The US and Canada will need to invest a combined $791 billion, in real 2016 dollars, or an average $44 billion/year, for new natural gas, crude oil, and natural gas pipeline transportation systems from 2018 through 2035, the INGAA Foundation Inc. predicted in a new report.
ExxonMobil Australia is considering the import of LNG into eastern Australia to help ease the predicted shortfall of gas supply from 2021 and protect its existing market share. The company also is increasing its exploration program in Bass Strait as well as considering the development of a field extension called West Barracouta.
International news for oil and gas professionals
Chevron Australia has brought on stream the second LNG train in its $34-billion Wheatstone project in the Pilbara region of Western Australia. Train 1 of the project came on stream at the beginning of October 2017. The project will now ramp up to its full capacity of 8.9 million tonnes/year of LNG in the coming months.
Targa NGL Pipeline Co. LLC, Houston, has launched an open season commencing June 15 and closing July 6 to gauge shipper interest in firm interstate transportation service for natural gas liquids from Coal and Hughes counties, Okla. to Mont Belvieu, Tex.
US Sen. John Hoeven (R-ND) announced on June 14 that he has reintroduced legislation aimed at preventing delays in US oil and natural gas pipelines and electric power lines that would cross the US borders with Canada or Mexico.
ExxonMobil Corp. and Plains All American Pipeline LP (PAA) have signed a letter of intent to build a common-carrier pipeline to transport more than 1 million b/d of crude oil and condensate from multiple locations in the Permian basin to the Texas Gulf Coast.
AGL Energy Ltd., Sydney, has executed two key agreements for its proposed LNG import jetty at Crib Point on the west Gippsland coast of Victoria.
Nord Stream 2 natural gas pipeline received the permit for construction and operation in the Swedish Exclusive Economic Zone (EEZ). Sweden’s Ministry of Enterprise and Innovation issued the permit for the roughly 510-km section within the Swedish EEZ.
The Gladstone LNG (GLNG) project led by Santos Ltd., Adelaide, has successfully delivered its 200th cargo of LNG from its Curtis Island plant near Gladstone on Queensland’s east coast. The YK Sovereign LNG carrier docked at the Incheon reception terminal in South Korea with the cargo last week.
The Canadian government has retained the former head of a pipeline project it rejected to assess the Trans Mountain oil pipeline and to advise a new crown corporation that will manage system expansion.
Sound Energy has signed a heads-of-terms agreement with a consortium of Enagas, Elecnor, and Spain's Fomento for front-end engineering and design and conditional construction and financing of all the infrastructure required—including a pipeline and central gas processing plant—to commercialize Sound Energy’s existing gas discovery in eastern Morocco.
US Senate Minority Leader Charles E. Schumer (D-NY) has asked US Departments of Energy and Transportation leaders to propose and quickly finalize new volatility standards for crude oil shipped by rail. New US Energy Information Administration data show shipments of crude by rail to Northeastern US refineries reached 3.1 million bbl in March—a level not seen since early 2017, he said on June 6.
A consortium of Japanese energy majors and Australian billionaire Andrew Forrest has proposed that Port Kembla on the New South Wales coast near Wollongong is the preferred site for a new LNG import terminal that would bring gas to the New South Wales market.
Steelhead LNG, Vancouver, BC, has appointed Corey Goulet as vice-president, pipeline, effective July 3. Goulet brings 33 years of experience in the energy industry to the company.
Officials from the American Petroleum Institute, Natural Gas Supply Association, and eight other national energy business groups strongly criticized ongoing Trump administration plans to keep otherwise failing coal-fired and nuclear power plants open ostensibly to assure electricity service will remain reliable nationwide.
Japanese company Inpex Corp. expects to begin gas production from Ichthys field wellheads in the Browse basin offshore Western Australia as early as next week or the week after. The company says it is now on track to dispatch the first shipments of condensate, LNG, and LPG by the end of September.
US President Donald Trump signed proclamations removing exemptions from steel and aluminum tariffs for Canada, Mexico, and the European Union as of June 1. The presidents of the American Petroleum Institute and Interstate Natural Gas Association of America separately criticized the president’s May 31 action.
