Two new crude pipeline projects from West Texas’ prolific Permian Basin to the Corpus Christi coastline have analysts crowing about refinery and export expansion in that city. The Houston-based pipeline company Buckeye Partners has proposed a 400,000 barrel-per-day line from Wink and Midland to existing facilities in Corpus.And a three-company consortium — TexStar Midstream Logistics, based in San Antonio, Castleton Commodities International, out of Connecticut, and Dallas-based Ironwood Midstream Energy — have proposed a new 590,000 barrel-per-day pipeline from Orla, Pecos, Crane, and Midland to Corpus, with a stop in Gardendale in the Eagle Ford oil field. Both projects aim to open for business in 2019.
Source: Pipelines planned from Permian to Gulf; Boom to come to Corpus Christi | Fuel Fix
Several large natural gas interstate pipeline projects have come online in recent years to support the shifting geography of domestic natural gas production. The Marcellus and Utica shale plays in the Northeast, where production has grown and resources are abundant, are major drivers for pipeline development. In 2016, the Federal Energy Regulatory Commission (FERC) certificated 17.6 billion cubic feet per day (Bcf/d) of new natural gas pipeline capacity. So far in 2017, FERC certificated more than 7 Bcf/d of new pipeline capacity before losing its quorum following the departure of one commissioner in February, which left just two sitting commissioners and three vacant seats.FERC oversees the interstate transmission of natural gas, which includes the regulation of interstate transportation rates and services for natural gas pipelines, natural gas pipeline construction, and related pipeline environmental matters. Pipeline certification involves reviewing applications for the construction and operation of natural gas pipelines and ensuring that applicants comply with safety standards.Receiving a certificate is just one step in the process of building and operating a new pipeline; pipelines receiving certification in 2017 will not necessarily come online in 2017.The seven projects certificated during the first few weeks of 2017 include more than 1,500 miles of natural gas pipeline construction and expansions, involving combined additions of more than 7 Bcf/d of capacity. The pipeline projects are concentrated in the eastern half of the United States to improve access to markets for growing eastern natural gas production, and they have projected 2017 and 2018 in-service dates.
Source: FERC certificates several new natural gas pipelines in 2017 – Today in Energy – U.S. Energy Information Administration (EIA)
Clean-energy and community activists have been able to stall or kill most new natural gas pipeline proposals in New England, but one expansion project has made it.The Algonquin Incremental Market project went into service last month. It increased the region’s pipeline capacity for the first time since 2010, and represents the largest venture since 2007, according to the U.S. Energy Information Administration. The $972 million project expanded the major pipeline carrying gas from the Appalachian shale deposits into the region by upgrading compressor stations and increasing pipe size in some places.The expansion will provide an additional 342 million cubic feet of gas a day. The region burns roughly 4.5 billion cubic feet on a winter’s day – equal to 31 million gallons of heating oil – so the contribution isn’t a game changer.
Source: Despite opposition, project expands New England natural-gas pipeline capacity – The Portland Press Herald
One of Dallas’ largest public companies has claimed a major stake in a Houston-based midstream company.Dallas-based Energy Transfer Partners LP (NYSE: ETP) will buy the general partner of PennTex Midstream Partners LP (Nasdaq: PTXP), along with certain other interests, for about $640 million, the companies announced Oct. 25. The transaction is expected to close by the end of the year.
Source: Energy Transfer Partners to buy PennTex Midstream Partners’ general
Dakota Access pipeline parent co. to buy interest in Houston midstream co. for $640M
partner – Houston Business Journal
Enbridge Inc. announced Wednesday that hundreds of its employees have lost their jobs as the Calgary-based firm moves to cut 5 per cent of its work force.One month after the oil pipeline giant announced a $37-billion deal to buy Houston-based Spectra Energy Corp. to create North America’s largest energy infrastructure firm, an Enbridge spokeswoman said the company will reduce its work force by approximately 5 per cent across the organization.About 530 positions are affected – including 370 in Canada and 160 in the U.S.
