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
A San Antonio-based company has entered into a joint venture to build a 730-mile pipeline that will link the oil fields of the Permian Basin to refineries and marine terminals at Port Corpus Christi.
Source: San Antonio-based TexStar Midstream Logistics to build EPIC Pipeline linking Permian Basin to Corpus Christi – San Antonio Business Journal
Posted in CERAWeek, Corpus Christi, Permian, Pipeline, Port of Corpus Christi
Tagged CERAWeek, Corpus Christi, IHS CERAWeek, Permian, Pipeline, Port of Corpus Christi, TexStar Midstream
An ambitious $20 billion project to build a 137-mile pipeline and a liquefied natural gas export terminal in deep South Texas has taken the next step forward.NextDecade LLC has filed its official application with the Federal Energy Regulatory Commission on Thursday. The Woodlands-based company is seeking to build the Rio Bravo Pipeline and the Rio Grande LNG export terminal in the Port of Brownsville.
Source: NextDecade files official application to build Rio Grande LNG in the Port of Brownsville – San Antonio Business Journal
n Jan 16, Cheniere Energy, Inc. (LNG – Snapshot Report) stated that it has finalized the previously announced financing agreement with EIG Management Company, LLC. Per the note purchase agreement, the investment management company will buy convertible notes worth $1.5 billion from Cheniere.
The company added that the proceeds would be used as equity investment in the construction and setting up of the Corpus Christi Liquefaction Project.
Cheniere stated that the purchase would take place when it reaches final investment decision on the project, possibly in the first half of this year. The company also mentioned that it has received the required financing for the LNG project, including funds from its $1 billion worth notes issued in Nov 2014 and the $11.5 billion debt commitment announced last month.
The liquefied natural gas (“LNG”) export terminal will have provision for 3 trains and LNG production capacity of around 13.5 million tons per annum (mtpa). The project is likely to cost between $11.5 billion and $12.0 billion. Corpus Christi Liquefaction, LLC, an affiliate of Cheniere Energy, is developing this facility.
Last month, Cheniere announced that it has entered into an LNG sale and purchase agreement with EDP Energias de Portugal S.A. The latter would purchase about 0.77 mtpa of LNG on the startup of the third train of the LNG project.
Cheniere has also signed long-term deals with three units of Kinder Morgan, Inc (KMI – Analyst Report). The firms have signed 15-year transportation and multi-year storage contracts. Per the terms of the contracts, Kinder Morgan would provide transportation service for 550,000 dekatherms of natural gas per day and storage services for 3 billion cubic feet of natural gas.
via Cheniere Energy to Get $1.5B Equity Funding for LNG Project – January 20, 2015 – Zacks.com.
Once a major company with the size, depth and, most of all, deep pockets like Kinder Morgan Inc. NYSE: KMI plunges in and makes a huge deal come together with pending acquisitions, all you need is a quote from the CEO Rich Kinder like “Fertile field to do a little grazing in” and you have sparked a wave of merger and acquisition M&A speculation in the energy master limited partnership MLP arena.A new report from the MLP team at UBS says that the analysts expect the healthy M&A atmosphere to continue. By their estimation, 67 M&A deals have so far been announced and/or completed versus 91 in 2013. The key statistic is the dollar amount of the transactions is already 44% above last year’s numbers. While Kinder Morgan’s deal was a consolidation of its existing businesses, the UBS team feels that other top companies will be looking to add-on companies that can complement existing business and supply needed growth.
via Potential MLP Acquisition Targets Include Crestwood Midstream Partners NYSE: CMLP, NuStar Energy NYSE: NS – 24/7 Wall St..
Houston-based Buckeye Partners LP NYSE: BPL said Sept. 2 it will acquire an 80 percent interest in an entity that holds a Corpus Christi terminal complex and other assets for $860 million.Trafigura AG, a wholly owned subsidiary of Dutch commodity trading company Trafigura Beheer BV, sold the interest in Trafigura Terminals LLC and will maintain a 20 percent interest in the entity. The deal is expected to close later this month.The entity, which will be called Buckeye Texas Partners, and its subsidiaries will own and operate a vertically integrated system of midstream assets including a deep-water, high volume marine terminal on the Corpus Christi Ship Channel, a condensate splitter and liquefied petroleum gas storage complex in Corpus Christi, and three crude oil and condensate gathering facilities in the Eagle Ford shale.
via Buckeye Partners buys interest in Trafigura's Corpus Christi terminal complex, other assets for $860 million – Houston Business Journal.
