Goodnight Midstream Receives $500 Million for Expansion

Dallas-based private equity firm Tailwater Capital has committed more than $500 million for Goodnight Midstream to expand its oil field water operations. Goodnight Midstream is active in Bakken Shale of North Dakota, the Permian Basin of West Texas and Eagle Ford Shale of South Texas on moving produced water or saltwater and oilfield wastewater. 

"With this capital flexibility, we will continue to meet the increasing demand from our customers for scalable produced water infrastructure solutions and remain focused on providing safe, reliable and environmentally sustainable produced water logistics services to our customers," Goodnight Midstream Co-Founder and CEO Patrick Walker said in a statement. 

"With favorable market dynamics driving further investment in the produced water midstream sector, and the company's numerous customer contract wins, our team at Tailwater has strong conviction in Goodnight's industry leadership and continued success," Tailwater Capital Co-Founder and Managing Partners Edward Herring said in a statement. 

Dozens of saltwater disposal wells and hundreds of miles of produced water pipelines are operated by Goodnight Midstream in the Bakken Shale of North Dakota, the Permian Basin of West Texas and Eagle Ford Shale of South Texas. Two pipeline systems were put into service recently in the Permian Basin that will move 600,000 barrels of wastewater from oil and natural gas wells to disposal sites.


Phase 1 of Largest Water Gathering System in South Texas Completed

EVX Midstream Partners, a Houston-based pipeline operator has completed the first phase of construction of oilfield wastewater gathering system in the Eagle Ford Shale of South Texas. It is touted as the largest wastewater gathering system in South Texas shale play.

"EVX is positioned to be the largest gatherer of produced water in the Eagle Ford basin," CEO Herb Chambers IV said in the statement. "We have recently completed over 300 miles of large diameter water gathering systems and have pipe connected many of our 20-plus saltwater disposal wells to provide our producer customers and trucking companies unprecedented operational flexibility”.

Oilfield wastewater, also known as produced water, is treated to be used again in drilling or hydraulic fracturing operations but most of it is pumped into deep underground reservoirs known as saltwater disposal wells.

The company owns and operates 26 saltwater disposal wells throughout the Eagle Ford Shale that are permitted to inject up to 600,000 barrels of water per day. Produced water was traditionally hauled by 18-wheelers to disposal sites, though the trucks are increasingly replaced by pipelines.


Joint Venture to Construct 475 Mile Whistler Pipeline

A final investment decision to design and construct the proposed Whistler pipeline was taken by MPLX, WhiteWater Midstream and Stonepeak Infrastructure Partners/West Texas Gas, Inc.

The 475 mile long pipeline from the Permian Basin in West Texas to the state’s Coastal Bend region will be built by the joint venture, MPLX reported late Wednesday.

The pipeline will be designed to carry approximately 2 billion cubic feet per day of gas through a 42 inch diameter pipe from Waha, Texas, to the Agua Dulce area in South Texas.

The majority of available capacity on the proposed pipeline has been subscribed and committed by long-term transportation agreements and the remaining capacity will be fully subscribed in the coming months.

“The decision to move forward with this project after securing sufficient commitments from shippers demonstrates our disciplined approach to investing,” MPLX President Michael J. Hennigan said in a written statement. “Whistler is expected to provide reliable residue gas transportation out of the Permian Basin, which is vital to our growing gas processing position and producers in the region.”

The pipeline is expected to begin service during the third quarter of 2021, subject to pending regulatory and other approvals.


Open Season for Kinder Morgan and Phillips' 850-Mile Gray Oak Pipeline Announced

Phillips 66 and Kinder Morgan Inc., announced an open season on Monday for shipper commitments for its Gray Oak Pipeline.

The Gray Oak Pipeline stretches from the Permian Basin to delivery points at or near the Houston Ship Channel and capable for crude deliveries of 900,000 barrel per day.

According to an analyst, The Gray Oak Pipeline could help alleviate a crude oil transportation bottleneck in the Permian Basin of West Texas and New Mexico.

Through a connection in South Texas, The Gray Oak Pipeline would deliver crude to the Houston area.


Williams' Gulf Connector Project Placed into Full Service, Connects to 10,000 Miles of Pipeline

Williams announced that its Gulf Connector Project has been placed into service. The project will further connect the Transco Pipeline with global LNG markets and expand its delivery capacity by 475 million cubic feet per day.

“Since 2017, Williams has now added more than two billion cubic feet per day of capacity to directly serve global LNG export facilities,” said Alan Armstrong, president and chief executive officer of Williams. “Projects like Gulf Connector, which leverage existing gas pipeline infrastructure, make it possible to connect abundant domestic supply with emerging international markets, giving a boost to the U.S. economy while helping meet the world’s increasing demand for clean energy.”

Williams is well-positioned to take advantage of the LNG demand growth surge since its Transco pipeline passes through every U.S. state with an LNG export facility currently under construction.

Transco is one of the largest interstate natural gas pipeline systems, delivering natural gas to customers through approximately 10,000 miles of pipeline and extending nearly 1,800 miles between South Texas and New York City.

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