December 2024, Vol. 251, No. 12
Projects
Projects December 2024
AG&P LNG to Develop South Australian Import Terminal
Singapore-based Atlantic, Gulf and Pacific (AG&P) LNG is buying Australian energy infrastructure developer Venice Energy and will develop its Outer Harbor import terminal in south Australia.
The project’s approval should reduce gas shortages in the southeast of Australia, Venice Energy announced late last year.
The 2-mpta terminal will involve the conversion of a 145,000 cubic meter LNG carrier to a FSRU, which will send up to 400 MMscf/d of gas.
Venice Energy has the Outer Harbor terminal project ready with all key permits in place, “offering a key advantage over other LNG import terminal proposals in the region,” said AG&P chairman Peter Gibson, in a media release.
AG&P LNG plans to have the terminal in service by the first quarter of 2027.
Australia’s east coast is looking at projected gas shortages in 2027, the nation’s competition regulator said in July.
Vivakor Completes Omega Pipeline Expansion in Oklahoma
Vivakor Inc., an integrated provider of energy transportation, storage, reuse, and remediation services, has completed construction of additional gathering lines connected to its Omega Pipeline System in Blaine County, Oklahoma.
The 40-mile Omega Pipeline serves Oklahoma's STACK play in the Anadarko Basin and links to the Cushing storage hub through the Plains STACK Pipeline. The project consisted of two new gathering lines and was completed ahead of schedule and under-budget.
Subsequent to its acquisition of the Endeavor Entities in October 2024, the company approved a project to expand its Omega Pipeline System in Blaine County, Oklahoma. It is expected to boost oil volumes from connected producers in the region.
“This is another positive step forward in executing upon our midstream strategy to organically grow volumes and retain important customers,” said James Ballengee, chairman, president and CEO.
Vivakor’s operations also include a fleet of about two dozen trucks that support additional customer volumes.
Enterprise Products Not Considering New Permian Oil Pipeline
U.S. energy pipeline operator Enterprise Products is not planning additional crude oil pipelines from the Permian shale out of the Permian shale field in West Texas, the company said.
A wave of consolidation in the top U.S. shale field has concentrated output in the hands of companies that are promising to restrain output, so as to not crash prices by overproducing.
Co-CEO Jim Teague said, however, that that Enterprise is moving forward on its proposed deepwater oil export project, Sea Port Oil Terminal (SPOT), but added, “nobody wants to be first [as a customer],” Teague said at an RBN Energy conference in Houston.
U.S. Allocates $196 Million for Natural Gas Pipeline Modernization
The U.S. government grants worth $196 million will be available to repair and replacement aging natural gas pipelines across 20 states, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration said.
This round of funding will focus on replacing old pipes, which could pose safety hazards, inflate energy costs and contribute to environmental harm. The grants, coming as part of the Bipartisan Infrastructure Law, will support 60 modernization projects.
“Aging, leak-prone natural gas pipes can be dangerous, drive up energy costs for families, and harm the environment, which is why the Biden-Harris Administration is supporting funds to replace aging pipelines,” said U.S. Transportation Secretary Pete Buttigieg in a statement.
Canadian Natural Boosts Its Space on Trans Mountain
Canadian Natural Resources is latching onto more space on the expanded Trans Mountain pipeline, boosting its ability to ship crude to markets after buying assets from Chevron, Bloomberg News reported.
In October, Chevron agreed to sell its assets in the Athabasca oil sands and Duvernay shale formation to Canadian Natural Resources for $6.5 billion.
The will agreement will increase Canadian Natural Resources’ space on the pipeline by about 75% to roughly 164,000 bpd, according to the report.
In early November, PetroChina informed the Canada Energy Regulator, that it would quit being a committed shipper on the Trans Mountain oil pipeline after assigning its contracts to another party.
New 580-Mile Texas Pipeline Eases Bottlenecks, Boosts Output
A new West Texas pipeline carrying natural gas toward export hubs on the U.S. Gulf Coast is reducing constraints that reduced local prices and should prompt higher oil production, energy analysts agree.
The 580-mile (933-km) Matterhorn kicked off operations in October, relieving bottlenecks that sometimes had forced producers to seek state permits to flare the gas. It is the first natural gas pipeline built in the Permian basin in three years.
“Matterhorn has freed up space, and the price we are getting for gas now has been positive for almost a month,” Mike Oestmann, CEO of Midland producer Tall City Exploration, told Reuters. “We produced a lot of gas that we not only didn’t get paid for, but we paid for it to be taken away.”
The 2.5 Bcf/d capacity Matterhorn, a joint venture among WhiteWater Midstream, EnLink Midstream, Devon Energy and MPLX, will add 14% to regional capacity.
Jacobs to Lead Pre-FEED for 56-Mile East London Hydrogen Pipeline
Jacobs has been chosen by Cadent Gas, on behalf of Capital Hydrogen, to lead the Pre-Front End Engineering Design (Pre-FEED) phase for the East London Hydrogen Pipeline (ELHP) project.
Spanning 56 miles (90 km) through East London, the pipeline will run north of the River Thames, linking key industrial areas to a reliable hydrogen supply. The project aims to help decarbonize sectors such as transportation and power generation, playing a significant role in the region’s energy transition.
Jacobs will provide pre-FEED design, cost analysis, strategic planning, environmental assessments, and engagement services, leveraging decades of energy experience. These efforts are expected to set the foundation for the project’s success, ultimately supporting the U.K.’s net zero goals by reducing emissions in a traditionally carbon-heavy region.
“Our hydrogen teams work collaboratively across geographies and sectors, turning transformational ideas into intelligent solutions to create a cleaner energy future for all,” said Jacobs Vice President James Nash.
The ELHP is part of Capital Hydrogen’s broader initiative to transition London’s gas networks to hydrogen, with the potential to create skilled jobs, enhance energy independence, and offer greater consumer choice. Capital Hydrogen is a joint effort between Cadent, SGN, and National Grid Gas Transmission.
“Hydrogen is essential to decarbonize operations along the north bank of the River Thames,” Cadent Strategy Director Angela Needle added, “By ensuring a secure and reliable supply of hydrogen, we’re not only supporting the transition to a net zero future but also helping to secure the long-term viability of these major employers, safeguarding and creating jobs, and driving economic growth in the region.”
After the Pre-FEED phase, the project will move into full FEED, where final engineering designs will be prepared for construction.
Enterprise Products to Develop CO2 Pipeline Network
Enterprise Products Partners will develop a CO2 transportation network to support carbon capture firm 1PointFive’s hub in southeast Texas.
The U.S. Department of Energy’s Office of Clean Energy Demonstrations has committed up to $500 million to support the hub’s development.
The network, as a part of Occidental’s 1PointFive initiative, will transport emissions from facilities near the Houston Ship Channel to Bluebonnet Sequestration Hub.
1PointFive has an agreement with Microsoft and telecom company AT&T to sell carbon dioxide removal (CDR) credits.
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