February 2017, Vol. 244, No. 2

Projects

Projects

Pembina Begins Construction on Northeast BC Pipeline Expansion

Pembina Pipeline has begun construction on the $235 million expansion of its 75,000-bpd pipeline infrastructure in northeast British Columbia. The project involves 90 miles of 12-inch pipeline that will parallel much of the existing Blueberry Pipeline System, northwest of Taylor. The NEBC Expansion will provide a conduit for NGLs and condensate produced in the liquids-rich Montney resource play to access the company’s downstream pipeline systems that feed into markets in the Edmonton and Fort Saskatchewan, AB area. Pembina anticipates bringing the expansion on-stream later this year.

DCP Midstream to Expand Sand Hills Pipeline

DCP Midstream LP, a newly formed company encompassing the assets of DCP Midstream LLC and DCP Midstream Partners LP, will expand NGL takeaway capacity on Sand Hills Pipeline by 30% to 365,000 bpd through the addition of four pump stations and a pipeline loop. Total capital investment for the Sand Hills Expansion is $70 million, with an expected in-service date later this year. The pipeline provides NGL takeaway capacity to the Mont Belvieu market from both owned and third party plants in the growing Permian Basin, including southeast New Mexico, Delaware Basin, and Cline Shale of West Texas.

Sendero Midstream Plans Gas Gathering, Processing System in New Mexico

Sendero Midstream Partners LP has secured long-term producer commitments and sufficient funding from Energy Capital Partners for construction of a natural gas gathering and processing system near Carlsbad, NM. The facilities will include low-and high pressure gas gathering pipelines, a 130 MMcf/d cryogenic processing plant and an NGL takeaway pipeline. Operations are set to begin in the third quarter and will be located in an area of New Mexico that lacks midstream infrastructure.

Leidy South Project Moves Forward

FERC has approved Dominion Transmission’s request to proceed with construction of the Leidy South Project at compressor stations in Clinton and Franklin counties, PA and Loudoun County, VA. Once completed, the project will provide 155,000 Dth/d of firm natural gas transportation service and add 48,120 hp of compression and new metering and regulation equipment to Dominion’s existing interstate pipeline transmission system. The project should be in-service in October.

FERC OKs Southwest Louisiana Supply Project

FERC issued a certificate of public convenience and necessity to Tennessee Gas Pipeline Co. LLC, authorizing it to construct and operate the Southwest Louisiana Supply Project. The FERC staff concluded the project will have minimal impact on landowners and surrounding communities, will not degrade service to existing customers and not adversely impact any other pipelines in the region or their captive customers. The project will provide an additional 295,000 Dth/d of firm transportation service for shippers which have signed 20-year precedent agreements for a total of 900,000 Dth/d.

Loop Construction for Susquehanna West Project Green Lighted

FERC approved Tennessee Gas Pipeline Co. LLC’s request construct two pipeline loops totaling 8.1 miles for the Susquehanna West Project. Tennessee Gas can also proceed with construction at associated compressor stations 315 and 319. The project will transport additional volumes of natural gas to the Susquehanna region of Pennsylvania, including 145,000 Dth of additional capacity for one customer. Construction should be complete by Nov. 1.

Atlantic Sunrise Project Gets Favorable EIS

FERC has released the final environmental impact statement (EIS) for the Atlantic Sunrise Project after staff determined that construction and operation would result in some adverse environmental impacts that would be reduced to less-than-significant levels with the implementation of recommended mitigation measures.

About 54 miles of the 199 miles of project pipeline facilities would be within or adjacent to existing rights-of-way, consisting of existing pipelines and/or electric transmission line rights-of-way. Transco will minimize impacts on natural and cultural resources during construction and operation by implementing its Environmental Construction Plan. The FERC staff also developed project-specific mitigation measures for Transco to implement to further reduce environmental impacts.

Trans Mountain Receives Final Canadian Approval of Expansion

Canada has granted approval for Kinder Morgan’s Trans Mountain Expansion Project in a landmark decision that affirms both the strength of the CA $6.8 billion project and the rigor of the review process.

In 2012, Kinder Morgan Canada announced plans to expand the existing 715-mile Trans Mountain system – between Edmonton, Alberta and Burnaby, BC – following strong commitments from its customers. The system has provided the only West Coast access for Canadian oil products for over 60 years. Construction is expected to begin in September with an in-service date for the twinned pipeline in late 2019, pending a final investment decision by the Kinder Morgan Board of Directors.

FERC Gives Nod for NEXUS Gas Transmission Project

FERC has released the final EIS for the NEXUS Gas Transmission Project and Texas Eastern Appalachian Lease Project. The FERC staff determined that construction and operation of the projects would result in some adverse environmental impacts which would be reduced to less-than-significant levels with the implementation of proposed mitigation measures and FERC staff project-specific recommendations during construction and operation.

About 119 miles of the 261.4 miles of NEXUS’s right-of-way is to co-located with (i.e., overlap or abut) existing utility rights-of-way such as overhead electric transmission lines, pipelines, and railroads. All of Texas Eastern’s proposed pipeline facilities would be co-located within or adjacent to existing utility rights-of-way.

REX Zone 3 Project completed

Tallgrass Energy and Rockies Express Pipeline LLC have announced that the 0.8 Bcf/d REX Zone 3 Capacity Enhancement Project is substantially complete and accepting nominations. They report that REX’s Zone 3 continues to be capable of bidirectional natural gas transportation and can now move 2.6 Bcf/d of natural gas from Clarington, OH to delivery points as far as Mexico, MO.

