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Industry Briefs

Twin Eagle Resource Management LLC said it will market crude oil rail trans-loading capacity at GT Logistics LLC's GT OmniPort facility in Port Arthur, TX. GT Logistics operates a unit train facility with about eight miles of track, 18 rail car unloading racks and a two-station barge dock. It maintains direct rail service with the Union Pacific and Burlington NorthernSanta Fe rail lines. The facility has direct access to the Intercoastal Waterway and will have deepwater access after further capital investment, the companies said. GT OmniPort began operations in September and has capacity of 100,000 b/d. Twin Eagle unit Enserco Midstream LLC plans to construct four crude oil storage tanks at the GT OmniPort facility that are expected to be operational in the third quarter. The parties intend to construct additional storage capacity and to establish pipeline connectivity with refiners and other markets in the area. GT OmniPort is adjacent to the Port Arthur refinery community, which has demand for about 2 million b/d of crude oil.

Plans for the Commonwealth Pipeline, which would carry Marcellus and Utica shale gas to market, have been set aside, at least temporarily, according to UGI Corp., which said initial demand for the project didn't meet expectations. "This was primarily due to low gas prices, slow economic growth and the short-term impact of several low-cost expansion projects on existing long-haul pipelines," COO John Walsh said during a recent earnings conference call. UGI Energy Services Inc., Inergy Midstream LP and Capitol Energy Ventures Corp., a unit of WGL Holdings Inc., are partners on the project (see Shale Daily, March 2, 2012). In September, UGI Energy Services and Capitol Energy Ventures took firm capacity on the proposed pipeline (see Shale Daily, Sept. 27, 2012). Plans called for a 200-mile, 30-inch diameter system to carry at least 800,000 Dth/d from the southern terminus of Inergy Midstream's MARC I pipeline in Lycoming County, PA, through central and eastern Pennsylvania to markets across southeastern Pennsylvania, Philadelphia and the Baltimore and Washington, DC, areas.

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