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.”

Source:
bizjournals

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.

Source:
rigzone

Open Season Extended for the Proposed Voyager Pipeline

An extension of the open season to solicit commitments from shippers for the proposed Voyager Pipeline was announced by Magellan Midstream Partners, L.P. and Navigator Energy Services. The pipeline will transport crude oil from Cushing, Oklahoma and Midland, Texas to Houston.

The proposed Voyager Pipeline would include construction of 20 inch diameter pipelines from both Magellan’s Cushing and Midland terminals to Magellan’s terminal in Frost, Texas and a 24 inch diameter pipeline would be constructed from Frost, Texas to Magellan’s terminal in East Houston.

The Pipeline is expected to have an initial capacity of up to 400,000 barrels per day, with the ability to expand if necessary by industry demand. It is expected to be operational in early 2021, subject to receipt of sufficient customer commitments and all necessary permits and approvals. Binding commitments are now due by 12:00 pm CDT on 30 August 2019.

Source:
worldpipelines

Plains Cactus II Crude Pipeline Rate Structure Receives Partial Approval

The rate structure and terms of service for Plains All American Pipeline LP’s Cactus II crude line recieved partial approval from U.S. energy regulators on Monday. The Cactus II crude pipeline runs from the Permian basin to the Corpus Christi, Texas area.

The regulators approved most conditions put forth by Plains. However they declined to approve a request for the option to hold another open season to solicit shipper commitments for up to 90 percent of the pipeline’s capacity upon the expiration or early termination of service agreements.

The 585,000 barrels per day Cactus II line is expected to begin service in the third quarter and will connect the Permian basin to the Gulf Coast.

Source:
reuters

Altus Midstream Acquires 27% Stake in Permian Highway Pipeline

Altus Midstream Processing LP decided to acquire an approximately 26.7% equity interest in the estimated US$2.1 billion Permian Highway Pipeline.

The pipeline is expected to have approximately 2.1 billion cubic feet per day of natural gas transportation capacity. It runs from the Waha area in northern Pecos County, Texas, to the Katy, Texas area, with connections to Texas Gulf Coast and other markets.

“We are very excited to participate in the Permian Highway Pipeline,” said Clay Bretches, Altus Midstream Chief Executive Officer and president. “This is a high-quality project supported by take-or-pay contracts with creditworthy counterparties.”

In September 2018, the final investment decision to proceed with the project was made and the pipeline is expected to enter service in October 2020. Altus Midstream Processing, Kinder Morgan and EagleClaw Midstream Ventures, each owns approximately 26.7% of the pipeline. The remaining 20% is owned by an anchor shipper affiliate.

Source:
worldpipelines

Joint Venture to Extend Ethylene Pipeline Network in South Texas

Enterprise Products Partners announced on Tuesday that under a joint venture with Lavaca Pipeline Co., they are planning to construct a 90 mile Baymark pipeline. The pipeline will carry ethylene and will run from Bayport area southeast of Harris County to Markham, Texas.

The Baymark pipeline will link to Enterprises’ Mont Belvieu complex, a 600 million-pound ethylene storage well. The pipeline will also link to Enterprises' ethylene export terminal at Morgan Point near La Porte, Texas.

As the petrochemical export boom rolls on, U.S. ethane production is projected to increase nearly 60 percent to 2 million barrels a day by 2021, up from 1.26 million barrels a day in 2016. U.S producers are taking advantage of the soaring ethane production unleashed by the shale boom to produce ethylene at a relatively cheaper cost.

"The U.S. petrochemical industry is experiencing unprecedented growth with production of ethylene expected to exceed 100 billion pounds per year by 2025," said A.J. "Jim" Teague, chief executive officer of Enterprise's general partner in a statement. "This growth in the petrochemical sector is creating additional opportunities for Enterprise to grow our midstream petrochemical services. The Baymark Pipeline further extends our petrochemical value chain, providing producing and consuming customers with enhanced access to the largest liquids storage hub in North America at Mont Belvieu, as well as linking them to growing domestic and international markets."

Source:
houstonchronicle

Two Companies Joining Forces to Expand Red River Pipeline

Plains All American Pipeline has entered into a joint venture with Delek US, a Tennessee refining company, to increase the capacity of its 350 mile Red River Pipeline in Oklahoma and northeast Texas, the company said in a statement.

