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.”

Source:
worldpipelines

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

Binding Open Season for Marketlink Pipeline System launched by TransCanada

TransCanada Corporation has announced an open season to solicit binding commitments for incremental capacity on Marketlink pipeline system.

Interested parties for transportation services of crude oil from Cushing, Oklahoma to markets on the US Gulf Coast may submit binding bids that will close at 12 pm MT on 21 May 2019. Shipper information regarding the open season is available online.

Marketlink transports shipments of U.S. crude oil from Cushing, Okla., to refineries in the U.S. Gulf Coast via the Keystone Pipeline System’s Gulf Coast extension. Delivery points include Sour Lake, Houston, and Port Arthur, Texas.

Source:
worldpipelines

Two Companies Joining Forces to Build Crude Connector System in Midland Basin

Concho Resources Inc. and Frontier Midstream Solutions IV, LLC have announced to execute an agreement to create Beta Crude Connector, LLC (BCC), which will build and provide crude oil gathering, transportation and storage services in the Northern Midland Basin, supporting continued oil production growth in the region.

The new gathering and transportation system will consist of an approximately 100 mile gathering system, 250,000 barrel per day of crude oil storage facilities as well as truck terminals.

The pipeline system will have the initial capacity to deliver 150,000 bpd of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines.

Construction will commence following an open season set for April 2019, targeting initial flows in mid-2019. Both companies own a 50% equity interest in BCC, with Frontier serving as operator.

Source:
worldpipelines

Open Season Announced for Bayou Bridge Pipeline System

Bayou Bridge Pipeline, LLC, a joint venture owned by subsidiaries of Energy Transfer and Phillips 66 Partners recently announced a non-binding expansion open season that commenced at 1 pm CT on 22 April 2019 to solicit shipper interest for expanded joint tariff transportation service received from certain connecting carriers onto the Bayou Bridge Pipeline System.

Energy Transfer owns 60% and Phillips 66 Partners owns 40% of the Bayou Bridge Pipeline system. It is operated by a wholly owned subsidiary of Energy Transfer Operating, L.P. Bayou Bridge is evaluating joint tariff service from origin points in the Bakken/Three Forks Region in North Dakota; Patoka, Illinois; the Powder River Basin in Wyoming; the DJ Basin in Colorado; Cushing, Oklahoma; and the Permian Basin.

Bayou Bridge also continues to evaluate additional Southern Louisiana destination points to increase options for shippers on the system,in addition to the routes that are the subject of this non-binding expansion open season. Bayou Bridge will hold a binding expansion open season to finalize committed subscriptions, following the confirmation of shipper interest.

Source:
worldpipelines

Snelson Awarded Contract to Complete $610M Saginaw Trail Pipeline Project

Washington based Snelson Companies, Inc., has been awarded a construction contract to complete the final phases of the Saginaw Trail Pipeline project. This project is essential to the safety and reliability of natural gas transportation throughout lower Michigan by replacing 78 miles of current infrastructure, which has been in place since the 1940s, with 94.4 miles of new pipeline.

The entire pipeline replacement project will be completed in four phases over four years. With Phases 1 and 2 complete, Snelson will enter the project with accountability for the construction scope of Phases 3 and 4, which are significantly larger than each of the first two phases.

Phase 3, which consists of installing 29.2 miles of new, larger pipeline between Clio City Gate to Grand Blanc City Gate, is anticipated to begin in Spring 2019. This phase not only replaces the existing 12- and 16-inch pipe with new 24-inch pipeline, but also reroutes the path around the urban area of Flint.

Phase 4 will begin in 2020. This phase will replace pipeline for the 28.2 miles between Grand Blanc City Gate to Clawson Control. Phase 4 groundwork – including surveying and obtaining necessary easements and permits – is already underway. The project's anticipated completion is December 2020.

