Tag Archives: storage

Quake Near Oklahoma Oil Hub Causes Substantial Damage

CUSHING, Okla. (AP) — A magnitude 5.0 earthquake centered near one of the world’s key oil hubs brought down building facades and shattered windows in a central Oklahoma city, rendering century-old buildings unsafe and raising concerns about key infrastructure. As the sun rose Monday, television news footage showed widespread, substantial damage to buildings, with piles of bricks and other debris littering the ground following the earthquake the previous evening. Cushing Assistant City Manager Jeremy Frazier told a news conference late Sunday that a few minor injuries had been reported. He said the damage appeared to be […]

Martin Midstream to Sell Corpus Christi Terminal Assets

Martin Midstream Partners will sell some of its Corpus Christi, TX terminal assets to NuStar Logistics for $107 million, plus the reimbursement of certain capital expenditures and prepaid items. Among the assets, Martin is selling a 900,000 bbl crude oil storage terminal, a refined product barge terminal, certain pipelines and related easements, as well as dockage and trans-loading assets. The transaction is expects to close before the end of 2016. “Given our focus on reduction of leverage, we feel this asset sale and distribution right-sizing are prudent moves for the partnership at this time,” said […]

EQT Midstream Acquires Transmission, Storage and Gathering Assets

EQT Midstream Partners acquired the Allegheny Valley Connector (AVC) transmission and storage system, along with several Marcellus gathering systems from EQT Corporation for $275 million in cash, effective Oct. 1. The assets include 209 miles of transmission pipeline and 11 Bcf of working gas storage capacity. The AVC system has 450 MMcf/d transmission capacity and is fully contracted for the winter season by Peoples Natural Gas, one of Pennsylvania’s largest natural gas distribution companies, through a firm reservation commitment that expires in 2034. EQM expects to invest $50 million in AVC related growth projects during […]

Husky Energy to Portion off Midstream Assets for $1.7 Billion

April 2016, Vol. 243, No. 4

Husky Energy will sell 65% ownership interest in select midstream assets in the Lloydminster region of Alberta and Saskatchewan to Cheung Kong Infrastructure Holdings and Power Assets Holdings Limited (PAH). Husky, which will remain the operator, will receive $1.7 billion of gross cash proceeds, while retaining 35% of the midstream assets. “We set a high bar for this transaction,” said Husky CEO Asim Ghosh. “It was important to realize full value for these assets and to maintain operatorship and preserve the tight integration between our heavy oil production, marketing and refining assets. We sought partners […]

Mountaineer NGL Storage Open Season Underway

April 2016, Vol. 243, No. 4

On April 11, 2016, Mountaineer NGL Storage, LLC began its non-binding open season for up to 1.6 million barrels of initial storage capacity with more than 25,000 bbls per day of load-in and load-out. The Mountaineer NGL Storage Project will provide storage services to a growing number of gas processors, producers, markets and commodity traders that are interested in exploiting the wet gas production from the Marcellus/Utica shales. The project will be designed to store ethane, propane, butane and y-grade products. Construction is currently scheduled to begin in 2017, with storage capacity becoming available by mid-2018. […]

Bayou Bridge Pipeline Begins Nederland-Lake Charles Operations

April 2016, Vol. 243, No. 4

Bayou Bridge Pipeline started commercial operations on the 30-inch segment of the Bayou Bridge Pipeline from Nederland, TX, to Lake Charles, LA. The project is owned by subsidiaries of Phillips 66 Partners, Energy Transfer Partners and Sunoco Logistics Partners. In addition, as a result of successful binding open season, the joint venture said the Louisiana segment of the pipeline from Lake Charles to St. James will be 24 inches in diameter. At Lake Charles, Bayou Bridge has agreed to connect to Phillips 66 Partners’ Clifton Ridge terminal and Citgo’s Lake Charles refinery. At St. James, […]

U.S. Natural Gas Production Reaches Record High in 2015

April 2016, Vol. 243, No. 4

U.S. natural gas production reached a record high level of 79 billion cubic feet per day (Bcf/d) in 2015, an increase of 5% from the previous year, even as natural gas prices remained relatively low. Production from five states—Pennsylvania, Ohio, West Virginia, Oklahoma, and North Dakota—was responsible for most of this growth, offsetting declines in much of the rest of the United States. EIA uses three different concepts to measure natural gas production. Gross withdrawals are the full volume of compounds extracted at the wellhead, which includes all natural gas plant liquids and nonhydrocarbon gases […]

Natural Gas Storage Ends Winter Heating Season at Record High

April 2016, Vol. 243, No. 4

Working natural gas inventories ended the winter heating season at 2,478 billion cubic feet (Bcf), exceeding the previous end-of-March record high of 2,473 Bcf, set in 2012, according to EIA’s Weekly Natural Gas Storage Report. Inventory withdrawals during the traditional heating season (November through March) were relatively limited this year because of winter weather that was the warmest on record and continued high levels of domestic natural gas production. Heading into the winter heating season, inventories were at a record high of 4,009 Bcf on November 20, 2015. In the previous five winters, the total […]

Oil Majors Only Replace 75% of Oil and Gas Produced in 2015

March 2016, Vol. 243, No. 3

The oil majors failed to replace all of the oil and gas reserves that they burned through in 2015, a worrying sign for the industry’s future. The Wall Street Journal reported that the seven largest oil and gas companies only replaced about 75 percent of the reserves on average that they produced last year, the worst replacement rate in over a decade. Perhaps the most eye-raising fact was that ExxonMobil, the world’s largest publically-traded oil company, was unable to replace 100 percent of the oil and gas it pulled from the ground. The oil supermajor […]

High Production, Low Prices Mean Little Change in Natural Gas Storage Capacity

March 2016, Vol. 243, No. 3

High levels of natural gas production and relatively low natural gas prices are affecting markets for seasonal natural gas storage, including the value of additional storage capacity. For the second year in a row, no new natural gas storage facilities were added, and the slight changes, both positive and negative, at existing storage fields resulted in national storage capacity remaining essentially flat for the year. EIA measures natural gas storage capacity inNovember each year, which is typically when net storage withdrawals begin. With elevated natural gas production, prices have been low and stable in recent […]

Ultrasonic Metering, Creative Insulation Engineering, Aid LNG Plant

February 2016, Vol. 243, No. 2

A major East Coast storage facility for liquefied natural gas (LNG) had a flow metering challenge on one line.  The problem was directly related to the temperature of the product. LNG is liquefied to concentrate its volume for shipping and, as a result, the temperature of the liquid drops to a cryogenic minus 265 degrees Fahrenheit, which must be maintained throughout the storage facility and delivery system. Challenges of LNG Storage With the introduction of fracking for natural gas in the U.S. and the subsequent drop in prices, LNG storage facilities which import gas have […]

Storage Site Leak Raises Environmental, Reliability Concerns

February 2016, Vol. 243, No. 2

Southern California Gas Company (SoCalGas) detected a major leak Oct. 23 at Aliso Canyon, an underground natural gas storage facility located 30 miles northwest of Los Angeles. The Aliso Canyon storage facility, which has 115 wells, is the second-largest natural gas storage field in the western United States. The 86 Bcf of working natural gas capacity at Aliso Canyon accounts for two-thirds of SoCalGas’ natural gas storage capacity, according to EIA data. Additionally, Aliso Canyon has the largest daily deliverability of all the storage facilities west of the Rockies, estimated at 1.9 billion cubic feet per […]

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