Report Volume XXIX, Number 9 January 1, 2018

December 26, 2017

INDUSTRY NEWS (Missouri City, TX) – We are excited about our new service at Pipeline Intelligence Co. It is the Pipeline Intelligence Spreadsheet. The Spreadsheet is updated twice a month (same as the hard copy), and is available for download at pipelineintelligence.com. The added feature costs an additional $195 per year. You must be a subscriber in order to add the Spreadsheet service. Please call us at the office (281) 499-3131 or email us at pipelineintelligence@gmail.com to add this service today.

 

INDUSTRY NEWS (Houston, TX) – After nearly a year of planning, permitting and protests, construction of the $670 million Bayou Bridge Pipeline—which will cut through the heart of the Atchafalaya Basin in its run from Lake Charles to St. James Parish—could begin in a matter of weeks. That is, assuming it receives the necessary permits from the U.S. Army Corps of Engineers and a final permit from the state.

Pipeline owner Energy Transfer Partners is confident the pipeline is on the verge of getting the green light, despite the Corps staying mum on the status of its permits. The project has already been given the go-ahead by other state agencies.

“We anticipate we’ll start construction by the end of the year,” says Vicki Granado, spokesman for ETP. “We are at the tail end of the permitting process.” If approved, the 162-mile-long pipeline would eventually cross 11 south Louisiana parishes as well as portions of the Atchafalaya Basin, and create 2,500 construction jobs and 12 permanent jobs. The first leg of the pipeline connecting Nederland, Texas, to facilities and refineries in Lake Charles was completed in 2016.

Still, Ricky Boyett, public information officer for the Corps’ New Orleans District, can’t say how long the multistage evaluation process will take. Along the way, various environmental groups—led by the New Orleans-based Louisiana Bucket Brigade, which argues the pipeline poses hazards to the basin and its fish and game industry—are pushing for the Corps to pursue a costly and time-consuming Environmental Impact Statement before granting its permits. Whether or not they’ll get the EIS remains in question.

“I really don’t have a timeline,” Boyett says. “We’re still evaluating and conducting the environmental assessment. If that assessment comes back with a finding of significant impact, then that would prompt an EIS. We haven’t reached that point yet.”

EIS triggers could include perceived potential impacts to wetlands, the availability of a better pipeline route or threats to the overall hydrology of an area.

“During an EIS, we look at the full environmental scope, including economic impacts,” Boyett says. “It is a complete environmental assessment of the entire area and waterways. We don’t really set a timeline for how long it takes.”

Despite the uncertainty, ETP is pushing for full commercial operation of the pipeline by the second half of 2018.

 

 

INDUSTRY NEWS (Houston, TX) – Phillips 66 (NYSE: PSX) and Enbridge Inc. announced an open season for the Gray Oak Pipeline. The Gray Oak Pipeline will provide producers and other shippers the opportunity to secure crude oil transportation from West Texas to the destination markets of Corpus Christi, Freeport, and Houston, Texas, with connectivity to over 3 million barrels per day (BPD) of refining capacity and multiple dock facilities capable of crude oil exports. Shippers will have the option to select from origination stations in Reeves, Loving, Winkler, and Crane counties in West Texas.

The Gray Oak Pipeline is expected to have an initial throughput capacity of 385,000 BPD. Phillips 66 and Enbridge will evaluate expansion of the system beyond 385,000 BPD, depending on shipper interest in the open season. The pipeline system is anticipated to be placed in service in the second half of 2019.

The open season will commence at 12 p.m. CST on Dec. 11, 2017.

 

 

INDUSTRY NEWS (Houston, TX) – A subsidiary of Plains All American Pipeline, L.P.  announced it has received sufficient customer interest to conduct a binding open season for committed crude oil transportation from the Permian Basin to the Corpus Christi/Ingleside area (the “Pipeline”). Origin points will be Orla, Wink South, Midland, Crane and McCamey, TX. The open season provides an opportunity for shippers to enter into transportation services agreements providing for long-term crude oil transportation on the Pipeline and committed tariff rates.

The Pipeline will include a combination of existing pipelines and two new pipelines. The first new pipeline will extend from Wink South to McCamey, TX, and the second pipeline will extend from McCamey to the Corpus Christi/Ingleside area. Subject to receipt of necessary permits and regulatory approvals, the Pipeline could be operational in third-quarter 2019.

Additional information is contained in a Notice of Open Season that is posted on their website at https://www.plainsallamerican.com/customer-center/pipeline-tariffs/open-seasons.

The open season begins on December 13, 2017 and will end at 12 p.m. CT on January 12, 2018.

 

 

INDUSTRY NEWS (Houston, TX) – Tellurian Inc. announced that it expects to develop the Tellurian Pipeline Network, which would include the previously announced Driftwood Pipeline (DWPL) and two additional pipelines that would expand supply alternatives for the growing natural gas demand in Southwest Louisiana. DWPL is anticipated to be in-service mid-2021 and the additional two pipelines are anticipated to be in-service by the end of 2022, subject to commercialization.

The newly proposed Permian Global Access Pipeline (PGAP) would be an approximately 625-mile, 42-inch diameter pipeline transporting 2 billion cubic feet of natural gas per day (Bcf/d). PGAP would originate at the Waha Hub in Pecos County, Texas, and would connect to the Permian and associated shale plays located around Midland, Texas. PGAP would terminate near Gillis, Louisiana, with proposed deliveries to the Creole Trail Pipeline, Cameron Interstate Pipeline, Trunkline Gas Company, Texas Eastern, Transco, Tennessee Gas Pipeline, Florida Gas Transmission, and DWPL, among others.

The newly proposed Haynesville Global Access Pipeline (HGAP) would be an approximately 200-mile, 42-inch diameter pipeline also transporting 2 Bcf/d with proposed deliveries to the same interstate pipelines near Gillis, Louisiana.

The previously announced DWPL is a 96 mile, 48-inch diameter natural gas pipeline transporting 4 Bcf/d from near Gillis, Louisiana and terminating at Driftwood LNG. DWPL is currently under permitting with the Federal Energy Regulatory Commission.

President and CEO Meg Gentle said, “The Tellurian Pipeline Network would serve the approximately 8 Bcf/d of incremental natural gas demand expected by 2025 in Southwest Louisiana. When completed, PGAP and HGAP will deliver natural gas from multiple low cost production basins and debottleneck the existing pipeline infrastructure in Southwest Louisiana. We intend to begin soliciting third party shipper interest in the first half of 2018, and would seek to commercialize PGAP and HGAP by year end 2018. The proposed Tellurian Pipeline Network represents approximately $7 billion of investment in infrastructure and 15,000 jobs in Texas and Louisiana.”

Gentle continued, “We welcome Joey Mahmoud to our leadership team as President of the pipeline network. He brings more than 27 years of pipeline and energy development experience to Tellurian. He was instrumental in executing over $30 billion of energy- related infrastructure as the Executive Vice President of Engineering and Construction at Energy Transfer and will strengthen our commitment to deliver projects on time and on budget.”

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