Two Companies Joining Forces to Construct $1.6 Billion Liberty Pipeline

A 50/50 joint venture between Phillips 66 and Bridger Pipeline LLC has formed and the companies will be proceeding with the construction of the 24 inch Liberty Pipeline. The pipeline is expected to cost approximately US$1.6 billion and will provide crude oil transportation services from the Rockies and Bakken production areas to Cushing, Oklahoma.

Subject to receipt of applicable permits and regulatory approvals, initial service on the pipeline is targeted to commence as early as the first quarter of 2021. Phillips 66 will handle both project construction and operating the pipeline.

“The Liberty Pipeline presents us with a great opportunity to serve producers in the growing Bakken and Rockies production areas,” said Greg Garland, Chairman and CEO of Phillips 66. “The pipeline adds to our integrated infrastructure network that serves the key shale oil producing regions with connectivity to major Gulf Coast market centers. Our pipeline network has strategic alignment with our Central Corridor and Gulf Coast refineries, further enhancing value across our assets.”


Philips 66 Enters Joint Venture to Build $2.5 Billion Red Oak Pipeline

Phillips 66 has teamed up with Plains All American Pipeline LP to construct the $2.5 billion Red Oak Pipeline system that will deliver crude oil from Cushing, Oklahoma, and the Permian Basin in West Texas to Corpus Christi, Ingleside, Houston and Beaumont, Texas.

The plan is to build a 30-inch pipeline from Cushing to Wichita Falls and Sealy, Texas. It also will build a 30-inch pipeline segment from Sealy to Corpus Christi and Ingleside and a 20-inch pipeline segment from Sealy to Houston and Beaumont.

The company expects to commence initial service as early as the first quarter of 2021. As per the release, Plains will handle project construction and Phillips 66 will operate the pipeline.

“Red Oak represents a capital-efficient industry solution that will utilize existing assets and provide pull-through benefits to our systems,” Willie Chiang, CEO of Plains All American, said in the release. “We look forward to working closely with Phillips 66 and our committed shippers to bring Red Oak into service and further optimize our assets upstream and downstream of the new pipeline system. We also look forward to creating jobs and supporting economic growth in Oklahoma and Texas.”


Temporary Embargo of Deliveries for Pony Express Pipeline Segment

The south end of Pony Express pipeline system has been shut down due to an extensive flooding on the Cimarron River in Oklahoma, Tallgrass Energy LP said on Thursday.

The company has provided notice of a temporary embargo of deliveries for the shut segment that runs from Sterling, Colorado through to Cushing, Oklahoma, a Tallgrass Energy spokeswoman said.

The Pony Express pipeline has a capacity of 320,000 barrels per day and starts in Guernsey, Wyoming, and flows southeast to Cushing, Oklahoma.

“We will restart operations as soon as the weather permits,” she added.


Sunoco Pipeline to Pay Over $5 Million After Three Oil Spills

Sunoco Pipeline will pay more than $5.4 million to settle with the state of Louisiana and the federal government after three oil spills occurred in Texas, Louisiana, and Oklahoma.

In a Thursday agreement to pay civil penalties and state enforcement costs, the company hopes to resolve the alleged violations of the Clean Water Act from the three oil spills that occurred between 2012 and 2015. Pipeline corrosion was the cause of the spills.

550 barrels of oil in Tyler County, Texas spilled in 2013. 4,500 barrels in Caddo Parish, La. In 2015, and then 40 barrels in Grant County, Okla in 2015.

The settlement includes agreements for Sunoco to perform inspections related to corrosion.


Plains’ Capline Pipeline Reversal to Begin Service in Third Quarter 2020

Plains All American’s Capline crude pipeline is expected to begin service in the third quarter of 2020, according to an announcement by the company on Tuesday.

The U.S. Midwest to Gulf Coast pipeline has the target in-service date for light oil service in third quarter 2020 while heavy oil service is expected in early 2022.

“The capacity from Cushing, Okla. down to St. James, Lou. should be available on a quicker time frame than heavy moving down from Illinois,” Chief Executive Officer Willie Chiang said on the call.

The Cushing to St. James shipment would include 200,000 barrels a day of expansion, pending a successful open season, and a modest extension of the Diamond JV pipeline that will connect to Capline, Plains said.

