November 2024, Vol. 251, No. 11
Projects
Projects November 2024
Apollo Strikes $1 Billion Funding Deal on Trans Adriatic Pipeline
Apollo Global Management signed an agreement with BP to fund its stake in the Trans Adriatic natural gas pipeline, the companies announced.
The Trans Adriatic Pipeline (TAP) operates a natural gas transportation infrastructure from the Greek border with Turkey to southern Italy. Some of the proceeds from the transaction will go toward BP’s 2024 divestment.
Apollo will become a non-controlling shareholder in the BP’'s unit, which has a 20% stake in Trans Adriatic Pipeline AG. Other shareholders, with 20% stake each, are Azerbaijan's state energy company SOCAR, Italy's Snam, Belgium-based Fluxys and Spain's Enagas.
Trans Adriatic Pipeline AG is the final 547 miles (880 km) of the Southern Gas Corridor pipeline system - a 2,175-mile (3,500-km) network extending from the Caspian Sea to Europe. It ships natural gas from the BP-operated Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe such as Greece and Italy.
Diamondback, Kinetik Buy 30% Stake in 800-Mile EPIC Crude
Diamondback Energy and Kinetik Holdings acquired a 30% equity interest in the EPIC Crude pipeline system.
The companies will each own 27.5% of EPIC Crude, while parent EPIC Midstream will continue to own a 45% stake in the pipeline.
Earlier, Diamondback bought privately held rival Endeavor Energy Resources in a $26 billion deal, making it the third-largest oil and gas producer in the Permian Basin of West Texas and New Mexico.
The EPIC Crude transaction will ensure a “cost-effective takeaway out of the basin for our expanded crude portfolio,” Diamondback Chief Financial Officer Kaes Van't Hof said.
EPIC Crude is an 800-mile (1,287-km) crude oil pipeline system that connects the Delaware, Midland Basin, and Eagle Ford supply to EPIC's 3.4 million barrel Robstown Terminal near Corpus Christi.
The pipeline system entered full service in April 2020.
EPIC Crude has a capacity of 600,000 bpd, which is expandable up to 1 MMbpd, and has about 7 million barrels of operational storage.
Crescent Midstream Developing Louisiana Carbon Capture Project
Oil pipeline firm Crescent Midstream said it will jointly develop and build a carbon capture and storage project in Lake Charles, Louisiana.
The nearly $1 billion project would capture carbon dioxide from an Entergy-owned 994 MW Lake Charles power station.
Collaborating with Samsung E&A and Honeywell’s technologies, the project is expected to capture up to 3 million tonnes of carbon dioxide per year.
The project is expected to be completed in 2028, Crescent told Reuters.
Crescent Midstream owns about 1,200 miles (1,930 km) of pipelines around Louisiana and the Gulf of Mexico, which transport almost 200 million barrels of crude oil annually.
Russia Approves Fuel Pipeline Project in Congo with 90% Stake
Russia, with some reservations, endorsed the construction of a fuel pipeline in the Republic of Congo, according to a governmental decree.
The pipeline will connect the western port of Pointe-Noire to the capital Brazzaville. Moscow said a joint venture to construct the pipeline would be set up with Russia controlling 90% of the entity.
Russia said it will provide funds, equipment and personnel for the of the pipeline project and send fuel to fill the pipe when the time comes. The Republic of Congo is expected to agree to various tax relief measures, according to Reuters.
Russia has been forging close ties with Africa following the collapse of relations with the West over the conflict with Ukraine, which started in February 2022.
Bayou Midstream II Secures Backing to Expand U.S. Infrastructure
Bayou Midstream II gained an equity commitment from EIV Capital, following its successful partnership for Bayou Midstream LLC (Bayou I).
Headquartered in Houston, Bayou II is an independent energy company focused on the acquisition, development and operation of midstream infrastructure across North America.
Bayou II will be led by CEO Travis Roby and president and CFO Ross Lairson. Bayou II’s leadership team has extensive midstream experience within many of the most prolific basins in the United States.
This is Travis and Ross’ second equity commitment from EIV Capital since formation of Bayou I in 2018. Bayou I developed and operated strategic midstream assets in the Bakken shale, including the Leviathan Crude Gathering system, the Fairview Connector interstate pipeline, the Alexander Connector Pipeline, and the East Fairview and Alexander crude terminals.
Reversal del Norte Pipeline Nears Completion After River Crossing
Argentina’s Reversion del Norte pipeline project has reached a significant milestone, bringing it closer to completion and on track for a late-2024 or early 2025 finish.
After a period of delay, the project team has successfully completed the crossing of the Tercero River by installing a 2,135-foot (650-meter) column. Spanning 93 miles (100 km), this pipeline is crucial for supplying gas to northern Argentina and exporting to Bolivia and Brazil. It represents a major step toward reducing the country’s reliance on imports and supporting domestic energy needs.
Under President Javier Milei’s administration, Energía Argentina has prioritized addressing the gas supply issues in northern Argentina. In contrast, the previous administration under Alberto Fernández had stalled the project due to problems with the bidding process. With the supply contract with Bolivia expiring on July 31, re-tendering became essential to moving the project forward.
“Given the tight deadlines, the work must be executed simultaneously on multiple fronts to complete the project on time,” said José Ibarra, project manager at Techint Engineering & Construction. “This pipeline, which includes over 30 special crossings, must be operational by mid-August 2024, meeting all safety, regulatory, and operational requirements for gas filling and transportation.”
Despite missing its initial operation target last month, the company has since worked diligently to meet deadlines since the project’s reactivation, closely monitoring progress and contractor performance to address typical project challenges, according to Energía Argentina.
With this recent development, the Northern Reversion Gas Pipeline has advanced rapidly. Financed by CAF, the project involves reversing the flow of four compressor plants and is expected to transport 19 MMcm/d of gas from southern to northern Argentina starting in March 2025.
Once finished, the pipeline will have an estimated capacity of 7.8 Bcf/d, enhancing Argentina’s gas transportation infrastructure, according to Global Energy Infrastructure Data.
By reversing the Gasoducto Norte’s flow, the Reversion del Norte project will benefit industrial sectors and help lower energy costs for consumers. Despite the tight timelines and complex development, the project remains a priority for Argentina’s energy strategy.
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