Medallion Pipeline announced this week the successful closing of its binding open season for a major expansion to its existing crude oil pipeline system in the Midland Basin.
As previously announced, Medallion will expand six segments of its pipeline system to transport increased quantities of crude oil, produced from acreage near Medallion’s system, to downstream pipelines and markets.
Medallion plans to construct a 16-inch operational loop of its existing Midkiff Lateral and plans to expand the capacity of the Crane Extension, Reagan Gathering Extension, Santa Rita Lateral, Martin Lateral and Midland Lateral.
Initially placed in service in October 2014, Medallion’s crude oil pipeline has undertaken a series of expansions to meet the increasing needs of producers and marketers in the Midland Basin.
“The continued interest of potential shippers in increased pipeline capacity in the Midland Basin is compelling,” said Randy Lentz, CEO of Texas-based Medallion.
The existing system is a network of roughly 700 miles of 6-inch and larger crude oil pipeline facilities that aggregate and transport crude oil production to the Colorado City (Texas) Hub, the Crane Hub and the Midland Hub, providing access to multiple long-haul, large-volume pipelines for transportation to downstream markets.
Based on the capacity bids received during the open season, Medallion has received long-term binding commitments sufficient to move forward with construction.
The expansion is expected to commence commercial operations in phases, with full commercial operations occurring during the fourth quarter of 2019, Kallanish Energy reports.
Because of the interest expressed by potential shippers during the open season, and based on ongoing discussions with potential shippers, Medallion is conducting a supplemental open season to solicit additional binding long-term commitments for expanded capacity.
The supplemental open season is subject to the same terms and conditions as originally proposed in the open season. The supplemental open season maintains the same transportation options, the same origin and destination points, the same rates and provides the same options for existing committed shippers as proposed in the open season.
The supplemental open season opened Aug. 16, and will close Aug. 22.
Jim Willis Editor & Publisher, Marcellus Drilling News (MDN) Cabot, Seneca and Chief have been ramping up production in preparation of the Atlantic Sunrise pipeline coming online this month. According to a report from BTU Analytics, the top three shippers who … Continue reading
The post Production Up for Top Three Shippers Readying for Atlantic Sunrise appeared first on Natural Gas Now.
FirstEnergy Solutions, the nuclear energy arm of energy giant FirstEnergy, said Wednesday it’s taken the next step in the regulatory process leading to deactivating/shuttering its three nuclear power plants (NPPs).
First Energy Solutions has said for months without some sort of assistance from Ohio and Pennsylvania, where the trio of plants are located, the nuclear facilities can’t compete economically with natural gas-fired power plants and even, in some cases, wind and solar facilities.
FES submitted to the Nuclear Regulatory Commission its Certified Fuel Handler Training and Retraining Program, as required under the NRC’s decommissioning process, Kallanish Energy understands.
The filing details the training program for professionals who will supervise the removal and on-site storage of fuel from the nuclear plants.
FES announced on March 28, 2018, that it would deactivate the plants on the following schedule:
* Davis-Besse Nuclear Power Station, located in Oak Harbor, Ohio, slated to be deactivated in May 2020
* Beaver Valley Power Station, Shippingport, Pa., Unit 1, May 2021, and Unit 2, October 2021
* Perry Nuclear Power Plant, Perry, Ohio, May 2021.
“Today’s NRC submission is a necessary milestone for us but not a welcome one,” said Don Moul, FES president and chief nuclear officer. “Our nuclear plants provide important environmental, economic and fuel-diversity benefits to our region, but we cannot continue to operate them without state-level policy relief in Ohio and Pennsylvania or immediate and significant market reforms that provide meaningful compensation for the unique attributes nuclear generation provides.”
The total capacity of the nuclear plants to be deactivated is 4,048 megawatts. In 2017, the nuclear units contributed roughly 65% of the electricity produced by the FES generating fleet.
The two Ohio plants represent 14% of Ohio’s electric generation capacity and 90% of its carbon emissions-free capacity.
