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Released June 14, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--WPX Energy Incorporated (NYSE:WPX) (Tulsa, Oklahoma) and Howard Energy Partners (Houston, Texas) announced they have signed a strategic partnership to jointly develop oil-gathering and natural gas-processing infrastructure in the Permian's Delaware Basin. Industrial Info is tracking about $1.75 billion in projects involving WPX or Howard, including WPX's assets in the Delaware Basin, and Howard's terminal expansions on the Gulf Coast and pipeline projects in Texas and northern Mexico.
WPX already has multiple exploration programs active in the "Stateline" area of the Delaware Basin, which runs along the border between southern New Mexico and West Texas, and includes Loving and Reeves counties in Texas. Industrial Info is tracking $690 million of such projects, including $180 million in drilling programs in Reeves County's Wolfcamp production field. Each of the six projects is valued at $30 million and involves drilling five 11,000-foot-deep vertical wells to produce crude oil. For more information, see Industrial Info's project reports on the Upper A field, Lower A field, B field, C field, D field and X/Y field.
WPX's joint venture with Howard is designed to support its Stateline drilling operations, including crude oil-gathering assets under construction. Howard said that it would serve as operator of a 50-mile crude oil gathering system, a new cryogenic natural gas-processing complex, and associated natural gas and product pipelines.
Howard, for its part, is at work expanding its capacity in the rapidly growing Gulf Coast market with $50 million in additions at the crude oil terminal in Port Arthur, Texas. The company plans to add 15 tanks with more than 1 million barrels of storage for various products and to expand the deepwater dock to accommodate up to two ships at a time. Operations are expected to begin in late 2018. Howard also is at work on a $45 million barge dock expansion and a $15 million railcar loading rack expansion. For more information, see Industrial Info's project reports on the terminal, barge dock and railcar loading expansions.
"[Howard]'s Port Arthur facility is uniquely positioned to provide an efficient solution for shippers seeking alternatives to Houston facilities that continue to experience high volumes of marine traffic and subsequent demurrage," said Mark Helmke, Howard's senior vice president of terminals and transportation, in a press release earlier this year. "Our proximity to over 1.4 million barrels of local refining capacity and significant refined product pipeline infrastructure, such as Explorer Pipeline and Colonial Pipeline, make this terminal a logical clearinghouse for refined products."
Howard also is making strides on its Dos Águilas project, a series of pipelines and terminals for gasoline, ultra-low sulfur diesel and jet fuel that run from Corpus Christi, Texas, to northern Mexico. Last month, Howard announced that it had completed a successful open season on the Dos Águilas project, "receiving more than sufficient customer interest to proceed with the project as planned."
The pipeline portion of Dos Águilas, which is designed to transport 70,000 to 90,000 barrels per day (BBL/d) of the refined products, is split into four sections:
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
WPX already has multiple exploration programs active in the "Stateline" area of the Delaware Basin, which runs along the border between southern New Mexico and West Texas, and includes Loving and Reeves counties in Texas. Industrial Info is tracking $690 million of such projects, including $180 million in drilling programs in Reeves County's Wolfcamp production field. Each of the six projects is valued at $30 million and involves drilling five 11,000-foot-deep vertical wells to produce crude oil. For more information, see Industrial Info's project reports on the Upper A field, Lower A field, B field, C field, D field and X/Y field.
WPX's joint venture with Howard is designed to support its Stateline drilling operations, including crude oil-gathering assets under construction. Howard said that it would serve as operator of a 50-mile crude oil gathering system, a new cryogenic natural gas-processing complex, and associated natural gas and product pipelines.
Howard, for its part, is at work expanding its capacity in the rapidly growing Gulf Coast market with $50 million in additions at the crude oil terminal in Port Arthur, Texas. The company plans to add 15 tanks with more than 1 million barrels of storage for various products and to expand the deepwater dock to accommodate up to two ships at a time. Operations are expected to begin in late 2018. Howard also is at work on a $45 million barge dock expansion and a $15 million railcar loading rack expansion. For more information, see Industrial Info's project reports on the terminal, barge dock and railcar loading expansions.
"[Howard]'s Port Arthur facility is uniquely positioned to provide an efficient solution for shippers seeking alternatives to Houston facilities that continue to experience high volumes of marine traffic and subsequent demurrage," said Mark Helmke, Howard's senior vice president of terminals and transportation, in a press release earlier this year. "Our proximity to over 1.4 million barrels of local refining capacity and significant refined product pipeline infrastructure, such as Explorer Pipeline and Colonial Pipeline, make this terminal a logical clearinghouse for refined products."
Howard also is making strides on its Dos Águilas project, a series of pipelines and terminals for gasoline, ultra-low sulfur diesel and jet fuel that run from Corpus Christi, Texas, to northern Mexico. Last month, Howard announced that it had completed a successful open season on the Dos Águilas project, "receiving more than sufficient customer interest to proceed with the project as planned."
The pipeline portion of Dos Águilas, which is designed to transport 70,000 to 90,000 barrels per day (BBL/d) of the refined products, is split into four sections:
- $150 million Border Express Pipeline, running 141 miles from Corpus Christi to Laredo, Texas; for more information, see Industrial Info's project report
- $15 million Borrego Pipeline, running 10 miles from Laredo, Texas, to the U.S. side of the border; for more information, see Industrial Info's project report
- $15 million Poliducto Frontera Pipeline, running 13.7 miles from the Mexican side of the border to Nuevo Laredo, Tamaulipas; for more information, see Industrial Info's project report
- $150 million Poliducto del Norte Pipeline, running 124.3 miles from Nuevo Laredo, Tamaulipas, to Monterrey, Nuevo Leon; for more information, see Industrial Info's project report
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
