Page 12 - NorthAmOil Week 25

NorthAmOil
NEWS IN BRIEF
NorthAmOil
to proceed with the Double E pipeline project, having secured su cient commitments pursuant to binding precedent agreements
for long-term, rm transportation service
and having executed de nitive joint venture agreements with an a liate of Double E’s foundation shipper. Concurrent with the FID, Double E’s foundation shipper amended its previously executed precedent agreement. Together with rm commitments from other shippers, Double E has secured 10-year take-or-pay volume commitments for a substantial majority of its initial throughput capacity of 1.35 billion cubic feet per day. roughput capacity on Double E could be expanded at a later date to 1.85bn cf/d with the installation of compression facilities. Commercial discussions with additional potential shippers are ongoing and SMLP will look for opportunities to subscribe the limited remaining capacity prior to commissioning.
Double E will provide natural gas transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas. SMLP will own a majority of the Project, will lead the development, permitting and construction of the Project, and will operate Double E upon commissioning. SMLP estimates that its share of the capital expenditures required to develop Double E will total approximately $350mn, and that more than 90% of those capital expenditures will be incurred in 2020 and 2021.
SMLP intends to fund its share of the capital expenditures for Double E with a combination of internally generated cash ow and proceeds from potential non-core asset divestitures. In addition, given the take-or- pay volume commitments underpinning
the Project, SMLP and its lenders have amended SMLP’s revolving credit facility to provide additional exibility with respect
to its nancial performance metrics during
the construction of the project. SMLP will continue to evaluate opportunities to further optimise its nancing plan for Double E as it continues to develop the project.
SUMMIT MIDSTREAM PARTNERS, June 27, 2019
DOWNSTREAM
Western States and Tribal Nation delegation appears before federal energy regulatory hearing to support approval of Jordan Cove natural gas project
A delegation of 16 members from the Western States and Tribal Nations and Consumer Energy Alliance (CEA), a national advocate for energy consumers, today gave comments at a Federal Energy Regulatory Commission (FERC) hearing in Medford in support of the Jordan Cove Natural Gas Project.
e hearing is part of FERC’s process to take comments from the public on its Dra Environmental Impact Statement on the project, which includes a proposed 229-mile connector pipeline from near Malin, Oregon, to a planned natural gas liquefaction plant in Coos Bay, Oregon.
e goal is to export the cleaner-burning natural gas produced in basins spanning Colorado, Wyoming, Utah and the Ute Tribal Nation, including the Piceance, Uintah and Green River basins, to Asian markets that now use dirtier fuel sources to meet their energy needs.
Members of the delegation from
government bodies in all three states gave comments demonstrating the economic and environmental bene ts of Jordan Cove to not only their communities, but the United States and the world.
CONSUMER ENERGY ALLIANCE, June 26, 2019
SERVICES
Milestone announces acquisition of permitted water disposal network, groundbreaking of new slurry injection facility near Big Spring
Milestone Environmental Services, an industry leader in oil eld waste disposal services, today announced the acquisition of an asset package containing three leases and four injection permits located in Howard County, Texas. Additionally, Milestone broke ground last week on a new slurry injection facility near Big Spring, Texas. e new location will allow Milestone to better serve the increasing drilling activity in the northern Midland Basin.
is acquisition delivers Milestone
an additional 155,000 barrels per day of permitted injection capacity, with the ability to interconnect receiving points and injection wells as a single, integrated, production
waste management network in the northern Midland Basin. e move gives Milestone an attractive opportunity to focus its advanced injection and development expertise on the production waste streams of the Permian. “Water disposal infrastructure is a valuable and natural complement to our existing business, which builds on our deep injection experience, superior operating record, and blue chip customer base,” shared Milestone President and CEO Gabriel Rio.
e Big Spring slurry injection facility, where construction commenced last week, is located about 8 miles north of the town of Big Spring, on the east side of State Highway 87 near the intersection of FM 1584 in Howard County. e facility is scheduled to open in the fourth quarter of 2019, and will accept drilling, completion, and production waste streams, including oil-based and water-
based muds, drilling uids, owback, tank bottoms, dirty water, and produced water. Like Milestone’s seven other slurry injection facilities, the Big Spring location will also
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Week 25 27•June•2019