Malaysia’s Petronas reported it will take an equity position in LNG Canada, in Kitimat, BC, on Canada’s west coast, through its wholly owned entity North Montney LNG LP (NMLLP).
The Santos Ltd.-led Gladstone LNG (GLNG) partners have announced a final investment decision for the $400-million (Aus.), 137-well Arcadia coal seam gas (CSG) project in the Bowen basin of southeast Queensland.
Kinder Morgan Canada Ltd. has reached an agreement with the Canadian government to sell the Trans Mountain Expansion Project (TMEP). Canada will purchase the crude transportation project and the pipeline and terminal assets constituting the existing Trans Mountain pipeline for $4.5 billion in a transaction expected to close in August and intended to ensure TMEP’s timely completion.
Enterprise Products Partners LP is holding a binding open season for expansion capacity on its Enterprise Crude Pipeline LLC (ECPL) West Texas System, which transports oil from points in New Mexico to the company’s terminal in Midland, Tex.
Total SA has signed an agreement with Novatek to acquire a 10% participation interest in the Russian company’s 19.8 million-tonne/year Arctic LNG 2 project on northern Siberia’s Gydan Peninsula. Novatek plans three liquefaction trains with combined capacities of 19.8 million tpy of LNG from gas produced at Utrenneye gas and condensate field.
Woodside Petroleum Ltd., Perth, would like to accelerate and increase the breadth of its plans through development of the Scarborough natural gas fields on the Exmouth Plateau offshore Western Australia.
European governments must resist letting controversial proposed projects such as the Nord Stream 2 natural gas pipeline keep them from developing a unified strategy to prevent Russian energy interventions, speakers agreed at a May 24 Atlantic Council forum.
Sanchez Midstream Partners and Targa Resources have merged their respective 50% interests in the entities that own the high-pressure Carnero gathering line and Raptor gas processing facility to form an expanded 50-50 joint venture in South Texas.
The British Columbia government has filed a lawsuit challenging legislation that empowers Alberta’s energy minister to require licenses for transport of energy away from the province. The Alberta Legislative Assembly passed Bill 12 this month in response to BC opposition to expansion by Kinder Morgan of the Trans Mountain Pipeline between Edmonton and Burnaby, BC.
UGI Corp. subsidiary UGI Energy Services LLC, Valley Forge, Pa., is expanding its Auburn Gathering System with the construction of two additional compressor stations in Pennsylvania’s Susquehanna and Wyoming counties.
Governments at every level and all parts of the US oil and gas industry have learned from past extreme weather events and are better prepared for the 2018 Atlantic Hurricane Season, officials from six national trade associations generally agreed on May 22.
Magellan Midstream Partners LP, Tulsa, will expand the western leg of its products pipeline system in Texas to handle incremental shipments of gasoline and diesel fuel to centers in Abilene, Midland-Odessa, and El Paso, Tex., and New Mexico. The pipeline also can access Arizona and Mexico via connections to other systems.
The American Petroleum Institute and eight other national oil and gas trade associations jointly called for companies in the industry to receive relief from anticipated US steel tariffs and quotas. In their May 18 comments, they outlined ways the US Department of Commerce could improve the relief approval process so as not to sever supply chains to industry.
Rising US LNG exports could put upward pressure on US gas prices and expose a previously isolated North American market to global market dynamics, a study by the US Commodity Futures Trading Commission’s (CFTC) Market Oversight Office suggested.
US Gulf Coast onshore ports’ limited tanker loading capacities could increase crude oil export costs because the ports are not able to accommodate very large crude carriers, the US Energy Information Administration warned. Exports have grown using smaller and less-effective vessels to get the crude to designated lightering points farther from shore where it can be transferred to a VLCC, EIA said in a May 16 report.
TransCanada Corp. will begin building its 415-mile, 48-in. OD Coastal GasLink pipeline in early 2019, pending a positive final investment decision on the linked LNG Canada liquefaction plant.
The governments of Canada and Alberta have taken steps to break the logjam in British Columbia over expansion of the Trans Mountain Pipeline System. Canadian Finance Minister Bill Morneau said in a news conference May 16 the government would indemnify project sponsor Kinder Morgan Canada Ltd. or a subsequent developer against financial loss resulting from BC’s resistance to pipeline expansion.