Currently, Capline is the largest crude pipeline running from the Gulf Coast to refineries in the Midwest. Volume on Capline have sharply declined as the U.S. shale boom pushed inland crude to East Coast and Gulf Coast.


67,000 Left Without Natural Gas After Tulsa Pipeline Ruptures

A Tulsa gas line explosion near 21st and Memorial prompted immediate evacuation within a 3-mile radius of the incident as emergency crews rushed to respond.

The 16-inch gas line was capped around 8:00 pm, and police say that the area has been deemed safe.

There were no crews working at the exact moment of the incident, however police have stated that a truck hit the line.

Tulsa police reported that around 67,000 customers were left without natural gas.

News on 6

Open Season on Magellan Midstream's 500-Mile Voyager Pipeline to Be Extended

Magellan Midstream Partners LP and Navigator Energy Services are extending the open season to book capacity on the proposed Voyager Pipeline after they announced a significant rise in interest.

Binding commitments are now due on March 29.

The Voyager Pipeline is a proposed 500 mile pipeline project that will move crude oil and condensate from storage terminals in Cushing, Oklahoma to refineries and export terminals in Houston.

This project is a joint venture project that would include the construction of a 20-inch or 24-inch pipeline, which could move up to 300,000 barrels of crude oil and condensate per day from Magellan's terminal in Cushing to the company's terminal in East Houston.

At the Houston terminal destination, Magellan's pipeline network would be able to deliver crude oil and condensate to all refineries in the Houston and Texas City area or to crude oil export facilities.

Magellan said the Voyager Pipeline could be operational by late 2020, if approved by regulators and the project receives enough interest.


Tallgrass and Kinder Morgan Agreement to Include 200 Miles of New Pipeline Construction to Oklahoma

Tallgrass Energy and Kinder Morgan announced an agreement on Tuesday to jointly develop a solution that would increase existing crude oil takeaway capacity in the growing Powder River and Denver- Julesburg basins while adding incremental capacity to the Williston Basin and portions of Western Canada.

The proposed venture would include both existing and newly constructed assets. Tallgrass would contribute its Pony Express Pipeline System while Kinder Morgan would contribute portions of its Wyoming intrastate Company and Cheyenne Plains Gas Pipeline. The company then intends on beginning the process of abandonment and conversion of those assets to crude oil service.

200 miles of new pipeline will also need to be constructed to provide crude oil deliveries into Cushing, Okla.

The combined project is expected to provide initial service as early as the second half of 2020, however completion of the transaction between Tallgrass and Kinder Morgan remains subject to conditions such as receipt of applicable state and federal regulatory approvals, among other items.

Business Wire

Open Season Launched for Gladiator Pipeline Linking Oklahoma and Houston

An open season will be held to solicit binding commitments for development of a pipeline system that will transport segregating batches of light crude from Cushing, Okla. to Houston.

SemGroup Corp. and DCP Midstream LP (jointly known as “Carriers”) are the involved companies for the proposed Gladiator Pipeline that would start at SemGroup’s Cushing terminal.

SemGroup said that Gladiator will offer DJ basin and other Midcontinent producers an additional outlet to the US Gulf Coast.

Pending sufficient interest and regulatory approvals, Gladiator could be operational by third-quarter 2020 and have a capacity of 300,000 bpd.

The open season ends Jan. 31, 2019.

Source:  SEMGroup


Tallgrass Energy Announces Anchor Shipper for Seahorse Pipeline

Tallgrass Energy announced on Monday that it has signed a binding agreement with an unaffiliated third-party that will potentially be an anchor shipper and equity partner in Tallgrass’s Seahorse Pipeline.

The Seahorse Pipeline would move crude oil from Cushing, Okla. To both the St. James, La refining complex as well as Tallgrass’s planned Plaquemines Liquids Terminal (PLT) in Louisiana.

“The Seahorse agreement provides strong proof of concept for our pipeline project,” said Tallgrass Chief Operating Officer Bill Moler. “The market is excited about the versatility of Seahorse, which has multiple options including refinery demand in the St. James area and substantial export capability.”

On Nov. 30, Tallgrass Pony Express Pipeline, LLC will launch a new joint tariff open season soliciting shipper commitments for crude oil transportation under a joint tariff between the Pony Express and Seahorse Pipeline from Guernsey and DJ-Basin origin points to the St. James refinery complex and PLT.

