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Project(s): View 16 related projects in PECWeb
Plant(s): View 8 related plants in PECWeb
Released September 24, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The Permian Basin is now the fastest-growing shale basin in the U.S. in terms of oil and gas production, but it might be a victim of its own success: Pipelines carrying product out of the area are congested and sometimes overburdened, and labor is in short supply. Producers worry these trends could hurt profits, and some are turning instead to Texas' Eagle Ford Shale and Oklahoma's SCOOP and STACK plays. Industrial Info is tracking $8.6 billion in active oil and gas pipeline projects in the U.S. Southwest region that are set to begin construction in the fourth quarter.
Click on the image at right for a graph detailing oil and gas pipeline projects in the U.S. Southwest region that are set to begin construction in the fourth quarter, by industrial sector.
Among the projects that could alleviate the strain in the Permian is Targa Resources Corporation's (NYSE:TRGP) (Houston, Texas) Grand Prix NGL Pipeline System, which is designed to carry 300,000 barrels per day (BBL/d) of Y-grade natural gas liquids (NGL) from the Permian to Mont Belvieu, Texas, and southern Oklahoma; capacity eventually will be expandable to 550,000 BBL/d. Targa began construction earlier this year on the portion running from the Permian to near Dallas; it plans to begin construction soon on the estimated $600 million portion from Dallas to Mont Belvieu, which runs 300 miles. For more information, see Industrial Info's project report and August 10, 2018, article - Targa Resources Sees Bulk of Growth Projects Nearing Finish Line.
Other pipeline projects designed to transport product out of the Permian Basin are scheduled to kick off in the fourth quarter, but currently are in their planning phases, where plenty of factors could delay or cancel construction:
Another area in the U.S. Southwest that is seeing more pipeline buildouts is the SCOOP and STACK plays in Oklahoma. As the production glut in the Permian grows and profits tumble, producers see the Sooner State as an attractive alternative.
Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Midcontinent Supply Header Interstate Pipeline (MIDSHIP) is designed to carry about 1.4 billion cubic feet per day of natural gas 230 miles from the shale plays to the Gulf Coast. Last month, Cheniere received approval from the U.S. Federal Energy Regulatory Commission (FERC) to begin construction, following a positive environmental review earlier this summer, and the company selected TRC Companies Incorporated (Lowell, Massachusetts) to perform engineering, procurement and construction (EPC) services and environmental consulting, engineering and field services.
Segments of the project that are set to begin construction in the fourth quarter and wrap up about a year from now include:
Another project nearing kickoff in Oklahoma is the Cimarron Express Pipeline, a 50:50 joint venture between Kingfisher Midstream LLC, a subsidiary of Alta Mesa Resources Incorporated (NASDAQ:AMR) (Houston), and affiliates of Ergon Incorporated; Blueknight Energy Partners LP (NASDAQ:BKEP) (Oklahoma City, Oklahoma) is serving as project manager. The 65-mile line will run from Kingfisher County to Blueknight's crude oil terminal in Cushing, Oklahoma, with an initial capacity of 90,000 BBL/d, eventually expandable to more than 175,000 BBL/d.
Industrial Info is tracking the estimated $65 million pipeline and its $30 million pump station in Dover, Oklahoma, and assesses both as having a high probability of moving forward as planned. The companies involved expect the pipeline to be completed in the summer of 2019. For more information, see Industrial Info's project report on the pipeline and pump station.
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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing oil and gas pipeline projects in the U.S. Southwest region that are set to begin construction in the fourth quarter, by industrial sector.Among the projects that could alleviate the strain in the Permian is Targa Resources Corporation's (NYSE:TRGP) (Houston, Texas) Grand Prix NGL Pipeline System, which is designed to carry 300,000 barrels per day (BBL/d) of Y-grade natural gas liquids (NGL) from the Permian to Mont Belvieu, Texas, and southern Oklahoma; capacity eventually will be expandable to 550,000 BBL/d. Targa began construction earlier this year on the portion running from the Permian to near Dallas; it plans to begin construction soon on the estimated $600 million portion from Dallas to Mont Belvieu, which runs 300 miles. For more information, see Industrial Info's project report and August 10, 2018, article - Targa Resources Sees Bulk of Growth Projects Nearing Finish Line.
