North America
TransCanada Awarded Contract for Tuxpan Tula Pipeline in Mexico
MEXICO CITY – TransCanada announced it won the contract to build, own and operate the Tuxpan-Tula Pipeline in Mexico. Construction is supported under a 25-year natural gas transportation service agreement with the Comision Federal de Electricidad (CFE), Mexico's state owned power company. The pipeline will originate in Tuxpan, in the state of Veracruz, and extend through the states of Puebla and Hidalgo, supplying natural gas to CFE combined-cycle power generating facilities in each of those jurisdictions, as well as to the central and western regions of Mexico.
Analysis: Polarized Politics Dictated Obama Keystone Call
WASHINGTON (AP) — President Barack Obama's decision to block the Keystone XL oil pipeline has exposed an endlessly polarized Washington, and likely hardened its divides. Obama is now being praised to the skies by environmentalists and most Democrats, and denounced in apocalyptic terms by Republicans and the business community. And although environmental issues once produced bipartisan agreement in Congress, consensus on action to increase energy production or deal with climate change looks farther away than ever.
Natural Gas Market Dynamics in the Northeast
Natural gas markets have gone topsy-turvy. Until recently, prices around the country were generally pretty similar, with gas costing a bit more in the Northeast, far from where it was produced on the Gulf of Mexico coast. But that reality has changed dramatically in the last few years.
With a Chill in the Air, Thoughts in New England Turn to Heating Bills
As winter approaches, the hot topic of conversation in the Northeast once again becomes the looming frigid temperatures and accompanying burdensome cost of heating homes and offices along with powering manufacturing plants. With this in mind, the Access Northeast project developers plan to upgrade existing pipeline facilities and market area storage assets in New England to deliver – on peak days – up to 1 Bcf/d of natural gas for electric-generation markets.
State Dept. Rejects TransCanada Request for Keystone Delay
WASHINGTON (AP) — The Obama administration said Wednesday it is continuing a review of the proposed Keystone XL oil pipeline, despite a request by the project's developer to suspend the review. If granted, a delay could have put off a decision on the high-profile project until the next president takes office in 2017. President Barack Obama has yet to say whether he would approve or reject the pipeline, but the Democrats running for president have all said they oppose it while Republican candidates support it.
Keystone Backers Look to Obama's Successor to Make the Call
WASHINGTON (AP) — The company pleading for permission to build the Keystone XL pipeline looked beyond President Barack Obama on Tuesday in apparent hopes a future Republican president would green-light the project. But the administration signaled it was in no mood to hand off the decision to the winner of the 2016 election.
TransCanada Asks US to Suspend Pipeline Application Review
TORONTO (AP) — After waiting seven years for a decision, the company behind the proposed Keystone XL pipeline from Canada to Texas has asked the U.S. State Department to suspend its review of the project. The move comes as the Obama administration increasingly appeared likely to reject the pipeline permit application. TransCanada said Monday it had sent a letter to Secretary of State John Kerry requesting that the State Department suspend its review of the pipeline application. Until recently, it would have been unimaginable for the Calgary, Alberta-based company to ask for a delay.
Howard Midstream Begins Work on 200-Mile Texas-Mexico Pipeline
Howard Midstream Energy Partners, LLC held a successful open season and plans to move forward with construction of the Nueva Era Pipeline, a 50-50 joint venture between HEP and Mexico-based energy and services firm Grupo Clisa. As proposed, the pipeline will connect HEP’s existing Webb County Hub in South Texas directly to Escobedo, Nuevo León, Mexico, and to the Mexican National Pipeline System (Sistema de Transporte Nacional Integrado) in Monterrey, Mexico.
Veresen Gains Approval of $860 Million Sunrise Gas Plant
Veresen has begun construction of the $860 million Sunrise gas plant, located in the Montney region near Dawson Creek, B.C. The announcement came on the heels of Cutbank Ridge Partnership — a venture between producers Encana and Cutbank Dawson Gas Resources — approved the plant.
Judge Gives Final Approval for $338 Million Oil Train Settlement
PORTLAND, Maine (AP) — A U.S. bankruptcy judge Friday approved a $338 million settlement fund for victims of the fiery 2013 oil train derailment that claimed 47 lives in Quebec, clearing the way for payments to victims by year's end. Judge Peter Cary announced his approval after Canadian Pacific dropped its objection to the settlement plan and after a Canadian judge gave conditional approval Thursday. He praised attorneys for working together to get a substantial settlement in place as quickly as possible.
