Energy Transfer Will Convert an Eagle Ford Gas Pipeline to Liquids to Supply Trafigura Terminal in Corpus Christi

Trafigura Terminals Eagle Ford Port in Corpus Christi

Energy Transfer has reached an agreement with Trafigura for liquids capacity that supports the development of a pipeline supplying the Port of Corpus Christi.

Energy Transfer will utilize existing infrastructure to construct an 82-mile, 100,000 b/d pipeline system from McMullen County to the Port of Corpus Christi.

Leveraging underutilized natural gas pipelines allows Energy Transfer to have the pipeline running in 9-12 months.

“This pipeline combined with our deep-water terminal enables Trafigura to offer a complete solution to producers who seek to take Eagle Ford to the broader market.”

— Jeff Kopp, Trafigura's Director of Oil for North America.

Oil Tanker Leaving Port of Corpus Christi

The pipeline will deliver crude to Trafigura's Port of Corpus Christi Terminal, where a $500 million construction project is underway on a second deep-water dock that is 850 ft long and has a draft of 45 ft. Once complete, the terminal will be able to handle Aframax vessels (245 meters or ~800 ft long). Aframax ships are medium-sized oil tankers with capacity of approximately 750,000 barrels.

Trafigura states the facility will be able to handle three medium range tankers and two inland barges at one time.

Atlas Pipeline Expects Full Utilization at Eagle Ford Processing Plants

Atlas Pipeline Partners Eagle Ford System

Atlas Pipeline acquired Teak Midstream earlier in the year and now expects to reach full utilization at its two processing plants (400 mmcfd) by year-end 2014.

The company's Silver Oak I plant is online with capacity of 200 mmcfd and the Silver Oak II plant (200 mmcfd) will be online in the first quarter of 2014.

Atlas is currently processing 155 mmcfd and expects full utilization of its first plant by year-end and full utilization of both plants by year-end 2014.

The 155 mmcfd being processed represents growth of 20% from the second quarter average of 122 mmcfd.

The company also has plans for a third Silver Oak plant with capacity of 200 mmcfd. The plant is still pending board approval, but it could increase the company's processing capacity to 600 mmcfd sometime in the second half of 2015.

NuStar Fills Expansion Phase 1, Still Receiving Commitments on Phase 2

NuStar Energy Eagle Ford System Map

NuStar Energy has received binding commitments filling its first phase of the company's planned Eagle Ford expansion.

Read more about the expansion in the article - NuStar Energy Planning Eagle Ford Pipeline Expansion

The first phase will increase capacity by 35,000 b/d to the company's Corpus Christi North Beach Facility. The second phase will increase capacity by as much 65,000 b/d. Phase 1 should be complete in the third quarter of 2014.

Kinder Morgan Crude & Condensate Pipeline Expanding Into Gonzales County - $74 Million

Kinder Morgan Crude & Condensate Expansion into Karnes County

Kinder Morgan announced another expansion in the Eagle Ford. The company will spend $74 million to expand the Kinder Morgan Crude & Condensate (KMCC) pipeline 18 miles from the DeWitt Station into Gonzales County.

The latest expansion isn't included on the map, but it will extend north from the point near Cuero, TX.

The 24-inch pipeline will have capacity of 300,000 b/d. The expansion will connect with a new facility in Gonzales County that will have 300,000 bbls of storage, a pump station, and truck offloading facilities.

Kinder Morgan Expanding Eagle Ford System Into Karnes County

The oil will move through the Kinder Morgan system to delivery points in the Houston Ship Channel or the Phillips 66 Sweeney Refinery in Brazoria County, TX.

“We are pleased to enter this long-term arrangement to move more Eagle Ford Shale product to the Houston Ship Channel and surrounding areas and once again provide much needed optionality to Eagle Ford producers and Houston market consumers.”

— Don Lindley, president, Natural Gas Liquids Business Development for KMP.

The expansion is supported by commitment from a major Eagle Ford operator. My first thought is it is probably EOG Resources (comment below if you agree or not). There are other operators in the area, but none come to mind that could make a commitment large enough to support development of a 300,000 b/d pipeline.

Not counting what has already been invested, Kinder Morgan has a total of $900 million in planned investments in the Eagle Ford.

Read the full press release at KinderMorgan.com

Martin Midstream LPG Plant Planned at the Port of Corpus Christi

Martin Midstream has purchased the last available Port of Corpus Christi property on Harbor Island. The company will construct a $550 million LPG plant on the 245 acre property. The facility could be completed in the next three years and will employ hundreds during construction and 50 full-time positions once completed. Add those to the already booming Eagle Ford jobs market.