Page 12 - NorthAmOil Week 01

NorthAmOil
NEWS IN BRIEF
NorthAmOil
gathering and processing agreement with XTO Energy to service XTO’s production in Williams County, ND. The gathering system will comprise a 70-mile, 20- and 24-inch diameter, rich gas pipeline originating in eastern Williams County and terminating at a new 250 MMcfd cryogenic gas processing plant located west of Williston, ND. Plans are also underway for a plant expansion of up to an additional 200 MMcfd, for total gas processing capacity of 450 mmcf per day.
Outrigger will construct, own and operate the cryogenic processing plant and gathering system. The high efficiency plant features ethane recovery and rejection capabilities that will provide direct market access to the Northern Border Pipeline system for residue gas and the ONEOK NGL pipeline system for natural gas liquids. Future NGL fractionation facilities may be added to provide finished NGL products for local markets.
Dave Keanini, Outrigger’s CEO, stated: “We are grateful XTO has entrusted Outrigger to build a gathering system with substantial capacity and state-of-the-art facilities that will assist XTO with execution of its significant development plans in Williams County. Routing of the gathering line will provide other Williston Basin operators access to much needed gathering and cryogenic processing capacity. Moreover, this additional midstream capacity for gas production north of the Missouri River allows the State of North Dakota to make strides towards its goal of minimizing gas flaring in the basin. Over the last six years, the Outrigger team has achieved an excellent track record of project execution, safe and reliable operations and customer service in the Delaware, Midland, Powder River and DJ Basins, and we couldn’t be more excited for the opportunity to do the same in North Dakota.”
OUTRIGGER ENERGY II, January 07, 2019
DOWNSTREAM
Pembina Pipeline
Corporation announces
lump sum contract for
petrochemical facility
or new businesses. Our relentless pursuit of
a lump sum contract for the PDH facility reflects our disciplined and prudent approach to capital allocation,” said Mick Dilger, Pembina’s President and Chief Executive Officer. Mr. Dilger added, “This project
is highly strategic for Pembina and our producer customers in the Western Canadian Sedimentary Basin. It offers a new demand source for domestically produced propane and supports ongoing development of Canada’s world-class hydrocarbon resources.”
CKPC has selected Heartland Canada Partners, a 50/50 partnership between Fluor Canada and Kiewit Construction Services ULC as the EPC contractor for the PDH facility. Both companies bring extensive EPC track records for safety, quality and delivery in the petrochemical space in Canada. The contractor selection process for the PP facility is ongoing.
PEMBINA PIPELINE CORPORATION, January 07, 2020
MOVES
Edgewater Midstream
announces initial equity
commitment from EnCap
Flatrock Midstream
Edgewater Midstream today announced it has secured an initial capital commitment
of $400mn from EnCap Flatrock Midstream and the Edgewater management team. Edgewater was formed in late 2019 to provide independent midstream logistics solutions to refiners, producers and marketers of crude oil, refined products and other bulk liquids. The company will focus on the acquisition, development and operation of pipeline and terminal solutions between and in proximity to major North American petroleum trading hubs and demand centres.
Based in Houston, Edgewater is led by
its three founders: Stephen Smith, chief executive officer; Brian Thomason, chief commercial officer; and Mike Truby, chief operating officer. Collectively, the Edgewater management team has more than 70 years of energy industry experience and has served
in senior leadership roles at companies including Genesis Energy; Motiva Enterprises; ConocoPhillips and NuStar Energy.
“Changing dynamics in the North American petroleum market present attractive opportunities for Edgewater,” said Chief Executive Officer Stephen Smith. “We are
Pembina Pipeline Corporation along with Petrochemical Industries Company (PIC) of Kuwait, is pleased to announce that Canada Kuwait Petrochemical Corporation (CKPC) has executed a lump sum engineering, procurement and construction (EPC) contract related to the construction of the propane dehydrogenation (PDH) facility within its integrated PDH and polypropylene (PP) upgrading facility (PDH/PP facility). With this contract, CKPC has fixed approximately 60% of the cost of the PDH/PP Facility thus far. In conjunction with execution of the lump sum contract, the company also announces an update to its share of the capital cost for the PDH/PP facility and project timing.
Following execution of the lump sum EPC contract and with cost certainty for approximately 60% of the project cost, Pembina has revised its proportionate
share of the capital cost of the PDH/PP Facility, including the 100% directly-owned supporting facilities, to CAD2.7bn. The increase over the prior estimate is associated with the PDH facility, which is now fixed under the lump sum EPC contract. The revised capital cost estimate will not affect Pembina’s previously announced 2020 capital budget. CKPC now expects the PDH/PP Facility to be placed into commercial service in the second half of 2023.
“When faced with the proposition
of trading returns for risk, Pembina has consistently chosen certainty and downside protection, particularly in new platforms
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Week 01 08•January•2020