With over 70 years of experience as a pipeline construction company, Snelson Companies, Inc. is a leading contractor for oil and gas pipeline, distribution, station and facility construction, and infrastructure integrity services.

Source:
prnewswire

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 Tallgrass Energy’s Pony Express Pipeline

Tallgrass Energy, LP has announced that it has extended and expanded its open season soliciting shipper commitments for crude oil transportation services.

The open season, initially announced on 13 November 2018, has been extended to 14 April 2019. This is to reflect updated rates and contracting options to accommodate newly secured commitments.

The 760-mile Pony Express crude oil pipeline originates in Guernsey, Wyo., and runs through Colorado, Nebraska and Kansas, connecting with three refineries before terminating in Cushing, Okla.

Placed in service in 2014, Pony Express has a design capacity of 320,000 barrels a day, and based on a number of factors has the capacity to transport additional barrels.

Sources:
worldpipelines
tallgrassenergylp

EQM Midstream Partners to Buy $1.03 Billion Gas Pipeline Assests

$1.03 billion deal was signed on Thursday by EQM Midstream Partners LP to take control of two pipelines that connect the Marcellus and Utica shale basins, the nation’s biggest gas producing region.

The company will buy a 60 percent stake in Eureka Midstream Holdings LLC and whole of Hornet Midstream Holdings LLC, from a fund managed by Morgan Stanley. As part of the deal, EQM will pay $860 million in cash and assume $170 million of debt.

Eureka Midstream is a 190-mile gathering pipeline system in Ohio and West Virginia that services both Utica and Marcellus production, while Hornet Midstream is a 15-mile, high-pressure gathering system in West Virginia that connects to Eureka system.

“These assets will complement EQM’s basin-leading gathering and transmission system, allowing us to continue being the low-cost provider for gas transportation and, increasingly, for water handling as well” EQM Chief Executive Officer Thomas Karam said.

Source:
reuters

Open Season Announced for Regional Energy Access Expansion

A binding open season for Regional Energy Access from March 8 to April 8, 2019 has been announced by Williams today. Regional Energy Access is an incremental expansion of the Transco interstate pipeline to provide firm natural gas transportation capacity to markets in the northeastern United States as early as November 2022.

Regional Energy Access is being designed to provide up to one million dekatherms per day. "Regional Energy Access is a cost-effective expansion along an existing Transco corridor that will ultimately deliver more than a billion cubic feet of new natural gas supply with minimal environmental footprint,” said Scott Hallam, senior vice president of Williams’ Atlantic-Gulf Operating Area.

This expansion minimizes environmental impacts by maximizing the use of existing Transco pipeline infrastructure and rights of way. It is anticipated that the project will include approximately 34 miles of pipeline looping and additional compression along existing Transco facilities.

The preliminary design of the project consists of additional compression and selected pipeline loop segments along the existing Transco pipeline corridor. Although the final capacity, scope and cost of the project will be determined by the results of the open season.

Source:
businesswire

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

Canada Sees Rise in Tanker Trucks for Moving Oil as Transportation Bottlenecks Persist

As Canada continues to face transportation bottlenecks for its oil production, tanker trucks used to move oil across the country's border into the U.S. are becoming increasingly common albeit less efficient for transportation.

A shortage of pipelines and rail cars are forcing a rise in the use of tanker trucks to move production in Canada, the fifth largest oil producer in the world. But trucks can only hold 200 barrels of oil compared to one unit train at 60,000 barrels or the Keystone Pipeline at 600,000 per day.

Moving crude by truck is also at least 10 times more expensive on a mile-for-mile basis compared to pipeline or rail.

Production in Canada rose 8 percent last year to a record 4.2 million barrels per day, but the lack of ways to move the oil to market is causing challenges for the country who has even seen oil majors withdraw due to the challenges.

Drillers in Canada have been relying on tanker trucks to help move oil to market while major pipeline projects, like the Trans Mountain pipeline expansion, are put on hold. Crude exports by road have almost tripled from 2015 to 2017 and have continued to rise in the first few months of 2018.

