Page 12 - NorthAmOil Week 39

NorthAmOil
NEWS IN BRIEF
NorthAmOil
under a joint tariff between Pony Express Pipeline and the Iron Horse Pipeline, which transports crude oil from the Powder River Basin to Guernsey, Wyoming, where it connects with Pony Express for delivery to three refineries and Cushing, Oklahoma. The open season begins at noon on October 1, 2019.
TALLGRASS ENERGY, September 30, 2019
DOWNSTREAM
Magnolia draft supplemental environmental impact statement
Liquefied Natural Gas Ltd (LNGL) is pleased to advise that the United States Federal Energy Regulatory Commission (FERC) issued the Draft Supplemental Environmental Impact Statement (DEIS) for the production capacity amendment to the Company’s Magnolia LNG project on September 27, 2019. Magnolia LNG’s production capacity amendment, filed with FERC on 19 November 2018, would increase the total authorized production capacity of Magnolia from the currently authorised 8 million tonnes per annum (mtpa) to 8.8 mtpa.
In the supplemental DEIS, FERC concluded: “The modifications associated with the Production Capacity Amendment, with the additional mitigation measures recommended in the supplemental EIS, would continue to avoid or reduce impacts to less than significant levels.
FERC also concluded: “There would be no substantive change in construction noise or air emissions from that previously analysed
in the Commission’s EIS for the Magnolia LNG Project and modelling demonstrates there would be no exceedances of the National Ambient Air Quality Standards.”
The supplemental DEIS is a critical milestone for the proposed Magnolia LNG
project capacity upgrade, incorporating comments from FERC and other co-operating federal agencies. In completing the work necessary to issue the supplemental DEIS, FERC analysed publicly available data and data provided by Magnolia LNG associated with the construction and operation of the Magnolia LNG project.
FERC set 18 November 2019 as the deadline for receipt of public comments on the supplemental DEIS. Based on the Notice of Schedule for Environmental Review, previously issued by FERC on June 26, 2019, the supplemental final environmental impact statement (FEIS) is expected to be issued by FERC on or before January 24, 2020. LIQUEFIED NATURAL GAS LTD, September 30, 2019
Enterprise to build PDH 2 plant; supported by long- term agreements with LyondellBasell
LyondellBasell Industries and Enterprise Products Partners today announced that their respective affiliates have executed long- term contracts that support construction of Enterprise’s second propane dehydrogenation (PDH) plant (PDH 2). PDH 2 will have the capacity to consume up to 35,000 barrels per day of propane and produce up to 1.65 billion pounds per year of polymer grade propylene (PGP). PDH 2 will be located at Enterprise’s complex in the Mont Belvieu, Texas area. The facility is scheduled to begin service in the first half of 2023.
“For nearly 30 years, Enterprise has proven to be a capable, reliable partner for LyondellBasell,” said Bob Patel, chief executive officer of LyondellBasell. “As we aim to
meet the growing demand for our products, ensuring a long-term supply of feedstock is critical. These agreements allow us to leverage Enterprise’s construction expertise, operating experience and robust network as we continue to deliver an outstanding value proposition for
our customers.”
“We are very pleased to enter into these
agreements to further expand our already extensive relationship with LyondellBasell,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “PGP is a primary petrochemical that can be converted into hundreds of products that improve
the daily lives of people around the world. Demand growth for these propylene-based products is strong and PDH 2 will provide cost-advantaged supply assurance to our customers, enabling expansion of their downstream businesses to satisfy this global demand.”
Enterprise has licensed Honeywell UOP’s Oleflex propane process to produce PGP. Enterprise has over 25 years of experience with this technology. The company’s existing isobutane dehydrogenation (iBDH) plant, which uses the Oleflex butane process, commenced operations in 1993. The partnership is currently building a second iBDH facility utilising the same process, which is expected to be completed later this year and is on time and on budget. LYONDELLBASELL INDUSTRIES AND ENTERPRISE PRODUCTS PARTNERS, September 26, 2019
SERVICES
NGL Energy Partners announces definitive agreement to acquire Hillstone
NGL Energy Partners announced it has executed a definitive agreement to acquire
all of the equity interests of Hillstone Environmental Partners from Golden Gate Capital for approximately $600mn, subject to certain adjustments. Hillstone provides water pipeline and disposal infrastructure solutions to producers with a core operational focus in the state line area of southern Eddy and Lea Counties, New Mexico and northern Loving County, Texas in the Delaware Basin.
Hillstone has a fully interconnected produced water pipeline transportation and disposal system, which currently consists
of 19 salt water disposal wells, representing approximately 580,000 barrels per day of permitted disposal capacity, and a newly- built network of produced water pipelines with approximately 680,000 barrels per day of transportation capacity. Hillstone also has an additional 22 permits to develop another
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Week 39 01•October•2019