Transport

Sunoco Logistics Partners LP has received enough binding commitments to enable its Mariner South Pipeline project to proceed. Mariner South will 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. A binding open season continues to solicit additional business (see Shale Daily, March 22). In addition to propane and butane, the pipeline will be available for other natural gas liquids and petroleum products depending on shipper interest, Sunoco Logistics said. It is expected to have initial capacity of 200,000 b/d with the potential for expansion. Operation is expected during the first quarter of 2015.

Canadian midstream operator Keyera Corp. has agreed to transport and process the Wapiti Montney condensate-rich natural gas production of NuVista Energy Ltd.

As another step forward to use dedicated liquefied natural gas (LNG)-powered barges in its maritime transport, Royal Dutch Shell plc recently launched the first dedicated LNG barge from a shipyard in the Netherlands for transporting liquids products on the Rhine River. Shell already has touted similar petroleum product shipping in the United States (see Daily GPI, March 6).

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.

Genesee & Wyoming Inc. (GWI) announced Monday that one of its railroad subsidiaries has signed a long-term agreement to transport natural gas liquids (NGL) and serve a fractionation facility being built by Utica East Ohio Midstream LLC (UEO) in Harrison County, OH.

Oneok Partners LP is holding an open season through Dec. 17 for its 600-mile Bakken Natural Gas Liquids (NGL) Pipeline, which would transport unfractionated NGLs from the Bakken Shale in the Williston Basin to an interconnection with the partnership’s 50%-owned Overland Pass Pipeline in northern Colorado. The Bakken NGL Pipeline is under construction and is expected to be in service during the first quarter. In July Oneok said it would expand the project with additional pump stations in a project to be completed during the third quarter of 2014. For open season information, contact Lisa Nishimuta at (918) 588-7730, lisa.nishimuta@oneok.com.

Shell Canada Products last week signed a five-year transactoin with Canada’s Bison Transport to provide liquefied natural gas (LNG) for 15 Bison tractors in Alberta. The agreement was billed as a first step in Shell’s effort to establish a natural gas transportation fueling network in the province.

Shell Canada Products has signed a five-year deal with Canada’s Bison Transport to provide liquefied natural gas (LNG) for 15 Bison tractors in Alberta. The agreement is a first step in Shell’s effort to establish a natural gas transportation fueling network in the province.

DCP Midstream’s Sand Hills Pipeline has initiated natural gas liquids transport service from the Eagle Ford Shale. DCP is opening Sand Hills in phases, with this first segment in South Texas online. By the end of 2012, DCP will have completed Sand Hills to connect directly into Mont Belvieu, TX. “When finished, Sand Hills Pipeline will be a major link between the liquids-rich Eagle Ford and Permian producing regions and growing Gulf Coast markets,” said DCP CEO Tom O’Connor. Construction activities continue on the second phase of Sand Hills for Permian Basin service. This phase is expected to enter service by the second quarter of 2013. Sand Hills will consist of 720 miles of 20-inch diameter pipeline with an initial capacity of more than 200,000 b/d, which can grow to 350,000 b/d with the installation of additional pump stations (see Shale Daily, Aug. 19, 2011).