“We intend to work with Ohio and Pennsylvania officials towards a solution that will enable these plants to continue contributing to cleaner air and regional energy security,” Moul said, adding, “In the meantime we will move forward with the required steps towards deactivation.”
A solution must be reached by mid-2019, when FES must either purchase the fuel required for Davis-Besse’s next refueling or proceed with the shutdown.
Tom Shepstone Shepstone Management Company, Inc. … … A bill has now been introduced in the U.S. Senate that would put pipeline water quality certification manners on New York Gov. Andrew “Corruptocrat” Cuomo. Finally, Congress is starting to pay attention … Continue reading
The post Bill in Congress Would Put Water Quality Certification Manners on Cuomo appeared first on Natural Gas Now.
Stephen Heins Energy Consultant “The Word Merchant” … Stephen Heins reveals the insanity of a California solar mandate, which will deepen the impacts of the energy debacle in which the state is already mired. California’s new solar mandate will … Continue reading
The post California Solar Mandate Will Cost More Than Anyone Was Told appeared first on Natural Gas Now.
Devon Energy said Tuesday afternoon it has an agreement to sell 9,600 net acres of non-core Delaware Basin acreage in Texas’ Ward and Reeves counties to Carrizo Oil and Gas for $215 million.
Net production from these properties is roughly 2,500 barrels of oil-equivalent per day (Boe/d) (60% oil). The transaction is expected to close in the fourth quarter of 2018, Kallanish Energy reports.
With this transaction, total proceeds from Devon’s ongoing divestiture program have now reached $4.4 billion. The company expects to monetize additional minor, non-core assets across the U.S. by year-end. These divestiture packages include enhanced oil recovery projects in the Midland Basin and Rockies along with Wise County, Texas acreage in the Barnett Shale.
Jefferies acted as the financial advisor to Devon on the transaction. Vinson & Elkins served as legal advisor to the independent producer.
Saudi Aramco, U.S.-based Air Products and ACWA Power Monday announced the signing of a term sheet to form an $8 billion-plus gasification/power joint venture, located at Jazan Economic City, Saudi Arabia.
The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for over $8 billion, Kallanish Energy finds. These assets are currently under construction and will be transferred to the JV upon start-up, currently scheduled for 2019.
The JV will serve Saudi Aramco’s Jazan Refinery and terminal at JEC, a megaproject that will process heavy and medium crude oil to create liquefied petroleum gas, sulfur, asphalt, benzene and paraxylene, and add 400,000 barrels per day (Bpd) of refining capacity.
“The gasification/power JV will be central to the self-sufficiency of our megaprojects at Jazan,” said Abdulaziz M. Al-Judaimi, Saudi Aramco senior vice president of Downstream. “The JV will enhance the overall value of the refinery and integrated gasification combined cycle power plant, and aid in transforming the province by positioning JEC for additional foreign direct investment and private sector involvement.”
The JV will own and operate the facility under a 25-year contract for a fixed monthly fee. Saudi Aramco will supply feedstock to the JV, and the JV will produce power, hydrogen and other utilities for Saudi Aramco.
Industrial gases giant Air Products will own at least 55% of the JV, with Saudi Aramco and ACWA Power owning the balance. The JV builds upon the importance and recognition infrastructure assets in the region are being developed and operated under the Public Private Partnership (PPP) model.
ACWA Power is a developer, investor and operator of a power generation and desalinated water production plants currently operating in 10 countries in the Middle East, north Africa, southern Africa and southeast Asia.
The company is owned by the Public Investment Fund of Saudi Arabia, the Saudi Public Pensions Agency and the International Finance Corp. (a member of the World Bank Group) and seven Saudi conglomerates.
Tom Shepstone Shepstone Management Company, Inc. … … The DRBC is fiddling with fracking games while Camden, Philadelphia, Trenton and Trenton burns with a pollution fever caused by raw sewage in the Delaware. The DRBC has spent massive energy, time … Continue reading
The post What the DRBC Ought to be Doing Instead of Playing Fracking Games appeared first on Natural Gas Now.