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Released August 10, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As Energy Transfer Partners (NYSE:ETP) (Dallas, Texas) deals with the thwarted drilling of its Rover natural gas pipeline in Ohio, the company is making significant progress on billions of dollars of other growth projects, including other pipelines, midstream processing facilities and a liquefied natural gas (LNG) production facility. Industrial Info is tracking $15.7 billion in active projects involving Energy Transfer Partners.
In May, the U.S. Federal Energy Regulatory Commission (FERC) temporarily halted new horizontal directional drilling (HDD) on the Rover Pipeline after drilling fluid was released into an Ohio wetland area. The 713-mile natural gas pipeline is intended to transfer natural gas from the Marcellus and Utica shales to points in Ohio and Michigan, where it will be distributed throughout the U.S. In reporting why the drilling fluid in question contained diesel, Energy Transfer reported to FERC, "Rover theorizes that these diesel concentrations could have been caused by an inadvertent and unreported spill or leak from equipment operating during the clean-up, or it could have been the deliberate or malicious act of individuals opposed to the project."
Energy Transfer remains optimistic about the future of the pipeline. In the company's earnings conference call, Energy Transfer Chief Financial Officer Tom Long said, "We are waiting on approval from FERC to resume drilling the HDDs. In the meantime, we continue construction on all phases of the pipeline except the HDDs. Assuming quick resolution by FERC regarding Phase 2, we expect to be in service by the end of November or early December, with full commercial service in January." For more information, see Industrial Info's project reports on the Ohio, Michigan and West Virginia portions of the pipeline.
Despite the difficulties with Rover, the company does have cause to celebrate. Energy Transfer's Bakken crude oil pipeline system, which includes the controversial Dakota Access Pipeline, went into service June 1. Long said the project had initial shipping commitments of approximately 470,000 barrels per day (BBL/d). "We had a successful open season earlier this year, which increased the total to approximately 525,000 BBL/d. ... We are very pleased to have this project online after a rigorous and thorough regulatory process we have had to work through over the last three and half years. We are now delivering domestic crude production to refineries in the Midwest and along the Gulf Coast for the benefit of U.S. consumers," he said. For more information on the Dakota Access Pipeline, see Industrial Info's project reports on the North Dakota, South Dakota, Iowa and Illinois portions of the pipeline.
Energy Transfer also has shorter, less ambitious pipeline projects in the works, including the expansion of the Bayou Bridge crude oil pipeline, which currently runs from Nederland, Texas, to Lake Charles, Louisiana. Energy Transfer plans to expand the pipeline to St. James, Louisiana. "On the 24-inch segment of Bayou Bridge from Lake Charles to St. James, construction is expected to commence this quarter, and we are now targeting being complete in the first quarter of 2018," Long said. The pipeline will carry 280,000 BBL/d. For more information, see Industrial Info's project report.
Long said the company continues to make "significant progress on the construction" of the Mariner East 2 natural gas liquids (NGL) pipeline. "On the pipeline, approximately 80% of the pipeline has been strung, more than 70% is welded and over half has been lowered in and backfilled," said Long. The Mariner East 2 Pipeline has a total investment value of more than $1 billion and will carry NGL from the Utica and Marcellus shales to Sunoco Logistics' NGL storage and export terminal in Marcus Hook, Pennsylvania. The project will include two parallel 346-mile pipelines to carry a total of 272,750 BBL/d of NGL. For more information, see Industrial Info's project reports on the Ohio, Pennsylvania and West Virginia portions of the pipeline.
The company also is making headway in the burgeoning area of natural gas liquefaction at a brownfield facility in Lake Charles, Louisiana. Long said, "On June 28, we signed a memorandum of understanding (MoU) with KoGas and Shell (NYSE:RDS.A) to study the feasibility of joint participation on the Lake Charles Liquefaction (LCL) project. The project will use existing regasification facilities owned by Energy Transfer. As a brownfield project on the Louisiana Gulf Coast, LCL is a highly competitive export project in terms of its advanced state of development, project cost, and pipeline connectivity. We are very pleased with this recent development and will work closely with our MoU partners to achieve FID [final investment decision] in the near future, as the market continues to tighten." The project could have up to three 5.5 million-ton-per-year LNG trains. Construction of each train has an estimated total investment value of $3 billion. For more information, see Industrial Info's project reports on Train 1, Train 2, and Train 3 of the project.
