Enterprise, TEPPCO, Oiltanking plan Texas Offshore port and pipeline
Enterprise Products Partners LP, TEPPCO Partners LP, and Oiltanking Holding Americas Inc. have formed a joint venture to design, construct, own, and operate a new Texas offshore crude oil port and pipeline system to facilitate delivery of waterborne crude oil to refining centers along the upper Texas Gulf Coast.
The Texas Offshore Port System (TOPS) project would include an offshore port, two onshore storage facilities with approximately 5.1 million barrels of total crude oil storage capacity, and an associated 160-mile pipeline system with the capacity to deliver up to 1.8 million b/d of crude oil. Development of the offshore port system and onshore infrastructure is supported by long-term contracts with Motiva Enterprises LLC and an affiliate of Exxon Mobil Corp.
Demand for TOPS is being driven by planned and expected refinery expansions along the upper Texas Gulf Coast that are anticipated to add roughly 425,000 b/d of capacity beginning in 2010, as well as expected increases in general ship traffic at onshore ports.
Affiliates of Enterprise, TEPPCO, and Oiltanking each have a one-third ownership in the new joint venture and expect to invest nearly $600 million each in the initiative, which, subject to obtaining certain regulatory approvals and permits, is scheduled to begin service in the fourth quarter of 2010.
Fluor wins $3.8B BP Whiting modernization project
Fluor Corp. was awarded multiple contracts by BP America for its Whiting (Ind.) Refinery modernization project. Fluor is responsible for overall program and construction management, engineering, procurement, fabrication and construction.
Fluor recently completed front-end engineering and design and began detailed engineering and construction in July 2008 with a projected completion date of fourth quarter of 2011. Fluor's engineering, procurement and fabrication scope will include a new gas oil hydrotreater, significant upgrades to a crude/vacuum unit, and the upgrade and modernization for the utilities and offsites.
When complete, the modernization project will increase the Whiting facility's gasoline production by 1.7 million gallons per day and will equip the refinery to process increased amounts of secure Canadian crude oil.
MarkWest buys gathering assets from Petroquest for $41.3M
MarkWest Energy Partners LP completed the acquisition of gathering assets primarily located in Pittsburg County in Southeast Oklahoma from Petroquest Energy LLC for $41.3 million. MarkWest will invest up to an additional $15 million in 2008 and $13 million in 2009 to support the development of Petroquest's Woodford Shale and coal bed methane initiatives.
Petroquest is the primary producer supporting these gathering systems, which are currently producing roughly 45MMcf/d. Petroquest has over 31,000 net acres dedicated to these gathering assets and currently has three drilling rigs operating in this area.
MarkWest Energy Partners LP is a growth-oriented master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil.
Enbridge extends eSimOptimizer solution
Enbridge Energy Partners LP, an independent midstream natural gas company, has entered into a contract with eSimulation Inc. to deploy the eSimOptimizer real-time process optimization solution at the Avinger and Longview gas processing plants.
The eSimOptimizer solution calculates optimal process targets for the plant based on current operational conditions, equipment capability, commodity pricing, and producer contracts.
TEPPCO increases credit facility, expects no impact from Semgroup bankruptcy
TEPPCO Partners LP's total borrowing capacity under its revolving credit facility has been increased from $700 million to $950 million. The facility matures in December 2012.
In addition, the company confirmed that its subsidiary, TEPPCO Crude Oil LLC, is listed as one of the unsecured creditors in the bankruptcy filing by SemGroup LP and certain of its North American subsidiaries.
Through an existing netting agreement for crude oil sold to and purchased from a subsidiary of SemGroup, TEPPCO's credit exposure has historically been minimal. A review of the bankruptcy filings is still ongoing, but based on historical arrangements TEPPCO does not expect any future material impact as a result of the bankruptcy nor does it expect any future material credit exposure to SemGroup. SemGroup has represented less than 3% of the partnership's current crude oil gathering volumes.