Chevron Australia has called for industry collaboration in the development of Australia’s offshore oil and gas resources to maximize their potential and ensure economic efficiency of future projects.
A federal appeals court in Richmond found the US Fish and Wildlife Service’s authorization for the proposed Atlantic Coast Pipeline was inadequate and vacated the agency’s incidental take authorization statement. Environmental organizations and the project’s sponsor disagreed over whether the May 15 decision would bring a halt to the pipeline’s construction.
Privately held Western Gas Corp. Pty. Ltd., Perth, has completed a basis of design for development of its wholly owned Equus gas-condensate fields offshore Western Australia and is now looking for a project development partner.
Kingfisher Midstream LLC, Oklahoma City, a wholly owned subsidiary of Alta Mesa Resources Inc., Blueknight Energy Partners LP (BKEP), and affiliates of Ergon Inc., will construct a crude oil pipeline serving STACK producers in central Oklahoma through newly-formed Cimarron Express Pipeline LLC.
The Delaware Riverkeeper Network (DRN) filed two petitions in US Appeals Court for the District of Columbia on May 9 in its ongoing challenge of the Federal Energy Regulatory Commission’s approval of the proposed PennEast natural gas pipeline.
Shell Midstream Partners LP, Houston, has agreed to acquire Shell’s ownership interest in Amberjack Pipeline Company LLC.
Enbridge (US) Inc., an indirect subsidiary of Enbridge Inc., has agreed to sell Midcoast Operating LP and its subsidiaries to AL Midcoast Holdings LLC, an affiliate of ArcLight Capital Partners LLC, for $1.12 billion in cash.
A regional crude price deeply discounted by pipeline congestion might cost energy companies in Canada $15.8 billion (Can.) this year, according to a new report.
Inpex Masela Ltd. has let a pre-front-end engineering and design contract to KBR Inc. for the Abadi LNG project in eastern Indonesia. The subsidiary of Inpex Ltd., Tokyo, plans a 9.5 million-tonne/year plant to liquefy natural gas from offshore Abadi field.
Qatar Petroleum has let a contract to McDermott International Inc. for detailed design of offshore jackets for the expansion of giant offshore North natural gas field. The project will add 4.6 bcfd of production capacity in the southern part of the field and includes expansion of LNG production capacity to 100 million tonnes/year from 77 million tpy.
Continuing its buildout of infrastructure in the STACK play of northwestern Oklahoma, Great Salt Plains Midstream Holdings LLC (GSPM) closed on its acquisition of Thunderbird Midstream LLC. Both companies are based in Oklahoma City.
Through the formation of a 50-50 joint venture, Enterprise Products Partners LP and Energy Transfer Partners LP plan to bring the Old Ocean natural gas pipeline back into service in this year’s second quarter to meet demand for takeaway capacity from the Delaware Basin and Midland area.
In the week that the ExxonMobil Corp. joint venture’s PNG-LNG project in Papua New Guinea has restarted production from LNG Train 2 and resumed LNG exports after the disruption of the February earthquake, a damning report has emerged saying that the benefits predicted to flow to Papua New Guinea from the overall project have not been realized.
Energy Transfer Partners LP, Dallas, has received approval from the US Federal Energy Regulatory Commission for Rover Pipeline LLC to place additional Phase 2 facilities into service. Construction of the entire project is expected to be completed later this quarter.
LNG Canada, which delayed a final investment decision on its planned natural gas liquefaction plant in Kitimat, BC, in mid-2016, has named an engineering, procurement, and construction contractor for the project.
Santos Ltd., Adelaide, has commissioned and brought on stream its Scotia CF1 project in eastern Queensland. The project came in ahead of schedule and below budget with initial full field production exceeding 40 terajoules/day of natural gas.
Phillips 66 Partners will build the Gray Oak Pipeline to carry crude oil from the Permian basin to the Texas Gulf Coast and hold a second open season to gauge interest in a system expansion.
Enbridge said it will continue seeking approval of its proposed route for the Line 3 replacement through Minnesota despite an administrative law judge’s Apr. 23 recommendation that it use the existing crude-oil pipeline corridor through the state.
