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.
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