Page 14 - NorthAmOil week 23

NorthAmOil
NEWS IN BRIEF
NorthAmOil
“We are very pleased to announce the expansion of our relationship with Shell Exploration and Production, one of world’s premier oil and gas companies, as well as the completion of our Comanche III processing plant,” said Brad Iles, Brazos chief executive o cer.
“ ese projects are a testament to
the strength of our operating team and demonstrate our commitment to aggressively expand our asset base in support of our upstream customers. We remain committed to o ering comprehensive, best-in-class midstream services and will continue to leverage our extensive experience in the region and our strong customer relationships as we grow in one of the most economic oil and gas producing regions in the country.” BRAZOS MIDSTREAM, June 12, 2019
Meritage Midstream
launches binding open
season for new movement
on Thunder Creek natural
gas liquids pipeline system
Meritage Midstream Services II today announced its subsidiary, under Creek NGL Pipeline will launch a binding open season to secure volume dedications to support the proposed construction and development on its existing natural gas liquids pipeline to facilitate transportation of natural gas liquids from two processing plants located in Campbell and Converse counties in Wyoming to an interconnection point with ONEOK Hydrocarbon’s ONEOK Bakken Pipeline in Converse County, Wyoming. e binding open season commenced today, June 10, 2019 at 8:00 a.m. Mountain Time and is scheduled to conclude at 5:00 p.m. Mountain Time on July 10, 2019.
MERITAGE MIDSTREAM SERVICES II, June 10, 2019
DOWNSTREAM
ExxonMobil, SABIC to
proceed with Gulf Coast
Growth Ventures project
ExxonMobil and SABIC today announced the decision to proceed with the construction of a chemical facility and a 1.8 million metric ton ethane steam cracker in San Patricio County, Texas, leading to thousands of high-paying jobs and billions in economic output.
“Building the world’s largest steam cracker, with state-of-the-art technology, on the doorstep of rapidly growing Permian production gives this project signi cant scale and feedstock advantages,” said Darren W. Woods, chairman and chief executive o cer of ExxonMobil. “It is one of several key projects that provide the foundation
for signi cantly increasing the company’s earnings potential.”
e joint-venture between ExxonMobil and SABIC, called Gulf Coast Growth Ventures, received nal environmental regulatory approval in June 2019 to build an ethane steam cracker, two polyethylene units and a monoethylene glycol unit. Construction will begin in the third quarter of 2019 and startup is anticipated by 2022.
“SABIC is very pleased to move forward on this third joint venture with ExxonMobil – the rst to be operated outside of Saudi Arabia,” said SABIC vice chairman and
CEO Yousef Al-Benyan. “ is project will not only increase global diversi cation
for our company, but will also continue to create value within our new home of San Patricio County through creating jobs and supporting economic growth. With this project, we look forward to further building our business presence in the US and serving the communities and customers in the North and South American markets even more e ectively.”
e project is expected to create more than 600 permanent jobs with average annual salaries of $90,000 per year. An additional
6,000 high-paying jobs will be created during construction.
A preliminary independent study, conducted by Impact DataSource, estimates the project will generate more than
US$22 billion in economic output during construction and US$50 billion in economic bene ts during the rst six years of operation.
e facility will produce materials used in the manufacturing of various consumer products including automotive coolants, packaging, agricultural lm and building, construction materials and clothing. EXXONMOBIL AND SABIC, June 13, 2019
Superior Plus considering
sale of specialty chemicals
business
Superior Plus today announced it is considering a sale of its Specialty Chemicals business which operates under the trade
name ERCO Worldwide. Superior regularly conducts a review of its portfolio of businesses to assess the strategic t within the overall direction of the company. Given the signi cant growth opportunities in Superior’s US Energy Distribution business, and the potential bene ts of Superior becoming a pure play energy business focused on retail propane distribution, Superior has retained Barclays Capital Canada to assist with a potential sale of its Specialty Chemicals business.
In the event Specialty Chemicals is sold, Superior will evaluate the best use of the
net proceeds at the time, but expects such proceeds will be used primarily to reduce debt and to invest in US propane distribution acquisitions.
However, depending on a number of factors which will not be determined until closer to the time a transaction, if any, is announced, a portion of such proceeds could also be utilised by Superior to purchase Superior common shares.
Assuming completion of a sale, Superior expects the remaining Energy Distribution business would support the existing dividend policy.
“We expect Specialty Chemicals will
be highly marketable, attracting strong buyer interest and an attractive valuation. Upon completion of any sale, we anticipate accelerating our US Energy Distribution growth program where we are con dent we can deliver signi cant value as we apply our operating model to the acquired businesses and realise signi cant synergies. However, Specialty Chemicals is a solid sustainable business with strong cash ows and we are
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Week 23 13•June•2019