Liquid pipeline incidents affecting the public or the environment have fallen 19% in the last 5 years, the Association of Oil Pipelines and American Petroleum Institute jointly said in their 2018 Pipeline Safety Excellence Report.
Saskatchewan’s government has joined Alberta in implicitly threatening to restrict energy movement to British Columbia, raising stakes in a dispute over expansion of the Trans Mountain pipeline system.
A ConocoPhillips-led group developing Barossa gas field, in the eastern Timor Sea about 300 km north of Darwin, has reached an agreement to begin the front-end engineering and design stage of development with the initial aim of backfilling the Darwin LNG project.
The US Federal Energy Regulatory Commission began the first examination of its process for reviewing and authorizing interstate natural gas pipelines under Section 7 of the Natural Gas Act since it was adopted in September 1999.
The government of Alberta is moving toward restriction of energy movement to British Columbia in an escalating interprovincial conflict over expansion of the Trans Mountain pipeline system.
Enterprise Products Partners LP reported that its 416-mile Midland-to-Sealy pipeline is in full service with an expanded capacity of 540,000 b/d and capable of transporting batched grades of crude oil and condensate.
Chevron Australia has reported the start of Stage 2 of the Gorgon LNG project off Western Australia. The $5.1-billion (Aus.) program will include 11 new wells—7 in Gorgon field 150 km north of Onslow and 4 in Janz-Io field another 70 km offshore. There also will be new subsea installations and pipelaying work.
Pittsburgh-based Mountain Valley Pipeline proposed a 70-mile extension of the interstate natural gas pipeline to central North Carolina. The MVP Gateway Project would receive gas from the main pipeline in Pittsylvania County, Va., and ship it to Rockingham and Alamance counties, officials said.
Presidents of the four national oil and gas trade associations that comprise the Natural Gas Council jointly asked the Trump administration to address problems with the implementation of Clean Water Act Section 401, which they said some states are using to stop interstate pipeline construction.
Transco, a wholly owned subsidiary of Williams Partners LP, has filed an application with the US Federal Energy Regulatory Commission seeking authorization for its Southeastern Trail expansion project, which would create 296,375 dekatherms/day of additional firm transportation capacity to the US Mid-Atlantic and Southeast.
Stopping crude oil and product thefts may not seem to be a high priority in fighting global maritime crime, but they need to be addressed more aggressively because they can finance narcotic smuggling, human trafficking, and other destructive criminal enterprises, speakers agreed during an Apr. 10 Atlantic Council discussion.
Apparent German support for the controversial Nord Stream 2 pipeline across the Baltic Sea is wavering. Chancellor Angela Merkel said after meeting with Ukrainian President Petro Poroshenko that the pipeline cannot advance unless Ukraine retains a role as a transit country for Russian natural gas bound for Europe.
Kinder Morgan Canada Ltd. is suspending all nonessential activities and related spending on its Trans Mountain Expansion Project. KMCL also announced that, given actions in opposition to the project by the Province of British Columbia, it will not commit additional shareholder resources to TMEP. KMCL, however, will consult with various stakeholders to reach agreements by May 31 that may allow TMEP to proceed.
Nord Stream 2 natural gas pipeline has received one of the two required permits for construction and operation in the Finnish exclusive economic zone (EEZ). Finland’s Ministry of Economic Affairs and Employment issued the first permit for a 374-km offshore section extending through the Finnish EEZ outside the country’s territorial waters.
Epic Y Grade Pipeline, a subsidiary of Epic Y Grade Holdings and Epic Midstream Holdings, has placed Phase 1 of its NGL pipeline in service, operating between DLK Black River Midstream’s processing plant in Eddy County, NM, and Delaware Basin Midstream’s terminal in Orla County, Tex. NGL was introduced to the pipeline Mar. 12.
The sponsor of an Alaska LNG export terminal at Nikiski and cross-state pipeline from Prudhoe Bay selected Bank of China and Goldman Sachs as global capital coordinators for the multibillion-dollar project. The two investment banks will assist Alaska Gasline Development Corp. in raising equity and debt financing.
Petroleo Brasileiro SA let a contract to a consortium of Shandong Kerui Petroleum Equipment Co. and Metodo Potencial Engenharia to build a natural gas processing unit to be installed in Itaborai, in the Brazilian state of Rio de Janeiro.