Binding

Sunoco Logistics Partners’ Sunoco Pipeline is holding a binding open season for its Granite Wash Extension pipeline to provide crude oil takeaway capacity for growing production from the Granite Wash Shale in the northeastern Texas Panhandle and portions of western Oklahoma. The pipeline would originate in Wheeler County, TX, and terminate in Ringgold, TX, where it would interconnect with an existing Sunoco Logistics pipeline with the ability to provide transportation to Corsicana, TX. From Corsicana, access to multiple Sunoco Logistics and third-party pipelines would provide producers the ability to reach various markets and refineries on the Gulf Coast and in the Midcontinent. The partnership would lay 200 miles of new pipeline and construct pump stations, tankage and truck unloading facilities. The Granite Wash Extension is anticipated to have an initial capacity of 70,000 b/d to Ringgold and is expected to be operational in the fourth quarter of 2014.

Enterprise Products Partners LP is holding a binding open season from June 5 through July 11 for capacity to transport propane to Mont Belvieu, TX, on the Appalachia-to-Texas (ATEX) pipeline. The ATEX pipeline has long-term contracts in place for ethane transportation to Mont Belvieu. The addition of propane service will not impact Enterprise’s obligations to ethane shippers. To accommodate propane shipments, Enterprise would loop a portion of ATEX, add pumping capacity and install additional facilities for the delivery of specification ethane and propane at destination points. “Transporting propane to Mont Belvieu, the largest, most liquid trading and storage hub, will provide northeast producers with a reliable outlet for their excess propane and help maximize the value of their production,” said Michael Creel, CEO of Enterprise’s general partner. For information, contact Russ Kovin at (713) 381-7925, or rkovin@eprod.com.

Crosstex NGL Pipeline LP is holding a binding open season through June 21 for capacity on a new natural gas liquids (NGL) pipeline system (the Crosstex NGL Pipeline) to transport unfractionated NGLs produced in the Permian Basin, Barnett Shale, Eagle Ford Shale and other areas from the Mont Belvieu, TX, area to NGL fractionation facilities in Acadia and Ascension Parishes, LA, for about one year and to NGL fractionation facilities in Acadia and Iberville Parishes, LA, thereafter. The pipeline is expected to have a preliminary design capacity to Acadia Parish of 77,000 b/d for the first year and is expected to reach 132,000 b/d thereafter. For information, contact Terry Brown at (214) 953-9510, or terry.brown@crosstexenergy.com.

Kinder Morgan Energy Partners LP’s Tennessee Gas Pipeline Co. LLC (TGP) has signed a binding, 20-year firm transportation precedent agreement with Mitsubishi Corp. of Japanto ship 600,000 Dth/d of natural gas earmarked for the proposed Cameron LNG liquefaction facility in Hackberry, LA, which is slated to begin liquefied natural gas (LNG) exports in the second half of 2017. Mitsubishi will serve as the foundation shipper for TGP’s Southwest Louisiana Supply Project, which is designed to provide transportation from various supply basins in Ohio, Pennsylvania, Texas and Louisiana to Cameron Interstate Pipeline, which connects directly to the Cameron LNG Terminal. Kinder does not own Cameron Interstate Pipeline or the Cameron LNG facility. Sempra Energy, Mitsubishi and Mitsui & Co. Ltd. recently signed 20-year tolling capacity and joint venture agreements for the terminal (see Daily GPI, May 17). “TGP’s unique footprint, connecting key conventional and shale supply areas from the South Texas Eagle Ford to the Utica and Marcellus in Ohio and Pennsylvania, and access to the Haynesville Shale supply area and the Perryville Hub in Louisiana, makes our Southwest Louisiana Supply Project an ideal fit to serve the future supply needs of Mitsubishi Corp. and the planned Cameron LNG complex,” said TGP President Kimberly Watson.

Kinder Morgan Energy Partners LP’s Tennessee Gas Pipeline Co. LLC (TGP) has signed a binding, 20-year firm transportation precedent agreement with Mitsubishi Corp. of Japan to ship 600,000 Dth/d of natural gas earmarked for the proposed Cameron LNG liquefaction facility in Hackberry, LA, which is slated to begin liquefied natural gas (LNG) exports in the second half of 2017. Mitsubishi will serve as the foundation shipper for TGP’s Southwest Louisiana Supply Project, which is designed to provide transportation from various supply basins in Ohio, Pennsylvania, Texas and Louisiana to Cameron Interstate Pipeline, which connects directly to the Cameron LNG Terminal. Kinder Morgan does not own Cameron Interstate Pipeline or the Cameron LNG facility. Sempra Energy, Mitsubishi and Mitsui & Co. Ltd. recently signed 20-year tolling capacity and joint venture agreements for the terminal (see Daily GPI, May 17).

Kinder Morgan Energy Partners LP (KMP) is holding a binding open season through May for capacity on the proposed 1,025-mile Freedom Pipeline LLC for transporting Permian Basin crude from Texas to refineries in both Southern and Northern California.

Sunoco Logistics Partners LP is holding a binding open season for its Mariner South Pipeline, which is intended to transport export-grade propane and butane, from Lone Star NGL LLC’s storage and fractionation complex in Mont Belvieu, TX, to Sunoco Logistics’ terminal in Nederland, TX. The pipeline is to be available for other natural gas liquids and petroleum products depending on shipper interest, Sunoco said. Initial capacity is expected to be 200,000 b/d and could be scaled to support higher volumes as needed. The pipeline is expected to be operational by the first quarter of 2015. For information, visit www.sunocologistics.com/marinersouth.

Canadian Pan Ocean Ltd., funded by Asian investors, has put together an operating company in the liquids-rich Duvernay Shale in southwestern Alberta, executing a binding term sheet for a farm-out agreement with Canadian producer Mako Hydrocarbons Ltd. for the producer’s 50% working interest in its Alberta Joint Venture (AJV).

BP plc has signed up for second train liquefaction capacity with Freeport LNG Expansion LP under a binding 20-year liquefaction tolling agreement (LTA), Freeport said last week.