Other pipeline projects designed to transport product out of the Permian Basin are scheduled to kick off in the fourth quarter, but currently are in their planning phases, where plenty of factors could delay or cancel construction:
- Kinder Morgan Incorporated's (NYSE:KMI) (Houston, Texas) $650 million portion of the Gulf Coast Express Pipeline, designed to transport up to 1.98 billion cubic feet per day of natural gas 180 miles from Rankin to Del Rio, Texas; see project report
- Kinder Morgan's $450 million portion of the Gulf Coast Express Pipeline, designed to transport up to 1.92 billion cubic feet per day of natural gas 103 miles from Del Rio to Agua Dulce, Texas; see project report
- Kinder Morgan's $250 million portion of the Gulf Coast Express Pipeline, designed to transport up to 1.98 billion cubic feet per day of natural gas 50 miles from Midland to Rankin, Texas; see project report
- EPIC Midstream Holdings LP's (Houston) $450 million portion of the EPIC Crude Oil Pipeline, designed to transport 590,000 BBL/d (expandable to 675,000 BBL/d) of Permian and Eagle Ford Shale crude oil 280 miles from origin points in Orla, Saragosa, Crane and Midland to Gardendale, Texas; see project report
- EPIC Midstream's $375 million portion of the EPIC Crude Oil Pipeline, designed to transport 590,000 BBL/d (expandable to 675,000 BBL/d) of Permian and Eagle Ford Shale crude oil 215 miles from origin points in Orla, Saragosa, and Crane to Midland, Texas; see project report
- EPIC Midstream's $350 million portion of the EPIC Crude Oil Pipeline, designed to transport 590,000 BBL/d (expandable to 675,000 BBL/d) of Permian and Eagle Ford Shale crude oil 235 miles from origin points in Orla, Saragosa, and Crane to Gardendale, Texas; see project report
Another area in the U.S. Southwest that is seeing more pipeline buildouts is the SCOOP and STACK plays in Oklahoma. As the production glut in the Permian grows and profits tumble, producers see the Sooner State as an attractive alternative.
Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Midcontinent Supply Header Interstate Pipeline (MIDSHIP) is designed to carry about 1.4 billion cubic feet per day of natural gas 230 miles from the shale plays to the Gulf Coast. Last month, Cheniere received approval from the U.S. Federal Energy Regulatory Commission (FERC) to begin construction, following a positive environmental review earlier this summer, and the company selected TRC Companies Incorporated (Lowell, Massachusetts) to perform engineering, procurement and construction (EPC) services and environmental consulting, engineering and field services.
Segments of the project that are set to begin construction in the fourth quarter and wrap up about a year from now include:
- $425 million pipeline, which will run about 198 miles from Kingfisher County, Oklahoma, to southeastern Bryan County on the Oklahoma/Texas line, where it will connect to an interstate pipeline system; see project report
- $40 million lateral in Kingfisher County; see project report
- $25 million lateral in Stephens County, Oklahoma; see project report
- $70 million Tatums Natural Gas Compressor Station in Pauls Valley, Oklahoma; see project report
- $60 million Calumet Natural Gas Compressor Station in El Reno, Oklahoma; see project report
- $60 million Bennington Natural Gas Compressor Station in Bennington, Oklahoma; see project report
- $25 million Sholem Natural Gas Compressor Station in Duncan, Oklahoma; see project report
Another project nearing kickoff in Oklahoma is the Cimarron Express Pipeline, a 50:50 joint venture between Kingfisher Midstream LLC, a subsidiary of Alta Mesa Resources Incorporated (NASDAQ:AMR) (Houston), and affiliates of Ergon Incorporated; Blueknight Energy Partners LP (NASDAQ:BKEP) (Oklahoma City, Oklahoma) is serving as project manager. The 65-mile line will run from Kingfisher County to Blueknight's crude oil terminal in Cushing, Oklahoma, with an initial capacity of 90,000 BBL/d, eventually expandable to more than 175,000 BBL/d.
Industrial Info is tracking the estimated $65 million pipeline and its $30 million pump station in Dover, Oklahoma, and assesses both as having a high probability of moving forward as planned. The companies involved expect the pipeline to be completed in the summer of 2019. For more information, see Industrial Info's project report on the pipeline and pump station.
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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
