April 2017, Vol. 244, No. 4

Projects

Projects

Epic Pipeline Pitches Open Season

EPIC Pipeline is holding a 45-day open season to obtain commitments on a new pipeline to transport crude oil and condensate from the Permian Basin in West Texas to the Gulf of Mexico in Corpus Christi. The EPIC Pipeline will have multiple receipt points in the western part of the Permian Basin, providing access to producers in the Delaware and Midland basins.

The 730-mile EPIC Pipeline will be made of 16-, 20-, 24- and 30-inch pipe with capacity of 440,000 bpd of crude and condensate. It is anticipated that this open season will only be for the first 200,000 bpd of space on the pipeline. This would be the state’s longest pipeline since at least 2008.

The project includes at least four receipt points for crude oil and condensate in Texas, including Orla, Pecos, Crane, and Midland. Crude oil delivery points will include connectivity to an EPIC affiliate’s marine terminal on the Corpus Christi Inner Harbor as well as additional destinations in the Taft and Corpus Christi area. EPIC expects the pipeline will be operational the first quarter of 2019.

Three companies, TexStar Midstream Logistics, L.P., Castleton Commodities International LLC, and Ironwood Midstream Energy Partners, LLC., have raised $1 billion to build the pipeline. The open season began March 1 and was scheduled to end April 15.

Canyon Midstream Building System in STACK Play

Canyon Midstream Partners II began construction of a natural gas-processing facility in Woodward County, OK and an extensive gas-gathering system in Woodward, Dewey, Blaine and Canadian counties, OK. The new gathering and processing system will serve producers in Oklahoma’s STACK play.

When completed in early 2018, the Redcliff Plant will provide customers with 200 MMcf/d of GSP cryogenic gas processing capacity and access to premium residue gas markets on ANR and Southern Star Central.

The Redcliff Gathering System will initially consist of 70 miles of 20-inch trunkline, multiple field compression stations and low-pressure gathering pipelines to deliver gas from producer locations to the Redcliff Plant. The plant will be built to accommodate future expansions, which would bring the site’s total gas processing capacity to 400 MMcf/d.

Jemena Delays Northern Gas Pipeline Construction

Australian pipeline company Jemena is resequencing the construction schedule for the Northern Gas Pipeline (NGP) to smooth finalization of some outstanding land access approvals. As a result, construction on the project – which was targeted to begin in April 2017 – will be delayed. The project is on schedule for first gas to flow in 2018.

Due to the construction resequencing, Jemena is amending its arrangements with construction partner McConnell Dowell, and will be retendering aspects of the project. To alleviate doubts in the Tennant Creek and Mount Isa communities, Jemena said it expects to start the Phillip Creek Compressor Station and Mount Isa Compressor Station in 2017 as planned.

The 622-km pipeline will link Tennant Creek in the Northern Territory to Mount Isa in Queensland, unlocking the next phase of economic growth for the territory and Northern Australia.

Construction Underway for Oklahoma Expansion Projects

Enable Midstream Partners wholly owned subsidiaries, Enable Gas Transmission LLC and Enable Oklahoma Intrastate Transmission, held a non-binding open season for system expansion projects providing firm transportation service for increasing Anadarko Basin production.

The projects are expected to offer firm natural gas transportation service from the Cana, STACK and SCOOP plays of the Anadarko Basin to premium southeastern and western natural gas markets. The solutions would use existing capacity along with the installation of new facilities to provide over 600,000 Dth/d of natural gas transportation service.

The company said one of the projects secured a foundation shipper that committed to a long-term contract for 205,000 Dth/d. The non-binding open seasons opened on March 8 and closed on March 28.

Grieve Pipeline Pitches Open Season

Grieve Pipeline, a subsidiary of Elk Petroleum, launched a binding open season seeking long-term commitments from shippers for firm transportation capacity on a crude oil pipeline interconnecting with Platte Pipeline Station in Wyoming.

The pipeline’s main line includes 32.44 miles of 8-inch pipe, which begins at Grieve Station, the receipt point for the Grieve Field oil production, and terminates at Platte Station in Mountain View. Platte Station is a hub located west of Casper, where crude can be directed to in-state refining or transferred to interstate pipelines or rail for delivery outside Wyoming. The 12,000-bpd pipeline is expected to begin full commercial operations by Jan. 1. The open season began March 8, and was to end on April 14.

FERC OKs Virginia Southside Expansion Project II Requests

 

FERC approved Williams’ request to use an additional 1.26 acres of temporary workspaces at six existing Transco meter and regulator stations in Spartanburg County, SC and Polk County, NC for the Virginia Southside Expansion Project II. FERC also granted a request to use 2.9-acre contractor yard and access road at the existing Vulcan Materials Company quarry in Freeman, VA.

The Virginia Southside Expansion Project II includes construction of about 4 miles of 24-inch pipeline extending from the Transco Brunswick Lateral in Brunswick County, VA and terminating in Greensville County, one delivery metering and regulator station in Greensville County and an additional unit at a compressor facility station in Pittsylvania County. The project is expected to be in-service in the fourth quarter.

