Report Volume XXVIII, Number 20 June 15, 2017

June 12, 2017

INDUSTRY NEWS (Black Eagle, MT) – Loenbro President Paul Leach and Vice President Jon Leach have announced that Rich Reuter has been named as the first Chief Operating Officer in the company’s history. Rich is an experienced leader with deep experience in energy and infrastructure operations, manufacturing, technology, and services.

Loenbro President, Paul Leach said, “We couldn’t be more excited to welcome Rich into the Loenbro family. Rich will have an immediate impact on Loenbro’s overarching company strategy and operations. Rich and his family will be joining us in Great Falls and we can’t wait to introduce them to the community.”

In his new duties, Rich will bring strategic, organizational, and leadership guidance to the Loenbro team.  In this position, Rich will work with ownership and managers representing the entire compliment of Loenbro divisions to set goals and priorities.

Prior to joining Loenbro, Rich was Vice President and General Manager for Industrial Specialists (ISI), Specialized Industrial Maintenance (SIM), Empire of Ohio Refractory, Industrial Specialists of California, and HSG Constructors – all wholly-owned subsidiaries of Brand Energy. At Brand, Rich was responsible for over 600 employees and a diverse group of businesses providing Refractory(Union/non-Union), Industrial Coatings, and Industrial F&S engineering and construction services for the Oil, Gas, Chemical, and Power industries across North and South America. Rich joined Brand in 2013.

Prior to Brand, Rich was Director/Sr Program Manager for Honeywell Technology Solutions Inc. providing development, systems engineering and maintenance support to the US Air Force Satellite Control Network Contract in Colorado Springs. He also spent five years as a plant manager for several Lafarge cement facilities in the US and 6 years with ConocoPhillips in Refining Operations and Carbon Fibers R&D.

Rich and his wife Leah have five children. Rich earned a Bachelor of Science degree from the Colorado School of Mines in Electrical Engineering. He also holds a Professional Engineering license in Texas.

 

 

INDUSTRY NEWS (El Paso, TX) – Western Refining, Inc. has launched a binding open season for the proposed Conan Crude Oil Gathering Pipeline System, which will be constructed, owned and operated by the company’s subsidiary, Western Refining Conan Gathering, LLC.

The Conan Crude Oil Gathering Pipeline System is approximately 130 miles in length, and will deliver crude oil from Lea County, New Mexico and Loving County, Texas to a terminal to be built in Loving County, Texas, where the system would interconnect with long-haul pipeline carriers. The project is expected to be operational in June 2018.

The open season began at 9 a.m. CDT on Tuesday, May 30, 2017 and will conclude Friday, June 30, 2017, at 5 p.m. CDT.   For more information, visit http://www.wnr.com/logistics-wnr.

 

 

INDUSTRY NEWS (Denver, CO) – DCP Midstream, LP announced an additional large scale expansion of the Sand Hills natural gas liquids (NGL) pipeline, with plans to initially spend $105 million towards long-lead equipment and right-of-way. In a phased approach, this expansion is designed to first increase capacity by 85 thousand barrels per day (MBpd) up to approximately 450 MBpd. This initial phase, when completed, is anticipated to include partial looping of the pipeline and the addition of seven new pump stations at an estimated total cost of $500 million. The expected in-service date for this additional expansion project is the second half of 2018.

Additionally, future phased expansion may entail adding a full loop of Sand Hills, which could increase capacity by over 100 MBpd to a minimum of 550 MBpd.

The expansion announced recently is in addition to the Sand Hills Pipeline’s existing expansion to 365 MBpd, which is on target to be in service in the fourth quarter of this year. This existing expansion adds three additional pump stations and a lateral to primarily increase Permian capacity. The expansion to 365 MBpd is backed by long-term, third party plant dedications. Additionally, multiple new supply connectors are in progress and will deliver incremental NGL volumes in 2017 and beyond.

 

 

INDUSTRY NEWS (Houston, TX) – Plains All American Pipeline, L.P. recently announced that the open season for committed crude oil pipeline capacity from Midland, TX/Colorado City, TX to Cushing, OK that commenced on April 18, 2017 has been extended to 5 p.m. CT on June 9, 2017 to incorporate certain modifications requested by shippers.

Potential shippers who have signed a confidentiality agreement will be sent the final TSA by June 9, 2017. Each potential shipper that wishes to become a committed shipper must execute and submit two copies of the final version of the TSA no later than 5 p.m. CT on June 9, 2017.

 

 

INDUSTRY NEWS (Houston, TX) – The Sabal Trail pipeline, a 515-mile interstate underground natural gas pipeline that will travel through Lee County and three other Alabama counties, will be partially operational next week and fully operational by the end of the month.

The pipeline was constructed from a point near Alexander City to south of Orlando, Fla. to supply gas to Florida Power and Light.

“Sabal Trail Transmission has commenced testing of the entire pipeline system prior to flowing gas and transitioning into the operational mode,” said Andrea Grover, spokeswoman for Sabal Trail. “Certain facilities and the mainline pipeline will be operation in the next week or so, and the remaining facilities are still on track for a full commercial in-service by the end of June.”

“We still have about 150 people working at the compressor station site in Tallapoosa County and just over 100 performing clean up along the pipeline in Alabama, but we anticipate that number will continue to decline over the next month or so,” Grover said. Clean-up and cosmetic work is still required – even after operational.

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