Pipeline
Alpha Crude Begins Delaware Basin Pipeline Construction
TULSA, OK – Alpha Crude Connector has has begun construction of its 400-mile Alpha Crude Connector Pipeline. The crude oil transportation pipeline serves Lea and Eddy counties in New Mexico and Culberson, Loving, Reeves and Winkler counties in Texas. The system will have more than 100,000 bpd capacity from more than 250 lease tank batteries, other local pipeline systems, and truck terminals in the Northern Delaware Basin. Shippers will have access to several downstream pipelines and a rail terminal, providing markets at local refineries, Cushing and the U.S. Gulf Coast.
Pioneer and Reliance Selling Pipeline, Plant to Enterprise
NEW YORK (AP) — Pioneer Natural Resources Co. and India's Reliance Industries Ltd. have agreed to sell a pipeline and processing company to Enterprise Products Partners LP for $2.15 billion. Irving, TX-based Pioneer currently owns 50.1% of the Eagle Ford Shale Midstream business, while Reliance owns 49.9% of that business. The transaction is expected to close in the third quarter of 2015. Enterprise Products is a gas and oil pipeline company based in Houston.
Former BP Cleared of Lying about Oil Spill
NEW ORLEANS (AP) — A federal jury has found a former BP executive not guilty of making false statements to investigators in connection with the 2010 Gulf of Mexico oil spill. Prosecutors said David Rainey, the former vice president of Exploration for the Gulf of Mexico, in the early days of the spill, manipulated calculations to match a far-too-low government estimate of the amount of oil spewing into the Gulf following the explosion of the Deepwater Horizon drilling rig. However, defense attorneys said Rainey's figures were made honestly and that he had no reason to lie.
Dominion Sues Virginia Landowners in Pipeline Feud
RICHMOND, Va. (AP) — Dominion Resources has filed lawsuits against 27 Virginia landowners it says haven't allowed surveyors to access their property for a proposed natural gas pipeline. Dominion announced Wednesday the lawsuits are the first of what could be more than 100 separate complaints filed against landowners Dominion says are legally obligated to allow surveyors to enter their properties, which are along the Atlantic Coast Pipeline's proposed route.
Increases in U.S. Oil Production Predominantly Light, Sweet Crude
U.S. crude oil production has grown rapidly in recent years, primarily from light, sweet crude from tight resource formations. About 90% of the nearly 3MMbpd growth in production from 2011 to 2014 consisted of light, sweet grades, meaning they have an API gravity of 40 or above and a sulphur content of 0.3% or less. EIA's <em>Annual Energy Outlook 2015</em> projects the U.S. supply of lighter API gravity crude oil from formations in regions such as the Bakken, Permian Basin, and Eagle Ford continues to outpace that of medium and heavier crudes.
High-Speed Compressors Spawn Need for Better Guidelines
With the growing use of high-speed separable reciprocating compressors in natural gas storage and transmission applications, the Gas Machinery Research Council (GMRC) sees the need for better guidelines and practices to govern the specification, design and application of this class of compression equipment.
SemGroup to Build Maurepas Pipelines
SemGroup plans to build and operate three pipelines in the Gulf Coast region of Louisiana. Collectively named the Maurepas Pipelines, they will support Motiva Enterprises efforts to interconnect its refinery operations.
EPA: No widespread Harm to Drinking Water from Fracking
WASHINGTON (AP) — Hydraulic fracturing to drill for oil and natural gas has not caused widespread harm to drinking water in the United States, the Environmental Protection Agency (EPA) said Thursday in a report that also warned of potential contamination of water supplies if safeguards are not maintained.
Venture Global Moves Ahead with Liquefaction-Export Facility
Venture Global LNG has hired two manufacturing and engineering companies for its Calcasieu Pass Project in Cameron Parish, LA. Chart Energy & Chemicals will provide midscale modular technology and Tecnicas Reunidas will handle engineering design for the gas liquefaction and export facility project. Chart will provide its IPSMR liquefaction technology and proprietary equipment. Tecnicas Reunidas’ will design a multitrain liquefaction plant with 10 MMtpa LNG capacity, two full containment LNG tanks, a 600-MW combined-cycle power plant and marine facilities.
Natural Gas To Challenge Oils Monopoly as Transportation Fuel, IHS Study Says
A new study by business information provider IHS forecasts significant growth and value in the market for natural gas and LNG as a transportation fuel. The study, <em>LNG in Transportation: Challenging Oil’s Grip</em> showed that use of natural gas as a transportation fuel could displace more than 1.5 MMbpd of oil demand by 2030. A combination of drivers — environmental, technological and commercial — will lead to greater adoption of natural gas in transport, the study said. The highest level of adoption will be in high-fuel-consuming applications such as trucks and ships.
