Moda Midstream Adds Crude Storage

Moda Midstream Adds Crude Storage

Let’s give a hallelujah moment to Houston-based Moda Midstream, which has announced completion of the last 495,000 Bbls crude oil storage tank at the company’s Midstream Ingleside Energy Center (MIEC) on the Texas Gulf Coast. This latest news lifts MIEC’s capacity to 10 MMBbls. And that sounds mighty good right now.

Moda Midstream

Moda Midstream LLC is a liquids terminaling and logistics company that provides independent terminal, storage and distribution solutions to refiners, petrochemical manufacturers, marketers and producers of crude oil, condensate, NGLs, refined products and other bulk liquids.

www.modamidstream.com

But there’s no rest for the weary in a time of hyper storage shortage. Moda reports construction now has begun on another expansion of MIEC to onboard an additional 3.5 MMBbls of crude oil, bringing the company’s total capacity that includes its Taft Terminal to 15.5 MMBbls. Service on the latest expansion is expected to go online by year end.

And Moda isn’t stopping there. The company says it now has obtained permits and is in talks with customers to add even more storage at both terminals. Moda operates one of the largest crude oil export facilities along the Gulf Coast with pipeline connectivity to the Cactus I and II, Phillips’ Gray Oak, EPIC, and other pipelines bound for southern destinations, flowing approximately 2.5 MMBPD of Permian and Eagle Ford crude. Operating three gulf terminals, Moda Midstream literally transformed a former naval base, now MIEC, into an export hub accommodating supertankers.

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See also: THE MATTER OF CRUDE OIL STORAGE; NUSTAR GETS A MONEY BOOST

 

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LNG on the Other Side of Quarantine

LNG on the Other Side of Quarantine

With the arrival earlier this month of American LNG to China after more than a year and three more U.S. cargoes on the way, there lies strong hope that demand for fossil fuels will return as global economies emerge from the devastation wrought by COVID-19 and slowly regain their footing.

No question. The process will be longer than we want and more painful than we expect. Nevertheless, the world runs on energy and post the upheaval we witness now and into the foreseeable future, demand will return for U.S. crude oil, natural gas, NGLs, and LNG, both stateside and abroad. Factories will reopen, plants will be built, people will drive, planes will fly, truckers will truck. And the midstream sector will continue its often-invisible role to gather, transport and process the fuels that galvanize economy heartbeats.

This is especially so in the case of natural gas, now considered a “transition” fuel to whatever renewables lie next to take its place, if they can. LNG, in particular, plays an enormous role in resuscitating economies as we move forward to the other side of energy quarantine.

Here are a few updates on the nation’s LNG projects advancing:

  • Following FERC approval this month, La.-based Cameron LNG has begun pipeline feed gas flow to its train 3. This marks the final—at least for now—liquefaction train at its export terminal in Hackberry.
  • LNG infrastructure developer Eagle LNG Partners has found its niche in small- to medium-scale LNG liquefaction export terminals that serve the Caribbean and Latin America. With two existing small-scale facilities in Jacksonville, Fla., Eagle now has announced constructing its first mid-scale export terminal designed to produce 1.65 million gallons per day of LNG with a storage capacity of 12 million gallons. The project will include a truck-loading system and a dock capable of loading vessels with a capacity of 2,000-45,000 cubic meters.
  • In February, the FERC approved Houston-based Annova’s proposal for an LNG export terminal on the Brownsville, Texas, ship channel to construct six liquefaction trains and the Rio Grande Pipeline, and Cheniere’s proposal to build a third train at its Corpus Christi terminal.

As marine vessels transition from diesel, nations transition from coal, and domestic industrial and power processes convert to clean-burning energy, demand for LNG is expected to double by 2040 to 700 million tons. And lest we forget the Phase I trade deal agreement between the U.S. and China with that country’s $52.4 billion pledge to buy American energy between 2020 and 2021.

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The Matter of Crude Oil Storage; NuStar Gets a Money Boost

The Matter of Crude Oil Storage; NuStar Gets a Money Boost

RMR features the latest high-point news to keep you to up to date with midstream activities happening in the basins and shale plays that matter to you most.

What’s in Store for Energy Transfer?

In short, looking to free up storage for producers awash in crude oil. While Plains All American is asking shipper customers to scale back production, Energy Transfer says it has identified two of the midstream giant’s Permian lines for a possible storage alternative. This move follows the Texas Railroad Commission’s recent delay on a vote to curtail the amount of oil bleeding in the state. ET announced the two pipelines under consideration would provide about 2 MMBbls of storage capacity but will require adding pumps as well as gaining TRC permission to change the method of operation on the lines. Energy Transfer says the pipelines could be open to shippers by mid-May.

