Tag Archives: Pipeline

Enterprise Products Partners to build new natural gas facility and pipelines – HBJ

Houston-based Enterprise Products Partners LP (NYSE: EPD) continues to expand its natural gas footprint as natural gas production and piping continues to grow in the U.S.The midstream energy company announced June 20 it plans to build a cryogenic natural gas processing facility — its third facility announced in less than 24 months — as well as additional natural gas and natural gas liquids pipelines.  Enterprise’s target: the NGL-rich Delaware Basin in West Texas and southeastern New Mexico. The facility’s site hasn’t been determined, but the plant is expected to have a nameplate capacity of 300 million cubic feet per day and extract more than 40,000 barrels of NGL daily. The facility is expected to start up in the second quarter of 2018.The project also includes building rich natural gas gathering lines, a residue pipeline to Texas’ Waha oil field and an NGL pipeline to Enterprise’s Mid-America Pipeline system, all of which will integrate with Enterprise’s Delaware Basin infrastructure.“The South Eddy facility began operations earlier this year, while our joint venture processing plant at Waha is expected to begin service in the third quarter of 2016,” A.J. “Jim” Teague, CEO of Enterprise’s general partner, said in the company’s statement. “Altogether, these initiatives are expected to increase our processing capacity in the Delaware Basin to 800 MMcf/d, compared to 40 MMcf/d in 2012.”Enterprise is the fourth-largest Houston-based public company, based on its $47.95 billion in revenue in 2014, according to Houston Business Journal research. It reported nearly $27.03 billion in revenue for 2015.

Source: Enterprise Products Partners to build new natural gas facility and pipelines – Houston Business Journal

Spectra Energy, TransCanada to build pipelines to send natural gas to Mexico – HBJ

Mexico’s state-owned power company selected a subsidiary of Houston-based Spectra Energy Corp (NYSE: SE) and a joint venture led by TransCanada Corp. (NYSE: TRP) to build two pipeline projects that will transport natural gas to Mexico.The TransCanada portion is the $2.1 billion Sur de Texas-Tuxpan pipeline project, and the Spectra portion is the $1.5 billion Nueces-to-Brownsville pipeline project. Calgary, Canada-based TransCanada will develop, operate and own 60 percent of the Sur de Texas-Tuxpan project, and its joint venture partner, IEnova, will own the other 40 percent. Mexico-based IEnova is a subsidiary of California-based Sempra Energy.The JV’s 42-inch diameter, 497-mile pipeline will begin offshore in the Gulf of Mexico near Brownsville, Texas, and will end in Tuxpan, Mexico. The project will connect with Cenagas’ pipeline system in Altamira, Mexico, and TransCanada’s Tamazunchale and Tuxpan-Tula pipelines, among others.It also will connect with the Nueces-to-Brownsville pipeline that Spectra subsidiary Valley Crossing Pipeline LLC will build. Valley Crossing will construct and operate a header system of more than 5 billion cubic feet per day in Nueces County, Texas, along with the 168-mile pipeline originating at that header. The pipeline will end at Brownsville, where it will connect with the Sur de Texas-Tuxpan pipeline.The TransCanada and Valley Crossing pipelines will carry 2.6 billion cubic feet of natural gas per day, and they’re expected to be in service in late 2018.”We are extremely pleased to further our growth plans in Mexico with one of the most important natural gas infrastructure projects for that country’s future,” Russ Girling, TransCanada’s president and CEO, said in the company’s statement. “This new project brings our footprint of existing assets and projects in development in Mexico to more than $5 billion, all underpinned by 25-year agreements with Mexico’s state power company.”

Source: Spectra Energy, TransCanada to build pipelines to send natural gas to Mexico – Houston Business Journal

Energy Transfer seeks to renegotiate deal with Williams – sources | Reuters

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

RPT-Sabine Oil wins pipeline ruling in a blow to pipeline operators | 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

Is Spectra Energy Preparing a Play for Williams?

Is this another David versus Goliath story? Will David prevail again? These are the big questions that flow from an exclusive report from Reuters last Friday that Spectra Energy Corp. (NYSE: SE) is preparing an offer to acquire Williams Companies Inc. (NYSE: WMB). With a market cap of around $40 billion, Williams easily tops Spectra’s $19.2 billion valuation.

via Is Spectra Energy Preparing a Play for Williams? (NYSE: SE) (NYSE: WMB) – 24/7 Wall St..

Kinder Morgan pipeline incident in South Texas released volatile organic compounds – HBJ

A preliminary report filed with the Texas Commission on Environmental Quality reveals that thousands of pounds of potentially dangerous gases were released into the air during a pipeline accident that left two people injured near the South Texas town of Falfurrias.

While the cause of the Tennessee Gas Pipeline rupture remains under investigation, investigators confirmed it happened the night of Aug. 3 in a rural area off State Highway 285 just east of town.

According to the preliminary report, the company’s engineers closed valves upstream and downstream from the rupture but estimate that 7,476 pounds of volatile organic compounds were released into the air in less than two hours.


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The Brooks County Sheriff’s Office reported that 150 homes were evacuated and that a man and his wife were hospitalized with minor injuries.

via Kinder Morgan pipeline incident in South Texas released volatile organic compounds, TCEQ’s preliminary report says – Houston Business Journal.

