Monday, December 23, 2024

Magellan Midstream Partners News

Magellan Begins Refined Products Transportation on Hearne Pipeline

Photo: Magellan Midstream

Magellan Midstream Partners LP said on Wednesday it had commenced operation of a new 135-mile, 20-inch diameter refined products pipeline from its East Houston terminal to Hearne, Texas.The company also said construction of a pipeline spur from the new system to the George Bush Intercontinental Airport was also complete and would be in operation by Nov. 1, once testing is finalized.Completion of the…

US Oil Export Boom Sparks Battle to Build Texas Ports

© Robert Coy / Adobe Stock

Booming U.S. oil exports have set off a scramble to build Gulf Coast ports to handle more than 3 million barrels per day in new supplies expected over the next five years.Of seven proposed oil-export projects, nowhere is the opportunity greater or the competition more fierce than in Corpus Christi, Texas, where three firms are vying to open the state's first deepwater port.Commodities trader Trafigura…

U.S. Pipeline Operators Reap Hefty Profits from Bottlenecks in Texas

Photo: Occidental Petroleum Corp

Some of the biggest pipeline operators in the United States have supercharged earnings this year by buying deeply discounted shale in West Texas oilfields and selling it at a premium at Gulf Coast ports.These companies are taking advantage of extraordinary markdowns in West Texas where surging production and a lack of pipeline space sent the regional price for oil in late August $23 per barrel below…

Cushing's Market Clout Wanes Amid U.S. Crude Export Boom

The volume of oil sitting in 300 steel tanks in a nine-square-mile radius in Cushing, Oklahoma has long been a key barometer for the health of U.S. crude supply and the nation's benchmark for daily trading of billions of dollars in the commodity. But those tanks could soon drain to levels near effectively empty, even as U.S. oil production soars past a new record of 10.4 million barrels per day. Oil supplies have fallen before in Cushing for a variety of seasonal or market-driven reasons.

Oklahoma Orders Cut to Disposal Well Volumes Following Quakes

© Jim / Adobe Stock

Oklahoma regulators forced an oil and gas producer to reduce operations on a well used for disposing saltwater following a large earthquake over the weekend that set off a series of seismic activity in the state, Matt Skinner, spokesman for the Oklahoma Corporation Commission (OCC), said on Monday. The temblors occurred near Perry, Oklahoma, in the northwestern part of the state, within an area signaled out by regulators for the frequency of earthquakes from oil and gas production activities.

Magellan Midstream Plans Expansion of Fuel System in Texas

Photo: Magellan Midstream Partners

The pipeline's current capacity of 100,000 barrels per day (bpd) could increase to 140,000 bpd following the expansion. The expansion would boost Magellan's capability to haul fuel from Gulf Coast refineries to demand centers in Abilene, Midland/Odessa and El Paso, Texas, markets in New Mexico and Arizona, and international markets in Mexico. The expanded capacity could be operational by mid-2020, subject to customer interest and regulatory approval, the company said in a statement.

Texas Flood: U.S. Oil Pours into Global Markets

United States taking share from OPEC nations in Asia, Europe, as China’s biggest U.S. crude buyer to double imports. In the two years since Washington lifted a 40-year ban on oil exports, tankers filled with U.S. crude have landed in more than 30 countries, ranging from massive economies like China and India to tiny Togo. The repeal has unleashed a flood of U.S. shale oil, undercutting global crude prices…

Oil Producers Want New Hearing on Impact of Magellan Proposal

Oil and gas producers WPX Energy and Chevron have asked a U.S. regulator for a new hearing on the broad industry impact of Magellan Midstream Partners' request to launch a marketing arm, signaling concerns about the effect it could have on shipping oil in the United States. The two firms late on Tuesday became the latest energy companies, including Plains All American's Plains Marketing LP and Energy Transfer Partners…

Minnesota Pipeline Leaks 300 Barrels of Gasoline

The leak occurred in Eagan, Minnesota and was caused by third-party excavation equipment, the company said. Magellan said emergency responders are on site and a few business operations in the immediate area have been evacuated. Several roads have been temporarily closed.