Ruptured Santa Barbara Pipeline Badly Corroded, Report Says
LOS ANGELES (AP) — A pipeline rupture that spilled an estimated 101,000 gallons of crude oil near Santa Barbara last month occurred along a badly corroded section that had worn away to a fraction of an inch in thickness, according to federal regulators. The preliminary findings released Wednesday by the federal Pipeline and Hazardous Materials Safety Administration point to a possible cause of the May 19 spill that blackened popular beaches and created a 9-mile slick in the Pacific Ocean.
Enterprise Announces Acquisition of Eagle Ford Midstream Assets
HOUSTON – Enterprise Products Partners announced today it executed definitive agreements to purchase all member interests in Eagle Ford Shale gas-gathering company EFS Midstream from affiliates of Pioneer Natural Resources Company and Reliance Industries Limited for $2.15 billion.
Exova Wins Contract on 727-Mile Alaskan Pipeline Project
Exova won a contract with the Alaska Gasline Development Corp. (AGDC) to provide a material and weld qualification program for AGDC’s Alaska Stand Alone Pipeline project. AGDC is engaged in front-end engineering and design (FEED) for the $10 billion North Slope natural gas project. In its first contract with the company, Exova’s Houston laboratory is qualifying selected pipe mills and welding contractors specified by AGDC to work on the 727-mile, 36-inch mainline.
Opportunities Burning Bright for Natural Gas, AGA Chairman Says
At least for his new role as 2015 chairman of the American Gas Association Terry D. McCallister doesn’t have far to travel. The 59-year-old natural gas executive who is chairman and CEO of WGL Holdings and Washington Gas Light Co., the 165-year-old utility company that services the Potomac region, has plenty on his plate these days, as this interview found, so time is at a premium.
Erickson Wins Mexico Pipeline Construction Contract
Erickson Inc. has contracted with Group Desarrollo Infaestructura (GDI) to transport pipe via helicopter for a project by TransCanada’s Mexican subsidiary, Transportadora de Gas del Noreste in Mexico. They will use an S-64 E Aircrane to transport over 1,000 natural gas pipeline segments that will complete the 329-mile Topolobampo project. TransCanada expects to invest $1 billion in the project which is supported by a 25-year contract with Mexico’s national electric company, CFE. The 30-inch pipeline will be 329 miles long and have contracted capacity of 670 MMcf/d.
In The News: Obama Gives Final Approval to Cove Point LNG Terminal
The Obama administration on May 7 granted final approval to a $3.8 billion natural gas export facility in Calvert County, MD – the first gas export site on the East Coast. Environmentalists sued within hours to stop the project.
Embracing Uncertainty: Reducing Risk by Working Together
It’s trite but true: The only thing constant is change. Especially in our industry, it seems. There’s always a new technology or tool to consider or a proposed regulation to ponder. Access to capital restricts and relaxes. Individual rig or well performance can vary widely. Even the location of our best prospects can confound us: North Dakota?
Southcross Holding Open Season To Transport Y-Grade
Southcross Energy Partners announced the launch of a binding open season to solicit commitments for its proposed Y-Grade pipeline. Once complete, the pipeline will allow Southcross to offer transportation services of Y-Grade from a point near Woodsboro, TX to a point near Robstown. The pipeline will have access to the Y-Grade pipeline of Southcross’ holding company that runs from Pettus to Robstown.
Transco Seeks Regulatory Approval for Dalton Expansion Project
Williams announced that Transco has filed an application with FERC for its Dalton Expansion project, which would support providing Marcellus gas to the Southeast for electricity generation and local natural gas distribution.
Enable Gas Transmission Pursues Oklahoma Expansion
Enable Midstream Partners subsidiary, Enable Gas Transmission, held an open season for interested parties to obtain firm interstate natural gas transportation capacity resulting from an expansion of EGT’s Line AD in Oklahoma. The Oklahoma Expansion capacity will provide enhanced transportation options from receipt points in the South Central Oklahoma Oil Province (SCOOP) region, as well as the Woodford and Cana Basins, the Granite Wash and the Colony Wash supply basins in Oklahoma.
Plains All American/Delek Logistics Form JV To Develop Pipeline
Plains All American Pipeline, L.P. and Delek Logistics Partners LP have formed Caddo Pipeline LLC, a 50/50 joint venture to develop the Caddo Pipeline. The 80-mile, 12-inch pipeline will run between Longview, TX and Shreveport, LA.
