Page 13 - NorthAmOil Week 46 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

generate credits through the operation of the SERVICES water systems into nexus and storage points,
Renewable Diesel & Renewable Hydrogen allowing Breakwater to serve customers with
Complex expected to be on-line in the first Breakwater breaks ground frac water blends of up to 100% recycled
quarter of 2023. water. Collectively, BSRS and Morita will be
TIDEWATER RENEWABLES, November 15, 2021 on second commercially capable of treating and distributing more than
half a million barrels of produced water per
Citgo reports third-quarter permitted recycling system day to the Midland Basin.
BREAKWATER ENERGY PARTNERS, November
2021 results to address Midland Basin 15, 2021

Citgo Petroleum today reported its third seismicity
quarter 2021 financial results, including a ENERGY TRANSITION
net loss of $4mn, compared to net income Breakwater Energy Partners is pleased to
of $3mn for the second quarter. Marking the announce that it has broken ground on the Clean Energy breaks ground
company’s second consecutive quarter of Morita commercial recycling facility, its
positive EBITDA after three straight quarters second Texas Railroad Commission (RRC) on renewable natural gas
of negative EBITDA, EBITDA in the third Division 6 H-11 commercially permitted
quarter was $194mn, compared to EBITDA facility for the receipt, storage, handling, dairy digester in joint
of $214mn in the second quarter of 2021. treatment and recycling of non-hazardous
The $20mn decline in quarter over quarter oil and gas produced water. Breakwater also venture with TotalEnergies
EBITDA was primarily due to the effects of a operates nine separate non-commercial
number of corporate events that are discussed water recycling facilities for five operators in Clean Energy Fuels announced it has broken
below, as well as compressed margins in the the Midland Basin. Once complete, Morita ground on a renewable natural gas (RNG)
Supply, Marketing and Lubes businesses, will be one of the largest produced water digester at Del Rio Dairy in Friona, TX, its
which combined to more than offset a $55mn recycling facilities in the Permian Basin with first in a joint venture with TotalEnergies to
improvement in refining EBITDA compared throughput capacity in excess of 200,000 produce the ultra-clean transportation fuel
to the second quarter. barrels per day. which will be negative carbon intensive. All
The decline in EBITDA compared to Rising Permian Basin seismicity has the RNG fuel produced at Del Rio Dairy will
the second quarter was due in part to the prompted the RRC to announce two separate make its way into Clean Energy’s nationwide
reinstatement of CITGO Petroleum employee Seismic Response Actions (SRAs) which limit network of RNG stations.
salaries and benefits in the third quarter the injection of produced water into regional “With a growing focus on capturing
and receipt of a few one-time benefits in the Saltwater Disposal Wells (SWDs). The RRC methane highlighted by the recent discussions
second quarter that were not repeated in has determined that produced water injection at COP26, the Del Rio Dairy RNG project is
the third quarter. These benefits included into SWDs is likely a primary contributor significant on many levels,” said Andrew J.
insurance recoveries, net of expense, related to the unprecedented rise in the frequency Littlefair, president and CEO, Clean Energy.
to Winter Storm Uri damages, returned and intensity of earthquakes observed in “It brings together concerned parties ranging
insurance premiums from our property and the Permian Basin. “With more of these from a family-owned dairy, to one of the
business interruption providers and dividends seismic events shifting to the population world’s leading and most sustainably-minded
from OIL Insurance, the energy industry centres near Midland, Stanton, and Big energy companies TotalEnergies, to manage
mutual insurer in which we have an interest Spring, an alternative to wastewater disposal greenhouse gas emissions and tackle global
as a policy holder. CITGO’s Supply, Marketing is becoming essential to operators. That is warming. When the RNG produced here
and Lubes businesses experienced a $20mn what we are providing with these regional goes into the tank of a large vehicle, it will
decline in quarter over quarter EBITDA, recycling facilities.” said Jason Jennaro, chief usually be replacing a much dirtier fuel,
primarily due to compressed margins. executive officer of Breakwater. “Operators demonstrating the unique qualities of RNG as
“Better crack spreads, supported are looking for environmentally sustainable the cleanest fuel in the world.”
by continued demand recovery and alternatives to disposal within these SRAs When completed, the Del Rio Dairy
low inventory levels, were a welcomed and seismic clusters, which is why system digester project will capture the waste
development in the third quarter despite the interconnectivity and commercial recycling from more than 7,500 milking cows and
headwinds of some of our unplanned outages is central to sensible stewardship of the water generate an anticipated 1.1 million gallons
and higher natural gas prices,” said CITGO supply chain.” of RNG annually. RNG helps Clean Energy’s
President and CEO Carlos Jordá. Located in southwestern Howard customers achieve their sustainability goals
The overall refining backdrop was County, Morita will serve Martin, Glasscock, by dramatically reducing their greenhouse
improved quarter over quarter, resulting in and Howard counties with sustainable gas (GHG) emissions from transportation
estimated total refining EBITDA of $198mn, water solutions. Morita will also have operations. Clean Energy has a target to
compared to $143mn for the second quarter interconnectivity to Texas’ first and largest provide RNG at all its U.S. stations and for the
of 2021. However, unplanned outages at both commercial produced water recycling facility, carbon intensity (CI) of the fuel to be zero by
the Corpus Christi and Lake Charles refineries Breakwater’s Big Spring Recycling System 2025.
and planned turnaround work at Lake Charles (“BSRS”), which was recently expanded into CLEAN ENERGY FUELS, November 18, 2021
and Lemont led to a reduced combined Martin County with a large diameter pipeline
throughput rate of 85% for the third quarter, capable of delivering up to 360,000 barrels
compared to 87% for the previous quarter. per day of recycled water. Morita and BSRS
CITGO PETROLEUM, November 15, 2021 link together numerous operators’ produced

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