Rocky Mountain crude production shipping by pipeline, rail

Rail and pipeline shipments of crude oil from the Rocky Mountain region (Petroleum Administration for Defense District 4) have steadily increased as regional crude oil production has increased. The recently released Petroleum Supply Monthly, which contains data for April 2015, shows that 122,000 barrels per day (b/d) of crude oil was moved by rail from PADD 4 to other regions of the country, representing 19% of total crude shipments from the region.

via Rocky Mountain crude production shipping by pipeline, rail – Drilling – Ohio.

Kinder Morgan to buy Shell’s stake in Elba Liquefaction LNG joint venture – Houston Business Journal

Houston-based Kinder Morgan Inc. (NYSE: KMI) said July 15 it agreed to buy Royal Dutch Shell’s (NYSE: RDS-A, RDS-B) interest in Elba Liquefaction Company LLC.

Also on July 15, Kinder Morgan announced an increased dividend and reported second-quarter earnings that missed analysts’ expectations.

Kinder Morgan currently owns 51 percent of the ELC joint venture, and Shell owns the remaining 49 percent. Terms of the transaction were not disclosed.

As a result of the deal, Kinder Morgan expects to invest another $630 million in the Elba Liquefaction Project, bringing the company’s total incremental investment in all of Elba’s liquefaction and terminal facilities to approximately $2.1 billion.

ELC owns the Elba Liquefaction Project, which is proposed to be constructed and operated at the existing Elba Island LNG Terminal near Savannah, Georgia. The Hague-based Shell, which has its U.S. arm headquartered in Houston, will retain its 20-year contract to subscribe to 100 percent of the terminal’s 2.5 million tonnes per year of liquefied natural gas export capacity, which is equivalent to approximately 350 million cubic feet per day of natural gas.

Permitting is underway, and the next step in the regulatory approval process is for the Federal Energy Regulatory Commission to issue a draft environmental assessment.

Construction is expected to begin in the fourth quarter, depending on regulatory approvals, and initial production is expected in late 2017.

“Our current project backlog of expansion and joint venture investments is $22 billion,” Kinder Morgan President and CEO Steve Kean said in the company’s second-quarter earnings report released July 15.

That’s up approximately $3.7 billion from the first quarter.

via Kinder Morgan to buy Shell’s stake in Elba Liquefaction LNG joint venture – Houston Business Journal.

Energy Companies to Merge in $15.8 Billion Deal – NASDAQ.com

A partnership controlled by Marathon Petroleum Corp., a refinery and pipeline company, will buy MarkWest Energy Partners LP for $15.8 billion in one of the biggest oil-patch deals since crude prices began to slump last summer.

The deal will marry Marathon’s oil pipeline network with MarkWest’s business separating natural gas into fuels such as propane and ethane.

The combined company would have a market capitalization of $21 billion, making it the fourth-largest master limited partnership. These partnerships, which typically own infrastructure like pipelines that earn steady revenue from long- term contracts, have fared better than traditional drilling companies during the energy downturn but still have faced headwinds.

Shares of MPLX closed 15% lower to $59, while shares of MarkWest rose nearly 14% to $68. Shares of Marathon Petroleum Corp. rose 7.9%.

The deal is the latest consolidation between energy partnerships, which don’t pay corporate income taxes but distribute their available cash to shareholders. The need to keep these hefty payouts growing means the partnerships are always looking to expand.

Gary R. Heminger, Marathon’s chief executive, said the deal would allow the partnership to boost its annual distribution by 25% through 2017.

“The combination significantly increases our size, scale and the opportunity to grow over a very long period of time,” Mr. Heminger told analysts during a conference call on Monday.

Refiners have been among the newest energy companies to form these partnerships. Marathon Petroleum, of Findlay, Ohio, owns refineries in Texas, Louisiana, and throughout the Midwest. It launched MPLX in 2012 to own and operate pipelines and other fuel transportation assets.

But recently, refiner-backed partnerships have started to branch out beyond their parent companies—and beyond oil. Last year, a partnership controlled by Tesoro Corp., the refiner based in San Antonio, bought a natural gas gathering and processing company for $2.5 billion.

Executives from Marathon and MarkWest said Monday that they began to explore the idea of combining after the two companies worked together on projects in the Northeast, where fuels known as natural gas liquids are commonly produced along with gas in the shale fields of Ohio and Pennsylvania.

The combination illustrates that region’s allure, even as a glut of oil and gas has sent prices for these fuels plummeting in recent months and sparked concern that production could slow down. MarkWest is one of the largest natural- gas processors in the U.S., with a particularly large presence in the Northeast.

As oil prices continue to languish, diversifying into other fuels like natural gas and liquids including propane and ethane becomes more attractive, said Brandon Blossman, a managing director at Tudor Pickering Holt & Co., an energy investment bank based in Houston.

“Low oil prices and the implication that oil volume growth slows or stops has put pressure on the oil-focused midstream players think about diversification towards gas,” he said.

via Energy Companies to Merge in $15.8 Billion Deal – NASDAQ.com.

Energy Transfer Partners, Sunoco Announce $1.94 Bln Dropdown Of Susser Holdings – NASDAQ.com

Energy Transfer Partners, L.P. (ETP) and Sunoco LP (SUN) Wednesday reported the dropdown of 100 percent of Susser Holdings Corp. or SHC for $1.94 billion. Additionally, there will be an exchange for 11 million SUN units owned by SHC for another 11 million new SUN units to a subsidiary of ETP.

For the SHC dropdown, SUN will pay to ETP $970 million in cash and issue 22 million SUN units valued at $970 million based on the five-day volume-weighted average price of SUN’s common units as of July 14.

Pro forma for this transaction, ETP will remain the largest unitholder of SUN. The transaction is expected to close on August 1.