Nord Stream 2 Awards Pipelay Contract to Allseas

 

Following an international tender process, Nord Stream 2 AG awarded Allseas Group a contract for offshore pipelay of its natural gas pipeline. The company will undertake offshore pipelay works for both lines in 2018 and 2019. The contract follows the letter of intent agreed to between both parties last December. Other tenders, including the near-shore pipelay tenders in Russia and Germany, are ongoing.

Nord Stream 2 is proceeding as planned, including engineering, procurement, surveys, environmental impact assessments, and permitting. Pipe production for the Nord Stream 2 is ongoing with 300 miles of pipe expected to be produced by the end of first quarter. The project is expected in-service in 2019.

Cheniere Moves Forward With Midcontinent Pipeline

Cheniere Midstream Holdings will file an application for a certificate of public convenience and necessity with FERC to build the Midcontinent Supply Header Interstate Pipeline which will connect new gas production in the Anadarko Basin to growing Gulf Coast markets while providing capacity of up to 1.4 Bcf/d.

If approved, the project will include construction of 200 miles of 30- or 36-inch pipeline from Kingfisher County, OK to Bennington, OK, the 20-mile, 24-inch Chisholm Lateral in Kingfisher, OK and three compressor stations. Cheniere hopes to file its application in May and begin construction in the summer of 2018, with a targeted in-service date of summer 2019.

Transcanada Seeks Keystone XL Route Approval

TransCanada filed an application with the Nebraska Public Service Commission (PSC) in hopes of finally gaining approval for the Keystone XL’s route through the state. The process is expected to be completed this year.

“This application has been shaped by direct, on-the-ground input from Nebraskans,” said Russ Girling, TransCanada’s president and CEO. “The thousands of Nebraskans we have met over the last eight years understand the value of this project and what it means to the state. As we have said consistently, safety and a respect for the environment remain our key priorities. We are listening and acting on what we have learned.”

The proposed route was evaluated by the Nebraska Department of Environmental Quality and approved by the governor in 2013. The preferred route avoids the area that is defined as the Nebraska Sandhills and is projected to cause minimal environmental impacts in Nebraska. The review also included active consultation with landowners along the pipeline corridor where over 90% have signed voluntary easements to construct the pipeline.

Pembina, Chevron Canada to Development Infrastructure

Pembina Pipeline entered into a 20-year infrastructure development and service agreement with Chevron Canada. Chevron will dedicate an area in excess of 230,000 acres, concentrated in the liquids-rich Kaybob region of the Duvernay resource play near Fox Creek, Alberta.

Under the terms, Chevron has the right to require Pembina to construct, own and operate gas-gathering pipelines and processing facilities, and liquids stabilization facilities within the area. Pembina will provide long-term service for Chevron on its pipelines and fractionation facilities.

TransCanada Announces Successful Canadian Mainline Open Season Results

TransCanada Corp. announced on March 13 the successful conclusion of a long-term, fixed-price open season to transport natural gas on the Canadian Mainline from the Empress receipt point in Alberta to the Dawn hub in southern Ontario. The recent open season resulted in binding, long-term contracts from Western Canada Sedimentary Basin (WCSB) gas producers to transport 1.5 PJ/d of natural gas at a simplified toll of $0.77/GJ.

“Today, WCSB producers are facing a much more challenging landscape than they have in the past. This new offering helps our customers compete more effectively by utilizing existing capacity on the Canadian Mainline, and demonstrates the importance and value of this system to deliver their products to markets in Eastern Canada and the Northeast U.S.,” said Russ Girling, president and CEO, adding that, “in addition to utilizing existing capacity and pipelines already in operation, the incremental revenue generated from this offering will make the Canadian Mainline more competitive.”

White Water Midstream Starts Work on West Texas Pipeline

Newly formed Austin, TX-based WhiteWater Midstream LLC is making its first big foray into the rich West Texas oil patch with construction on a 75-mile natural gas pipeline, according to the Austin Business Journal. The Agua Blanca Pipeline will run from Orla, about 38 miles northwest of Pecos near the New Mexico border, to the Waha Hub in northern Pecos County, the company said in a Feb. 23 announcement. The 36-inch pipeline will be able to transport 1.25 Bcf/d to delivery points around the Delaware Basin. The pipeline capacity can be expanded to up to 1.75 Bcf/d and is expected to be in-service later this year. Customers have already committed to taking 500 MMcf/d of the pipeline’s capacity based on long-term, take-or-pay agreements, the company said.

Towerbirch Expansion Project Gets Thumbs Up

 

TransCanada gained federal government approval for the Towerbirch Expansion Project, which will run from Saddle Hills County, Alberta to Tower Lake, BC receipt metering station. The infrastructure will add needed pipeline capacity on TransCanada’s NGTL System.

The project consists of 54 miles of 36-inch pipeline, two meter stations, valve sites and launcher/receiver facilities. Pre-construction conditions are being met and construction contracts are being awarded. Construction is expected to start soon and the line should be in-service in the fourth quarter.