No Vacancy at the Cushing, Okla., Hub

Inside a week, the nation’s largest crude oil storage facility has gone from 70% full to completely full, pending shipments to the last of its reserved tanks. According to the American Petroleum Institute, inventories at Cushing skyrocketed by 4.9 MMBbls as of April 24 leaving room for about 16 MMBbls that have already been contracted. The Cushing Hub has a working capacity of about 76 MMBbls. Meanwhile, as producers scramble to find a temporary home for crude supplies, all options lay on the table—including the Strategic Petroleum Reserve, rail cars, trucks, offshore floating terminals, and highly expensive tanker ships. Nearly three dozen tankers holding 20 MMBbls of oil currently idle off the Calif., coast. This, as the U.S. awaits record-breaking shipments this month from Saudi Arabia.

NuStar Energy Adds Financial Muscle

With plans in place to reduce debt while slashing its 2020 capex by 45%, Houston-based NuStar just signed on the bottom line for a $750 million unsecured, 3-year loan from Oaktree Capital Management. NuStar says the loan “will provide added flexibility to address current market changes,” while allowing the company to pay down its revolver and bolster liquidity. NuStar operates 10,000 miles of pipelines and 74 terminal and storage facilities.

See also: MODA MIDSTREAM ADDS 10 MMBBLS OF CRUDE STORAGE

 

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The Money Backers: Alinda Capital Partners

The Money Backers: Alinda Capital Partners

In RMR’s continuing series The Money Backers, we give readers a glimpse of who’s who and who owns what in energy’s private equity world.  From the largest to the smallest to the newest, we look especially at those firms making hay in the midstream industry to provide the capital infusion required to give growth projects liftoff.

Critical infrastructure that provides essential services lies at the heart of Alinda Capital Partners’ investment strategy. This Conn.-based, private-equity firm spreads its wealth across transportation, utility, digital, and midstream industries that demonstrate steady, growing, and predictable cash flow for the long term.

Alinda Capital Partners

Alinda makes equity investments in infrastructure. Founded in 2005, they are one of the world’s most experienced infrastructure investment firms. They have invested in infrastructure businesses that operate in 38 of the 50 states in the United States as well as in Canada, the United Kingdom and continental Europe. These businesses serve over 100 million customers annually in more than 550 cities globally, and are run by a workforce of over 80,000 people.

www.alinda.com

From London’s Heathrow Airport to the nation’s largest data centers, Alinda since 2005 has invested in infrastructure businesses that operate in 38 of the 50 states. The firm’s portfolio companies also include four U.S. pipeline and integrated midstream companies.

Here’s a look:

  • Maurepas Pipeline, LLC is a joint venture between SemGroup (now Houston-based Energy Transfer) and investment funds managed by Alinda, which operates three crude oil transmission lines in the Gulf Coast region of La. These include a 34.2-mile, 24-inch pipeline that crosses the Mississippi River and terminates at Shell’s Narco refinery; a 35-mile, 12-inch intermediates pipeline between Norco and Convent refineries; and a separate 34-mile, 6-inch intermediates pipeline between Norco and Convent refineries.
  • San Antonio, Texas-based Howard Energy Partners owns and operates natural gas and crude oil gathering lines, processing facilities, a liquids stabilization plant, and bulk liquid storage terminals in the Texas and N.M. Permian, the Eagle Ford, and the Marcellus in Pa.
  • San Antonio-based Catalyst Midstream is a joint venture between Howard Energy Partners and WPX Energy that owns crude oil gathering and transmission lines and a storage terminal serving the Delaware sub-basin.
  • From Kilgore, Texas, Martin Midstream Partners ranks as the largest and most diversified among Alinda’s midstream investments. Martin breaks down its services into terminalling and storage, NGLs, sulfur, and transportation. Here’s what it looks like:

The company operates 26 marine shore-based terminal facilities and 14 specialty terminals on the Gulf Coast, which provide crude oil storage, refining, blending, packaging, and handling. Its NGL segment includes 2.4 MMBbls of underground storage capacity. Martin’s sulfur services include six fertilizer production plants and one emulsified sulfur blending plant located in Ill., Texas and Utah; and a sulfuric acid production plant in Plainview, Texas.

On the transportation side, Martin Midstream operates both marine and onshore assets along the Gulf Coast. Its marine operations include 33 inland tank barges, 18 inland push boats, and one offshore tug/barge unit to transport petroleum and petroleum byproducts. On land, Martin helms a fleet of tank trucks that transport petroleum products, LPGs, molten sulfur, sulfuric acid, paper mill liquids, chemicals, and other bulk commodities.

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