Keystone XL Developer Seeks Different Approval for Route
LINCOLN, Neb. (AP) — TransCanada is taking steps to circumvent one of the major roadblocks in Nebraska to the building of the Keystone XL pipeline. But in seeking approval Monday for the same contentious route through the state, the company could create another round of lengthy delays in an already drawn-out process.
Second 'Round 1' of Oil Auction Goes Much Better for Mexico
Mexico improved upon its disappointing July auction in its latest round; an improvement that could lead to deeper investment in the country’s oil sector. In the second edition of Mexico’s “Round One” auction, the government successfully awarded three out of the five offshore production-sharing contracts on offer, a better outcome than the two blocks out of 14 that were awarded in July.
In the News: Phillips 66, Spectra Energy Bail Out Troubled DCP Midstream
Phillips 66 and Spectra Energy, 50/50 joint venture owners in DCP Midstream, LLC, have entered into a nonbinding letter of intent for contributing assets to strengthen DCP Midstream. This transaction is expected to provide DCP Midstream with a stronger balance sheet and increased financial flexibility, and positions DCP to grow through commodity price cycles.
Partners Submit Application for 3-State Natural Gas Pipeline
CHARLESTON, W.Va. (AP) — Four energy partners formally asked the federal government Friday for permission to build a 564-mile natural gas pipeline in West Virginia, Virginia and North Carolina. The 348-page application was submitted to the Federal Energy Regulatory Commission. The $5 billion Atlantic Coast Pipeline is intended to deliver cleaner burning natural gas to the Southeast as utilities move away from coal-burning power plants amid tighter federal rules on pollution that contributes to climate change.
Judge Poised to Sign Off on Oil Train Disaster Settlement
PORTLAND, Maine (AP) — A $338 million settlement fund for victims of a fiery train derailment that claimed 47 lives in Quebec is poised for final approval, but payments could be held up by a legal challenge from one of Canada's largest railways. Canadian Pacific, which opposes the settlement fund, declined to contribute because it contends others were responsible for the tragedy. If the settlement is approved, Canadian Pacific would be left open to lawsuits while those the railroad considers to be responsible would be shielded from further legal battles by the agreement.
Sunoco Logistics Holding Open Season for Mariner East 2 Expansion
Sunoco Logistics Partners has begun a binding open season for its Mariner East 2 Expansion Project, which will transport petroleum products, including natural gas liquids and condensate, from processing facilities built in the liquid-rich Marcellus and Utica shale areas to Sunoco Logistics’ Marcus Hook Industrial Complex on the Delaware River. The open season offers service for ethane, propane, butane, C3+, natural gasoline and condensate. Refined product movements will be considered if there is sufficient interest. The prjoect is expected to begin operations in 2017.
Editor's Notebook: Cheap Energy Brings Jobs Where There Were None
OK, I’m a sucker for natural gas. Maybe I’ve learned something these past 25 years that George Mitchell tried to explain: natural gas is the fuel of the future and can revitalize America. After I read this story off the Reuters news wire, can you blame me?
Canadas Oilfield Service Sector Battered by Low Prices
In some ways the numbers don’t look that bad. For a group of 25 diversified, publicly traded Canadian oilfield service (OFS) companies, combined revenue of nearly $9 billion in the first six months of 2015 was only 22.1% lower than $11.53 billion for the same period in 2014. With oil prices down 50 percent for the first half of 2015, a revenue decline of 22.1% looks misleadingly attractive.
Fluor Wins Front-End Contract for Ohio Petrochemical Complex
PTT Global Chemical Public Company (PTTGC) selected a Fluor-led team to perform front-end engineering and design work for its proposed petrochemical complex in Belmont County, OH. The team includes Fluor, Technip and SK E&C. The project will encompass an ethane cracker and derivatives units by leveraging the availability of feedstock from gas taken from the Utica and Marcellus shale formations in the region to create chemical products. Front-end activities are expected to be completed in 2016.
Sempra Wins Gas Transportation Contract in Mexico
Sempra Energy’s Mexican unit Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), through its subsidiary Gasoducto de Aguaprieta S. de R. L. de C.V., has been awarded a natural gas transportation contract in Chihuahua by the Comisión Federal de Electricidad (CFE). The project includes a header facility with a capacity of 3 Bcf/d of natural gas and a 14-mile pipeline with a capacity of 1,135 MMcf/d. The pipeline will provide gas to the Norte III Combined Cycle Power Generation Plant and will interconnect with Gasoductos de Chihuahua, Tarahumara and Samalayuca-Sásabe pipelines.
