Report Volume XXIX, Number 2 September 15, 2017

September 11, 2017

INDUSTRY NEWS (San Antonio, TX) – Valero announced recently that a subsidiary, V-Tex Logistics LLC, had entered into a construction deal with Magellan Pipeline Company LP to build a 136-mile pipeline.
Under the agreement, V-Tex Logistics and Magellan, which is owned by Magellan Midstream Partners LP, will build a 16-inch refined products pipeline connecting a Valero facility in Houston to a property just outside Hearne in Robertson County.

Valero will separately build a storage terminal on its Hearne property as well as a 12-inch pipeline that will stretch 70 miles from Robertson County to another storage terminal that will be built in Williamson County, north of Austin. Valero is evaluating several sites in WilCo to construct the terminal. A potential site is 1700 FM 1660 in Hutto, off State Highway 29 about a mile south of the San Gabriel River. V-Tex Logistics in March bought the nearly 50-acre property, which is mostly empty undeveloped and was most recently valued at $415,175 by the Williamson Central Appraisal District.

Based on current timelines, the refined products pipelines and storage terminal projects are expected to be finished by mid-2019.

Valero CEO Joe Gorder said the pipelines and terminals will provide a reliable fuel supply alternative for the fast-growing Central Texas marketplace.

“These projects support our long-term strategy of expanding and extending our supply chain through organic growth projects,” Gorder said in a statement. “We are very pleased to participate in the Magellan South Pipeline Expansion project. Valero and Magellan have had a long and successful working relationship and the Houston to Hearne pipeline project will build on that history.

 

 

INDUSTRY NEWS (Dusseldorf, Germany) – For the first time in company history, Sawyer Manufacturing will be an exhibitor at the Schweissen & Schneiden International Trade Fair taking place Sept. 25 through Sept. 29 in Dusseldorf, Germany.

Billed as “the world’s premier fair for joining and cutting technologies” and “the meeting place for experts and top decision makers of the joining, cutting and surfacing technology industry,” Schweissen & Schneiden is held every four years, and this year’s event is expected to feature 1,000 exhibitors from more than 40 nations.

“I’m ecstatic we’re going to this show. Sawyer is a company with a global reach and an expansive territory to cover, and Schweissen & Schneiden will allow us to interact with portions of our customer base we don’t see in person as often as we would like,” International Director, Warrick Howard, said.

At the most recent Schweissen & Schneiden show in 2013, more than 55,000 people from 130 countries attended, and an estimated 1.5 billion euros in investments were made.

“For over 60 years, Schweissen & Schneiden has offered joining, cutting and surfacing technologies the optimum environment for the introduction of new products, processes and services. In 2017, all the large industrial nations and renowned manufacturers will therefore be represented in Essen once more,” according to Schweissen & Schneiden promotional materials.

For the duration of the exhibition, Sawyer representatives will be in Hall 9, Booth 9B52 and will have a full complement of products and equipment available for demonstration.

“We will have a large equipment stand with our cutting and beveling equipment, clamps, and welding tools. We would love for anyone and everyone to stop by and have a look,” Howard said.

Sawyer Manufacturing Company is a competitive global provider of pipeline and welding equipment. with headquarters in Tulsa, Okla. Since 1948, it has been designing, engineering and manufacturing pipeline and welding equipment that sets the industry standard for quality and durability.

 

 

INDUSTRY NEWS (Houston, TX) – A subsidiary of Plains All American Pipeline, L.P. announced a successful conclusion to the open season for additional capacity from the Delaware Basin to Cushing, OK. The Partnership announced that it has received sufficient committed volume from shippers to expand portions of its pipeline systems to accommodate a volume increase of approximately 120,000 barrels per day of movements from the Delaware Basin and Midland to Cushing, OK.

The committed volume will move on a combination of new and existing pipelines. The Partnership plans to extend its Sunrise Pipeline system, which currently originates at Midland and connects with Colorado City, by building approximately 180-miles of 24-inch pipeline from Colorado City, TX to Wichita Falls, TX. The balance of the capacity will be provided by a combination of spare capacity and capacity enhancements to existing pipelines, which include capacity expansions to our Delaware Basin system of up to 200,000 barrels per day.

“We are pleased to announce the Sunrise expansion project which enhances the utilization of capacity in our existing system,” commented Willie Chiang, US Chief Operating Officer for PAA. “This expansion will allow us to meet shipper needs in a phased approach, while building in capability for further expansions. The project also enhances our integration by enabling additional volume pull-through from our Permian Basin gathering assets, and provides incremental supply optionality for pipelines that transport crude oil from Cushing to end markets, including our Red River and Diamond pipelines.”

The Pipeline system will deliver to Plains’ and third-party terminals in Cushing, OK. Subject to timely receipt of necessary permits and regulatory approvals, the additional capacity is expected to be operational in early to mid-2019.

 

 

INDUSTRY NEWS (Tulsa, OK) – Magellan Midstream Partners, L.P. announced recently it is commencing construction of a new Delaware Basin pipeline originating in Wink, Texas to handle crude oil and condensate.

Magellan will build an approximately 60-mile, 24-inch pipeline from Wink to Crane, Texas, which serves as an origin to its Longhorn pipeline. The new Wink pipeline will have an initial capacity of 250,000 barrels per day (bpd) with the ability to expand to more than 600,000 bpd if warranted by industry demand. The project also includes construction of a new terminal at Wink which will offer broad inbound and outbound pipeline access to parties that connect to the facility.

Magellan currently expects the project to cost approximately $150 million and to be operational in mid-2019, subject to receipt of any necessary permits and regulatory approvals.

“Magellan is known in the industry for its independent service provider business model and is ideally situated to meet growing industry demand for a crude oil and condensate pipeline system with access to customers originating from the Delaware Basin,” said Michael Mears, chief executive officer.

The new pipeline segment will offer direct service from the Delaware Basin to the Crane origin of Magellan’s Longhorn pipeline, which provides crude oil and condensate transportation service to the Houston and Texas City refining complex and marine export facilities. In addition, this pipeline segment will be able to provide service from the Delaware Basin to the new crude oil and condensate line to Corpus Christi, Texas that has been proposed by Magellan as well as others in the industry.

Magellan plans to conduct an open season for commitments on the new pipeline system at a later time; however, construction of the new pipeline does not depend on the results of the open season. In addition, the partnership is assessing additional pipeline and terminal investments in West Texas to strengthen and enhance its overall crude oil service offerings.

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