CIG Logistics has opened a rail terminal in Jal, NM, to serve producers operating in the Delaware Basin, a sub-basin of the Permian Basin. The terminal is the company's sixth and includes more than 550 rail car spots and 12,000 tons of silo storage capacity. "Our new Jal rail terminal will help oil companies in the Delaware Basin significantly reduce their frack sand transportation and storage costs, while improving safety, reliability and inventory management," said CIG's Michael Collins, vice president of business development. The terminal is designed to handle both manifest and unit trains. An expansion to add 160 rail car spots and 6,000 tons of silo storage is planned for early 2016. CIG operates five other terminals throughout Texas in Lubbock, Slaton, San Antonio, Big Lake and Hugh Springs.
Texas Gov. Greg Abbott Tuesday while visiting Mexico signed a transportation agreement between the Texas Department of Transportation and the Ministry of Communications and Transportation of the United Mexican States to promote collaboration on border infrastructure projects. Texas and Mexico also announced the creation of an energy task force to foster economic growth. The energy task force, among other things, will focus on natural gas and electric power infrastructure connecting the United States and Mexico, the governor's office said. "The state of Texas recognizes the importance of its long term partnership with Mexico, which is why we must continue to expand our dialogue on issues such as border security, transportation and energy," Abbott said. "Texas and Mexico meet at the center of North America's vast energy resources, and this task force will provide a unique opportunity to enrich economic growth and development for both sides."
A California state delegation met recently in Mexico with Mexican energy officials working toward an energy and climate change agreement, California Energy Commission (CEC) officials reported Tuesday. The meetings are a start at reaching agreement on establishing various collaborative programs related to clean energy development and regional efforts to lower greenhouse gas (GHG) emissions. CEC representatives, along with officials from Stanford University, the University of California, and business leaders in the state held meetings with Mexico's Ministry of Energy and other key representatives from the nation's energy sector, governmental agencies, academic institutions and various nongovernment organizations, a CEC spokesperson said. Participants agreed on the need for more cross-border partnership to deploy added clean energy technologies to stimulate additional private investment, economic development and ultimately job creation, according to representatives from the Mexican energy sustainability fund, Fondo de Sustentabilidad Energetica.
Asset Risk Management (ARM), through ARM Midstream, and Highbridge Principal Strategies LLC are developing a natural gas gathering and processing system to serve producers in Oklahoma's Stack play. The Kingfisher Midstream Project is expected to have an initial cost of $200 million and will also offer crude oil services. Kingfisher is to include more than 100 miles of low- and high-pressure gathering pipelines, more than 15,000 hp of compression, and a cryogenic processing facility with initial capacity of 60 MMcf/d. It would serve producers in Kingfisher County, as well as in Blaine, Logan, Garfield and Canadian counties via additional plant expansions, a high-pressure gathering backbone, and centralized low-pressure delivery points. Kingfisher would also include a crude oil gathering system to connect in-field production to Cushing, OK, as well as offering truck-loading facilities and storage for 50,000 bbl of crude. Gathering operations are expected to begin during the fourth quarter, with the processing plant in service during the first quarter. Potential expansions are being planned. Recently, Southern Star Central Corp. and a unit of NextEra Energy Inc. proposed the Sooner Trails Pipeline to serve growing production from the Stack as well as the South Central Oklahoma Oil Province (SCOOP) (see Shale Daily, Aug. 20).
Magnum Hunter Resources Corp. is the latest exploration and production company to receive a delisting notice from the New York Stock Exchange (NYSE) (see Shale Daily, Aug. 28). NYSE sent the company notice late last month that its common stock was no longer in compliance with the market's listing standards because it had a 30-day average closing price of below $1/share. Magnum said that during the period in question its common stock had an average 30-day closing price of 99 cents/share. The company has roughly six months to regain compliance if its 30-day closing price reaches an average of at least $1/share. Magnum continues to face cash-flow problems. Last month, it announced a tentative $430 million joint venture agreement with a private equity fund to help it develop unproven Marcellus and Utica shale acreage (see Shale Daily, Aug. 11). That deal was the latest in a series of proposed liquidity events it's been working on to help jump-start its suspended drilling program in the Appalachian Basin. The company is also trying to sell its 46% stake in midstream subsidiary Eureka Hunter Holdings LLC for up to $600 million (see Shale Daily, June 25).