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

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

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

Cactus II Pipeline’s Unused Space Will Be Given to Committed Shippers

Unused space on Cactus II crude pipeline will be allocated to committed shippers if spot shipments fall below the 10% of capacity set aside for those shipments, Plains All American LP said on Wednesday.

A source familiar with the matter told Reuters last month that once the line fill is complete, full contractual volumes will be shipped by commodities merchant Trafigura. Last year a long-term agreement with Plains was signed by Trafigura to transport a total of 300,000 barrels per day of crude and condensate on the Cactus II pipeline from the Permian basin to the port of Corpus Christi.

Market sources have said that Plains has been scooping up crude barrels in recent weeks to fill the line ahead of the pipeline’s start up. Cactus II project is on track for initial service by the end of the third quarter of 2019, Plains said in June. The 670,000 barrel-per-day Cactus II oil pipeline system runs from the Permian basin to the Corpus Christi, Texas, area. 

Source:
pgjonline

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.

Source:
worldpipelines

252 Mile Pipeline Proposed by Port Arthur LNG

Port Arthur LNG proposed the 252-mile Port Arthur Pipeline Louisiana Connector Extension Project that will include approximately a 48-inch diameter pipeline stretching from near Port Arthur, Texas, to Delhi, Louisiana, in Richland Parish.

According to Port Authur LNG, here will be two compressor stations, one in Richland Parish and another one in Allen Parish. The company held a meeting Wednesday night in south Louisiana for those who may be impacted by the proposed pipeline.

“We’re in the very early stages. All of these projects are regulated by the federal energy regulatory commission. Part of that process involves reaching out to the public, giving them the opportunity to come and learn about our project, to see if the project may or may not affect them, personally, directly," Jim Thompson, environmental project manager, said.

The process to even start construction on the project is still a few years out as Thompson said “We expect to file our application in February of 2020 and receive approval from the Federal Energy Regulatory Commission in early 2021. The pipeline, however, won’t start construction until 2022."

Once the construction starts, the company is estimating that it will only take six to nine months to complete the pipeline, pending Federal Energy Regulatory Commission approvals.

Source:
knoe

Service Started on Orla 3

Enterprise Products Partners announced that the service began on the third train at its Orla cryogenic natural gas processing plant in Reeves County, Texas. This will increase the company’s natural gas processing capacity at the facility to 900 MMcfd and will allow Enterprise to produce in excess of 140,000 barrel per day of natural gas liquid.

“The three trains at Orla that have been brought online over the past year reflect Enterprise’s agility and commitment to providing timely and efficient solutions for facilitating production growth in the prolific Permian Basin,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.

Enterprise now has the capability to process 1.3 billion cubic feet of natural gas and produce approximately 200,000 barrel per day of NGLs throughout the Permian Basin.

The company’s Mentone cryogenic natural gas processing facility in Loving County, Texas, is on schedule for completion in the first quarter of 2020 and will have the capacity to process 300 MMcfd of natural gas and extract in excess of 40,000 barrel per day of NGLs.

The two cryogenic natural gas processing facility, Orla and Mentone, extends Enterprise’s value chain in the Permian and Delaware basins, linking customers to the company’s integrated pipeline network, including the recently completed Shin Oak pipeline and the Texas Intrastate natural gas system.

Source:
pgjonline

Binding Supplemental Open Season Announced for Bakken Pipeline System

A binding supplemental open season to solicit additional shipper commitments for transportation service was launched by Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC. Both companies are subsidiaries of Energy Transfer LP.

The transportation service is from Bakken/Three Forks play in North Dakota to storage terminals located in Patoka, Illinois and Nederland, Texas through their respective pipeline systems, which is collectively known as the ‘Bakken Pipeline System’.

Committed subscriptions made by shippers during the open season and commitments already received for future capacity during the previous open season that concluded in December 2018 will determine the incremental capacity on the Bakken Pipeline System. The open season commenced at 12:00 pm CT on 15 July, 2019.

Source:
worldpipelines

Cactus II Oil Pipeline to Begin Line Fill in a Week

Plains All American Pipeline LP’s Cactus II oil pipeline system will commence line fill within a week, a source with direct knowledge of the matter said. The Cactus II has the capacity of 670,000 barrel per day and runs from Permian Basin to the Corpus Christi, Texas area.

Cactus II project is progressing on schedule for initial service by the end of the third quarter of 2019, the pipeline operator said last month. Commodities merchant Trafigura signed a long-term agreement with Plains last year to transport a total of 300,000 bpd of crude and condensate on the Cactus II pipeline.

“We have over 90% of the pipe in the ground and we’re working diligently toward completion,” a company executive said during its investor day about two weeks ago. Concho Resources Inc., and Anadarko Petroleum Corp are the other two shippers on the Cactus II line.

Source:
pgjonline

Flint Hills May Sell Their Texas Crude Export Terminal

U.S. oil refiner, Flint Hills Resources, recently hired JP Morgan Chase to assist in marketing the assets of their crude export terminal in Ingleside, Texas. Flint Hills is considering finding a partner for the operation or simply selling it on its own. The terminal is a connecting point for several pipelines, including some owned by Phillips 66 and Plains All American Pipeline LP.

Andy Saenz stated, “we want to understand how the market values the asset and whether there is an opportunity to utilize the terminal better than we are today.”

Flint Hills has shared that they are growing storage capacity at Ingleside terminal by 1 million barrels to 3.5 million and have raised the site's vessel loading capacity from 200,000 barrels per day to 380,000 barrels per day.

Source:
Reuters

Archrock Gains Elite Compression for $410 Million

Elite Compression Services will be passing down a handful of assets to Houston-based Archrock, an energy infrastructure company, after closing a $410 million cash and stock deal. Archrock’s current 3.5 million-horsepower operations should increase by 430,000 large-horsepower compression assets.

Regarding these assets, Archrock President & CEO, Brad Childers, says “more than 80%…are contracted for more than three years with blue-chip customers. In addition, this transaction adds basin density in our core areas, with more than 70% of the units deployed in the Eagle Ford and South Texas region, and the concurrent sale of non-core equipment further standardizes our asset portfolio.”

Archrock is also planning on selling $30 million of 80,000 horsepower of non-core compression assets to JDH Capital portfolio company Harvest Midstream in order to help their operations by increasing standardization.

Source:
P&GJ

Kinder Morgan Approved by Court to Continue with $2 Billion Pipeline Project

On Tuesday, a Texas judge ruled that Kinder Morgan Inc. does not need approval from the Texas energy regulator in order to start working on a $2 billion natural gas pipeline project. Based on the new ruling, land can be taken and utilized by pipeline operators, if they qualify as utilities, for the public good without landowner’s consent. Standards for routing pipeline projects or private land-takings are no longer required by the Texas Railroad Commission (TRC).

Prior to the ruling, a lawsuit was made by some Texas landowners and officials who argued the TRC was not properly supervising or seeking public approval for Kinder Morgan’s Permian Highway pipeline. Kinder Morgan’s counterargument was that the decision was in the state legislature’s hands when it came to changes in the pipeline permitting process.

Tom Martin, a Kinder Morgan Executive, stated after the ruling that, “the court’s finding validates the process established in Texas for the development of natural gas utility projects.”

The pipeline is set to be about 400 miles long, stretching from West Texas to the United States Gulf Coast and carrying 2 billion cubit feet every day of natural gas. Landowners worry that “sensitive environmental features,” along the lines of endangered species habitats, residential neighborhoods and historic sites, will be affected. An advocate for Texas landowner’s rights, the Texas Real Estate Advocacy and Defense Coalition, is considering further legal actions.

Source:
Reuters

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