There were additional announcements such as the acquisition of $30 million worth of land that will serve as the site for PLT. It is 600 acres across the Mississippi River about 30 miles south of New Orleans. PLT will offer up to 20 million barrels of storage for both crude oil and refined products and export facilities.

Street Insider

Tallgrass Energy Scheduling Open Season for Pony Express

Tallgrass Energy has scheduled an open season for crude oil shipping commitments for their Pony Express system. It began on Friday and will extend to January 18.

Crude oil will move from Guernsey, Wyoming to refinery deliver points along the Pony Express and Cushing, Oklahoma.

Depending on the results, the pipeline could expand an additional 300,000 bpd beyond the expected year-end capacity of 400,000 bpd. Full service is expected in the third quarter of 2020.

Tallgrass’s other new pipeline project, Iron Horse, is expected to start commercial operations in early 2019. The pipe will initially have approximately 100,000 bpd and could expand to around 200,000 bpd.

Pipeline & Gas Journal

Cheniere Energy Requests Permission to Bring Billion Dollar Midship NatGas Pipeline in Oklahoma Into Service

Cheniere Energy Inc asked U.S. energy regulators on Friday for permission to start working on their $1.025 billion Midship natural gas pipeline in Oklahoma.

The company asked the FERC for authorization to start building the proposed 234-mile pipeline in three segments. The project is expected to be complete by early 2019, Cheniere said.

Midship is designed to deliver 1.44 billion cubic feet per day (bcfd) of gas from the Anadarko basin to existing pipelines near Bennington, Oklahoma to transport liquefied natural gas to Gulf Coast and Southeast markets.

Expectation of total U.S. LNG export capacity should rise to 8.3 bcfd by the end of 2019 and 9.6 bcfd by the end of 2020 from 3.8 bcfd now.

Most of the U.S. LNG export terminals are located or being built along the Gulf of Mexico in Louisiana and Texas


CenterPoint to Acquire Velocity Midstream for $442 Million

CenterPoint Energy’s pipeline company has agreed to acquire Oklahoma’s Velocity Midstream for around $440 million as they grow their crude oil pipeline gathering and processing network.

Velocity holds a large network in Oklahoma’s Anadarko Basin, which expands into the Texas Panhandle, as well as in the SCOOP and Merge shale plays in Oklahoma.

Enable also said it plans to expand its crude oil and water pipeline gathering systems in North Dakota with the uptick in activity in the region and a large number of drilled but uncompleted wells that have not yet produced oil.

"Today's announcements continue Enable's strategy of extending our reach across the midstream value chain by significantly expanding our crude business," said Enable Midstream President and CEO Rod Sailor.

Last month, Enable announced its plan to build a 165-mile gas pipeline from northwestern to southwestern Louisiana along the Texas state line. Gas would be taken from the Haynesville Shale and other regions to new liquefied natural gas export terminals in Louisiana and Texas.

That project is estimated at around $550 million.

Houston Chronicle

$550 Million Pipeline Project Proposed by CenterPoint in Louisiana and Texas

A $550 million natural gas pipeline project is being proposed by a pipeline company backed by Houston’s CenterPoint energy to feed the liquefied natural gas exporting business along the Gulf Coast.

Oklahoma-based Enable Midstream Partners said the proposed 165-mile gas pipeline will stretch across the Texas state line from northwestern Louisiana to southwestern Louisiana, taking gas from the Haynesville shale and other regions to be shipped down to new LNG export terminals in Louisiana and Texas.

"We are excited about this opportunity to diversify and expand Enable's transportation footprint to connect directly to U.S. Gulf Coast markets," said Enable Chief Executive Rod Sailor.

The goal is to complete the project as early as 2022.

Houston Chronicle

Tulsa's ONEOK to Expand Arbuckle II NGL Pipeline in $1 Billion NatGas Investment

Tulsa-based ONEOK said it will invest more than $1 billion on a new natural gas processing plant in Mont Belvieu and a major pipeline running from Oklahoma to the Houston region.

ONEOK said $250 million of their investment will be used on expanding the Arbuckle II NGL pipeline to the Mont Belvieu storage and processing hub. The remaining $750 million will be spent on a new fractionator that separates the components of NGLs into ethane, butane, propane, and more.

