August 2017, Vol. 244, No. 8



Alaska LNG MoU Signed with Korea Gas Corp.

The Alaska Gasline Development Corporation (AGDC) signed a memorandum of understanding (MOU) with the Korea Gas Corp. (KOGAS) to establish a framework for AGDC and KOGAS to cooperate in several areas of Alaska LNG, including project investment, development and operations.

Alaska LNG is an integrated gas pipeline and LNG infrastructure project that will provide a direct link between natural gas on Alaska’s North Slope with growing LNG markets in Asia.

“KOGAS is in the market for the development of a vast natural gas resource base,” said AGDC President Keith Meyer. “Alaska LNG, anchored by the enormous proven natural gas resources of Alaska’s North Slope, is well-positioned to satisfy KOGAS’ needs for generations.”

The MOU establishes a joint committee with decision-making authority and sets the framework for AGDC and KOGAS to collaborate on the potential of KOGAS participating in all aspects of the development of Alaska LNG. Specific areas addressed in the agreement include Korean investment in the project, KOGAS cooperation on the engineering, procurement, and construction of the project components and operations.

“KOGAS gains the prospect of investing in Alaska LNG as well as participating in all aspects of project development and financing,” Meyer said. “The MOU is not exclusive and recognizes AGDC is in discussions with other parties to ensure timely development of Alaska’s energy infrastructure and export project.”

AGDC President Keith Meyer and Korea Gas President and CEO Seung-hoon Lee at the signing June 29 in Washington, D.C.

Sabal Trail Pipeline Now In-Service

Sabal Trail Transmission, a joint venture of Spectra Energy Partners, NextEra Energy and Duke Energy announced that on July 3 it placed its pipeline system and facilities from Alexander City, AL to the Central Florida Hub of Kissimmee in-service. The 515-mile pipeline will have the capacity to deliver 1.1 Bcf/d to the Southeast once additional compression is approved.

“With the completion of this project, Florida Power & Light and Duke Energy will realize needed firm natural gas transportation services to meet their power generation requirements,” said Bill Yardley, president and CEO of Spectra Energy Partners, which is now owned by Enbridge Corp.

Sabal Trail will provide 400 MMcf/d of firm transportation to Florida Power & Light in time for them to meet its peak cooling season. Additionally, Duke Energy Florida will accept 300 MMcf/d of firm delivery once its Citrus County combined-cycle natural gas plant is ready to receive natural gas.

Enterprise Products to Expand Gas Processing Facility

Enterprise Products Partners will add 300 MMcf/d of incremental capacity at its cryogenic natural gas processing facility now under construction near Orla, TX in Reeves County. Orla II, a second processing train at the facility, will double the inlet capacity of the facility to 600 MMcf/d and increase extraction of natural gas liquids from 40,000 bpd to 80,000 bpd.

Gas liquids from Orla will be delivered into Enterprise’s fully integrated NGL system, including the recently announced Shin Oak Pipeline. The Shin Oak Pipeline is a 24-inch pipeline that will originate at the partnership’s Hobbs NGL fractionation and storage facility in Gaines County and transport Permian Basin NGLs to the partnership’s Mont Belvieu NGL complex. Shin Oak will have an initial capacity of 250,000 bpd, expandable to 600,000 bpd.

WBI Energy to Expand North Dakota Gas Pipeline System

MDU Resources subsidiary WBI Energy intends to expand its Line Section 27 natural gas transportation system in the Bakken-producing area in northwestern North Dakota. The $27 million expansion project will include construction of 13 miles of 24-inch pipeline and associated facilities.

When the expansion is complete, the transportation capacity on WBI Energy’s Line Section 27 will exceed 600 MMcf/d. The targeted in-service date for the project is fall 2018, which is the same timeframe for completion as WBI Energy’s $55 million Valley Expansion project near Fargo, ND.

“The Line Section 27 Expansion is a good project, right in our backyard, that underscores the continued demand for reliable natural gas transportation service in the Bakken,” said David L. Goodin, MDU president and CEO.

50-Mile Marathon Pipeline Completed in Ohio

A 50-mile Marathon Pipe Line project, extending between Wyandot and Allen counties in northeast Ohio, is operational and will supply fuel to 10 Midwest refineries.

The 50,000-bpd Harpster-Lima pipeline will carry either condensate (a mixture of light hydrocarbon liquids separated from hydrocarbon gases) or natural gasoline (low-octane gasoline) from the Utica Shale.

The project represents part of the company’s effort to create a network of pipelines to move natural gas products and oil from the Utica Shale to refineries in Ohio, Michigan, Indiana and Illinois, as well as Canada by interconnecting existing and new pipelines.

Judge Orders Pipeline Protesters off Own Property

A judge has ordered a Pennsylvania family to vacate some of its property that was seized by company that wants to lay a $2.5 billion pipeline across it. An attorney for the Gerhart family isn’t sure whether they’ll appeal the order issued June 29 by Huntingdon County Judge George Zanic.

