Growth of crude oil production from the Eagle Ford Shale in South Texas has Corpus Christi, TX-based Flint Hills Resources considering a $250 million expansion of its West Refinery.
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LNG Exports Not in Constitution Pipeline’s Plans
Constitution Pipeline Co. LLC’s proposal to build and operate a 121-mile long, 30-inch diameter pipeline between Susquehanna County, PA and Schoharie County, NY, does not include plans to service liquefied natural gas (LNG) export facilities, the Houston-based company said in a filing with FERC.
Constitution Pipeline: No LNG Export Plans
Constitution Pipeline Co. LLC’s proposal to build and operate a 121-mile long, 30-inch diameter pipeline between Susquehanna County, PA and Schoharie County, NY, does not include plans to service liquefied natural gas (LNG) export facilities, the Houston-based company said in a filing with FERC.
Industry Brief
Work on Shell Pipeline’s Eagle Ford Shale- and Permian Basin-focused Houma, LA, to Houston (Ho-Ho) oil pipeline system reversal is going according to plan, based on shipper requests and new crude production and infrastructure coming online, the company said. Through a Declaratory Order, the Federal Energy Regulatory Commission recently approved the contract rates and capacity allocation for the Ho-Ho Reversal project. The initial phase will move crude oil from connecting pipelines and terminals in East Houston to Nederland, TX, and Port Arthur, TX, thereby supplying the refining complex across the region with crude from the Eagle Ford Shale and Permian Basin, as well as crude supplies from the Cushing, OK, area. Phase I of the project is designed to complement new pipeline infrastructure that is currently being built to the Houston area. The Royal Dutch Shell plc subsidiary last August said it was considering reversing flows on the 22-inch diameter Ho-Ho system to enable more than 300,000 b/d of crude to be distributed across the Gulf Coast region (see Shale Daily, Aug. 9, 2011).
Unit Petroleum Doubles Granite Wash Acreage with Noble Deal
Unit Petroleum Co., a subsidiary of Unit Corp., has agreed to pay $617 million to Noble Energy Inc. for oil and natural gas properties in western Oklahoma and the Texas Panhandle. The deal doubles Unit’s acreage in its Granite Wash core area.
Interconnection Fight Threatens Proposed Bakken Oil Pipeline
A proposed 16-inch diameter, 450-mile oil pipeline from North Dakota’s Bakken Shale to a hub near Clearbrook, MN, is at risk for delay or termination due to a stalemate with Enbridge Energy Partners LP, which is refusing to allow an interconnection with its pipeline in Minnesota, according to High Prairie Pipeline, which has filed a complaint at FERC.
Industry Brief
The Federal Energy Regulatory Commission has approved Kern River Gas Transmission Co.’s application to construct 8.6 miles of eight-inch diameter pipeline lateral and a meter station to provide natural gas service to Molycorp Minerals LLC in San Bernadino County, CA. The Mountain Pass Lateral would deliver the gas necessary for Molycorp to generate electricity for its mining and processing operations. The Molycorp facility currently uses electricity from the local grid. The lateral would have a design capacity of 24,270 Dth/d, according to Kern River, which estimated the cost of the project at $15.7 million.
Industry Brief
Pacific Gas and Electric Co. (PG&E) said last Friday that a slow drop in pressure occurred during a hydrostatic pressure test on a portion of the same 30-inch diameter transmission pipeline (Line 132) involved in last year’s deadly San Bruno rupture near Palo Alto. It turned out to be a small pinhole leak of approximately one millimeter in diameter, a situation that PG&E stressed was safe with no customer impacts. This is the second recent incident in the utility’s ongoing intensive pipeline testing program prompted by San Bruno (see Daily GPI, Oct. 26). PG&E said the water leak was detected during the initial phase of a hydrostatic pressure test at 75% of the test pressure for one hour. The pressure at the time of the leak was 525 psig; Line 132’s maximum allowable operating pressure is 400 psig. Its normal operating pressure is 375 psig and it is currently operating at a reduced pressure of 300 psig, mandated since the San Bruno incident. PG&E said it will identify the exact location of the leak in the next few days, excavate, make repairs and then reconduct the hydrostatic pressure test.
PG&E Replaces SW Supply Line Segment, Will Re-Test
Two days after a portion ruptured in a hydrostatic pressure test, replacement work was completed Wednesday on a one-mile segment of Pacific Gas and Electric Co.’s (PG&E) 34-inch diameter transmission pipeline (Line 300B) that is part of a link to southwestern supply basins.
Encana: More Liquids Coming Up from Alberta’s Deep Basin
Encana Corp. is continuing its plan to go deep for — and long on — natural gas liquids (NGL), taking the third step in a plan to triple NGL production from Alberta Deep Basin gas production over the next few years.