Tesoro Corp. sold Los Angeles crude oil and refined products storage facilities and related pipeline assets for $500 million to Tesoro Logistics LP (TLLP). The assets have collective capacity of 6.6 million bbls and include a 50% interest in the 16-mile pipeline Line 88 with capacity of 25,000 b/d. The transaction included $250 million in cash and TLLP units valued at $250 million transferred to Tesoro.

The Oklahoma Corporation Commission (OCC) has placed new restrictions on waste disposal wells injecting into the Arbuckle formation following a spate of earthquakes around Medford, OK, beginning last weekend. Nine wells and five operators are affected. The wells are being required to alter their operations based on their distance from the center of the recent earthquake activity. For details, visit the OCC website. The action is just the latest by the commission as it works to deal with numerous instances of seismic activity that have been blamed on drilling waste injection wells (see Shale Daily, Oct. 19).

Enable Gas Transmission LLC (EGT) is holding a binding open season through Dec. 3 for its Cana and STACK Expansion (CaSE). Together with existing EGT system capacity and EGT capacity on third-party pipelines, the CaSE project would provide residue takeaway solutions for growing production from the Cana Woodford play, as well as the Sooner Trend, Anadarko, Canadian and Kingfisher (STACK) region. EGT, a unit of Enable Midstream Partners LP, can provide firm transportation to Southeast and Western markets. The proposed project provides transport options for volumes between 190,000 Dth/d and 490,000 Dth/d. For information, visit the Enable Midstream website.

Enterprise Products Partners LP signed another long-term contract to export ethane from its terminal under construction at Morgan’s Point, TX. With the additional volumes, the 200,000 b/d terminal is about 90% contracted. “This agreement is a clear indication of the continued interest for U.S. ethane as a low cost feedstock by the global petrochemical industry,” said Jim Teague, COO of the general partner. “We are in negotiations with other customers and expect the remaining capacity to be sold out when the facility begins service.” The terminal is expected to enter service in 3Q2016 and would be able to load fully refrigerated ethane at up to 10,000 bbl per hour. Supply would be sourced from Enterprise facilities at Mont Belvieu, TX, and delivered by a 24-inch diameter pipeline under construction (see Daily GPI, Oct. 30).

TransCanada Corp.is dropping down its 49.9% interest in Portland Natural Gas LP (PNGTS) to its master limited partnership, TC PipeLines LP, for a purchase price of US$223 million. PNGTS is a 295-mile interstate natural gas pipeline that began serving New England in March 1999. The pipeline connects with the TransQuebec and Maritimes Pipeline at the Canadian border near East Hereford, Quebec and delivers gas to customers in the U.S. Northeast. “The PNGTS transaction is a continuation of our strategy to drop down the remainder of TransCanada’s U.S. natural gas pipeline assets to the TC PipeLines partnership,” said TransCanada CEO Russ Girling. “Asset sales to the partnership provide TransCanada with cash proceeds to help fund our capital program and further diversify the partnership’s asset base, positioning it for continued growth.” The price includes US$35 million of debt to be assumed. Earnings before interest, taxes, depreciation and amortization from the 49.9% interest is expected to be US$23 million in 2016. The sales agreement also provides for additional payments from TC PipeLines if PNGTS is expanded in the future. Closing is expected by year-end.