However, using trucks only allows drillers to move about a fifth of the demand. But until more efficient means of transportation becomes available, tanker trucks will continue to be used to move the oil.

Source:
Reuters

Alberta, Canada Willing to Buy Trans Mountain Pipeline if Kinder Morgan Scraps Project

Alberta, Canada is considering purchasing Kinder Morgan's Trans Mountain pipeline if the pipeline company decides to scrap the project amid legal challenges and expensive construction delays.

Alberta Premier Rachel Notley said Tuesday in a statement that the province is considering options to ensure that the pipeline gets built, including purchasing the project outright.

Kinder Morgan said Sunday it would scrap the US$5.9 billion project to triple the capacity of its existing Trans Mountain pipeline that extends from Alberta to the British Columbia coast unless current legal challenges against the project could be resolved by the end of May.

Alberta's crude is significantly discounted compared to the United States due to bottlenecks on existing pipelines and by rail, so the province is heavily relying on the Trans Mountain expansion project to help move its crude and boost prices.

The project is strongly opposed by British Columbia and some aboriginal groups who have taken Kinder Morgan to court more than once and have caused construction delays.

Source:
Reuters

Canadian Rail Hesitant to Invest in Crude Amid Pipeline Bottlenecks

Canadian rail is seeing a rise in opportunity for crude oil transportation to the U.S. as Canada's pipelines are blocked up with currently no more room for capacity.

While Canada's pipelines are full, crude production has risen in the past five years, which is forcing producers to move their crude in other ways besides pipelines.

But the volatility of oil prices and the several pipeline expansion projects expected to come online in Canada at the end of the decade are hindering rail companies from investing in crude long term.

Still, analysts estimate that rail operator Canadian Pacific Railway could see a more than 60 percent rise in volumes of crude it ships this year.

Canadian Pacific Railway CEO Keith Creel said the company understands crude will only be around for a certain period of time and does not consider crude by rail as a sustainable business.

Some producers who are frustrated with Canadian's pipeline bottlenecks, like Cenovus Energy, are already in talks with rail operators in efforts to haul oil to the states.

Meanwhile, major pipeline expansion projects are expected to be complete, or almost complete, by 2020. Enbridge is expected to double its capacity of an existing line to 760,000 barrels per day. Kinder Morgan is planning to triple its capacity of the Trans Mountain pipeline to 890,000 barrels per day. And TransCanada said it expects to start construction on its Keystone XL expansion in 2019.

Source:
Reuters

Washington Gov. Signs Measure to Boost Oil Transportation Safety in State

Washington Governor Jay Inslee on Friday signed a law improving oil transportation safety to protect state waterways from contamination.

The legislation includes the intent to raise funds that would be used in the prevention of oil spills as well as in the development of tighter preparedness plans that would be followed if oil were to contaminate waterways.

The measure also extends the state's oil barrel tax to pipelines, which currently pays for spill response prevention measures for oil received by train or vessels.

The Department of Ecology must increase coordination with Canadian partners to increase safety, data sharing, and to talk about issues related to reducing oil spill risk and navigational safety.

The DOE must also practice equipment deployment drills every three years for onshore and offshore sites, according to the measure.

Source:
The Spokesman-Review

Underinvested Pipelines Cause Rise in Rail Industry for Oil Transportation from U.S. to Mexico

A weak and underinvested pipeline system in Mexico is causing a surge of energy imports into the country from the U.S. by rail.

Today, Mexico is the top U.S. export market, and no slowdown is foreseen. Oil companies are turning to rail shipments to move oil across the border as that seems to be the most effective form of transportation for Mexico.

Mexico only has two major ports that handle half of all its fuel shipments, making the transportation of oil by cargo ship slow. Trucking is slow and expensive due to poor road conditions, and pipelines are suffering from underinvestment.