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.
In May, the U.S. Federal Energy Regulatory Commission (FERC) temporarily halted new horizontal directional drilling (HDD) on the Rover Pipeline after drilling fluid was released into an Ohio wetland area. The 713-mile natural gas pipeline is intended to transfer natural gas from the Marcellus and Utica shales to points in Ohio and Michigan, where it will be distributed throughout the U.S. In reporting why the drilling fluid in question contained diesel, Energy Transfer reported to FERC, "Rover theorizes that these diesel concentrations could have been caused by an inadvertent and unreported spill or leak from equipment operating during the clean-up, or it could have been the deliberate or malicious act of individuals opposed to the project."
Energy Transfer remains optimistic about the future of the pipeline. In the company's earnings conference call, Energy Transfer Chief Financial Officer Tom Long said, "We are waiting on approval from FERC to resume drilling the HDDs. In the meantime, we continue construction on all phases of the pipeline except the HDDs. Assuming quick resolution by FERC regarding Phase 2, we expect to be in service by the end of November or early December, with full commercial service in January." For more information, see Industrial Info's project reports on the Ohio, Michigan and West Virginia portions of the pipeline.
Despite the difficulties with Rover, the company does have cause to celebrate. Energy Transfer's Bakken crude oil pipeline system, which includes the controversial Dakota Access Pipeline, went into service June 1. Long said the project had initial shipping commitments of approximately 470,000 barrels per day (BBL/d). "We had a successful open season earlier this year, which increased the total to approximately 525,000 BBL/d. ... We are very pleased to have this project online after a rigorous and thorough regulatory process we have had to work through over the last three and half years. We are now delivering domestic crude production to refineries in the Midwest and along the Gulf Coast for the benefit of U.S. consumers," he said. For more information on the Dakota Access Pipeline, see Industrial Info's project reports on the North Dakota, South Dakota, Iowa and Illinois portions of the pipeline.
Energy Transfer also has shorter, less ambitious pipeline projects in the works, including the expansion of the Bayou Bridge crude oil pipeline, which currently runs from Nederland, Texas, to Lake Charles, Louisiana. Energy Transfer plans to expand the pipeline to St. James, Louisiana. "On the 24-inch segment of Bayou Bridge from Lake Charles to St. James, construction is expected to commence this quarter, and we are now targeting being complete in the first quarter of 2018," Long said. The pipeline will carry 280,000 BBL/d. For more information, see Industrial Info's project report.
Long said the company continues to make "significant progress on the construction" of the Mariner East 2 natural gas liquids (NGL) pipeline. "On the pipeline, approximately 80% of the pipeline has been strung, more than 70% is welded and over half has been lowered in and backfilled," said Long. The Mariner East 2 Pipeline has a total investment value of more than $1 billion and will carry NGL from the Utica and Marcellus shales to Sunoco Logistics' NGL storage and export terminal in Marcus Hook, Pennsylvania. The project will include two parallel 346-mile pipelines to carry a total of 272,750 BBL/d of NGL. For more information, see Industrial Info's project reports on the Ohio, Pennsylvania and West Virginia portions of the pipeline.
The company also is making headway in the burgeoning area of natural gas liquefaction at a brownfield facility in Lake Charles, Louisiana. Long said, "On June 28, we signed a memorandum of understanding (MoU) with KoGas and Shell (NYSE:RDS.A) to study the feasibility of joint participation on the Lake Charles Liquefaction (LCL) project. The project will use existing regasification facilities owned by Energy Transfer. As a brownfield project on the Louisiana Gulf Coast, LCL is a highly competitive export project in terms of its advanced state of development, project cost, and pipeline connectivity. We are very pleased with this recent development and will work closely with our MoU partners to achieve FID [final investment decision] in the near future, as the market continues to tighten." The project could have up to three 5.5 million-ton-per-year LNG trains. Construction of each train has an estimated total investment value of $3 billion. For more information, see Industrial Info's project reports on Train 1, Train 2, and Train 3 of the project.
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.
