Truck

Construction is under way on Intercontinental Terminals Co. LLC’s (ITC) new bulk liquids terminal on the Houston Ship Channel, which will provide storage and handling for petrochemicals and petroleum products as well as petrochemical gases and natural gas liquids (NGL). ITC, a unit of Mitsui & Co. (U.S.A.) Inc., has been operating on the channel since 1972 and owns and operates a 12.8 million bbl liquid bulk terminal facility in Deer Park, TX. The greenfield terminal is in Pasadena, TX, on the south side of the channel. Start up of operations is expected during the second quarter of 2015 with 10 tanks of 100,000 bbl each. The terminal will have two deep-water ship docks and four barge docks capable of handling large oceangoing tankers as well as inland barges. Multiple product pipelines are adjacent to or near the new terminal, which will also have rail and truck facilities.

A drilling services company based in New Mexico has had to suspend its plans to convert its truck and drilling rig fleets from diesel to natural gas because of the local gas distribution utility’s inability to service a proposed fueling station in Farmington, NM.

Incremental Northeast gas production during September will be driven by gathering system tie-ins, Bentek Energy LLC said in a Natural Gas Production Monitor market note. Transcontinental Gas Pipe Line Co. (Transco) is expected to add connections to two Penn Virginia Resource Partners LP gathering systems and additional compression on Williams’ Springville system is to come online this month, Bentek said. “Combined delivery capacity to Transco from the new tie-ins and compression upgrades will amount to more than 1 Bcf/d; however, Transco will likely not be able to accept more than 0.4 Bcf/d with a substantial portion of the Leidy Line capacity reserved for no-notice service,” the firm said. It expects Northeast production to add 0.2 Bcf/d during September, with the remainder of the Transco capacity filling through October. In November, the Tennessee Gas Pipeline Northeast Supply Diversification and the National FuelGas Co. Northern Access expansions are expected to support a winter production growth rate of about 0.2 Bcf/d each month through January (see Shale Daily, July 18), Bentek said.

Dallas-based Bridger Logistics LLC, a division of Bridger Group LLC, plans to join Midland, TX-based Advantage Pipeline LLC in developing its Pecos River Pipeline project, which will transport oil from the Delaware Basin to markets in the Gulf Coast and Midland. The pipeline will originate near Pecos, TX, and terminate in Crane, TX, where it will connect to the Longhorn Pipeline — owned by Magellan Midstream Partners LP — and Centurion Pipeline LP’s Crane Station. Once fully operational, the pipeline will have an initial capacity of 150,000 b/d and consist of more than 75 miles of trunkline. Bridger Transfer Services LLC will develop lateral extensions, gathering stations, origination stations and truck offloading facilities. The pipeline is scheduled to be operational by 1Q2013.

With the aim of reducing truck travel and pollution, while increasing efficiency for Marcellus and Utica shale oil and natural gas producers, Eureka Resources LLC said Thursday it plans to construct a centralized wastewater treatment facility in Standing Stone Township in Bradford County, PA, the epicenter of Marcellus development.

With the Marcellus and Utica shale ethane situation under control for the moment, propane is becoming the next natural gas liquid (NGL) to trouble producers in Appalachia.

An estimated 56 million barrels of water are produced as a result of onshore oil and natural gas development everyday, and while the quality is poor, most of the contaminants occur naturally, according to a Government Accountability Office (GAO) report. Only some of the contaminants are added through drilling, hydraulic fracturing (fracking) and pumping oil and gas.

The outlook for oil output from the Eagle Ford Shale of South Texas is strong enough to cause analysts at Wood Mackenzie to predict that it will rival the Bakken Shale by 2015 as North America’s leading tight-oil producer.

Seal Beach, CA-based Clean Energy Fuels Corp. announced last Friday it has a contract with a Dallas-based national truck fleet operator, Dillon Transport, to build, operate and supply fuel to a natural gas fueling station on Dillon’s property in Dallas. It will provide both liquefied natural gas (LNG) and compressed natural gas (CNG) for transportation use.