Pipeline projects are proceeding to help move oil across the border, but rail is still at an advantage since it is already built. And although it costs more to use rail than pipelines, Mexico theft by gangs siphoning fuel from pipelines changes that statistic for the country.

Source:
Reuters

Crude-By-Rail Expected to Rise in Canada After Major Pipeline Plan Canceled

After TransCanada's decision to scrap its proposed $12 billion Energy East pipeline, producers are expecting to have to rely on costly crude-by-rail as a way to bring barrels to the market.

TransCanada announced Thursday that it is canceling its Energy East pipeline, which would have moved crude from Alberta to the Atlantic Coast, after the National Energy Board said in August that it would reveal a tougher review process that included the review of indirect greenhouse gas emissions.

It is becoming more difficult for pipeline companies to build export pipelines in Canada as regulatory requirements have become so stringent and a global oil slump has reduced incentive to invest in billion-dollar projects.

Lack of pipeline space could result in more oil bottlenecks in Alberta, subsequently lower crude prices, and a rise in rail transportation.

A rise in crude-by-rail could continue depending on if the three current pipeline project in Canada - TransCanada's Keystone XL, Kinder Morgan's Trans Mountain, and Enbridge's Line 3 - are further delayed due to strong environmental opposition and legal challenges.

Source:
Reuters

Study Says Crude by Rail Could Impede Future U.S. Pipeline Investments

A study by two professors at the University of Chicago shows that crude by rail could hamper future U.S. pipeline investments.

The study says that, though carrying oil by rail is more expensive than by pipeline, rail transportation has some advantages that could keep pipeline investments smaller in the future.

Crude by rail had reached 750,000 barrels per day in the U.S. by the end of the shale boom in 2014 as many oil companies preferred the rail line flexibility.

The study explains that pipelines take billions of dollars in upfront investments and contract requirements of a decade or longer. Crude by rail levels lag oil price movements by only six to 18 months, according to the study.

The writers of the study say pipelines are not going away but that rail flexibility could put a strain on how willing companies are to use pipelines for transportation.

If prices continue rising, Ryan Kellogg of the University of Chicago said, the industry will start to see rail come back.

Source:
Houston Chronicle

Enterprise Products Partners Announces Additional Contracts for its Midland to ECHO Pipeline System

Enterprise Products Partners on Wednesday announced additional long-term contracts to provide transportation services on the Midland to ECHO crude oil pipeline system.

The additional agreements brings capacity on the Midland to Sealy section of the pipeline to 335,000 barrels of crude per day, which is approximately 83 percent of the segment's ultimate committed capacity of 405,000 barrels per day.

The Midland to Sealy pipeline is expected to begin limited commercial activities during the forth quarter of 2017 and full service by the second quarter of 2018.

"We are very pleased to announce these additional commitments," said A.J. Teague, CEO of the general partner of Enterprise.

Source:
Enterprise Products Partners

Oil Companies Opt for Rail Transportation as Pipeline Plans in Canada Remain in Limbo

Oil companies are opting for railroad transportation to move crude from Canada into the U.S. as pipeline capacity in Canada remains relatively limited.

Houston's USD Partners is expanding the capacity of its newly-acquired terminal in Stroud, Oklahoma to offer more rail transportation access from its Hardisty terminal in Alberta, Canada.

This acquisition "reinforces the strategic positioning of our Hardisty asset and confirms our long-held view that rail will continue as an important component of midstream transportation infrastructure in Western Canada," said Jim Albertson, USD VP of commercial development in Canada.

USD Partners plans to take oil sands via rail from its Hardisty terminal to its Stroud terminal where oil would then travel via pipelines to the Gulf Coast from the Cushing, Oklahoma storage hub.

Rail transportation is still considered more dangerous than pipeline transportation, but oil companies face a fork in the road as plans for new pipelines or pipeline expansions in Canada remain in limbo due to regulatory, legal, and financial stalls.

Source:
Houston Chronicle