RMR features the latest high-point news to keep you up to date with midstream activities happening in the basins and shale plays that matter to you most.
Williams’ Latest Transco Expansion Completed and Open for Service
Investing in pipeline capacity continues to be the cornerstone of Tulsa-based Williams, especially when it comes to the company’s crown jewel, Transco. The 10,000- mile pipeline system, one of the nation’s largest, flows natural gas from four states along the Gulf Coast through Ga., S.C., N.C., Va., Md., and Pa. Phase II of the Hillabee expansion commenced service this week, increasing gas capacity from Ala., to Fla., power generation markets. In total, Phase I and II of the project increased Transco’s overall capacity to more than 17.6 million dth. Phase III of the project is expected to go online in 2021.
TC Energy Infuses More Cash into Keystone XL
In a time where most oil and gas companies are slashing CAPEX, Alberta, Can.,-based TC Energy has increased its budget this year to fund the beleaguered Keystone XL Pipeline—a 1,661-mile expansion of the 2,147-mile Keystone Pipeline. The company just announced plans to spend $7.14 billion on projects specifically for the XL, which will stretch from the Canadian border to Steele City, Neb. When completed, the oilsands pipeline will transport 830,000 BPD with connections to Gulf Coast refineries. TC Energy in late March received $1.1 billion in financial backing from the province of Alberta to move the project forward. The first phase of site prep on the XL is now underway on the U.S.-Canadian border. TC’s 2020 Q1 net income from its U.S. natural gas pipelines rose 5.8% to $594 million.
All Aboard the Strategic Petroleum Reserve
Amid looming tip-top tanks to store crude oil, nine producers now have leased 23 MMBbls of storage at the U.S. Strategic Petroleum Reserve in Texas. Those tanking advantage of the storage capacity include Chevron, Exxon, Alon USA, as well as smaller and medium-size producers, which can store crude through March 2021 in return for a small portion of their supplies to cover the cost of storage. Government discussions are ongoing to determine whether more capacity will be open to producers.
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