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Researched by Industrial Info Resources (Sugar Land, Texas)--The past few months have been rocky for the U.S. Oil & Gas Industry, with everything from COVID-19's Delta variant to the devastating effects of Hurricane Ida sending commodity prices skyward. Much of these effects have shown up in the Terminals Industry, where unusual seasonal activity is stirring concerns. Industrial Info is tracking nearly $3 billion worth of U.S.-based terminal projects that are nearing or under construction, about 85% of which is attributed to projects in Texas and Louisiana.
Click on the image at right for a graph detailing the top 10 companies for terminal projects nearing or under construction across the U.S., by total investment value.
U.S. exports of natural gas have been relatively high in 2021, according to the U.S. Energy Information Administration (EIA), as were domestic withdrawals from storage in the 2020-21 winter heating season. But U.S. production has been relatively flat so far this year, due in part to February's extremely cold weather and resulting freeze-offs at gas wells, as well as the recent impact of Hurricane Ida. Taken together, the EIA expects these factors will lead to below-average inventories of natural gas in the run-up to November 1, the beginning of the winter heating season.
Natural gas storage levels typically are at their highest from the end of October through mid-November, during the lead-up to winter, and lowest at the end of winter after a season of high consumption. But with gas storage at lower-than-usual levels for this time of the year and demand rising amid the scorching summer heat wave, U.S. natural gas futures at the Henry Hub benchmark have been hitting record highs in recent months. "These relatively higher prices are likely to persist through to the spring as natural gas storage facilities replenish their supplies," an energy economist from the University of Houston recently told Forbes.
Among the companies to benefit from this trend is NGL Energy Partners LP (NYSE:NGL) (Tulsa, Oklahoma), which is preparing to begin construction on a $120 million natural gas storage cavern in Delta, Utah, which will be connected to an interstate natural gas pipeline system. "The steep run-up in commodity prices during the period--including crude oil, propane, butane and biofuels--has driven an increase in our inventory balances and working capital," said Trey Karlovich, the chief financial officer for NGL Energy, in a recent quarterly earnings-related conference call.
NGL Energy also is planning $30 million in compressor additions to support the new cavern in Utah. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminal Project Database can read detailed project reports on the storage cavern and compressor additions.
U.S. oil prices also soared in recent months, amid a sharp drop in U.S. crude inventories and a slow recovery among U.S. Gulf of Mexico producers from Hurricane Ida's wrath. This trend could level off, however, after China announced last week it would release its state reserves of crude oil to ease pressure on domestic refiners, potentially undercutting supply from elsewhere, according to Reuters. Among the largest domestic oil-storage projects under construction is Max Midstream Texas LLC's (Houston, Texas) $250 million crude and condensate terminal in Inez, Texas, which is expected to hold up to 750,000 barrels.
Earlier this year, port officials in nearby Calhoun County gave Max Midstream exclusive rights to sell bunker fuels at the port, and agreed to help the company refinance the construction of dock and wharf facilities. For more information, see January 6, 2021, article - Texas Port Expansion Seeks to Provide Oil Tankers an Alternative to More Crowded Ports. Subscribers can learn more from Industrial Info's project report.
Not all of these projects cater to traditional oil and gas interests. NuStar Energy LP (NYSE:NS) (San Antonio, Texas) is preparing for a $50 million tank conversion at its refined products terminal in Stockton, California. NuStar will convert three of the facility's 33 tanks to hold renewable diesel and will triple its renewable diesel-capable rail capacity. Subscribers can learn more from Industrial Info's project report.
"We expect NuStar's presence to continue to grow as we complete our planned tank conversion projects," said Brad Barron, the chief financial officer of NuStar, in a recent quarterly earnings-related conference call. "We will continue to transition existing tankers over to renewable service as customer demand increases. We're also looking at some exciting renewables opportunities for our ammonia system."
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.
Click on the image at right for a graph detailing the top 10 companies for terminal projects nearing or under construction across the U.S., by total investment value.U.S. exports of natural gas have been relatively high in 2021, according to the U.S. Energy Information Administration (EIA), as were domestic withdrawals from storage in the 2020-21 winter heating season. But U.S. production has been relatively flat so far this year, due in part to February's extremely cold weather and resulting freeze-offs at gas wells, as well as the recent impact of Hurricane Ida. Taken together, the EIA expects these factors will lead to below-average inventories of natural gas in the run-up to November 1, the beginning of the winter heating season.
Natural gas storage levels typically are at their highest from the end of October through mid-November, during the lead-up to winter, and lowest at the end of winter after a season of high consumption. But with gas storage at lower-than-usual levels for this time of the year and demand rising amid the scorching summer heat wave, U.S. natural gas futures at the Henry Hub benchmark have been hitting record highs in recent months. "These relatively higher prices are likely to persist through to the spring as natural gas storage facilities replenish their supplies," an energy economist from the University of Houston recently told Forbes.
Among the companies to benefit from this trend is NGL Energy Partners LP (NYSE:NGL) (Tulsa, Oklahoma), which is preparing to begin construction on a $120 million natural gas storage cavern in Delta, Utah, which will be connected to an interstate natural gas pipeline system. "The steep run-up in commodity prices during the period--including crude oil, propane, butane and biofuels--has driven an increase in our inventory balances and working capital," said Trey Karlovich, the chief financial officer for NGL Energy, in a recent quarterly earnings-related conference call.
NGL Energy also is planning $30 million in compressor additions to support the new cavern in Utah. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminal Project Database can read detailed project reports on the storage cavern and compressor additions.
U.S. oil prices also soared in recent months, amid a sharp drop in U.S. crude inventories and a slow recovery among U.S. Gulf of Mexico producers from Hurricane Ida's wrath. This trend could level off, however, after China announced last week it would release its state reserves of crude oil to ease pressure on domestic refiners, potentially undercutting supply from elsewhere, according to Reuters. Among the largest domestic oil-storage projects under construction is Max Midstream Texas LLC's (Houston, Texas) $250 million crude and condensate terminal in Inez, Texas, which is expected to hold up to 750,000 barrels.
Earlier this year, port officials in nearby Calhoun County gave Max Midstream exclusive rights to sell bunker fuels at the port, and agreed to help the company refinance the construction of dock and wharf facilities. For more information, see January 6, 2021, article - Texas Port Expansion Seeks to Provide Oil Tankers an Alternative to More Crowded Ports. Subscribers can learn more from Industrial Info's project report.
Not all of these projects cater to traditional oil and gas interests. NuStar Energy LP (NYSE:NS) (San Antonio, Texas) is preparing for a $50 million tank conversion at its refined products terminal in Stockton, California. NuStar will convert three of the facility's 33 tanks to hold renewable diesel and will triple its renewable diesel-capable rail capacity. Subscribers can learn more from Industrial Info's project report.
"We expect NuStar's presence to continue to grow as we complete our planned tank conversion projects," said Brad Barron, the chief financial officer of NuStar, in a recent quarterly earnings-related conference call. "We will continue to transition existing tankers over to renewable service as customer demand increases. We're also looking at some exciting renewables opportunities for our ammonia system."
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.
