September 2016, Vol. 243, No. 9

Projects

Projects

FERC Approves Williams Partners’ Dalton Expansion Project

Williams Partners L.P. has won Federal Energy Regulatory Commission approval for Transco’s fully contracted Dalton Expansion project to provide additional natural gas service to utilities and a municipal entity in northwest Georgia.

The Dalton Expansion is designed to deliver natural gas to an existing electric generating facility in northern Georgia operated by Oglethorpe Power Corp., Atlanta Gas Light and the City of Cartersville.

“The Dalton Expansion is one of several Transco projects creating much-needed access to northern natural gas supplies to meet growing demand in the South, particularly in the power-generation sector,” said Rory Miller senior vice president of Williams Partners’ Atlantic-Gulf region. “Along with Leidy Southeast and Virginia Southside, the Dalton Expansion will be our third project providing southern market-area customers access to growing Marcellus and Utica supplies with Atlantic Sunrise project coming next.”

The proposed project consists of 115 miles of pipe ranging from 16-30 inches in diameter extending from the Transco pipeline in Coweta County, GA to new delivery points in Paulding and Murray counties. The pipeline is being designed to transport 448,000 Dth/d of natural gas.

Williams wants to build a compressor station in Carroll County, GA as well as three metering facilities and related pipe and valve modifications to existing facilities.

Construction on the Dalton Expansion could begin shortly with completion targeted for 2017. The project is part of Williams Partners’ 2016 growth capital funding plan that includes $1.3 billion for Transco expansions and other interstate pipeline growth projects.

Williams Partners Wins Approval for 2 Pipeline Expansions

Williams Partners L.P. received FERC approval for its New York Bay Expansion and the Virginia Southside II expansion projects. The two fully subscribed Transco expansion projects are designed to provide natural gas service in 2017. The New York Bay Expansion is will serve the increasing local distribution demand in New York City while the Virginia Southside II Expansion will help fuel new electric-power generation in Virginia.

“The New York Bay Expansion and Virginia Southside II Expansion projects add to our growing list of Transco projects that connect North America’s abundant natural gas supplies to long-term demand growth from local distribution companies, industrial and power generation customers,” said Rory Miller, senior vice president of Williams Partners’ Atlantic-Gulf operating area.”

Construction on each project is expected to commence during the fourth quarter with each scheduled to be placed into service during the fourth quarter of 2017.

The New York Bay Expansion is designed to bring 115,000 Dth/d of firm transportation capacity into National Grid’s distribution system to the Rockaway Delivery Lateral and the Narrows meter station.

The Virginia Southside II Expansion will provide 250,000 Dth/d of firm transportation capacity to a delivery point on a new lateral off Transco’s Brunswick Lateral in Virginia, providing additional natural gas needed to serve a new 1,580-MW combined-cycle, natural gas-fired generation facility that Dominion Virginia Power is constructing in Greensville County, VA. 

New Mexico Gas Plans $5 Million Pipeline to Mexico

The Albuquerque Journal reports New Mexico Gas Co. plans to build the state’s first natural gas pipeline to Mexico. The $5 million project will involve extending the company’s existing pipeline in Santa Teresa, NM about 5 miles to the Mexican border, as well as increasing capacity of the line. Additional facilities be needed on the Mexican side to begin exporting.

The projects require a presidential permit from the U.S. Department of State as well as federal permits before construction starts. Assuming timely permit approvals, construction could start later this year.

New JV Announces Pipeline Expansion Plans

Plains All American Pipeline, L.P. and Phillips 66 Partners LP have formed STACK Pipeline LLC, a 50/50 limited liability company to own and operate a common carrier pipeline that transports crude oil from the Sooner Trend, Anadarko Basin, Canadian and Kingfisher Counties (STACK) play in northwestern Oklahoma to Cushing, OK.

Under the JV agreement, Plains contributed an existing terminal at Cashion with 200,000 bbls of crude oil storage, and a 55-mile STACK crude oil pipeline with a current capacity of 100,000 bpd, while Phillips 66 Partners contributed $50 million cash, which will be distributed to Plains, in exchange for a 50% interest in the JV.

The JV plans to invest an estimated $15 million to expand the STACK Pipeline by constructing a truck station at Highway 33, 12 miles northwest of the Cashion Terminal, a lateral pipeline to connect the Highway 33 station to the Cashion Terminal and 100,000 bbls of storage at the Cashion Terminal.

Future expansion, including boosting capacity of the STACK Pipeline by looping the pipeline from the Cashion Terminal to Cushing, as well as other gathering opportunities, are being pursued. The STACK Pipeline and the initial expansion are supported by multiple long-term contracts along with legacy production gathered by existing Plains crude oil pipelines that originate in western Oklahoma.

PECO Completes 600 System Projects

PECO completed 600 projects to enhance natural gas and electric service for customers during the first quarter of 2016. PECO invests $500 million yearly to enhance infrastructure through preventive maintenance and equipment upgrades.

PECO completed nearly 500 projects to its gas system, including equipment inspections, repairs and replacements, and preventive maintenance on the company’s gas transmission and distribution system. From January through March, PECO inspected 308 miles of gas main, completed over 1,700 valve inspections and replaced nearly 2 miles of gas main with plastic pipe.