On Jul 1, Corpus Christi Liquefaction LLC, an affiliate of midstream energy company Cheniere Energy Inc. LNG – Snapshot Report announced that it has signed a liquefied natural gas “LNG” sale and purchase agreement SPA with the Indonesian state-owned oil and natural gas company, PT Pertamina. This deal follows a similar agreement with Woodside Petroleum Limited Read: Cheniere Energy, Woodside Pen 20-Yr LNG Sale and Purchase Deal. Cheniere Energy shares gained 4.5% on the NYSE after these SPAs.Per the 20-year agreement, Pertamina will buy roughly 0.76 million tons of LNG per annum mpta from Corpus Christi Liquefaction’s under-construction export terminal near Corpus Christi, TX. However, the purchase will take place when the second LNG train of the facility is operational. This is the second LNG deal of Cheniere Energy with Pertamina that brings the total sale to about 1.52 mpta.The Corpus Christi Liquefaction project is being developed to facilitate operations of up to three trains, with a total capacity to produce 13.5 mtpa of LNG. Cheniere Energy revealed that the agreement can be extended up to 10 years. Moreover, the company added that it would sell LNG on a free-on-board basis, under which it would incur the shipping costs. LNG from the second train will be delivered to Pertamina from 2019.
via Cheniere Energy Inks Second LNG Deal with Pertamina – July 3, 2014 – Zacks.com.
Cheniere Energy, Inc. “Cheniere” NYSE MKT: LNG announced today that its subsidiary, Corpus Christi Liquefaction, LLC “Corpus Christi Liquefaction”, has entered into a liquefied natural gas “LNG” sale and purchase agreement “SPA” with Woodside Energy Trading Singapore Pte Ltd “Woodside” under which Woodside has agreed to purchase approximately 0.85 million tonnes per annum “mtpa” of LNG upon the commencement of operations of Train 2 of the LNG export facility being developed near Corpus Christi, Texas the “Corpus Christi Liquefaction Project”. The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 mtpa of LNG.Under the SPA, Woodside will purchase LNG on a free on board “FOB” basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Woodside’s vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery of the second train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.
via Cheniere and Woodside Sign 20-Year LNG Sale and Purchase Agreement – Press Release – Digital Journal.
Outbound shipments of Eagle Ford Shale crude and condensate through the Port of Corpus Christi rose to 445,615 b/d in April from 289,987 b/d in April 2013, the most recent data released by the port showed.April shipments also rose 3% month on month, from 430,829 b/d in March.Shipments have been on the rise this year, data on the port’s website showed. In January, outbound crude shipments averaged 353,192 b/d.
via Port of Corpus Christi outbound crude shipments rise 54% year on year in April – Shipping | Platts News Article & Story.
For John LaRue, sand was the harbinger of the change. Several years ago, LaRue, the Port of Corpus Christi’s executive director, began seeing the smooth quartz grains arriving in bulk from Wisconsin and Minnesota. It’s used in fracking, one of the materials injected into shale-rock formations to free oil and natural gas and coax it topside.
None of that fracking is happening in this industrial port city down the Gulf Coast from Houston. Instead, Corpus Christi is the waypoint for the sand that’s trucked inland to the surging Eagle Ford Shale formation.
The inland energy boom is sending more than sand through the nation’s fifth-largest port. On a recent May morning, not far from from an airline-hangar-sized building filled with fracking sand, long rows of steel drilling pipe from Korea awaited shipment to Eagle Ford sites.
But what’s now coming from the Eagle Ford back into and through Corpus Christi is transforming the region even more. The trickle of crude oil flowing from the port has turned to a flood: Between 2010 and 2011, the port went from exporting 274,000 barrels to more than 2 million. Last year, the number of crude barrels headed outbound to other parts of the U.S. was 122.5 million and the port has expanded its docks to handle it all.
via A Fracking Boom Where There Is No Fracking – NationalJournal.com.