Report Volume XXIX, Number 1 September 1, 2017

August 28, 2017

INDUSTRY NEWS (San Antonio, TX) – Andeavor is pleased to announce that it received sufficient commitments from third party shippers to warrant construction of the Conan Crude Oil Gathering Pipeline system in the Delaware Basin.

As previously announced, the Conan Crude Oil Gathering Pipeline system will be approximately 130 miles in length and transport crude oil from origins in Lea County, New Mexico and Loving County, Texas to a terminal to be constructed in Loving County, Texas, where the gathering system interconnects with long-haul pipeline carriers. The first phase of the Conan Crude Oil Gathering Pipeline system will provide capacity of approximately 250,000 barrels per day. Future phases of the system may expand capacity up to 500,000 barrels per day.

The system is under construction and is expected to begin commercial service in mid-2018. The estimated capital investment for the first phase of the gathering system is approximately $225 million of which $75 million is expected to be spent in 2017.

 

INDUSTRY NEWS (Washington, D.C.) – The Federal Energy Regulatory Commission approved the NEXUS Gas Transmission pipeline.

The order clears the way for NEXUS to build a 36-inch diameter pipeline across parts of Stark and Summit counties, and gives NEXUS power to take land through eminent domain proceedings.

Some landowners and municipalities along the route, including the city of Green, oppose the $2.1 billion project, which was challenged in state and federal courts.

Detroit-based DTE Energy and Spectra Energy, which merged this year with Enbridge, a Canadian company, are partners in the project.

The 255-mile pipeline will start near Hanoverton in Columbiana County and cross Washington, Nimishillen, Marlboro and Lake townships in Stark County before entering the city of Green.

The pipeline is designed to carry up to 1.5 million cubic feet of natural gas a day from the Utica and Marcellus shales to users in Ohio, Michigan and Canada.

DTE Energy estimated last month it would take seven to 10 months to build the pipeline once FERC approved the project.

In a news release last week, NEXUS said it would give an updated 2018 in-service date after reviewing its construction plans and FERC’s decision.

“We are very pleased to reach this significant milestone and move one step closer to construction of the pipeline, which will diversify the region’s energy sources and generate significant economic benefits for local communities,” the news release said.

 

INDUSTRY NEWS (Houston, TX) – 3Bear Energy, LLC has entered into definitive agreements with an anchor shipper to develop, own and operate a gathering and processing system serving the Northern Delaware Basin in Lea and Eddy Counties in New Mexico.

As part of the project, 3Bear Energy is constructing more than 100 miles of pipeline wellhead gathering, including systems for oil, gas and water transportation, a central water treatment facility, crude terminal and a 60,000 Mcf/d cryogenic gas processing plant with treating capabilities. The company expects the system to be operational in the first quarter of 2018.

“3Bear is pleased to be able to provide midstream services to our customers in support of their drilling plans in one of North America’s fastest growing oil and gas basins,” Bob Clark, 3Bear Energy CEO, said. “The 3Bear system is ideally positioned in the basin and will provide an excellent platform as we continue to expand our assets to serve producers’ growing volumes of crude, gas, and water across the Northern Delaware.”

 

INDUSTRY NEWS (Northglenn, CO) – Over the past seven years, William “Billy” Schneider, Northeast U.S. Regional Director, and David Chamberlain, Northeast General Manager, along with their team of highly capable, experienced, and loyal Operations Managers, Safety Officers, RSO’s, Quality Compliance Auditors and best in class technicians have built NVI’s Northeast Business Unit into one of the company’s most valuable assets. This Business Unit, with locations in Pittsburgh, PA and Buffalo, NY, serves a vast array of industrial clients, ranging from rail, manufacturing, machining, upstream, midstream, downstream, fabrication, refrigeration, utility and power generation. The primary service lines in this market are NDT services, both conventional and advanced services, API, NACE, Mechanical Integrity services, Useful Life Asset Evaluations, Cathodic Protection Surveys, and Installations, as well as full-service Heat Treatment, Failure Analysis, and associated Metallurgical Services.

Based on the success, NVI LLC’s President and Chief Executive Officer, James Cloutier wishes to announce that this team will have direct oversight of NVI’s Mid-continent Business Unit based in Northglenn, CO. Mr. Cloutier states, “It is a wonderful thing to see previous and current clients of NVI reach out to Billy and David to request NVI’s services in other markets in the U.S. Based on this and other beneficial factors, it feels like the perfect fit for further expansion of NVI’s services into this solid market. We have been working in Colorado since 2007 and foresees a very bright future moving forward for this large-scale commitment in the mid-continent area. There is a definite need for quality NDT and personnel capable of exceptional production levels, and that’s what NVI is aiming to deliver, both with advanced and conventional NDT methods along with our other broad industrial service lines.”

With the excitement of this transition, our primary focus and goal is still to provide the best highly trained individuals and superior production levels to keep our clients satisfied and the life of their asset long-lasting.

Industry News, Reports

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