February 2019, Vol. 246, No. 2
Projects
Projects
Bulgaria Seeking Binding Bids for TurkStream Link
Bulgaria’s state gas network operator Bulgartransgaz plans is seeking binding bids from shippers for a new gas link to transport mainly Russian gas from the TurkStream pipeline to central Europe, Reuters said, based on company documents.
Bulgartransgaz plans to take a final investment decision and spend $1.59 billion (1.4 billion euros) on a new 300-mile (484-km) gas pipeline from its border with Turkey to Serbia by 2020, pending the outcome of the open season.
Five companies have expressed interest in shipping gas through Bulgaria’s network, and sources said Russia’s Gazprom was interested in using most of the capacity. Bulgartransgaz plans to hold two more rounds of the economic test, in case it is unable to secure enough interest to make the project viable.
Gazprom said it was considering whether to book capacity in the Bulgarian gas system. Bulgaria viewed that as a sign of Gazprom’s intent to ship its gas from TurkStream to Serbia, Hungary and Austria through Bulgaria.
TurkStream’s two lines will each have an annual capacity of 15.75 Bcm. The first line, which runs from Russia to Turkey under the Black Sea, is intended to deliver natural gas for Turkish consumption.
Mountain Valley Pipeline Project 70% Complete by Year-End
Mountain Valley Pipeline (MVP) officials said the company remains on target for the $4.6 billion project to be fully in-service in the fourth quarter of 2019.
Mountain Valley expected to have 70% of the project complete by year-end 2018, which included the welding of nearly 58% of the pipeline and the ongoing construction work of all compressor stations and interconnects that are expected to be complete shortly.
Most recently, MVP construction crews have focused on stabilizing the right-of-way for the winter season.
“Despite various setbacks and unprecedented weather conditions, we have made substantial progress this year,” said Chief Operating Officer Diana Charletta, of Equitrans Midstream Corporation.
Pennsylvania Judge Rejects Shutting Mariner East Pipelines
A Pennsylvania administrative law judge denied a petition by state residents asking utility regulators to prohibit the operation of Energy Transfer LP and its Sunoco subsidiary’s Mariner East pipelines. It is expected to be in service soon.
The petition filed in November sought interim emergency relief, citing risks from the pipelines in the area and urging the state’s Public Utility Commission to direct Sunoco to stop operation of its Mariner East 1 pipeline and prohibit operation of its Mariner East 2 pipeline.
The residents alleged Sunoco failed to “provide adequate notice of procedures sufficient to ensure the safety of the public in the event of a leak or rupture.”
The court ruled the petitioners failed to demonstrate a need for immediate relief.
Nord Stream 2 No Longer Easily Stopped, EU Budget Chief Says
U.S. President Donald Trump’s criticism of the Russian-backed Nord Stream 2 pipeline is no reason to stop the project, and any attempt to do so would be difficult now that it is being built, European Commissioner Guenther Oettinger said.
Trump has attacked Berlin for supporting the $11 billion gas pipeline spanning the Baltic Sea, accusing Germany in July of being a “captive” of Russia due to its reliance on Russian energy.
U.S. Energy Secretary Rick Perry said last month that Washington retained the option of imposing sanctions on companies working on the pipeline, which would bring Russian gas directly to Germany.
Berlin and Moscow have been at odds since Russia annexed Crimea four years ago, but they have a common interest in the Nord Stream 2 project, which will double the capacity of the existing Nord Stream 1 route from next year.
“I was never a great supporter of Nord Stream 2,” Oettinger, the EU’s budget commissioner, told German magazine Der Spiegel. “But the truth is the pipeline has long been under construction and can no longer so easily be stopped.”
He added: “Trump’s threats are no reason for that.”
Germany refuses to join opposition to the project from many EU states and – thus far – from the EU executive, describing it as a private enterprise.
Washington is concerned that the pipeline, which will bypass Ukraine by running under the Baltic Sea, will strip Ukraine of important transit revenue and says Moscow is using the project to divide Europe.
Ukraine derives up to 3% of its gross domestic product (GDP) from transit charges.
San Mateo Midstream Completes Crude Oil Pipeline in New Mexico
San Mateo Midstream’s Black River Oil Pipeline has placed its Rustler Breaks Pipeline System into service in Eddy County, N.M., following a successful open season earlier this year.
The system includes 17 miles of 10-inch crude oil gathering and transportation pipelines, which interconnects with Plains Pipeline.