TEPPCO Partners LP, a publicly traded partnership with an enterprise value of nearly $5 billion, is a diversified energy logistics company. TEPPCO owns and operates assets that facilitate the movement, marketing, gathering, and storage of various commodities and energy-related products. The partnership's midstream network is comprised of roughly 12,500 miles of pipelines that gather and transport refined petroleum products, crude oil, natural gas, liquefied petroleum gases, and natural gas liquids.
Regency Energy Partners raises $200M to fuel growth
Dallas-based Regency Energy Partners LP has agreed to raise $200 million of common equity. The company will issue roughly nine million common units to affiliates of GE Energy Financial Services, funds managed by Kayne Anderson Capital Advisors LP, RCH Energy Partners, Swank Energy Income Advisors LP, Lehman Brothers MLP Opportunity Fund LP, and certain other institutional investors. GE Energy Financial Services is the owner of Regency's general partner.
Net proceeds of $204 million from the issuance will be used to repay indebtedness under Regency's revolver and to fund upcoming growth opportunities
Regency Energy Partners LP is a growth-oriented, midstream energy partnership engaged in the gathering, contract compression, processing, marketing and transporting of natural gas and natural gas liquids.
Tidelands offered extension on Burgos Hub pipeline permits
Tidelands Oil & Gas Corp. has been granted an extension from energy regulators in the US and Mexico on the company's planned international Burgos Hub project.
The Burgos Hub is a natural gas project that, once completed, will be able to transport gas to and from South Texas and Northern Mexico. On May 21, the US Federal Energy Regulatory Commission granted Sonora Pipeline LLC an extension to build and operate the Burgos Hub project. Sonora is a wholly owned subsidiary of Frontera Pipeline LLC, which is 20% owned by Tidelands.
US regulators granted the permit extension in order to give the company more time to line up parties in Mexico to take advantage of commercial use of the gas storage facilities. Sonora has until July 10, 2010, to complete the project in South Texas.
On May 29, Mexico's Energy Regulatory Commission granted a one-year extension to Terranova Energia S. de RL de CV to file its final cost and income proposal. Terranova is responsible for developing the international pipeline on the Mexico side. Terranova is also owned by Frontera.
Tidelands executives requested the one-year extension with Mexican regulators because the company is waiting for the results of energy reform legislation currently under debate among Mexican lawmakers. The results could affect the company's natural gas storage facility permit application.
San Antonio-based Tidelands develops natural gas pipelines and storage and receiving facilities.
New ExxonMobil project commercializes NGL in Nigeria
An affiliate of Exxon Mobil Corp. has begun operations of a $1.3 billion project in Nigeria to produce and sell natural gas liquids (NGL). Operated by Mobil Producing Nigeria Unlimited the East Area Natural Gas Liquids II project involves the recovery of 275 million barrels of MGL from associated gas produced in East Area reservoirs.
Major components of the project include an offshore natural gas liquids extraction complex, more than 125 miles of new natural gas and NGL pipelines and expansion of the existing onshore Bonny River Terminal for fractionation of the liquids into commercial products and offloading. The East Area NGL II project will produce at its peak about 50,000 bbls of NGL per day.
Approximately $220M of the total project financing was completely arranged through Nigerian banks.
The project is located approximately 17 miles offshore Nigeria and on Bonny Island, Nigeria. Mobil Producing Nigeria (51% interest) is operator of the project with co-venture partner Nigerian National Petroleum Corp. (49%).
PetroNeft raises $17.3M to construct new pipeline
PetroNeft Resources plc, 100% owner of Stimul-T, the sole owner and operator of Licence 61, Tomsk Oblast, Russian Federation, has placed 34,527,141 new ordinary shares, raising roughly US$17.3 million.
The funds will be used in combination with the US$80 million Standard Bank debt facility to develop PetroNeft's portfolio of four oil fields and exploration assets contained within Licence 61, Tomsk Oblast, Russia.
Current projections for the first two fields, Lineynoye and West Lineynoye, estimate initial production rates of 4,000 b/d in 2009, rising to 14,000 b/d in 2012.
In addition, the funds will be used to manage field development issues, infrastructure and development costs, ongoing business development and finally general corporate overheads.
The placing is being executed in two tranches and has been arranged by Davy and KBC Peel Hunt.
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