Enterprise Products Partners LPis expanding the size of its planned Aegis Pipeline to 20 inches in diameter to allow delivery of up to 425,000 b/d of ethane to the Gulf Coast petrochemical sector. The 270-mile Aegis pipeline will originate at Enterprise’s Mont Belvieu, TX, liquids storage complex and, through connections to other Enterprise-owned pipelines, will deliver purity ethane to ethylene production facilities between Beaumont, TX, and Napoleonville, LA. Aegis is to begin service in phases, with initial deliveries expected to begin during the second quarter of 2014. “As an extension of our midstream network that features access to 100 million bbl of storage capacity at our Mont Belvieu complex, the Aegis pipeline system offers a complete and integrated solution for meeting the needs of both producers and consumers of growing domestic supplies of ethane,” said Jim Teague, COO of Enterprise’s general partner. “Together, Aegis and our South Texas ethane pipeline enable Enterprise to provide ethylene facilities from Corpus Christi [TX] to the Mississippi River with reliable supplies of ethane through a header system anchored by our Mont Belvieu complex.” Enterprise is holding a supplemental open season through Nov. 14 for the capacity. For information, contact Russ Kovin, (713) 381-7925 orrkovin@eprod.com.
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Articles from Contract
Court Overturns Maryland Order Subsidizing Gas-Fueled Power Plant
A Maryland Public Service Commission (PSC) order issued last year that required utilities to enter into long-term power supply contracts with a developer chosen by the PSC to build a natural gas-fired plant was invalidated by a U.S. District Court judge Monday.
Late Futures Rally Discounts Stout 87 Bcf Storage Injection
Natural gas price bears were on the prowl Thursday as unsupportive storage and other bearish fundamental data combined to send natural gas physical and futures values lower. However, with inventory levels apparently already priced into the market, October futures managed to stage an afternoon rally to go off of the board at $3.498, up half a penny. November futures ended the day’s regular session at $3.567, up 2.1 cents. Most cash deals for Friday delivery were down anywhere from a few pennies to a about dime from Wednesday’s averages.
ProLiance Seeks Expanded Waivers to Exit Marketing Business
ProLiance Energy LLC has petitioned FERC to expand the scope of the capacity-release waivers that the agency approved in mid-June so that it can “complete its exit of the natural gas marketing business in a prompt and orderly manner.”
Clean Energy Signs Big Deals in Transit, Trucking, Manufacturing
Newport Beach, CA-based Clean Energy Fuels Corp. scored a hat trick Tuesday, signing three major deals in transit, trucking and manufacturing, the last of which was characterized by the alternative fuel provider as a first of its kind.
ENGlobal Wins Contract for Ohio Cryogenic Plant
ENGlobal Corp. has been awarded a $5 million contract to provide engineering and procurement support services for a cryogenic processing plant being built in Carroll County, OH, and owned by Utica East Ohio Midstream LLC (UEO).
Industry Briefs
Williams’ board has voted to approve the company’s Bluegrass Pipeline project. The company has been engaged in development work on the proposed natural gas liquids (NGL) pipeline, which has a targeted in-service date of late 2015. The Bluegrass Pipeline will connect supply from the Marcellus and Utica shales to growing petrochemical and export markets in the U.S. Gulf Coast (see Shale Daily, May 30; March 7). The pipeline also will connect NGL supply with the developing petrochemical market in the U.S. Northeast. Williams and Boardwalk Pipeline Partners LP in May formalized joint-venture agreements tied to the project and related fractionation, storage and export projects.
Industry Brief
Kinder Morgan Energy Partners LP has signed a long-term contract to support the expansion of its Sweeny Lateral pipeline, which it is building from the Kinder Morgan Crude Condensate pipeline to Phillip 66’s Sweeny Refinery in Brazoria County, TX. The expansion will increase the capacity on the 27-mile, 12-inch diameter lateral from an initial 30,000 b/d to 100,000 b/d. Kinder Morgan will add new pumps and an additional 120,000 bbl storage tank at its Wharton Pump Station in Wharton County, TX, and increase the truck offload capabilities at its DeWitt Station in DeWitt, County, TX. “We are pleased to provide Phillips 66 with a flexible option to move more crude and condensate out of the Eagle Ford Shale to their refinery in Sweeny,” said KMP Products Pipelines President Ron McClain. Kinder Morgan’s crude/condensate pipeline, which went into service last June, transports crude/condensate from the Eagle Ford to the Houston Ship Channel.
Third in Trio of New Texas Gas-Fueled Plants Under Way
Bechtel has been awarded the engineering, procurement and construction contract for the Panda Temple II Generating Station, a 758 megawatt natural gas-fueled, combined-cycle power plant to be built in Temple, TX, south of Dallas. It is the third power facility to be built by Bechtel and consortium partner Siemens for Panda Power Funds.
ZaZa’s Stingray Well Production to Be Limited at First
ZaZa Energy Corp. said Tuesday it has hit a snag with its Stingray well in the Eaglebine play that will limit initial production. However, the setback is temporary, and the company intends to continue Eaglebine drilling while it high grades its Eagle Ford acreage.