Source: Enbridge to cut 370 jobs in Canada, 160 in the U.S. – The Globe and Mail
nbridge Inc. (TSX, NYSE: ENB) (Enbridge) and Spectra Energy Corp (NYSE: SE) (Spectra Energy) today announced that they have entered into a definitive merger agreement under which Enbridge and Spectra Energy will combine in a stock-for-stock merger transaction (the “Transaction”), which values Spectra Energy common stock at approximately C$37 billion (US$28 billion), based on the closing price of Enbridge’s common shares on September 2, 2016. The combination will create the largest energy infrastructure company in North America and one of the largest globally based on a pro-forma enterprise value of approximately C$165 billion (US$127 billion). The Transaction was unanimously approved by the Boards of Directors of both companies and is expected to close in the first quarter of 2017, subject to shareholder and certain regulatory approvals, and other customary conditions.
Source: Enbridge and Spectra Energy to Combine to Create North America’s Premier Energy Infrastructure
A subsidiary of EnLink Midstream Partners LP and EnLink Midstream LLC plans to construct a crude oil gathering system in Upton and Midland counties, Tex., in the Permian basin.The partnership will invest $70-80 million in the Greater Chickadee crude oil gathering project, which will include more than 150 miles of high- and low-pressure pipelines that will transport crude volumes to several major market outlets and other hub centers in the Midland area.The project also includes the construction of multiple central tank batteries and pump, truck injection, and storage stations to expand shipping and delivery options for EnLink’s producer customers. The initial phase of Greater Chickadee will be operational in this year’s second half with full service expected early next year.
Source: EnLink to build Midland basin crude gathering system – Oil & Gas Journal
Energy Transfer Equity LP (ETE.N) is taking steps that may enable it to renegotiate its acquisition of Williams Companies Inc (WMB.N), according to people familiar with the matter.Dallas billionaire Kelcy Warren, the chief executive of Energy Transfer, set his sights on Williams last year to transform his empire into one of the biggest pipeline networks in the world. However, a prolonged drop in oil and gas prices has made the deal less economically attractive.Energy Transfer and Williams are in talks to reduce the number of days specified for completing some of the deal’s administrative requirements, the people said.This would give them time to engage in renegotiation of terms ahead of a June 28 deadline for the deal to close, the people added.There is no certainty that such renegotiation talks will occur, let alone be successful, the people cautioned.
Source: Exclusive: Energy Transfer seeks to renegotiate deal with Williams – sources | Reuters
Sabine Oil & Gas Corp won a key court ruling on Tuesday that will allow the bankrupt energy producer to shed certain pipeline contracts, potentially exposing companies that transport and process gas to the crisis in the energy industry.The ruling by New York’s influential bankruptcy court is the first major test whether Chapter 11 can be used to end a contract with companies in what is known as the midstream sector of the energy industry.
Source: RPT-Sabine Oil wins pipeline ruling in a blow to pipeline operators | Reuters
In late January, about 40 Wall Street financiers packed into a private dining room at III Forks Steakhouse in Houston for an update on the troubled multibillion-dollar merger of pipeline companies Energy Transfer Equity and the Williams Cos. With shares of Dallas-based Energy Transfer down 50 percent since the transaction was announced in September, the investors interrogated Energy Transfer’s chief financial officer, Jamie Welch. He tried to assuage analysts and investors, assuring them that his company was committed to closing the deal.Less than 10 days later, Energy Transfer fired Welch.Welch’s ouster stunned most investors, causing Energy Transfer’s stock to drop 42 percent in one day, but not everyone was surprised. Since December, Welch, a former investment banker who helped sculpt the $38 billion acquisition, had been actively trying to recut the deal or get out of it entirely.In recent months, Welch has called Williams shareholders, urging them to push the board to reconfigure the deal or vote against it, according to interviews with five shareholders who requested anonymity because they were not authorized to discuss the private conversations.Welch argued that the deal’s terms, a mix of stock and a sizable $6 billion cash payout to Williams shareholders, would crush the combined new company under a mountain of debt. In one call, a shareholder said, Welch referred to the cash payout as “mutually assured destruction.”
Source: Energy Transfer’s ex-CFO reportedly sought to undo Williams Cos. merger deal | | Dallas Morning News