Shawcor to Provide Pipe Coating for Tuxpan Pipeline Project

Shawcor Ltd.’s pipe coating group has received a conditional contract worth C$300 million from Infraestructura Marina del Golfo (IMG), to provide coating solutions to the Comisión Federal de Electricidad (CFE) Sur de Texas-Tuxpan gas pipeline project. The pipeline will transport natural gas along an underwater route in the Gulf of Mexico from South Texas, to Tuxpan, Veracruz. It will supply natural gas to the CFE’s power-generation plants in multiple regions of the country. IMG is a Mexican company majority-owned by TransCanada Corp. and partially owned by IEnova

The contract involves coating 690 km of 42-inch pipe with the application of concrete weight coating in a variety of thicknesses (2.25 inches, 2.752 inches and 3.5 inches) and supplying the installation of 5,000 sacrificial anodes. Coating is expected to start in early2017 and be complete by the end of the year.

The company will execute the work at Shawcor’s new coating facility in Altamira, Tampico, MX. Development of the facility began in January 2016 and will be fully mobilized and functional shortly to serve the Sur de Texas–Tuxpan project requirements. The facility is comprised of a dedicated automated pipe inspection and repair plant and two high-capacity concrete weight coating plants capable of coating pipes of up to 48 inches in diameter.

EnLink, NGP Expanding Delaware Basin Assets

A subsidiary of EnLink Midstream Partners, LP  (the Partnership), EnLink Midstream, LLC (the General Partner) and an affiliate of NGP Natural Resources XI, L.P. have formed a strategic joint venture to operate and expand the Partnership’s natural gas, natural gas liquids, and crude oil midstream assets in the liquids-rich Delaware Basin.

The new expansion named Lobo II will provide midstream services to large producers in the region. The expansion includes installation of a cryogenic natural gas processing facility with capacity up to 120 MMcf/d and associated natural gas and liquids gathering pipeline infrastructure in Loving County, TX and Eddy and Lea counties, NM.

The partnership will serve as the joint venture’s managing member and will handle day-to-day construction and operation of the assets, which are supported by long-term, fee-based commitments from major producers.

The expansion builds off the partnership’s existing Lobo System, a gathering and processing system acquired from Matador Resources in October 2015, which the contributed to the new joint venture. Upon completion of Lobo II, the facility will have processing capacity of 155 MMcf/d.

Financing Completed for Bakken Pipeline Joint Ventures

Energy Transfer Partners, Sunoco Logistics Partners and Phillips 66 completed the project-level financing of the Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) projects (collectively the Bakken Pipeline). The $2.5 billion is expected to provide substantially all of the remaining capital to complete the projects. Mainline construction of the Bakken Pipeline began May 16 and is expected in service by the end of the year.

DAPL should deliver more than 470,000 bopd from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. DAPL will provide shippers with access to Midwest refineries, unit-train rail loading facilities to enable deliveries to East Coast refineries and the Gulf Coast market through an interconnection in Patoka, IL with ETCOP, which will provide crude oil transportation from the Midwest to the Sunoco Logistics Partners and Phillips 66 storage terminals located in Nederland, TX.

Delfin LNG Plans Floating LNG Plant in Gulf

Delfin LNG is proposing the first offshore floating natural gas liquefaction project in the U.S. The project is in the deepwater port license application process with the federal Coast Guard and Maritime Administration. Delfin expects the facility to be operational in 2020.

The Delfin LNG Deepwater Port project has four main parts: Newly built onshore gas compression on existing site (brownfield); the use of existing 42-inch pipelines to transport natural gas nearly 50 miles offshore; the offshore port complex comprised of four moorings; and  four floating LNG vessels (FLNGVs) with total export capacity of 13 million metric tons per year.

Delfin initiated the purchase of the UTOS Pipeline (now Delfin Offshore Pipeline) from Enbridge Inc. in 2012 and closed the transaction in 2014. The pipeline was originally built to transport gas from offshore wells in the Gulf of Mexico into the U.S. natural gas market; however, Delfin LNG will build an onshore compression facility to reverse the flow of the pipeline to deliver processed gas from onshore sources to the Delfin LNG Deepwater Port.

The Delfin LNG Deepwater Port will receive natural gas from the Delfin Offshore Pipeline and have four mooring facilities for FLNGVs. The FLNGVs moored at the port will have the capacity to liquefy and store natural gas. Periodically, the LNG will be transferred from storage tanks on the FLNGV to an LNG carrier where it will be delivered to customers around the world.

The offshore location of the Delfin LNG Deepwater Port, nearly 50 miles off the coast of Louisiana, will significantly reduce coastal LNG carrier traffic while minimizing near shore environmental impacts.

Enable Midstream Completes Gas Processing Plant in Oklahoma

Enable Midstream’s Bradley II plant is now fully operational alongside its Bradley I plant in Grady County, OK. The 200 MMcf/d natural gas processing plant further enhances Enable’s gas gathering and processing capabilities in the prominent SCOOP and STACK plays in central Oklahoma.

The Bradley II plant will also provide gas supply into Enable’s interstate and intrastate transportation pipelines for delivery to downstream markets in the Midcontinent and Southeast. Photo courtesy of Business Wire

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