Author Archives: dvauthrin

Energy Transfer to Expand Dakota Access Capacity

BISMARCK, N.D. – Energy Transfer Partners (ET) plans to nearly double the capacity of Dakota Access Pipeline up to 1.1 MMbpd from a current capacity of more than 500,000 bpd, according to a filing with the North Dakota Public Service Commission. In a letter to the state commission, Dallas-based ET said it plans to optimize the system to increase throughput to meet demand for Bakken crude oil without the need for additional construction on the 30-inch system. The increase, ET attorney Lawrence Bender wrote, “will allow Dakota Access to meet the growing demand from shippers […]

Laying of Gas Pipeline Between Finland and Estonia Complete

OSLO (Reuters) – The laying of a gas pipeline in the Baltic Sea connecting Finland and Estonia, built to help both countries reduce their dependency on Russian gas, has been completed, one of the partners in the project said on Monday. The $341.34 million (300 million euro) project, called Balticconnector, is mostly funded by the European Union and will allow Finland to diversify the source of its gas imports, which were previously piped solely by Russia’s Gazprom. Gas will flow both ways through the 93 miles (150-km) pipeline, which will have a capacity of 7.2 […]

Phillips 66 Plans Crude Export Terminal, New Pipelines Offshore Texas

HOUSTON – Phillips 66 on Wednesday confirmed plans for a deepwater crude export terminal off the Texas Gulf Coast to transport production from the Permian and Bakken basins to international markets via its recently announced Red Oak and Liberty pipelines. The proposed Bluewater Texas Terminal (BWTX) would be a single point mooring (SPM) deepwater port located 21 nautical miles east of the entrance to the Port of Corpus Christi, out of sight from land, company spokesperson Dennis Nuss said. Phillips 66 would be operator of the project, which calls for construction of two 30-inch crude […]

Ohio Refineries Fear Michigan Line 5 Pipeline Shutdown

TOLEDO, Ohio (AP) — Operators of refineries in Ohio are worried that a potential shutdown of Enbridge’s Line 5 oil pipeline in Michigan could push up their costs or even force them to close. Ohio Gov. Mike DeWine sent Michigan Gov. Gretchen Whitmer a letter this past week asking her to not let the pipeline in the Straits of Mackinac shut down permanently. Michigan’s governor wants the company that owns the oil pipeline to finish its replacement within two years, but the company says it can’t be done until 2024. Talks over the timeline broke down earlier […]

Phillips 66 Proposes Pipelines, New Deepwater Export Terminal

HOUSTON (Reuters) – U.S. oil refiner Phillips 66 is proposing a deepwater crude export terminal off the U.S. Gulf Coast, challenging at least eight other projects aiming to send U.S. shale oil to world markets, according to a memo and a source who asked not to be named. The project, called Bluewater Texas Terminal LLC, signals another major expansion of its logistics operations. The fourth largest U.S. refiner last week formed joint ventures to build pipelines linking shale fields in West Texas and North Dakota to the Cushing, Oklahoma, oil hub and the U.S. Gulf […]

EQM Raises Cost, Delays Timing of Mountain Valley Pipeline

(Reuters) – EQM Midstream Partners LP said it had raised the estimated cost of its Mountain Valley natural gas pipeline from West Virginia to Virginia to $4.8-$5.0 billion and delayed the projected completion to mid-2020 due to ongoing legal and regulatory challenges. That is up from the company’s last estimate of $4.6 billion and a target to complete the project in the fourth quarter of 2019. EQM made the comments in a federal regulatory filing in which the company said it had submitted a land exchange proposal to the federal government in an effort to enable the pipe to cross […]

Brazos Midstream Extending Delaware Basin Gathering System

FORT WORTH, Texas – Brazos Midstream executed gathering and processing agreements with Shell Exploration & Production to construct a new natural gas gathering system located in the core of the Delaware Basin. Brazos’ new midstream infrastructure is anchored by 15-year, fee-based acreage dedications totaling 55,000 acres in Loving, Ward, and Winkler counties. Brazos will construct 16 miles of high-pressure pipeline that will extend from the Company’s existing gathering and processing systems and can be expanded further to support multi-well pad development by current producer customers, as well as other producers in the area. Brazos also […]

Uganda’s 900-Mile Oil Pipeline Facing Opposition

KAMPALA (Reuters) – A group of 30 international and local campaign groups have petitioned two banks to abandon plans to raise funds to build an oil pipeline to export Ugandan oil, saying the project would damage local livelihoods, water resources and wildlife. The 900-mile pipeline, which will run from fields in the west of Uganda to Tanzania’s Indian Ocean port of Tanga, is vital to developing the East African nation’s oil reserves. South Africa’s Standard Bank Group and Japan’s Sumito Mitsui Banking Corporation are helping to raise the debt needed to finance the $3.5 billion […]

Canadian Oil Pipeline Congestion Sets Up Storage Play

(Reuters) – Upheavals in the Canadian crude market are providing unique opportunities for firms with sizeable long-term leases on Alberta storage tanks, a cluster that sources say includes Mercuria Energy Group and oil major BP’s trading arm. Canada holds the world’s third-largest crude reserves, but years of delay in building new pipelines has led to oil production outpacing takeaway capacity. A glut of crude has thus been created, increasing demand for storage tanks in the oil sands province of Alberta, which this year introduced production cuts to deal with the oversupply. The opportunity for traders […]

Phillips 66, Plains Sanction $2.5 Billion Red Oak Pipeline System

(PLN) – Plains All American Pipeline and Phillips 66 will proceed with construction of the Red Oak Pipeline system in a new joint venture to transport crude oil from the Permian Basin and Cushing, Okla., to Houston and multiple locations along the Texas Gulf Coast. The companies said Red Oak is underpinned with long-term shipper volume commitments and will begin service from Cushing to the Gulf Coast as early as the first quarter of 2021, subject permitting and regulatory approvals. “Red Oak represents a capital-efficient industry solution that will utilize existing assets and provide pull-through […]