Oil/Chemical Spills from Harvey Are Big, but Dwarfed by Katrina

More than 22,000 barrels of oil, refined fuels and chemicals spilled at sites across Texas in the wake of Hurricane Harvey, along with millions of cubic feet of natural gas and hundreds of tons of other toxic substances, a Reuters review of company reports to the U.S. Coast Guard shows. The spills, clustered around the heart of the U.S. oil industry, together rank among the worst environmental mishaps in the country in years…

As Texas Output Surges, Cash Discounts Soar

Surging West Texas oil production has pushed the value of the region's spot crude to its lowest discount to the U.S. oil benchmark in nearly two years, as an exuberant shale industry pumps more to take advantage of higher prices and demand from refiners who have seen supplies cut by top global producers. OPEC and non-OPEC suppliers are working toward cuts of 1.8 million barrels per day, around 2 percent of the 92 million bpd global market…

Energy pipelines back in investor favor after Trump orders

Investors have rushed back into North American pipelines after U.S. President Donald Trump revived growth prospects in a sector that struggled to cope with a two-year oil price slump and strident opposition from environmental and Native American activists. Investor confidence in the industry was shaken last year when the administration of former President Barack Obama halted the $3.8 billion Dakota Access Pipeline, just as Energy Transfer Partners had nearly finished building it.

Traders Eye Export Markets as U.S. Crude Futures Pummeled

Brent/WTI spread presents window of opportunity; Vitol said to have secured two vessels. A ballooning spread between the price of U.S. and European oil, coupled with lower shipping costs, has traders scrambling to take advantage of what may be a brief window of opportunity to ship crude to higher priced markets. The premium for Brent futures relative to U.S. West Texas Intermediate (WTI) crude rose above $1.50 barrel on Thursday…

Keystone Snub Adds to Gloomy Prospects for Pipeline Companies

North American pipeline companies are at a crossroads. Once the darlings of investors, their growth prospects have been undercut by a 50 percent slide in oil prices and tough environmental reviews that have delayed projects. President Obama's rejection on Friday of TransCanada Corp's proposed Keystone XL oil pipeline, while expected by many, highlighted difficulties that have been nagging the sector for months.

Kinder Morgan Mulls LPG, Product & Crude Exports

Kinder Morgan Inc is considering more export opportunities from Texas and the U.S. Northeast, including liquid petroleum gas, refined products and potentially crude, a top executive told analysts on Wednesday. "The market is very ripe in Houston right now, it's just a matter of which product makes the most sense," John Schlosser, head of Kinder Morgan's terminals division, said during a quarterly earnings call.

Oil Glut Strains West Texas Storage Logistics

Four-hundred miles from the near overflowing tanks at the U.S. oil hub in Cushing, Oklahoma, a second glut in the Permian Basin of West Texas is pressuring oil prices once again as pipeline disruptions strand millions of barrels in the region. The Permian, the fastest-growing shale play, accounts for about a fifth of the country's total oil production, and is expected to produce about 2 million barrels of crude a day in May. The region houses over 20 million barrels of crude storage.

Magellan Midstream, TransCanada to Develop Houston Pipeline

Magellan Midstream Partners LP and TransCanada Corp, Canada's second-largest pipeline company, said on Tuesday they will develop a pipeline to connect TransCanada's Houston tank terminal to Magellan's East Houston terminal. The project will give shippers on TransCanada's Keystone and MarketLink lines access to Magellan's Houston and Texas City crude oil distribution system, the companies said on Tuesday.

Magellan, PAA to Build Saddlehorn Pipeline

Magellan Midstream Partners, L.P. and Plains All American Pipeline, L.P. have formed Saddlehorn Pipeline Company, a 50/50 limited liability company, to construct, own and operate the Saddlehorn pipeline, an approximately 550-mile pipeline that will transport various grades of crude oil from the DJ Basin, and potentially the broader Rocky Mountain area resource plays, to storage facilities in Cushing, OK owned by Magellan and Plains.

Kinder Morgan Bolsters Gulf Logistics Infrastructure

Photo courtesy of Kinder Morgan

To capitalize on a flood of domestic and Canadian crude into the U.S. Gulf Coast, logistics giant Kinder Morgan Energy Partners is spending more than $1.5 billion in Houston to build the most flexible oil and fuel transport hub in the country. The company's expanding infrastructure smorgasbord includes a bit of almost everything at the increasingly crowded Houston Ship Channel - all next door to the biggest concentration of refiners in the country.

Magellan Sold 90% of BridgeTex Oil Line Capacity

Magellan Midstream Partners' has sold nearly 90 percent of the capacity on its 300,000 barrel-per-day BridgeTex oil pipeline, which starts up later this month, the company's chief executive said on Tuesday. BridgeTex, which is expected to become a key supply route to alleviate a glut of crude oil in the Permian Basin, will run from Colorado City, Texas, to refineries on the Gulf Coast near Houston.