Midstream: Changing Routes, Emphasis for Energy Renaissance
As global oil prices were still falling and various parts of the U.S. oil/natural gas space were reassessing plans for 2015, the American Petroleum Institute (API) was reorganizing to better service one of the industry’s growth sectors – midstream. API said it was going to provide more attention to “pipelines and processing facilities” that connect oil and gas production with markets. The key is infrastructure, according to the globally recognized Washington, DC-based trade and standards-setting group.
Rangeland Lands Anchor Shipper for RIO Pipeline
Rangeland Energy has executed a long-term agreement with a subsidiary of Delek US Holdings, Inc. to be an anchor shipper of crude oil on the Rangeland Integrated Oil Pipeline (RIO Pipeline). The pipeline will connect production from the Delaware Basin to the crude oil market center in Midland, TX. Delek Logistics Partners LP, Delek US’s logistics arm, will own 33% of the RIO Pipeline and supporting terminals.
The Shale Gas Revolution and Effects on the Northeast Gas Market
Without a doubt, the biggest factor impacting the U.S. gas market is the development of shale gas in the Marcellus Shale play, located in northern Appalachia and the Alleghenies. The shale gas revolution in the U.S. – specifically in Pennsylvania and West Virginia – is nothing short of a revolution for the entire country.
Making the Best of Evolving Midstream Infrastructure
The changing oil production and consumption landscape in North America has led to new developments in the infrastructure that brings oil to market – the pipelines, gathering systems, storage facilities, rail networks and marine-based transport networks that comprise the industry’s midstream oil infrastructure.
ONEOK, Fermaca Plan Gas Pipeline from West Texas to Mexico
ONEOK Partners, L.P. has a 50-50 joint venture with a subsidiary of Fermaca Infrastructure B.V., a Mexico City-based natural gas infrastructure company, to build a pipeline transporting gas from the Permian Basin in West Texas to Mexico. The Roadrunner Gas Transmission project extends from ONEOK Partners' ONEOK WesTex Transmission gas pipeline system at Coyanosa, TX, west to a new international border-crossing connection at the U.S. and Mexico border near San Elizario, TX, where it will connect with Fermaca's Tarahumara Gas Pipeline.
Columbia Pipeline Group Plans Infrastructure to Bring Gas To Growing Markets
The Columbia Pipeline Group has embarked upon a strategic program to build pipeline infrastructure and compression equipment to deliver natural gas from production areas to homes and businesses throughout the Midwest and eastern U.S. The proposed Leach XPress project involves 160 miles of natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle. The $1.4 billion investment will transport 1.5 Bcf from the heart of the Appalachian supply basin to consumers served by the Columbia Gas and Columbia Gulf pipeline systems.
Pemex/First Reserve to Develop Energy Infrastructure Projects in Mexico
Petroleos Mexicanos (Pemex) and First Reserve announced a US$1 billion agreement to mutually invest in energy infrastructure for Mexico. The first of the investments includes the 744-km natural gas Los Ramones pipeline that is comprised of three sections and is being implemented in two phases. Construction of the projects has already begun with full commercial operations expected in mid-2016. The companies are also planning large-scale infrastructure opportunities.
Editor's Notebook: Crude Exports More Important Than Keystone
I was driving to work this morning on Kamikaze Highway, officially known as I-10, and switched on the 9 a.m. news when a story so outlandish grabbed my attention, nearly forcing me into another lane of traffic, in which case I could not have written this column. The story, reported by Fox News, cited an increase in President Obama’s popularity that it attributed to lower gasoline prices. Say what? He being responsible for lower gas prices is like saying the API is non-political. It’s just not so, am I right, Jack Gerard?
Notebook: Hey, Gov. Cuomo, Fracking Ban Not Working For Rest of State
Gov. Andrew Cuomo: Get your butt out of Albany and go see how the rest of your state lives. Or you might not have much of a state left. One memory that stands out from my 1970s tenure as a reporter in New York’s Southern Tier is that of an economy stuck in reverse. Broome County centers around Binghamton, a city of 47,000 that has lost nearly half its population since the 1950s.
- Williams' $1 Billion Gas Pipeline Blocked by U.S. Appeals Court, Derailing Five-State Project
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Exxon Mobil to Start Gas Reserve Seismic Surveys in Greece
- LaPorte, Texas, Issues Shelter in Place After Altivia Plant Leaks Toxic Gas
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Mid-Year Global Forecast: Midstream Responding to Demand from LNG Projects
