Page 6 - NorthAmOil Week 01 2023

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

TC Energy restarts Keystone pipeline

Cushing extension following spill

NORTH AMERICA TC Energy has completed repairs, inspections location upstream of the pipeline spill, to down-
and testing of the ruptured Keystone pipeline stream of the containment dams. The diversion
Cushing extension and has now proceeded with includes the installation of water pumps and
a controlled restart. an above-ground bypass line. The diversion
The Cushing Extension will operate under will help in the clean-up and reclamation of the
plans approved by the US Pipeline and Hazard- creek, said the company.
ous Materials Safety Administration (PHMSA), As of January 2, 11,939 barrels of oil had been
said the company. recovered and 18,164 barrels of oil and water.
The Keystone pipeline system is now opera- TC Energy has not commented on the cause
tional to all delivery points, added Calgary-based of the spill, one of the largest onshore in the US
TC Energy. The pipeline must be operated at 20% since 2010. This was also the largest leak on
lower pressure along the segment where the spill the 12-year-old pipeline. The company noted
occurred until TC Energy receives further regu- that the pipeline system would operate with
latory approval. additional risk-mitigation measures, including
The outage lasted 21 days. The spill, compris- reduced operating pressures.
ing 14,000 barrels of crude, occurred in Wash- Two other legs of the pipeline also had to
ington County, Kansas, in early December on the operate at a reduced rate. These were the leg to
section of the pipeline that goes to the Cushing, Patoka, Illinois, and the leg from Cushing to the
Oklahoma storage hub. The oil was spilled into Gulf of Mexico.
Mill Creek. The 36-inch (914mm) pipeline transports
On January 3, TC Energy announced that 622,000 barrels per day (bpd) of oil from the
it was temporarily diverting Mill Creek from a Alberta oil sands in Canada to the US.™

Targa to buy remaining stake

in Grand Prix NGL pipeline

PERMIAN BASIN TARGA Resources has agreed to buy Blackstone “The performance of our Grand Prix NGL
Energy Partners’ 25% stake in Targa’s Grand Prix pipeline has exceeded expectations since it began
NGL pipeline for $1.05bn in cash. full operations in the third quarter of 2019, inte-
Upon closing, the midstream company will grating our leading NGL supply aggregation
own 100% of Grand Prix. position in the Permian Basin to key demand
Grand Prix has capacity to transport up to markets in Mont Belvieu and along the US Gulf
1mn barrels per day (bpd) of natural gas liquids Coast,” said Targa’s CEO, Matt Meloy.
(NGLs) from the Permian Basin and nearby “Given our expected record 2022 EBITDA
regions to the NGL market hub at Mont Belvieu, [earnings before interest, taxes, depreciation and
Texas. It connects Targa’s gathering and process- amortisation] and the strength of our outlook for
ing infrastructure across the Permian Basin, 2023, we expect to remain comfortably within
north Texas and southern Oklahoma, as well as our long-term consolidated leverage ratio target
third-party infrastructure, to Targa’s fractiona- range of 3-4 times,” added Meloy. “This acqui-
tion and storage complex at Mont Belvieu. sition further supports our already strong cash
The purchase is expected to close in the first flow profile and ability over time to return an
quarter of 2023 with an effective date of January increasing amount of capital to our shareholders
1, 2023. through common dividend increases and com-
The acquisition price represents approxi- mon share repurchases.”
mately 8.75 times Grand Prix’s estimated 2023 Targa is one of North America’s largest
adjusted earnings, said Targa, and allows the independent midstream infrastructure com-
company to further benefit by owning 100% of panies. The company’s assets connect gas and
the recently announced Daytona pipeline expan- NGL production to domestic and interna-
sion on the Grand Prix system. tional markets.™

P6 www. NEWSBASE .com Week 01 05•January•2023