Page 13 - NorthAmOil Week 50 2020

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Texas players make midstream moves

TEXAS SEVERAL separate midstream developments The agreement anchors Pinnacle’s greenfield
have been reported in Texas in the past few build of the new Pinnacle Dos Picos gas-gath-
days, focused on natural gas gathering and ering and compression system in the Permian’s
transmission. Midland sub-basin, the company said. The sys-
In a regulatory development, the US Federal tem is anticipated to enter service in the second
Energy Regulatory Commission (FERC) gave quarter of 2021. It will support a multi-well pad
Natural Gas Pipeline Company of America development taking place in the Midland Basin.
(NGPL), a subsidiary of Kinder Morgan, per- And on the same day, Stakeholder Midstream
mission to bring parts of its Gulf Coast South- announced that it had acquired gas-gathering
bound project into service ahead of schedule. and processing assets from Santa Fe Midstream
The project will add 250,000 dekatherms (6.9mn in Texas’ Yoakum County. The assets include
cubic metres) per day of incremental capacity. Santa Fe’s 30-30 gas treating and processing
The Gulf Coast Southbound project will pri- plant, low-pressure gas-gathering pipelines
marily serve Cheniere Energy’s Corpus Christi and downstream residue and natural gas liq-
LNG export terminal on the Texas Gulf Coast, uids (NGL) lines. The assets also come with a
with some capacity also available to the wider long-term acreage dedication from what Stake-
local market. It was initially scheduled to enter holder described as an “established” oil and gas
service in March 2021. producer in the Permian Basin’s San Andres The period of
The third train at the Corpus Christi LNG formation.
terminal, which the project will serve, is also The company said the Santa Fe system would midstream
being completed ahead of schedule. Cheniere complement its existing Campo Viejo process-
recently said it was now targeting the first quar- ing plant and gathering system, which serves San activity comes
ter of 2021 for commercial start-up of Train 3, Andres producers on the Northwest Shelf of the
ahead of its original estimate of the second half Permian. at the end of a
of next year. The acquisition brings the combined systems’ year marked by
The Gulf Coast Southbound facilities slated gas processing capacity to roughly 85mn cubic
for start-up now include new compressor units feet (2.4mn cubic metres) per day, total the gath- disruption.
and auxiliary infrastructure at Compressor ering pipeline network mileage to around 450
Stations 300 and 301, in Victoria and Wharton miles (724 km) and total acreage dedications to
counties, Texas. A third facility, Compressor the combined gas systems to more than 200,000
Station 304, will be subject to a future in-service acres (809 square km), Stakeholder added.
request according to the FERC’s director of the The period of midstream activity comes at
division of gas – environment and engineering, the end of a year marked by disruption, which
Rich McGuire. prompted speculation that demand for gather-
Separately, Pinnacle Midstream II announced ing and transmission capacity could be lower
on December 15 that it had entered into a than previously expected. This came after shale
15-year gas-gathering and processing agreement drilling activity dropped off dramatically in the
with DoublePoint Energy. Under the agreement, wake of the oil price collapse in March, with
DoublePoint will dedicate some of its leasehold associated gas production in the Permian Basin
acreage related to gas production to Pinnacle. falling alongside crude output.™

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