IN THE NEWS .........
Leslie Equipment Company
You are invited to attend the 2018 Leslie Equipment Company Pipeline and Grading Equipment Expo on February 1, 2018.
Magellan Midstream Launches Open Season for Proposed Crude Oil Pipeline from the Permian and Eagle Ford Basins to Corpus Christi and Houston
Magellan Midstream Partners, L.P. has plans to develop a new pipeline and has launched an open season to assess customer interest to transport various grades of crude oil and condensate from the Permian and Eagle Ford Basins to multiple destinations in the Corpus Christi and Houston, Texas markets, including Magellan’s existing crude oil terminals in these markets. All potential customers must submit binding commitments by 5:00 p.m. Central Time on Feb. 1, 2018.
The proposed project would include construction of an approximately 375-mile, 24-inch diameter pipeline from Crane to a location near Three Rivers, Texas, providing shippers the option to ultimately deliver crude oil and condensate from the Three Rivers area to the Houston area via a new 200-mile pipeline or to the Corpus Christi area via a new 70-mile pipeline. The potential pipeline system is expected to have an initial capacity of at least 350,000 barrels per day (bpd) with the ability to expand up to 600,000 bpd for each destination, if warranted by industry demand.
Additional pipeline extensions are being considered for Midland and Orla, Texas in the Permian Basin and Gardendale and Helena, Texas in the Eagle Ford Basin. Magellan previously announced the construction of a 60-mile, 24-inch Delaware Basin pipeline to deliver crude oil and condensate from Wink to Crane.
Subject to receipt of all necessary permits and approvals, the proposed pipeline could be operational by the end of 2019.
Enterprise to Convert NGL Pipeline from Permian Basin to Crude Oil Service
Enterprise Products Partners L.P. has announced plans to convert one of its natural gas liquids (“NGL”) pipelines that transports NGLs from the Permian Basin to the Texas Gulf Coast to crude oil service. The conversion is expected to be completed in the first half of 2020. This pipeline conversion would provide the partnership with total crude oil pipeline capacity of over 650,000 barrels per day (“BPD”) from the Permian Basin to Enterprise’s crude oil hub in the Houston area.
Enterprise has three existing NGL pipelines that stretch from the Permian Basin to the Texas Gulf Coast: the Seminole Blue, Seminole Red and Chaparral. The Shin Oak NGL pipeline, which is currently under construction, will be the partnership’s fourth NGL pipeline from the Permian Basin to the Texas Gulf Coast. The Shin Oak pipeline is expected to be in service in the second quarter of 2019. The completion of the Shin Oak pipeline provides Enterprise the flexibility to divert NGL volumes from at least one of its existing NGL pipelines onto Shin Oak and repurpose the vacated NGL pipeline to crude oil service. Enterprise is currently evaluating which NGL pipeline(s) to repurpose.
Plains All American Pipeline Announces Open Season for Permian Basin to Corpus Christi Pipeline
A subsidiary of Plains All American Pipeline, L.P. announced it has received sufficient customer interest to conduct a binding open season for committed crude oil transportation from the Permian Basin to the Corpus Christi/Ingleside area. Origin points will be Orla, Wink South, Midland, Crane and McCamey, TX. The open season provides an opportunity for shippers to enter into transportation services agreements providing for long-term crude oil transportation on the Pipeline and committed tariff rates.
The pipeline will include a combination of existing pipelines and two new pipelines. The first new pipeline will extend from Wink South to McCamey, TX, and the second pipeline will extend from McCamey to the Corpus Christi/Ingleside area. Subject to receipt of necessary permits and regulatory approvals, the pipeline could be operational in third-quarter 2019.
ONEOK Announces West Texas LPG System Expansion into the Delaware Basin
ONEOK, Inc. announced that the West Texas LPG Pipeline Limited Partnership, a joint venture between ONEOK, which is the operator and owns 80 percent, and Martin Midstream Partners L.P., which owns 20 percent, plans to invest approximately $200 million to expand its natural gas liquids (NGL) system into the prolific Delaware Basin, part of the larger Permian Basin.