Zone 3 provides significant takeaway capacity for Appalachian natural gas along with flexible transportation routes through its 20 pipeline interconnects and delivery points. Zone 3 capacity from east-to-west is contracted at 2.6 Bcf/d with a weighted average remaining contract life of 16 years as of December 31, 2016.

“Completion of the project marks another important milestone in the transformation of REX into the nation’s northernmost bi-directional natural gas header system,” said Matt Sheehy, Tallgrass’s senior vice president & chief commercial officer, and REX’s president. “Our original Capacity Enhancement shippers saw the long-term value in the project over two years ago when they contracted with us. Since then, as others embraced the REX value proposition, we have steadily added incremental long-term customers to this project, fully subscribing the 0.8 Bcf/d.” 

Magellan, LBC Expanding Seabrook’s Marine Pipeline Infrastructure  

Magellan Midstream Partners and LBC Tank Terminals are expanding the infrastructure of Seabrook Logistics, owned 50/50 by subsidiaries of Magellan and LBC, by increasing its crude oil and condensate storage and pipeline assets in the Houston Gulf Coast area.

Seabrook is constructing 1.7 MMbbls of additional crude oil and condensate storage adjacent to LBC’s existing terminal in Seabrook. In addition, Seabrook is connecting its facility to Magellan’s Houston crude oil distribution system by building a 24-inch, bi-directional pipeline between the Seabrook facility and Genoa Junction and investing in a new Aframax dock. The expansion is at $250 million and be operational in mid-2018.

In anticipation of increased volume, Magellan is enhancing its infrastructure by separately investing $70 million to build a 24-inch pipeline from its East Houston terminal to Holland Avenue. The new crude oil pipeline segment is also expected to be operational in mid-2018.

Medallion Midstream to Build Delaware Basin Crude Line

Medallion Midstream and its affiliate, Medallion Midstream Services plan to construct a Delaware Basin crude oil pipeline system to provide gathering and transportation services for Parsley Energy. The pipeline will be anchored by Parsley’s long-term dedication to Medallion of about 35,000 acres held under lease or mineral interest in Texas’ Pecos and Reeves counties.

The system will initially consist of 45 miles of 16-inch mainline and 25 miles of smaller diameter gathering pipelines along with a crude oil station in Pecos County consisting of crude oil storage and truck-unloading facilities. The pipeline, which is expected to have an initial capacity of 100,000 bopd, will originate within the Parsley leases and end in Crane County at an interconnection into Medallion Pipeline’s 600-mile Midland Basin header system, accessing various long-haul take-away pipelines. The pipeline is expected to begin service in June.

TransCanada Moving Forward with Saddle West Project

TransCanada’s wholly owned subsidiary, NOVA Gas Transmission (NGTL), will move forward with an expansion of its NGTL System, the Saddle West Project, which will increase natural gas capacity on the northwest portion of the system by 355 MMcf/d. The project is underpinned by incremental firm service contracts and is expected to be in-service in 2019.

The $655 million Saddle West Expansion will include 29 km of 36-inch pipeline looping of existing mainlines, addition of five compressor units at existing station sites and new metering facilities. An application to construct and operate the project will be filed with the National Energy Board (NEB) in the third quarter. Construction is expected to start in 2018.

Enable Midstream Finalizes Service Agreements

Enable Midstream Partners announced a 228,000 Dth/d firm transportation service agreement with Oklahoma Gas & Electric (OG&E) on the Enable Oklahoma Intrastate Transmission, LLC system. The 20-year contract, expected to begin in 2018, will support OG&E’s planned conversion of two 500-MW coal-fired generating units to natural gas. Enable will build 77 miles of 20-inch pipeline and associated metering facilities.

Union Gas Holds Binding Open Season

Union Gas held a binding open season for firm capacity of up to 663.6 MMcf, beginning in 2019-20, along the transportation paths of Dawn-to-Parkway, Dawn-to-Kirkwall and Kirkwall-to-Parkway in Ontario.

The open season offers firm access to the liquidity and diversity of the Dawn Hub and access to Appalachian supply at the Dawn, Niagara and Chippawa supply points. Customers in eastern Canada and the Northeast U.S. can access these supply points by aligning Union Gas transportation services with downstream pipeline capacity on TransCanada and interconnecting systems in the U.S. The Dawn Hub is fully integrated into the North American natural gas supply and transportation system. The open season ran from Dec. 15-Feb. 2.

SemGroup, NGL Energy Plan Glass Mountain Pipeline Extension

SemGroup and NGL Energy Partners said jointly owned Glass Mountain Pipeline will construct a 44-mile extension of its pipeline system in Oklahoma. The extension will deliver crude oil from north-central Oklahoma’s STACK resource play to Cushing. The extension is expected to be in-service in the fourth quarter. The current 215-mile pipeline delivers crude oil from the Mississippi Lime and Granite Wash plays to Cushing.

Natural Gas Plant, Terminal Planned for Plaquemines Parish 

A planned $8.5 billion natural gas liquefaction plant and export terminal is expected to bring nearly 1,000 to Plaquemines Parish, LA. Plaquemines LNG will be Venture Global’s second major LNG and export project in Louisiana, joining the $4.5 billion Calcasieu Pass project that was announced in Cameron Parish in December 2014 and is under development.

Plaquemines LNG will be built with an export capacity of 20 mtpa and be located on the west bank of the Mississippi River. The 632-acre site – about 30 miles south of New Orleans – includes 7,000 feet of river frontage and is owned by the Plaquemines Port Harbor and Terminal District. Construction is expected to begin in 2018 with full operations expected to begin in 2022.