October 2024, Vol. 251, No. 10
Projects
Projects October 2024
Voyager Midstream Snaps Up 550 Miles of Gas Pipelines in Haynesville
Voyager Midstream bought natural gas gathering and processing assets from Phillips 66 in East Texas and North Louisiana, as it entered the Haynesville Shale region.
About 550 miles of natural gas pipelines, 400 MMcf/d of cryogenic gas processing capacity, and 12,000 bpd of liquids fractionation capacity, were acquired in the deal, the company said.
“This transaction with Phillips 66 represents an important milestone for Voyager, as it positions us for significant growth in the core of the Haynesville Shale,” Will Harvey, Voyager’s CEO, said. “We are committed to growing our infrastructure footprint in East Texas and North Louisiana and improving producer connectivity and netbacks.”
The acquisition also involved the Carthage Hub, which can handle more than 1 Bcf/d and provides access to key LNG markets in Texas and Louisiana.
“Voyager’s acquisition of these high-quality assets positions the company for growth and success within the Haynesville, one of the preeminent shale plays with strategic connectivity to the U.S. Gulf Coast,” said Stewart Coleman, partner at Pearl Energy Investments. “We look forward to supporting the Voyager team as they continue to safely operate, develop and further commercialize this critical infrastructure.”
Eni, Snam Launch Italy’s First Carbon Capture Project
Eni and Snam have launched Italy’s first carbon capture, transport and storage (CCS) project to help heavy polluting industries cut CO2 emissions, the companies said, in a joint statement.
CCS technology removes from the atmosphere CO2 produced by industrial processes or captures it at the point of emission and stores it underground. Eni and Snam began injecting CO2 into a depleted gas field in the Adriatic Sea, near the Italian city of Ravenna.
In its first phase, the project will capture, transport and store about 25,000 mtpa of CO2 from Eni’s natural gas treatment plant in the city of Ravenna.
Once captured, the CO2 will be transported to an offshore platform through converted gas pipelines and then injected and stored at a depth of 3,000 meters in an old gas reservoir.
The project is powered by electricity from renewable sources, the energy group and the gas network operator said. Eni said the project has accounted for a reduction 90% in CO2 emissions from its plant’s chimney.
Texas Matterhorn Pipeline Begins Gas Flow, Could Boost Prices
Executives for Permian Resources told an audience that the Matterhorn natural gas pipeline in Texas has been moving small amounts of gas from the Permian Basin in West Texas toward the Gulf Coast.
The remarks took place at the recent Barclays CEO Energy-Power Conference.
The Matterhorn is the biggest gas pipe under construction in the region that is capable of moving gas that has been trapped in the Permian basin. As the volume increases, gas prices should consistently price in positive territory, analysts at the event agreed.
“The Matterhorn should be “moving a real amount of gas in the next few months and we’re hoping to at least see Waha turn positive,” a Permian Resources executives said, according to Reuters.
Matterhorn Express, the 490-mile (789-km) pipe capable of moving up to 2.5 Bcf/d of gas from the Permian to the Gulf Coast, could enter service this quarter.
Putin Goes to Mongolia Concerning Planned Gas Pipeline to China
Russia announced President Vladimir Putin arrived for a state visit in Mongolia, which lies on the route of a planned new gas pipeline connecting Russia and China.
Russia has been in talks for years about building the pipeline, the Power of Siberia 2, to carry 50 Bcm of natural gas annually from the Yamal region to China, through Mongolia.
The project is part of Russia’s plan to make up for losing the bulk of its gas sales in Europe since the start of the Ukraine war. Its predecessor already supplies Russian gas to China and is designed to reach a capacity of 38 Bcm/a in 2025.
ONEOK to Acquire EnLink Stake, Medallion Assets in $5.9 Billion Deal
U.S. pipeline operator ONEOK plans to buy pipeline assets in a pair of deals worth $5.9 billion, bolstering its position in the Permian and Mid-Continent basins amid escalating M&A activity in the sector.
ONEOK will buy Global Infrastructure Partners’ (GIP) 43% stake in EnLink Midstream for $14.90 per unit and its full interest in EnLink’s managing member for at a price of about $3.3 billion in cash.
Once finalized, ONEOK said it will pursue the purchase of the remaining 57% of EnLink in a tax-free transaction.
While the “timing is quite surprising” as ONEOK digests the relatively recent Magellan and Easton transactions, the synergy potential and EnLink’s asset quality within a larger network of ONEOK’s is modest, Raymond James analysts told Reuters.
They signaled there could potentially be additional interest in the rest of EnLink from other companies, given its solid Permian presence.
ONEOK will also buy GIP’s equity interests in Medallion Midstream, a crude gathering and transportation system in the Permian’s Midland Basin, for $2.6 billion in cash.
Tulsa, Oklahoma-based ONEOK expects the deals to close early next quarter and immediately add to its earnings and free cash flow. The company said it estimates synergies to be between $250 million and $450 million over the next three years.
Hungary’s MOL Reaches Druzhba Pipeline Transport Deal
Hungary’s MOL reached deals with suppliers and pipeline operators for the continuous transportation of crude oil through Belarus and Ukraine, using the Druzhba pipeline.
Kyiv banned Lukoil supplies in June after putting the Russian group on a sanctions list, blocking oil shipments to MOL refineries in Hungary and Slovakia.
The updated agreements and the new takeover arrangements, comply with “all relevant sanctions and provisions, including those of the EU and Ukraine,” MOL said in a written statement.
MOL now owns affected crude oil volumes at the Belarus-Ukraine border.
The southern branch of the Druzhba pipeline runs through Ukraine to the Czech Republic, Slovakia and Hungary, and has been the primary source of supply for their refineries for years. Rosneft, Lukoil and Tatneft have been the main Russian exporters via the route.
Wood to Design Long-Haul, 2 State Gas Pipeline
Wood has been awarded the front-end engineering design (FEED) for a long-haul, large-diameter, liquids-rich natural gas pipeline project in the United States.
The DeLa Express pipeline project being developed by DeLa Express LLC, a subsidiary of Moss Lake Partners, is proposed to deliver liquids-rich natural gas from the Permian Basin of West Texas to the U.S. Gulf Coast and international export markets.
Once complete, the project will act as a highway to supply the growing demand for natural gas and liquids, safely shipping critical energy to the largest demand markets, including the largest LNG demand center in North America, Cameron Parish, Louisiana near the Sabine River Corridor.
The project is being designed for approximately two plus 2 Bcf/d of natural gas and liquids transportation capacity, enough to supply the daily equivalent demand of the city of Chicago, Illinois.
By aiming to provide much needed natural gas and liquids takeaway capacity, the project will reduce flaring and emissions in the Permian, and by transporting natural gas and liquids in a single mainline, it will minimize the need for right-of-way clearing and have a significantly lower environmental impact.
Jeremy Hall, senior vice president of oil, gas and new energies Americas for Wood, said: “As demand for natural gas increases, the project will provide a transformational answer to the strained existing pipeline capacity from the Permian Basin.
“Wood recently completed the design of several long-haul pipeline systems in the United States and has a strong track record of delivering engineering for complex natural gas pipeline systems as well as managing the FERC permitting process.”
Under the contract, Wood will design 645 miles of 42-inch diameter mainline pipeline and 139 miles of associated laterals. The team will also manage the compressor station subcontractor, Burrow Global.
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