This project, which is expected to be completed in the third quarter of 2018, is supported by long-term dedicated NGL production from two planned third-party natural gas processing plants in northern Reeves County, which we estimate will produce up to 40,000 barrels per day (bpd).
The Delaware Basin extension includes: the construction of an approximately 120-mile, 16-inch pipeline lateral that will have an initial capacity of 110,000 bpd; and
The construction of two new pump stations and pipeline looping along the existing West Texas LPG system that will increase its capacity to handle the dedicated volume.
"Extending the West Texas LPG Pipeline into the core of the Delaware Basin, one of the fastest growing plays in the U.S., positions the West Texas LPG system for significant future NGL volume growth," said Terry K. Spencer, ONEOK president and chief executive officer.
West Texas LPG Pipeline is an NGL pipeline system that consists of approximately 2,600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the U.S.
Pipeline Pride: 20 Years of Growth for United Piping, Inc.
"United Piping is a top-notch contractor with a tireless focus on safety and quality that we enjoy partnering with to provide safe energy transportation that powers our communities," John Swanson, Enbridge vice president of U.S. Major Projects, said in a statement.
Mel Olson said that safety and quality are essentially the same thing — safety is the short-term work that gets people home safely, and quality means keeping communities and environments safe over a project's design life.
A demonstration of UPI’s commitment to employees and clients in maintaining a safe and reliable work environment: In December 2015, UPI reached an industry milestone – two million man hours without a lost time injury or incident from project sites throughout the U.S. and Canada. This achievement is attributed to every dedicated UPI employee, customer and partner who believes safety isn’t everything – it’s the only thing.
EPIC Pipeline and BP Sign Agreement for New 650 Mile Permian Basin to Corpus Christi NGL Pipeline
EPIC Y Grade Pipeline, LP, a subsidiary of EPIC Y Grade Services, LP and EPIC Midstream Holdings, LP, today announced that it has signed a definitive agreement with BP Energy Company to anchor a new 650-mile natural gas liquids (NGL) pipeline that will be known as “EPIC NGL Pipeline,” which will link producers’ NGL reserves in the Permian and Eagle Ford Basins to Gulf Coast refiners, petrochemical companies and export markets. The EPIC NGL Pipeline has secured a capital commitment from funds managed by Ares Management, L.P. The EPIC NGL Pipeline, which has commenced construction, will run side-by-side with the previously announced EPIC Crude Oil Pipeline for most of the route.
The EPIC NGL Pipeline will have throughput capacity of at least 220,000 barrels per day with multiple origin points in the Delaware and Midland Basins. Destinations will include interconnects near Orla, Benedum and Corpus Christi, Texas, where EPIC’s affiliate plans to build a fractionation complex to accommodate the pipeline’s volume. In the fourth quarter of 2017, EPIC will conduct a FERC open season, when interested shippers will have an opportunity to secure firm capacity on the EPIC NGL Pipeline.
EPIC is actively acquiring rights of way, and in some cases, multi-line rights will be pursued to accommodate both EPIC’s NGL and crude oil projects. EPIC plans to have the initial phase of the pipeline in-service in early 2018.
TransCanada Announces Termination of Energy East Pipeline and Eastern Mainline Projects
After careful review of changed circumstances, TransCanada will be informing the National Energy Board that they will no longer be proceeding with their proposed Energy East and Eastern Mainline applications. TransCanada will also notify Quebec’s Ministère du Developpement durable, de l’Environnement, et Lutte contre les changements climatiques that it is withdrawing the Energy East project from the environmental review process.
TransCanada stated they appreciate and are thankful for the support of labor, business and manufacturing organizations, industry, our customers, Irving Oil, various governments, and the approximately 200 municipalities who passed resolutions in favor of the projects. Most of all,TransCanada thank Canadians across the country who contributed towards the development of these initiatives.
