Enterprise Products Partners LP has made long-term agreements that support development of a 416-mile, 24-inch diameter pipeline to transport crude oil and condensate from the company's Midland, TX, terminal to its Sealy storage facility west of Houston. From Sealy, the new pipeline would link to Enterprise's ECHO terminal through an interconnect with the Rancho II pipeline, which is scheduled to be in service in July. Through ECHO, customers will have direct access to every refinery in Houston, Texas City, Beaumont and Port Arthur, as well as Enterprise's dock facilities, the company said. The new pipeline will have the capability to provide up to 540,000 b/d of takeaway capacity for growing volumes of crude oil, and condensate from the Permian Basin. Service is expected to begin in the second quarter of 2017. Hydrocarbons will be gathered by trucks and pipelines into Enterprise's Midland terminal and then delivered in up to four segregated batches to Sealy. The different grades of hydrocarbons handled by the Midland-to-Sealy pipeline include West Texas Sour, West Texas Intermediate, Light West Texas Intermediate and condensate. Enterprise is in the process of adding incremental storage capacity to support the new pipeline and the existing West Texas Gathering System.
Encana Corp. has sold Wind River Basin acreage in Wyoming to private equity investors for an undisclosed amount. Aethon Energy Management LLC and RedBird Capital Partners LLC acquired the Moneta Divide assets, encompassing about 188,000 net acres, from Encana Oil & Gas (USA) Inc. In 2013, the Bureau of Land Management (BLM) began to prepare an environmental impact statement for a proposed Moneta Divide project by Encana and Burlington Resources Oil & Gas Co. LP. The partners proposed developing 4,250 wells in Fremont and Natrona counties over 265,000 acres. About 138,000 acres are public lands administered by BLM Wyoming offices in Lander, Casper and Rawlins.
The Cabinet Council of the Republic of Panama has approved modifications to tolls on the Panama Canal following a recommendation from the Panama Canal Authority (ACP) board of directors (see Daily GPI, Jan. 9). Among the tolls taking effect April 1 are those for liquefied natural gas (LNG) tankers. Tolls for LNG and liquefied petroleum gas vessels, will be based on cubic meters, and tankers will be measured and priced on Panama Canal universal measurement system tons and metric tons of cargo. "The ACP deeply values the relationships we share with our customers," said Panama Canal CEO Quijano. "As we prepare for the completion of the Canal's expansion program, we look forward to continuing to provide the same superior reliability, service and value to our customers, as well as now accommodate longer, wider ships and the new LNG segment."
FERC has scheduled the environmental review of the proposed Magnolia LNG LLC liquefied natural gas (LNG) export terminal in Lake Charles, LA (see Daily GPI, March 18), as well as the related Kinder Morgan Louisiana Pipeline LLC Lake Charles Expansion Project, which would deliver natural gas to the terminal (see Daily GPI, Jan. 29, 2014). The projects would create a firm north-to-south on the existing pipeline system that would deliver gas to the terminal and create liquefaction facilities for LNG export, domestic marine distribution and trucking distribution to LNG refueling stations in Louisiana and surrounding states, the Federal Energy Regulatory Commission said in its notice [CP14-347,CP14-511]. The projects' final environmental impact statement is expected to be issued Nov. 16 with a final decision on the projects expected Feb. 14.
Rice Energy Inc. has finalized a lease for 150,000 square feet of office space in a large three-building complex under construction in Canonsburg, PA. The company is expected to move in to the office next year. The new building is located next door to its current offices. The move will allow the company to eventually expand from about 330 employees to 700. Canonsburg, about 22 miles south of Pittsburgh, is home to several other Appalachian exploration and production companies, including Noble Energy Inc., Range Resources Corp. and Consol Energy Inc.