The pipeline runs between Cushing, Okla., and Longview, Texas. The plan is to boost pumping capacity along the pipeline from 150,000 barrels per day to approximately 235,000 barrels per day by the first half of 2020.

Delek is already a customer of the Red River Pipeline and is boosting its capacity on the Red River system from the current level of 35,000 barrels per day to 100,000 barrels per day. It agreed to pay $128 million to buy a 33 percent stake in a new joint venture named Red River Pipeline Co.

"This is a win-win deal that fits our strategy of optimizing and expanding existing systems while exercising capital discipline," Plains All American Executive Vice President Jeremy Goebel said in a statement. "This transaction expands long-term alignment with a natural shipper, supports and funds the expansion of the system, increases Plains' net committed annual cash flow, and provides proceeds to fund our capital program or lower debt."

Source:
chron

Aramco to Buy LNG from Sempra

Saudi Arabian Oil Co., also known as Aramco, under a 20 year agreement, will begin buying 5 million tons of liquid natural gas per year from San Diego based Sempra Energy. As part of the deal, Aramco also will make a 25% equity investment in an LNG export facility under development in Port Arthur, Texas.

"With global demand for LNG expected to grow by around 4% per year ... we see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG," Amin Nasser, the company's CEO said in a news release.

"At Sempra Energy, we are developing one of the largest LNG export infrastructure portfolios in North America, with an eye towards connecting millions of consumers to cleaner, more reliable energy sources," said Jeff Martin, CEO of Sempra, in a statement. He added that partnering with Aramco will help develop the facility and enable the export of American natural gas to global markets.

Sempra Energy recently received authorization for the Port Arthur LNG facility from Federal Energy Regulatory Commission to construct and operate the facility and related pipelines.

Source:
mysanantonio

Texas Considering Bill to Bring Penalties for Pipeline Damage

Texas lawmakers are considering a bill that would reinforce penalties for damaging or trespassing around oil and gas operations. This effort comes after states around the country have introduced similar measures. This bill is considered despite the opposition from environmental groups who say it would quell peaceful protests and overly criminalize offenses.

Trespassing, damaging or destroying the facility, or impairing or interrupting oil and gas operations will be considered a third degree felony with between two and up to ten years in prison. Also a fine of up to $500,000 under another provision in the bill is also considering if organizations found guilty of breaking the law.

Gas lobbyists and environmental activists went head-to-head over the bill at a public hearing on Wednesday at the Texas capital. Both groups clashed on whether the bill would suppress Texans' right to legally protest pipeline projects and over its necessity.

Demonstrations such as those in North Dakota against the Dakota Access oil pipeline resulted in hundreds of arrests and cost the state $38 million. Republican state Rep. Chris Paddie of Marshall who is sponsoring the bill wanted to classify any oil or gas pipelines as critical infrastructure, placing them in the same category as power plants and water treatment facilities.

Source:
usnews

$30 Billion Louisiana Driftwood LNG Project Eyes Final Decision in 2019

Final investment decision to build the proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana will be taken in 2019, Tellurian Inc confirmed on Wednesday.

The company said that it is on track to make a final investment decision and start construction in 2019. The operations will begin in 2023 and is project is designed to produce 27.6 million tonnes per annum (MTPA) of LNG or about 4 billion cubic feet per day (bcfd) of natural gas.

The first phase will likely comprise 16.6 MTPA and together the projects would produce over 150 MTPA of LNG. The company is also developing three pipelines in Louisiana - the 4.0-bcfd Driftwood pipe, the 2.0-bcfd Haynesville Global Access and the 2.0-bcfd Delhi Connector - and the 2.0-bcfd Permian Global Access in Texas and Louisiana.

Source:
reuters

Open Season Announced for CJ Express Pipeline Expansion

In order to finalize the CJ Express pipeline expansion project, Midcoast Energy, LLC has announced a binding open season that will run through 17 May 2019 and expects to expeditiously complete negotiations with additional shippers.

The company has already entered into commercial agreements with an anchor shipper and one of the leading producers in the Haynesville for this project. The pipeline will include up to 107 miles of 36 inch pipeline and a 39,000 horse power compressor station.

The pipeline is expected to provide incremental delivery capacity for up to 1.0 billion cubic feet per day of natural gas produced in the Haynesville into premium demand markets along the US Gulf Coast markets.

