Pipeline Industry Expected to Bring $12 Billion in 2021 U.S. Project Completions

Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking more than $12 billion in U.S. pipeline projects that have been completed or are aiming for completion this year. While late-stage construction on some of these projects may extend into 2022, several large projects have already been completed from some the Pipeline Industry's biggest names, including Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) and Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta).

Among the largest projects completed this year was Enbridge's Line 3 Replacement Project, with work on the project finally wrapping up in the holdout state of Minnesota this year. The Line 3 crude oil pipeline was originally built in the 1960s, running from Edmonton, Alberta, to Superior, Wisconsin. The replacement project entailed updating much of the pipeline with larger-diameter pipe and rerouting certain portions. The Wisconsin and North Dakota portions were completed in 2017 and 2020, respectively, but the project faced headwinds from environmental and indigenous groups in Minnesota, where a new route was proposed for the pipeline, which in 1991 had been responsible for one of the U.S.' largest inland oil spills near Grand Rapids, Minnesota. However, all of the key permits were eventually received, and construction on the Minnesota portion of the project kicked off in December 2020, marking the final leg of the replacement route. The 830,000-barrel-per-day (BBL/d) pipeline project was completed earlier this year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Project Database can click here for the project report on the Minnesota portion.

Two large natural gas pipeline gas pipeline projects originating in the Permian Basin in Texas may be among the last Permian-sourced projects seen for a while, as midstream companies rein in their capital spending in the coming years. Among pipeline giant Kinder Morgan's completed projects is the Permian Highway Pipeline, which carries natural from the Waha Hub, located near Permian Basin production, to the Texas Gulf Coast. Construction kicked off in early 2020, with commissioning starting later that year and commercial operations beginning to ramp up since early this year. The 430-mile, 42-inch-diameter pipeline will transport up to 2.1 billion cubic feet per day (Bcf/d) to Katy, Texas, where it will connect to markets along the Gulf Coast and Mexico. Subscribers can click here for the project report.

The other major Permian-sourced pipeline project was completed this summer: the Whistler natural gas pipeline, constructed by a consortium of companies including MPLX LP (NYSE:MPLX) (Findlay, Ohio). The 450-mile pipeline transports up to 2 Bcf/d from the Waha header to the Agua Dulce Market Hub, near Corpus Christi, Texas. Subscribers can click here for the project report.

Projects that are in the process of wrapping up before the end of the year include Enterprise Products Partners LP's (NYSE:EPD) (Houston, Texas) Acadian-Gillis natural gas pipeline lateral in Louisiana. The 80-mile pipeline will transport 1 Bcf/d from a gathering system in the Haynesville Shale to Gillis, near Lake Charles, to serve liquefied natural gas (LNG) producers on the Gulf Coast. Construction is expected to be completed in the fourth quarter. Subscribers can click here for the project report.

Outside of the Southwest market region, other major pipeline projects that were completed this year include Bridger Pipeline LLC's (Casper, Wyoming) grassroot Equality crude oil pipeline in Wyoming. The project entailed installing 191 miles of 20-inch-diameter pipe to transport up to 200,000 barrels per day of crude oil from Hulett to Guernsey, Wyoming. Construction began in late 2019, and work was completed earlier this year. Subscribers can click here for the project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.