The family and their supporters have been camping out on the property to protest a right-of-way obtained by Sunoco Logistics. The Gerharts are still waiting for the state Supreme Court to hear an appeal of Zanic’s earlier ruling letting Sunoco take 3.2 acres (1.3 hectares) of the family’s 27-acre (11-hectare) tract through eminent domain.

The family says the 350-mile (563-km) Mariner East 2 pipeline that will carry propane, butane and ethane is dangerous and damages the environment.

Study Ties 8,600 Jobs to Line 3 Project

A study by the University of Minnesota Duluth’s business school showed the Enbridge Line 3 replacement project would create about 8,600 temporary jobs and bring over $2 billion into a 15-county area if approved by the state. Construction could begin as early as 2019.

The study, commissioned by backers of the project, found that the two-year construction phase of the project would directly and indirectly support 4,200 construction jobs, 2,100 of those local, while also resulting in 2,800 retail and hospitality jobs, and 1,600 local supplier and manufacturing jobs.

“These jobs sustain families while supporting local economic development,” said Mel Olson, president of Duluth-based United Piping Inc. (UPI), in a written statement. “Importantly to UPI, this project will ensure long-term safety of the environment and our local communities.”

The project would also contribute about $344 million in wages and benefits, add $162 million in total economic impact from non-local worker and have an added economic impact of $745 million on the region.

DOE Authorizes More LNG Exports from Lake Charles

The Department of Energy (DOE) approved two long-term applications to export and additional 330 MMcf/d of LNG from the already-approved Lake Charles LNG Liquefaction Project in Lake Charles, LA. The non-additive authorizations were issued to Lake Charles Exports and Lake Charles LNG Export Company to export LNG to any country not prohibited by U.S. law or policy. The DOE previously authorized the companies to export LNG up to the equivalent of 2 Bcf/d to any country unless prohibited.

According to the Lake Charles companies, construction of LNG Liquefaction Project will provide thousands of construction jobs and hundreds of permanent jobs as well.

MPLX Puts Utica Projects In-Service

MPLX announced the company’s Utica Buildout projects, including the newly constructed Harpster to Lima Pipeline, are now in service. The 49-mile Harpster- to-Lima Pipeline is designed to transport condensate and natural gasoline in a batched system from Harpster, OH to a tank farm in Lima where it can continue on to refineries in Ohio, Michigan, Indiana, and Illinois.

As part of the buildout scope, MPLX expanded capacity of two product pipelines, the East Sparta-to-Heath and Heath-to-Harpster pipelines to deliver into the new pipeline at Harpster.

In December 2016, MPLX reversed the RIO 8-inch pipeline to provide further distribution to the Midwest from Lima. MPLX is constructing additional connectivity and expanding pipelines to provide diluent service to Western Canada, which is expected to be finished this year.

All three pipelines now have a maximum capacity of 50,000 bpd. Marathon Pipe Line, a subsidiary of MPLX, will operate these pipelines from its operations center in Findlay, OH.

NuStar Awarded 3 Pipeline Permits

NuStar Logistics, a subsidiary of NuStar Energy, has been awarded permits from the U.S. Department of State for three pipelines crossing the U.S.-Mexico border. The permit for the New Burgos Pipeline approves construction, operation and maintenance of a new pipeline possessing the capability to deliver as much as 108,000 bpd of refined petroleum products.

Two other permits were approved for existing pipelines to reflect a name change and permit the delivery of a broader range of petroleum products. P&GJ

Pembina Places Phase III Expansion In-Service

Pembina Pipeline has placed about $2.8 billion of integrated capital projects in service, including its Phase III pipeline expansion and two connected major delivery points: the company’s third fractionator at Redwater (RFS III) and its Canadian Diluent Hub (CDH), the company said.

The Phase III Expansion, which is underpinned by long-term contracts with take-or-pay commitments, was placed into service on June 30, on time and under budget. The Phase III Expansion program, which was initiated in 2013, included installing over 560 miles (900 km) of new pipeline primarily along the company’s existing Peace and Northern system rights-of-way, as well as upgrading and adding new mainline pump stations.

Initial work for the Phase III Expansion included debottlenecking segments of existing pipeline systems from Taylor, British Columbia to Gordondale, Alberta and adding a new pipeline from Wapiti to Fox Creek, Alberta to allow increased volumes upstream of Pembina’s Fox Creek tie-in point. In support of handling the increased product, 420,000 bpd of incremental capacity was added in the Fox Creek-to-Namao corridor of through the construction of two pipelines: a 16-inch and a 24-inch pipeline, each spanning 180 miles (290 km).

With the Phase III Expansion now complete, Pembina has four pipelines between Fox Creek and Namao, allowing the company to transport four distinct hydrocarbons – ethane-plus, propane-plus, condensate and crude oil – each in its own segregated pipeline, plus upstream capacity to handle higher volumes driven by the development of the Montney, Duvernay and Deep Basin resource plays.


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