ConocoPhillips Safely Delivers 1st Oil at Surmont 2
ConocoPhillips delivered first oil at its Surmont 2 in-situ oil sands facility in Canada, marking a significant milestone for the megaproject. Construction of the single-phase, steam-assisted gravity drainage (SAGD) project began in 2010. Earlier this year, the company announced first steam, which has heated the reservoir to a point at which the well pairs could be converted to a SAGD configuration, allowing the oil to flow. Production will ramp-up through 2017, adding about 118,000 bpd of gross capacity. Total gross capacity for Surmont 1 and 2 is expected to reach 150,000 Bpd.
State Says Ohio Oil, Natural Gas Production at Historic High
COLUMBUS, Ohio (AP) — The state Department of Natural Resources says historic amounts of oil and natural gas are being produced by Ohio shale wells. Statistics released by the department Thursday show more than 10 MMbbls of oil and 405 Bcf of natural gas were produced during the second quarter of the year. The department says those amounts were more than in any previous three-month reporting period. During the same period in 2014, the state's wells produced about 4.4 MMbbls of oil and 156 Bcf of natural gas.
Some Small But Welcome Relief For WTI
BP’s Whiting refinery, the largest refinery in the Midwest, made a quicker-than-expected return to action this week. BP released a statement saying that the large crude distillation tower that went offline and caused gasoline prices to spike in the Midwest has “safely restarted,” and that output would ramp up over time.
Encana Selling Louisiana Assets for $850 Million
NEW YORK (AP) — Energy company Encana Corp. is selling its Haynesville natural gas assets in northern Louisiana, including 112,000 acres, to GEP Haynesville LLC for $850 million. Canadian-based Encana also said it will reduce its gathering and midstream commitments, which will be substantially complete through 2020, by about $480 million. It will transport and market GeoSouthern's Haynesville production on a fee for service basis for the next five years.
Kinder Morgan Begins Open Season on Mier-Monterrey Expansion
Kinder Morgan began a binding open season to solicit interest for the proposed Mier-Monterrrey Pipeline Expansion project, which would increase transportation capacity 700 MMcf/d through looping of the existing pipeline from the U.S.-Mexico border to Huinalá, Nuevo León, Mexico, and a new lateral from Pesquería, Nuevo León, Mexico, to Escobedo, Nuevo León, Mexico.
MarkWest Energy Expanding Dry Gas Gathering Capabilities in Utica Shale
MarkWest Energy Partners and the Energy & Minerals Group announced the development of a new, large-scale dry gas gathering system to strategically expand the parties’ leading midstream position in the Utica Shale. The extensive system will be underpinned by a long-term, fee-based contract with Ascent Resources-Utica, a subsidiary of Ascent Resources. Ascent is one of the largest pure-play Appalachian E&P companies with about 280,000 net acres in the prolific Utica and Marcellus shale plays.
Willbros Handles Challenges to Complete Mexican Pipeline Ahead of Schedule
NET Midstream’s affiliate, NET Mexico Pipeline Partners, LLC., saw completion of its Net Mexico Pipeline ahead of schedule and placed into service in November 2014. NET Mexico will interconnect on the Mexican side of the border with Phase 1 of the Los Ramones Pipeline, which is being developed by an affiliate of Gasoductos de Chihuahua S. de R.L. de C.V. The pipeline is anchored by a long-term firm gas transportation agreement, for up to 2.1 Bcf/d, with MGI Supply Ltd., an indirect wholly owned subsidiary of Pemex Gas, Mexico’s state-owned gas company.
Howard Energy Partners Going Forward With South Texas-to-Mexico Pipeline
Howard Midstream Energy Partners (HEP) said due to a successful open season construction will move forward on the Nueva Era Pipeline, a 50-50 joint venture between HEP and Mexico-based energy and services firm Grupo Clisa. The project will connect HEP’s existing Webb County Hub in South Texas directly to Escobedo, Nuevo León, Mexico, and to the Mexican National Pipeline System (Sistema de Transporte Nacional Integrado) in Monterrey, Mexico.
Keystone XL Review Drags on 5 Times Longer than Average
WASHINGTON (AP) — For six and a half years, the White House has had a quick comeback to questions about its yet-to-be-announced decision on the proposed Keystone XL pipeline: Talk to the State Department.
Pemex Awards Offshore Engineering Contracts to Wood Group
Wood Group has been awarded a three-year offshore engineering blanket order by Pemex for field development in Mexico’s Gulf of Mexico waters. The $28 million agreement encompasses deepwater and complex shallow water concept and basic engineering, and owner engineer services. Work will be performed by Wood Group Kenny and Wood Group Mustang and will include field development planning and engineering of topsides facilities, subsea umbilicals, risers and flowlines (SURF), and floating systems.
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
