(Reuters) – Oil and gas producer Apache said it temporarily halted production at its Alpine High assets in the Permian basin in late March, curtailing output of about 250 MMcf/d because of extremely low prices. Oil and gas pipeline construction in the Permian has not kept up with output, which has more than doubled over the past three years, making the country the world’s largest oil producer. Several new pipelines are in the works, but none are expected to enter service before late 2019. The Gulf Coast Express pipeline and the Permian Highway – designed […]
(PLN) – Executives at cash-flush Kinder Morgan, which already has two major Permian Basin-Gulf Coast natural gas pipelines totaling 4.1 Bcf/d under construction, are considering a third pipeline in response to ever-growing demand in the region. “We’re doing everything we can for our customers there, both with our existing infrastructure as well as prosecuting our projects just as quickly as we can,” Kinder Morgan President Steve Kean said during a conference call discussion of the company’s 15% year-over-year increase in first-quarter net earnings to $556 million. “Demand to get out of the Permian continues to […]
(PGJ) – The Federal Energy Regulatory Commission (FERC) approved full-service for the Mountaineer XPress (MXP) project, allowing TransCanada to increase the flow of gas and begin operating it Gulf XPress (GXP) project. TransCanada President and CEO Russ Girling called the two developments “extremely important” to the company, adding, the projects “provide much-needed takeaway capacity for our customers, while also growing our extensive footprint in the Appalachian Basin.” The MXP project comprises 170 miles of 36-inch pipeline, three new compressor stations and modifications to three existing compressor stations. The pipeline is capable of providing 2.7 Bcf/d of […]
CALGARY – Canada has extended the deadline for a decision on whether to push forward with the expansion of the Trans Mountain oil pipeline to June 18 from mid-May, the government said. The Trans Mountain expansion (TMX) project would nearly triple the amount of crude flowing from Alberta’s oil sands to British Columbia’s coast, but has been beset by regulatory delays and opposition from indigenous groups, environmentalists and the government of British Columbia. Amarjeet Sohi, Canada’s minister of natural resources, said the delay would give the federal Liberal government more time to consult with indigenous […]
(PLN) – Jordan and Iraq are nearing final approval for an $18 billion oil pipeline that would carry 1 MMbpd of oil from the Iraqi city of Basra through the Jordanian port of Aqaba and across the Red Sea to Egypt. The head of Jordan’s Lower House Energy Committee, MP Jamal Gammoh, said that both countries are accelerating preparations for the pipeline after an agreement was reached between all three nations to extend the pipeline into Egypt. This new source of oil would supply Egypt’s needs as well as open Iraqi oil to new export opportunities. […]
Concho Resources and Frontier Midstream Solutions IV signed an agreement to create the Beta Crude Connector (Concho has agreed to enter into a long-term acreage dedication agreement with BCC), which will include a 100-mile gathering system with an additional capacity of 150,000 bpd. The project, located in the Northern Midland Basin, also consists of 250,000 barrels of crude oil storage facilities as well as truck terminals. Concho agreed to enter into a long-term acreage dedication agreement with BCC. Following an open season set for April, construction will begin, targeting initial flows in mid-2019.
Medallion Delaware Express and Medallion Pipeline Company began an open season for long-term commitments to support an expansion of the Delaware Express and Medallion pipeline systems for an expanded joint tariff service. Prospective shippers will have the opportunity to participate through either an acreage dedication or volume commitment transportation agreement at volume incentive rates. The existing Delaware Express pipeline system aggregates crude oil produced on two gathering systems in Reeves, Pecos and Ward counties, located in the southern Delaware Basin. It transports the crude oil on a 61-mile, 16-inch diameter mainline to interconnections with downstream […]
Zydeco Pipeline Company, jointly owned by Shell Midstream Partners, and Shell Pipeline Company began a binding open season, looking for binding commitments for non-firm capacity transportation service on its 350-mile pipeline, which delivers crude to St. James and Clovelly, La., from terminals in Houston and Nederland, Texas. The open season runs through May 31. “We believe conducting the open season at this time is the best way to maximize the value of the system to both shippers and the pipeline.” said Kevin Nichols, CEO of Shell Midstream Partners and executive vice president U.S. Pipeline.
SAN RAMON, Calif. (AP) — Chevron will buy Anadarko Petroleum for $33 billion in a cash-and-stock deal as the company seeks to grow stronger in deep water exploration in the gulf and the energy-rich southwest region of Texas called the Permian Basin. The companies put the enterprise value of the deal at $50 billion. The deal, announced Friday, arrives with U.S. crude prices up 40% this year. “This transaction builds strength on strength for Chevron,” said Chairman and CEO Michael Wirth. “The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading […]
(P&GJ) – The executive orders signed by President Trump are intended to make it easier for companies to build oil and gas pipelines, but experts aren’t sure yet if they will achieve their goal. “The executive orders signed by President Trump direct various agencies of the federal government to expedite the construction of energy infrastructure. However, it is unclear how much impact these executive orders will have on the development of infrastructure,” said Fred Jauss, partner at the international law firm Dorsey & Whitney and former attorney for the Federal Energy Regulatory Commission (FERC). One executive order […]