IIR Energy BREAKERS for Monday, May 8, 2017

Natural Gas
EagleClaw Midstream Starts to Build Third Natgas Processing Train in Pecos, Texas
EagleClaw Midstream will start construction this month on the third cryogenic natural gas processing train at its Toyah plant in Pecos, Texas. The train will have a design capacity of 200 million standard cubic feet per day (MMSCFD) and will expand the total site processing capacity to 460 MMSCFD. The train is expected to be operational in November. Blackstone Energy Ventures plans to buy EagleClaw for about $2 billion. The deal is expected to close by the end of the year. EagleClaw says it is the largest privately held midstream operator in the Permian's Delaware Basin in West Texas. The company's assets are located in Reeves, Ward and Culberson counties and include more than 375 miles of natural gas gathering pipelines. The Delaware Basin continues to attract investments. Brazos Midstream has completed a slew of projects in the Southern Delaware Basin, including 150 miles of gas gathering pipelines; a 60 million-cubic-foot-per-day gas-processing plant; 35 miles of crude oil gathering pipeline; and two crude oil storage terminals with a combined capacity of 50,000 barrels. The company also is beginning construction of a new, 200 million-cubic-foot-per-day gas-processing plant. (Plant: 3193546)

Tokyo Gas Acquires Haynesville Assets in East Texas/Louisiana
A subsidiary of Tokyo Gas has acquired a 30% equity interest in Castleton Resources, which owns and operates more than 160,000 net acres of leasehold in East Texas with access to the Cotton Valley and Haynesville Shale, and has a net production of 238 million cubic feet of natural gas equivalents per day. This is Tokyo Gas' third investment in unconventional upstream assets in the U.S.

FERC Gives OK for Magnolia LNG Initial Site Prep at Lake Charles
FERC has issued a notice granting Magnolia LNG permission to start initial site preparation for the proposed Magnolia LNG project in Lake Charles, Louisiana. A final investment decision for the 2 million-ton-per-year facility will depend on will depend on offtake agreements. (Plant: 3082522)

Refinery Breakers
Valero's Benicia, California Refinery Still Offline After Power Loss
Valero's 144,000-barrel-per-day (BBL/d) refinery in Benicia, California, remains offline after it experienced a brief power loss on Friday, May 5. The company earlier said it expected to restart this past weekend, but unforeseen issues intervened. An exact restart date remains unknown, but it is likely a restart and a return to normal operations will take place by the end of this week. Flaring at the refinery on Friday caused an evacuation order for an industrial part and a shelter-in-place order for two elementary schools. Valero, which operates 15 refineries, is coming out of several major refinery turnarounds. (Plant: 1013817)

Husky Energy Starts Oil-In Procedures at Alberta Refinery
Husky Energy will begin oil-in procedures on the lone crude, 20,000-barrel-per-day (BBL/d) vacuum and 14,000-BBL/d asphalt units at its 30,000 BBL/d Lloydminster Refinery in Alberta, Canada. The unit restarts are expected to be completed by this Wednesday, instead of last week as previously reported. Industrial Info is tracking 59 Husky Energy projects worth nearly $12 billion, including a $5 million asphalt refinery expansion at Lloydminster that will double its asphalt capacity. Husky's downstream units ran at 97% capacity during the first quarter. Total upgrader and refining throughputs averaged 367,000 BBL/d for the company. (Plant: 2003133)

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