throne Station on its Bow River pipeline system near Coronation to its Central Alberta pipeline system near Stettler.

Once the 47-mile (75-kilometer), eight-inch diameter Viking Connector project is completed, the company forecasts throughput volume of 10,000 to 15,000 barrels per day. The project is expected to be completed in the first half of 2020 and approximately one third of forecast shipments are currently secured for a 10-year term.

Inter Pipeline CEO Christian Bayle said in a statement that the new connection will provide economical access to the Edmonton market hub, which historically has been a premium market for Alberta light oil products. He added “Producers in the Alberta Viking and surrounding plays are currently limited to pipeline services to the Hardisty hub or costly trucking alternatives.”

Source:
pipelinenewsnorth

Open Season initiated for Canadian Mainline

Kallanish Energy reported that Enbridge has announced an open season to solicit transportation services on the Canadian Mainline pipeline system. The open season is to provide shippers with the opportunity to enter into long-term contracts for priority transportation service on the Mainline.

The Mainline system was a common carrier system in which shippers submit monthly bids for capacity, but Enbridge is converting it to one that is mostly contracted for up to 20 years. At least 10% of capacity will remain reserved for uncommitted volumes at all times.

The open season started on August 2nd and will end on October 2nd. Subject to regulatory approval, Enbridge is seeking to have Canadian Mainline contracting take effect on July 1, 2021. The system exceeds 3,100 miles in length including multiple paths. More than 1,900 miles of the system is in the U.S., while the rest is in Canada and serves the Western Canada oil sands.

Mainline’s crude-carrying capacity will be 3.23 million barrels per day, following completion of the Line 3 Replacement project. The company will be contracting 2.9 million barrels per day and the remaining 325,000 barrels per day will remain in spot service.

Source:
kallanishenergy

Commercial Service on Cactus II Pipeline Will Start Next Week

The new Cactus II crude oil pipeline, owned by Plains All-American, is mechanically complete and will begin commercial service next week, CEO Willie Chiang said. The pipeline will have the capacity to transport 670,000 barrels per day of crude oil from the Permian Basin to the Gulf Coast.

"As of today, the line is approximately 50% filled with crude, and we anticipate entering initial commercial service sometime next week," Chiang said during a conference call with investors to discuss the company's second-quarter financial results. "We expect to have direct Cactus II connectivity to Corpus (Christi) in service by the end of the first quarter 2020."

In-order to ease the bottlenecks that developed as a result of the fast-rising Permian Basin production, Cactus II is one of three new crude oil pipelines scheduled to enter service before the end of the year.

The other two pipelines scheduled for completion this year are the EPIC Crude Oil Pipeline from Orla, Texas, to Corpus Christi and Phillips 66 Gray Oak Pipeline.

According to Chiang, the company has also added new investors to its proposed Wink-to-Webster pipeline and expects to start operations on the project in the first quarter of 2021.

Source:
pgjonline

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.

Source:
worldpipelines

Texas Eastern Pipeline Remains Shut after Kentucky Blast

The section of Texas Eastern pipeline that got damaged in a fatal explosion near Danville, Kentucky on last Thursday remains shut. The company is working with federal and state officials to investigate the incident. 

U.S. National Transportation Safety Board assumed control of the incident site and the company is supporting the investigation, Enbridge said. According to the Refinitiv data, about 1.7 billion cubic feet of gas was flowing through the damaged section of pipe toward the Gulf Coast at the time of the blast, from the Marcellus and Utica shale in Pennsylvania, Ohio and West Virginia.

The company said that Texas Eastern has three lines, Line 10, 15 and 25, between its Danville and Tompkinsville compressors in Kentucky and the blast occurred on Line 15. The three lines make up its 30-inch pipeline system.

Enbridge has not estimated when the damaged section of pipe will return to service at this time and has restricted north-to-south gas flows through the Danville compressor to zero.

Source:
pgjonline

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.

Source:
worldpipelines