Page 6 - NorthAmOil Week 38 2022

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Cheniere partners with Whistler

Pipeline on ADCC project

TEXAS US LNG producer Cheniere Energy has part- The project is being advanced as Cheniere
nered with units of Whistler Pipeline to build works to expand Corpus Christi LNG’s lique-
the ADCC pipeline. faction capacity. The plant consists of three liq-
The new link will extend roughly 43 miles uefaction trains, each with a capacity of 5mn
(69 km) from the terminus of the Whistler Pipe- tonnes per year, for a combined capacity of
line to Cheniere’s Corpus Christi LNG export 15mn tpy of LNG. The Stage 3 expansion that
plant. It is designed to carry up to 1.7bn cubic Cheniere is now building was initially aimed
feet (48.1mn cubic metres) per day of gas, with at adding up to seven mid-scale trains with
the possibility of subsequently being expanded a combined capacity of 10mn tpy. Cheniere
to 2.5 bcf (70.8 mcm) per day. It is due to enter then revealed plans recently to add a further
service in 2024. two trains to Stage 3, potentially equating to
The Whistler pipeline is a roughly 450-mile another 5mn tpy of liquefaction capacity. The
(724-km) intrastate pipeline that transports gas company also said this month that it is target-
from the Waha Header in the Permian Basin to ing further expansions at both of its two Gulf
Agua Dulce, Texas. It provides gas producers in Coast LNG export plants, Corpus Christi and
the Permian – where gas is typically a byproduct Sabine Pass.
of drilling for oil – with direct access to South These capacity additions mean that the com-
Texas and export markets via the Gulf Coast. pany, which is already the US’ largest LNG pro-
The pipeline is owned by a consortium includ- ducer and is seeking to expand its dominance of
ing MPLX, WhiteWater Midstream and a joint the industry further still, will need to ramp up
venture between Stonepeak and West Texas Gas. deliveries of feedstock gas to its plants.™

INVESTMENT

Chevron offers stakes in

Alaskan wells for sale

ALASKA CHEVRON is seeking to sell its interests in more the former operates Kuparuk, while the latter is
than 2,000 oil and gas wells in Alaska, in a move the operator of Prudhoe Bay and Endicott. How-
that could lead to its second exit from the state. ever, neither have commented on the matter.
The company first exited its Alaskan oper- Chevron’s assets in Alaska produce around
ations in 1992, but subsequently returned in 9,400 barrels of oil equivalent per day (boepd).
2005 via its $18bn acquisition of Unocal. It con- However, the assets are non-core, and the
firmed to Reuters that it was offering its stakes move to sell them comes as Alaska struggles to
in the wells, which span three oilfields – Endi- reverse declining production. According to the
cott, Kuparuk and Prudhoe Bay. The super-ma- US Energy Information Administration (EIA),
jor owns around a 10% stake in Endicott, 5% in output in the state fell to 437,000 barrels per day
Kuparuk and 1.2% in Prudhoe Bay. All of the (bpd) of oil in 2021, representing the lowest lev-
stakes are non-operated. Three sources familiar els seen since 1976.
with the matter also told Reuters that the assets If Chevron exits Alaska, it will be following
on offer include interests in pipelines in the in the footsteps of fellow super-major BP, which
Kuparuk and Endicott fields. sold its assets in the state to Hilcorp for $5.6bn in
If a sale takes place, it could fetch around 2020. Meanwhile, ExxonMobil transferred oper-
$450-550mn, based on comparable transactions atorship of the Point Thomson field to Hilcorp
using data from Rystad Energy. in 2021, but retains a majority stake in the asset.
There has been speculation that ConocoPhil- Bids for Chevron’s Alaskan assets are due
lips or Hilcorp could emerge as likely buyers, as this month.™

P6 www. NEWSBASE .com Week 38 22•September•2022