The approximately 530-mile pipeline is expected to be completed in the first quarter of 2020, and will see an increase to 500,000 barrels per day from the initially proposed 400,000 barrels per day.

Earlier in September, ONEOK announced a $300 million investment to connect its West Texas NGL pipeline system to the Arbuckle system.

"Continued production growth across the basins ONEOK serves requires additional NGL fractionation and natural gas processing capacity," said ONEOK Chief Executive Terry Spencer. "Producers are looking for increased connectivity with the Mont Belvieu market center, and ONEOK is competitively positioned to provide it."

Houston Chronicle

Enable Midstream Launches Nonbinding Open Season for New Gulf Coast Gas Pipeline

Enable Midstream Partners out of Oklahoma City, launched a nonbinding open season to gather additional interest for natural gas transportation capacity on the Gulf Run Pipeline, a planned interstate transportation project designed to connect US gas supplies to LNG export markets on the Gulf Coast.

The project is backed by an unnamed cornerstone shipper for a 20-year, 1.1 bcfd of firm capacity service, according to the Oil & Gas Journal.

Up to an estimated 165 miles of large-diameter pipeline will be constructed from northern Louisiana to Gulf Coast markets.

The project is designed to utilize the company’s transportation system to provide access to gas-producing regions, including the Haynesville, Marcellus, Utica, and Barnett shales as well as the Midcontinent region.

The project is expected to be placed into service in 2022.

The open season continues through Oct. 26.

Oil & Gas Journal
Seeking Alpha

Energy Transfer to Team Up with Multiple Companies and Build 600 Mile Permian Pipeline

Energy Transfer Partners is teaming up with Magellan Midsteam Partners and others as they plan a new 600-mile Permian pipeline system to Houston.

Dallas-based Energy Transfer and Oklahoma’s Megellan said they have partnered with Israel’s Delek Group and Ohio-based MPLX, which is the pipeline arm of Marathon Petroleum, to fund the construction of the multibillion-dollar pipeline project. They have confirmed that they have enough customer support to move forward.

The new partnership 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.


Atlantic Coast Pipeline Only a Few Finishing Touches Away From Being Active

The owner of the Atlantic Sunrise natural gas pipeline has asked federal regulators for permission to activate the pipeline on September 10.

If approved by the Federal Energy Regulatory Commission, the pipeline would transport natural gas from fracking wells in northeastern Pennsylvania south through a 42-inch, nearly 183-mile pipe to the existing Transco pipeline in Lancaster county near Holtwood.

Around 37 miles of the pipeline is in Lancaster County.

Gas is scheduled to go from Holtwood to markets along the eastern seaboard as far south as Alabama. There will also be some that is exported overseas from the Cove Point liquid natural gas facility near Baltimore.

Oklahoma-based William Partners estimated that the pipeline would be ready for gas by the end of August, but there were some delays in final landscaping work due to recent heavy rains that resulted in final cleanup and restoration work above ground being prolonged, the company said in its filing.

The company told FERC that it has developed a plan to expedite the remaining restoration activities after rain damaged some of the completed section of the pipeline rights of way above ground.

The above ground restoration is not expected to be completed until October, although it will have no effect on the below-ground pipeline if it is transporting gas, a Williams spokesman said.

Lancaster Online

New Facts Released from Fatal Oklahoma Fire That Killed Five

After a January fire killed five in an eastern Oklahoma drilling rig, federal investigators said on Thursday that more than 100 barrels of drilling fluid poured out of a natural gas well prior to igniting.

The Chemical Safety and Hazard Investigation Board's lead investigator explained that the volume of fluid should have triggered alarms at the site especially since the 107 barrels of oil is far above the five to 10 barrels of drilling mud outflow threshold that is used to trigger an alarm at oil and gas operations. The alarm would have indicated that natural gas had flooded the well at dangerous levels.

The drilling fluids started pouring from the blowout preventer, used to prevent well explosions, after being pushed out the well by natural gas.

It was unclear how long workers knew of the surge in drilling fluids prior to the actual explosion. The ignition source that led to the explosion is also unknown.

The investigation is still expected to continue for several more months. Interim executive director of the chemical safety board said that the goal was to complete the investigation within 12 to 18 months from the accident.

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