Subsidiaries of San Mateo and a Plains subsidiary have agreed, through a joint tariff arrangement, to offer producers located within the 400,000-acre joint development area in the county, crude oil transportation services from the wellhead to Midland, Texas, with access to other end markets.
Seaway Open Season Could Expand System by 100,000 bpd
Seaway Crude Oil Pipeline began a binding open season to gauge shipper interest in expanded crude oil capacity on its existing system, originating in Cushing, Okla., and extending to the Texas Gulf Coast area.
The expansion could provide 100,000 bpd of incremental capacity, projected beginning in February. The final volume of capacity for committed and uncommitted service, as well as the points of origin and destination, will be determined based on the results of the open season.
Seaway Crude Pipeline Company LLC is a 50/50 joint venture owned by affiliates of Enterprise Products Partners L.P and Enbridge Inc.
Pennsylvania Judge Rejects Shutting Mariner East Pipelines
A Pennsylvania administrative law judge denied a petition by state residents asking utility regulators to prohibit the operation of Energy Transfer LP and its Sunoco subsidiary’s Mariner East pipelines.
The petition filed in November sought interim emergency relief, citing risks from the pipelines in the area and urging the state’s Public Utility Commission to direct Sunoco to stop operation of its Mariner East 1 pipeline and prohibit operation of its Mariner East 2 pipeline.
The residents alleged that the company did “not provide adequate notice of procedures sufficient to ensure the safety of the public in the event of a leak or rupture,” according to the petition.
Judge Elizabeth Barnes ruled that the petitioners failed to demonstrate a need for immediate relief.
“We are pleased with the judge’s ruling,” Energy Transfer spokeswoman Lisa Dillinger said in an emailed statement, adding that the company expects Mariner East 2 to be put into service by the end of the year.
Mariner East transports liquids from the Marcellus and Utica shale fields in western Pennsylvania to customers in the state and elsewhere, including international exports from Energy Transfer’s Marcus Hook complex near Philadelphia.
Mariner East 2 and another Energy Transfer project, the Rover natural gas pipe from Ohio to Michigan, were delayed over the past year, in part, because the projects together racked up more than 800 state and federal permit violations while the company raced to build them.
Jupiter in Midst of Open Season for Permian-Gulf Coast Crude Pipeline
Jupiter Energy Group said a 90-day open season is underway for binding shipper commitments on the Jupiter Pipeline, a 650-mile Permian Basin crude oil pipeline to the Texas Gulf Coast.
Jupiter said its pipeline will have capacity up to 1 MMbpd with origination points near Crane and Gardendale/Three Rivers in West Texas and an offtake point in Brownsville. The project is expected to be operational in the fourth quarter of 2020, Jupiter said.
As designed, the company said, Jupiter will be the only pipeline out of the Permian Basin that will access all three deep water ports in Texas (Houston, Corpus Christi and Brownsville) with direct access to a fully capable, off-coast VLCC loading facility at Brownsville.
“Construction of the Jupiter Pipeline is a key element in achieving our vision of providing our customers with the best hydrocarbon solutions from the wellhead to the world,” said Albert Johnson, president of Jupiter Pipeline.
EPIC Reaffirms Early 2020 Service Date for Pipeline
Epic Midstream reaffirmed its crude oil pipeline remains on schedule to begin interim service from Crane, Texas, in the Permian Basin to Corpus Christi during the third quarter of 2019. The project is expected to be in permanent service beginning January 2020.
Epic has secured 100% of the mainline right-of-way for the 700-mile crude pipeline and anticipates the initial 30-inch pipe delivery by the end of January 2019. Construction of the pipeline is expected to begin shortly thereafter.
All pipe has been ordered from domestic mills and the company said it does not foresee any obstacles to obtaining the necessary approvals related to the pipeline.
Keystone XL Hearing May Proceed Despite Government Shutdown
Justice Department attorneys say the U.S. government shutdown shouldn’t delay a court hearing on a judge’s decision to halt construction of TransCanada’s Keystone XL oil pipeline.
Justice Department attorney Bridget McNeil said in a January court filing that government lawyers are prohibited from working except in emergencies during the shutdown. But, she added, federal attorneys’ participation in the hearing next Monday in U.S. District Court in Great Falls isn’t necessary.
TransCanada attorneys previously told U.S. District Judge Brian Morris the company is prepared to hold the hearing without the government being represented.
In November, Morris ordered an injunction prohibiting pipeline construction activities. TransCanada plans to argue the order should be stayed while an appeal is pending with the 9th U.S. Circuit Court of Appeals. P&GJ
Comments