The company expects the expansion project to have an in-service date in early 2021. CJ Express will connect Midcoast's existing pipeline assets in San Augustine County, Texas, and growing production in the Carthage and Shelby Trough area of the Haynesville Shale, to Midcoast's Clarity pipeline near Silsbee, Texas.

Source:
worldpipelines

Open Season for Permian Global Access Pipeline Announced

Permian Global Access Pipeline LLC, a subsidiary of Tellurian has announced that it is conducting a binding open season to secure prospective shippers for its proposed Permian Global Access Pipeline project.

The proposed pipeline is a 42 in. diameter interstate natural gas pipeline originating at the Waha Hub in Pecos County, Texas, and terminating at Gillis, Louisiana, north of Lake Charles, Louisiana.

It is estimated to cost approximately US$3.7 billion to construct and will have the capacity to transport at least 2 billion cubic feet of natural gas per day. Construction could begin as early as 2021 and the pipeline is targeted to be in service as early as 2023.

The open season will begin at noon Central time on Monday 8 April 2019 and runs through Friday 24 May 2019 at 4 pm CT.

Source:
worldpipelines

Trump Heads to Houston to Boost Oil and Gas Sector

President Donald Trump will travel to Houston Wednesday to announce executive orders aimed at speeding up pipeline and other energy projects and expanding oil and natural gas production, a senior White House official said.

The president is scheduled to appear at the International Union of Operating Engineers International Training and Education Center in Crosby, a union-run training facility spread over 265 acres. There he is expected to speak about how he plans to aid the United States' booming domestic oil and gas production and further shift away from foreign imports.

For now the White House won't release the exact details of the executive orders. But the senior official said they would streamline permitting and help energy companies to ”avoid unnecessary red tape."

"American families and businesses in states with energy restrictions will be able to access affordable and reliable domestic energy resources," the official said.

Record oil and gas production, led by Texas, has played a large role in both domestic and foreign policy for the Trump administration. U.S. crude oil production now at more than 12 million barrels a day has surpassed both Saudi Arabia and Russia.

Domestically, shale drilling boom has provided a boost to the economy in generally lowering energy costs for consumer and businesses and moving the country ever closer to a once unimaginable goal of becoming a net energy exporter.

Pipeline executives have urged Trump to assert federal authority over interstate pipelines and prevent states from blocking multi-billion dollar projects that are facing increasing uncertainty from investors.

Source:
chron

EagleClaw Midstream Announces Final Investment Decision on Delaware Link Pipeline

EagleClaw Midstream, a portfolio company of Blackstone Energy Partners and I Squared Capital, announced that it has made a final investment decision to proceed with construction of the Delaware Link pipeline.

Delaware Link pipeline is designed to transport residue natural gas from the Delaware Basin to the Waha hub, with access to further downstream takeaway connections. The approximately 40 mile, 30 in. diameter pipeline will originate at EagleClaw’s three existing natural gas processing complexes in Reeves County, Texas and will have transportation capacity of at least 1.2 billion cubic feet per day.

EagleClaw is also evaluating increasing the pipeline’s diameter and related transportation capacity. Delaware Link is intended to provide E&Ps in the Delaware Basin further flow assurance and improved price realization by providing a direct, cost-advantaged path to Waha and multiple interconnections at Waha to various takeaway pipelines.

These interconnections include direct access to the Permian Highway Pipeline, an approximately 2.1 billion cubic feet per day pipeline designed to transport gas from Waha to the US Gulf Coast and other premium priced markets.

Source:
worldpipelines

Open Season Extended for Cushing to Houston Voyager Pipeline

An extension of the open season to solicit commitments from shippers for the proposed Voyager Pipeline was announced by Magellan Midstream Partners, L.P. and Navigator Energy Service. The pipeline will transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas.

The pipeline would include construction of nearly 500 miles of 20 in. or 24 in. diameter pipeline from Magellan's terminal in Cushing to Magellan's terminal in East Houston. Binding commitments are now due by noon of 31 May 2019 CDT.

At the Cushing origin, the Voyager Pipeline would provide shippers option to originate deliveries at Cushing from the Magellan-operated Saddlehorn Pipeline serving the Rockies and Bakken production regions, Navigator's Glass Mountain Pipeline serving the Mid-Continent basin, as well as other connections within the strategic Cushing crude oil hub.

