Tag Archives: NGL

MATCOR Offers Take on Natural Gas Liquids Production and NGL Transportation

“There is much discussion about the abundance of natural gas deposits in Marcellus Shale, and there is tremendous focus in extracting this precious resource. However, the industry’s ability to get this product to the end user is impacted by the infrastructure that currently exists.

“While rail is a means to transport natural gas, MATCOR is working with a growing number of midstream companies in expanding transmission and distribution piping networks. The key is to get product to market in a cost-effective and safe manor, and MATCOR’s cathodic protection products and services help ensure any new pipeline, regardless of the product it delivers, is in compliance and protected from corrosion.”

John Rothermel, PE

Vice President of Sales, MATCOR

Pipelines Planned for NGL Transportation Through Central Pennsylvania

At least one company is looking to take advantage of the rapid growth of natural gas liquids production from two of the largest shale regions in the nation.

Sunoco Logistics, a Philadelphia-based company that transports, terminals, and stores crude oil and refined petroleum products, recently announced that it was surveying land for a new pipeline, dubbed Mariner II East, that would connect production of natural gas liquids (NGL) from the Marcellus and Utica  shale regions of Pennsylvania, Ohio, and West Virginia to one of the company’s oil and diesel tank farms outside of Mechanicsburg.

The company also has plans to convert its existing Mariner East I pipeline, which used to carry oil and diesel fuel west, so that it carries propane and ethane east to its facility in Marcus Hook, which had also been idled.

The company bought the refinery from the former Sunoco Co. earlier this year for $60 million and is spending an unspecified amount of money to upgrade it and bring it back online as a natural gas liquids production refinery.

Sunoco Logistics is betting on the continued growth of natural gas production, of which NGLs like propane and ethane are byproducts. Natural gas production has increased in recent years thanks to hydraulic fracking, which has resulted in a larger supply that has driven prices down and has therefore, like a circle, created bigger demand for natural gas.

As a result of this process, NGL production has climbed during the last four years from 50 million to 70 million barrels per month. But, without greater avenues for NGL transportation, the increased production is moot.

Sunoco Logistics says that its plan to build a new NGL transportation pipeline, and convert an old pipeline for NGL transportation, will help create a northeast NGL hub in Marcus Hook that will help meet the demands of NGL producers and local and overseas consumers.

The Mariner East projects are only a few of the pipelines being planned by Sunoco Logistics. The company has roughly a dozen oil and gas projects on the books over the next 12 months at a cost of $1.3 billion, four times what it spent on capital expenditures each of the last four years.

MATCOR offers cathodic protection safety products and services to companies like Sunoco Logistics, which require cathodic protection equipment to maximize safety, efficiency, and capital investment in their pipeline projects.

Further Reading

Sunoco Logistics Plans Marcellus, Utica Pipeline Through Susquehanna Valley,” The Patriot News, Nov. 21, 2013.

Pembina Pipeline Corporation Plans Capital Spend of $965 Million in 2013

Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced that its Board of Directors has approved a capital spending budget of approximately $965 million for 2013. This is approximately 75 percent higher than Pembina’s 2012 capital budget and represents the largest in the Company’s history.

“2013 will mark the third consecutive year that Pembina has increased its capital program, again setting a record for the size of our investment,” said Bob Michaleski, Chief Executive Officer. “This impressive capital spending plan is directly aligned with our goal of continuing to provide long-term value to our shareholders, with the vast majority of our 2013 investments being targeted towards fee-for-service projects. Our focus in the next year will be to progress our current suite of projects and bring in the next phase of Pembina’s growth opportunities while maintaining a strong balance sheet and increasing our cash flow per share.”

A substantial portion – $240 million, or about 25 percent – of the 2013 capital spend will be directed towards completing the construction of the Company’s Saturn and Resthaven enhanced liquids extraction facilities along with the associated pipelines. These projects will provide extraction of natural gas liquids (“NGL”) in the field for producers located in west central Alberta.

Pembina also plans to direct $210 million, or 22 percent of its 2013 capital budget towards the expansion of its crude oil, condensate and NGL pipelines. These expansion projects will allow Pembina to continue to meet the growing needs of producers, which has resulted from new technology being deployed and increased activity in the Western Canadian Sedimentary Basin.

Pembina’s 2013 capital spending plan reflects strong growth opportunities that expand on existing operations in each of its four businesses and is expected to continue to drive shareholder value in the coming years.

SOURCE: http://www.sacbee.com/2012/11/28/5016826/pembina-pipeline-corporation-plans.html 

Spectra Energy to buy stake in two NGL pipelines in US

US-based natural gas infrastructure company Spectra Energy has entered an agreement with DCP Midstream and Phillips 66 to buy one-third stake in two natural gas liquids (NGL) pipelines in Texas, US.

The two under construction NGL pipelines, Sand Hills Pipeline and Southern Hills Pipeline, are currently being developed by DCP Midstream which is a 50-50 joint venture company between Spectra Energy and Phillips 66.

Upon closing of the deal, the three companies will each own one-third interest in the two pipelines and will equally contribute funds for the completion of Sand Hills and Southern Hills pipelines.

Spectra Energy did not disclose the value of the agreement but is expected to invest $700m to $800m in the two pipeline projects.

Spectra Energy president and chief executive officer Greg Ebel said the pipeline projects will complement the company’s current pipeline network in North America.

“As these NGL pipelines begin serving customers later this year and in 2013, they will directly add attractive, stable earnings and cash flow to Spectra Energy’s results,” Ebel added.

The Sand Hills is a 720 miles and 20in pipeline which will transports NGL from Permian Basin and Eagle Ford Shale to key markets on Gulf coast. The initial capacity of 200,000 barrels per day (bpd) can be increased to 350,000 bpd later.

It is expected to be operational in the second quarter of 2013.

The Southern Hills is a 900miles long pipeline which is being constructed to transport NGL from the Mid-Continent to Mont Belvieu in Texas.

It has an initial capacity of 150,000 bpd which can be expanded to 175,000 bpd. The pipeline is scheduled to begin services in mid-2013.

SOURCE: http://transportationandstorage.energy-business-review.com/news/spectra-energy-to-buy-stake-in-two-ngl-pipelines-in-us-021112