Report Volume XXVIII, Number 22 July 15, 2017

July 12, 2017

INDUSTRY NEWS (Norfolk, VA) – A natural gas pipeline is planned to enter the construction phase next fall after more than a year of surveying.

The route of the nearly 9-mile Southside Connector Distribution Project will run from Downtown Norfolk through the Elizabeth River and into Chesapeake, according to project maps online. Surveying has taken place in several neighborhoods in both cities, including Berkley and Cloverdale in Norfolk and Georgetown and Holly Point in Chesapeake.

The pipeline will connect to two of Virginia’s main gas supply lines – the northern portion of Virginia Natural Gas’ distribution system is served primarily by Dominion Energy Transmission, while the southern portion is sourced by Columbia Gas Transmission – which could potentially lower the costs of natural gas in the region, according to Duane Bourne, spokesperson for Virginia Natural Gas.

Most of the pipeline will use an existing electrical right-of-way owned by Dominion Power, Bourne said. The co-location of the two utility lines is an industry best-practice that Bourne said will help to “minimize impact to landowners” along the project route.

About 1,200 feet of the steel tube will rest in the Elizabeth River just south of Harbor Park. Bourne said that by working with organizations such as the Virginia Marine Resources Commission, all precautions have been taken to ensure that the pipeline meets safety standards and won’t contribute to pollution in the river.

Bourne said that, if all goes well, the construction of the pipeline will wrap up next fall, with natural gas coursing through as early as September 2018.

 

 

INDUSTRY NEWS (Houston, TX) – Shell Pipeline Co. has acquired an additional six easements necessary for the company to build the 97-mile Falcon Ethane pipeline.

Since December, the company has acquired about 60 easements from Beaver County landowners, mostly in the southwestern in places including Raccoon, Greene and Independence townships.

The pipeline, which won’t be built until 2019, will transport more than 100,000 barrels of ethane and other natural gas liquids daily to Shell’s $6 billion cracker plant being built along the Ohio River in Potter Township.

The pipeline will have two legs, both of which will feed into the Potter ethane cracker plant.

One leg will be built from Houston, Pa., to Potter, while the other leg will run through eastern Ohio and West Virginia before cutting into southwestern Beaver County.

In the most recent round of easements, Shell paid nearly $116,000 for only 2,675 linear feet of pipeline space. However, $4,000 of that cost was for a “temporary working space and access road” so that the company can access a landowner’s property without digging there.

Like other easements, the most recent round contained language specifying that the pipeline will be built at least 3 feet below ground. However, a Shell Pipeline executive speaking at a conference last month said the pipeline will be buried at least 4 feet underground.

That same executive said at a conference last month that the construction of the pipeline is expected to create about 1,000 jobs. He also said more than 460 landowners have been approached in southwestern Pennsylvania concerning the Falcon pipeline.
According to documents filed with the county recorder of deeds, the pipeline will be built near Ridge Road in Independence, Kennedy Road in Greene and McCleary Road in Raccoon.

The landowners who contracted with Shell include Craig Kamicker of Independence, Michael Lokomski of Greene, Joseph Chamberlain of Raccoon, James Durkin of Independence and Melanie Kamicker of Independence.

Virginia Sanchez, a spokeswoman with Shell Pipeline, said recently that the company continues to “make good progress” in securing easements for the project.

She said the company recently secured an additional 10 easements, although those documents haven’t yet been filed with the recorder of deeds.

 

 

INDUSTRY NEWS (Houston, TX) – New Houston pipeline company Greenfield Midstream is launching with $300 million in financial backing from Texas private equity firm EnCap Flatrock Midstream.
The new pipeline company says it’s targeting both organic growth and acquisition opportunities to support growing U.S. oil and gas production in Texas and beyond.

Greenfield is looking to grow with oil and gas pipeline and gathering systems, as well as processing and treatment facilities and water transportation and handling projects.

San Antonio-based EnCap Flatrock was formed nearly a decade ago to focus primarily on pipeline companies. The firm was created as a partnership between EnCap Investments and Flatrock Energy Advisors.

 

 

INDUSTRY NEWS (Houston, TX) – President Donald Trump signed two presidential pipeline permits for San Antonio-based NuStar Energy, including one for a pipeline he joked needed to be buried farther underground to accommodate his plans for a border wall along Mexico.

“My administration has just approved the construction of a new petroleum pipeline to Mexico, which will further boost American energy exports, and that’ll go right under the wall, right?” Trump said recently at an event titled “Unleashing American Energy.”

“We’ll have it go down a little deeper in that section, right under the wall,” Trump joked. Trump, who signed the permits Wednesday, was flanked by Vice President Mike Pence and Energy Secretary and former Texas governor Rick Perry at the public event.

NuStar spokesman Chris Cho said the company’s CEO Brad Barron attended the ceremony along with other industry leaders.

The first permit clears the way for NuStar to expand the types of products transported by the Dos Laredos Pipeline — a 10-mile, 8-inch wide pipeline from Webb County into Mexico. The pipeline, which already carries 32,000 barrels-per-day of liquefied petroleum gas, will now be able to transport diesel fuel and other refined products into Mexico.

The second permit allows to build a second pipeline next to its existing 64,000 barrel-per-day Burgos Pipeline. The new pipeline would be 34 miles long, 10-inches wide and have a capacity of 108,000 barrels-per-day and will cross approximately 30 feet below the Rio Grande River’s bottom, according to filings with the Department of State.

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