At the destination, Magellan's comprehensive Houston crude oil distribution system could further deliver the multiple grades of crude oil to the Houston and Texas City refineries or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.

The pipeline is expected to have an initial capacity of at least 300,000 bpd and it is planned to be operational in late 2020, subject to receipt of sufficient customer commitments and all necessary permits and approvals.

Source:
worldpipelines

Moda Midstream Planning to Build a Second Supertanker Berth to Handle Three New Pipelines

An expansion project to build a second berth to accommodate supertankers is in consideration by Moda Midstream LLC at its crude export terminal in Ingleside, Texas, the company’s CEO Bo McCall said on Thursday.

As three major pipelines by Plains All American Pipeline LP, EPIC Crude Pipeline LP and Enbridge Inc., starts service, the expansion to the terminal is necessary. Also the company is increasing the facility’s crude storage capacity from 2 million to 12 million barrels.

“When these new pipelines come online, there is going to be close to 3.5 million barrels a day coming into the market,” McCall said. In order to handle other types of tankers, Moda is also studying the feasibility of building an additional pier with two more berths, McCall said.

Moda’s loading ability per supertanker will rise to 1.5 million barrels once the U.S. Army Corps of Engineers approves the contract this year to dredge the Corpus Christi ship channel to the Ingleside facility to a depth of 54 feet from 47 feet.

Source:
pgjonline

Open Season Extended on 650-Mile Jupiter Pipeline

Jupiter Energy extended an open season until May 31 for the 650-mile, 36-inch Jupiter pipeline stretching from the Permian to the Port of Brownsville.

“We're very pleased with the results of the initial open season period for the Jupiter Pipeline,” said Albert Johnson, president of Jupiter Pipeline. “The supplemental period validates our belief that the interest for transportation commitments on the pipeline is as substantial as expected.”

The pipeline will be originating near Crane, Texas, and Gardendale/Three Rivers, Texas and is the only pipeline out of the Permian Basin with access to all three deep water ports in Texas (Houston, Corpus Christi and Brownsville). It is expected to be operational in fourth quarter of 2020.

It will have direct access to a fully capable VLCC loading facility off coast at Brownsville, where the Jupiter Brownsville Terminal will consist of up to 10 million barrels of storage, three docks and an offshore VLCC loading facility.

Source:
pgjonline

Dallas-Based Midstream Company to Develop New Texas Export Terminal

Texas GulfLink, a proposed deepwater crude oil export terminal near Freeport, Texas, will be developed by Dallas based Sentinel Midstream. Once completed, the facility will be capable of fully loading VLCCs.

An onshore terminal with as much as 18 million barrels of storage, an offshore 42-inch pipeline, and a manned offshore platform to facilitate port operations with two catenary anchor leg mooring single-point mooring buoys will be included in the Texas GulfLink crude oil export terminal project.

Over the course of a year, export loading rates projections will be as much as 85,000 barrels per hour, with a nominal capacity of 1.2 million barrels per day.

“Texas GulfLink will provide the United States with an economical solution to clear the over-supply barrels destined for the Gulf Coast,” said Jeff Ballard, Sentinel Midstream president and chief executive officer.

In order to justify the capital investment, the Texas GulfLink project has secured necessary commercial support. The company is preparing its submission of a formal permit with the US Maritime Administration.

Source:
OGJ

Exxon, Qatar Petroleum Investing $10 Billion in Texas LNG Export Plant Expansion

Exxon is teaming up with Qatar Petroleum through a $10 billion project to expand a liquefied natural gas export plant in Texas.

The Golden Pass LNG project in Sabine Pass, Texas is expected to begin early this year as 16 million tonnes of LNG production capacity will be added after the projected 2024 start date.

 “Golden Pass will provide an increased, reliable, long-term supply of liquefied natural gas to global gas markets, stimulate local growth and create thousands of jobs,” Exxon Chief Executive Darren Woods said of the final investment decision.

U.S. Secretary of Energy Rick Perry added, “The deal is proof that two of the world’s top energy producers can work together and “support rather than subvert an open energy marketplace,”

Exxon will hold a 30 percent stake in the Golden Pass and Qatar Petroleum will hold 70 percent.

Exxon has also signed an agreement to buy a 12.4 percent interest in the existing terminal and a pipeline from ConocoPhillips, subject to regulatory approvals.

Source:
Reuters

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.

Source:
Chron