Veresen Announces Filing of FERC Applications for Jordan Cove Energy Project and Pacific Connector Gas Pipeline
Veresen Inc. announced Jordan Cove Energy Project and Pacific Connector Gas Pipeline have filed applications with the United States Federal Energy Regulatory Commission for the construction and operation of a 7.8 million tonne per annum liquefied natural gas export terminal in Coos Bay, Oregon and the related Pacific Connector that will transport natural gas from the Malin Hub in southern Oregon to the LNG export terminal.
"Completing the pre-filing phase and submitting the formal applications to FERC is a major milestone for the projects," said Don Althoff, President and CEO of Veresen. "Our significant efforts to optimize the design to minimize its environmental footprint and accommodate landowner requests, as well as the support of our world-class LNG buyers, should result in the receipt of the positive regulatory decisions required to build Jordan Cove. We look forward to continuing our work with the local community, Tribal leaders and FERC, as well as other federal and state agencies to advance Jordan Cove."
Jordan Cove and Pacific Connector have conducted open houses to present the project to the public. In addition, FERC held a series of public scoping meetings in June to collect further public input. The application includes the elimination of a 420 MW power plant, reflects more than 50 route adjustments of Pacific Connector and the optimization of multiple water crossings to minimize environmental impacts via trenchless drilling techniques.
The total engineering, procurement and construction cost of both the LNG export terminal and Pacific Connector is approximately US$10 billion, with approximately 90% of U.S. content. Additionally, the project will generate approximately US$60 million in annual property taxes, including US$20 million from Pacific Connector in the counties through which the pipeline traverses. The project will require approximately 6,000 workers during construction and more than 200 new permanent jobs upon commissioning.
Jordan Cove and Pacific Connector are requesting that FERC issue a Draft Environmental Impact Statement in 2018, leading to FERC decisions by the end of 2018. This will position the project for a potential final investment decision in 2019 and an in-service date in 2024.
Oryx Midstream To Build New Regional Crude Oil Transport Pipeline In The Delaware Basin
Oryx Midstream Services II, LLC announced that it will build a new regional crude oil transportation pipeline serving the Delaware Basin with initial capacity of up to 400,000 barrels per day. Oryx II recently closed on a long-term regional oil transportation agreement with WPX Energy and other producers bringing total acres committed to Oryx II to approximately 300,000 dedicated acres. When combined with Oryx Midstream Services, LLC (Oryx I), the total Oryx Delaware basin dedication footprint and system capacity will be in excess of 850,000 acres and 600,000 barrels per day, respectively.
Construction will begin immediately on the new 220-mile regional transport line that will provide receipt points from the Carlsbad, Stateline, Pecos and Pyote areas, and deliver crude to Crane and Midland, Texas. The system, comprised of 16-, 20- and 24-inch lines, will have an initial capacity of up to 400,000 barrels per day with the ability to expand based on shipper needs. It will serve production from every active county in the Delaware Basin including Lea and Eddy counties in New Mexico and Loving, Reeves, Ward, Pecos, Winkler and Culberson counties in Texas. The new crude oil pipeline will be constructed in phases and is expected to be in full service by the end of 2018.
“As ongoing improvements are made in drilling technologies and rig counts in the Delaware Basin increase, production growth from Oryx’s customer base, including WPX, continues to be strong. With this strong production growth comes transportation bottlenecks, an issue that this new pipeline will address, providing much-needed takeaway capacity in the area,” said Oryx Chief Executive Officer Brett Wiggs. “The Oryx team remains focused on improving and expanding our asset base, to not only meet producers’ current needs but also anticipate the future needs of our customers.”
Karl Pfluger, Oryx President, said “The combined footprint of our crude gathering and transportation system is unparalleled. Based on our current and future customers’ needs, we are considering strategic opportunities to leverage the unique scale of our combined footprint to better serve producers in the Delaware basin. One of these strategic opportunities includes a potential long-haul transport system to the Gulf Coast."