President Barack Obama may or may not approve the Keystone XL pipeline, but it seems like the oil will continue to flow across North America.
Oil pipelines in the United States are undergoing a historic realignment in response to new production in the Eagle Ford development in south-central Texas, redevelopment of older production in the Permian Basin and new flows of oil from the Midwest and Canada that have oversupplied Midwest markets.
Here is an updated list of 38 projects planned or under way in the United States, including the controversial Keystone XL :
7 PROJECTS IN SERVICE
Shane Bevel/Bloomberg NewsA suite of pipeline expansions, including Enbridge Inc.’s Flanagan South, Seaway and Sandpiper lines, have sprung up around the furor over Keystone XL.
PROJECT: Seaway pipeline reversal
OPERATOR: Enterprise Product Partners and Enbridge Inc
ORIGIN/DESTINATION: Cushing, Oklahoma, to Houston, Texas
COST: US$300-million for initial reversal, US$2-billion for final expansion with new parallel loop pipeline.
CAPACITY: 150,000 bpd initially, with first expansion to 400,000 bpd in January 2013 and further expansion to 850,000 bpd by mid-2014.
STARTUP: First crude began flowing from Cushing on May 19, 2012; First expansion started up Jan. 11.
PROJECT: Eagle Ford crude-condensate pipeline and condensate processing facility
OPERATOR: Kinder Morgan Energy Partners
ORIGIN/DESTINATION: Eagle Ford shale formation to Galena Park, Texas, on the Houston Ship Channel
COST: Pipeline US$225-million; processing facility US$360-million; US$107-million pipeline expansion.
CAPACITY: Pipeline can carry about 300,000 bpd of both Eagle Ford shale crude and condensate in 65 miles of newly built pipe and 113 miles of a converted natural gas pipeline. Facility will process 100,000 bpd of Eagle Ford condensate and provide 1.9 million barrels of storage capacity. 31-mile pipeline expansion will connect Kinder Morgan’s station in in DeWitt County, Texas, to ConocoPhillips’ central delivery facility in Karnes County.
STARTUP: Pipeline started up June 14, 2012; Expansion to pipeline expected to start up in 2014; first phase of processing facility will start up in 2014, followed by the second phase in 2015.
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PROJECT: Enterprise Crude Houston Oil (ECHO) Terminal and Houston area pipelines
OPERATOR: Enterprise Products
ORIGIN/DESTINATION: Houston Ship Channel area
CAPACITY: Expansion approved to push storage capacity at the ECHO and Bertron facilities to more than 6 million barrels, with access to Enterprise’s marine terminal at Morgan’s Point on the Houston Ship Channel, and to be linked by pipeline to Eagle Ford shale to the west. Expansion includes 55 miles of 24-and 36-inch pipeline to connect the terminal with major refineries in the southeast Texas market with an aggregate capacity of about 3.6 million barrels per day, including plants in Baytown, Beaumont, Port Arthur and Texas City.
COST: n/a
STARTUP: Initial phase with 750,000 barrels of storage capacity complete in November 2012; expansion to be completed in phases, with the final phase finished in the fourth quarter of 2014.
PROJECT: Eagle Ford Shale pipeline
OPERATOR: NuStar Energy LP
ORIGIN/DESTINATION: 110-mile, 12-inch and 8-inch pipeline from Frio, LaSalle and McMullen counties NuStar’s 600,000-barrel storage terminal at Oakville in Live Oak County; then transports Eagle Ford crude to NuStar’s 1.6 million-barrel Corpus Christi North Beach terminal via an existing 16-inch pipeline.
COST: Part of NuStar’s US$325-million acquisition of TexStar Midstream Services LP’s 140 miles of Eagle Ford crude pipeline and gathering lines, and 643,400 barrels of storage assets; NuStar expected to spend up US$65-million to US$85-million, mostly in 2013, to integrate and complete gathering and terminal assets.
CAPACITY: 100,000 bpd of crude and condensates
STARTUP: Transporting more than 70,000 bpd, to ramp up to full capacity in mid-2013.
PROJECT: Longhorn Pipeline reversal
OPERATOR: Magellan Midstream Partners
ORIGIN/DESTINATION: Will reverse flow of Crane-to-Houston segment of Longhorn Pipeline, which currently carries refined products from Houston to El Paso, Texas, and convert the line to transport crude
CAPACITY: Initial 135,000 bpd; expanding to 225,000 bpd in 2013
COST: US$375-million
STARTUP: Started filling the reversed line with crude oil in March 2013, ramped up to 75,000 bpd by mid-April; will increase to full capacity by 3Q 2013.
PROJECT: Double Eagle Pipeline
OPERATOR: 50-50 joint venture of Magellan Midstream Partners and Kinder Morgan Energy Partners.
ORIGIN/DESTINATION: Connects to 50-mile, 14- and 16-inch existing pipeline owned by Kinder, enabling delivery of Eagle Ford condensate to Magellan’s marine and storage terminal in Corpus Christi from Three Rivers, Texas. Total project includes 140 miles of new 12-inch pipeline connecting to the existing line.
CAPACITY: 100,000 bpd initially, expandable to 150,000 bpd
COST: US$150-million
STARTUP: Pipeline began partial service in May 2013 and will reach full rates in mid-2013; the western leg of the project from Gardendale in LaSalle County, Texas, to Three Rivers to start up in the third quarter of 2013.
PROJECT: Bakken Access Program
OPERATOR: Enbridge Inc
ORIGIN/DESTINATION: Western North Dakota. Includes adding 26 miles of 16-inch pipeline between Enbridge stations in Beaver Lodge near Tioga, North Dakota, and Stanley; 29 miles of new 16-inch pipeline between Stanley and Berthold terminal; and expansion of Berthold with rail loading capability that can handle three unit trains at a time.
CAPACITY ADDED: 145,500 bpd pipeline capacity, additional 80,000 bpd of rail export capacity for a total of 120,000 bpd.
COST: US$560-million for pipeline; US$145-million for rail
STARTUP: March 2013
Eddie Seal/BloombergPatterson UTI Drilling Co. floorhands guide a section of drill pipe into a rack after it was removed from a natural gas well being drilled in the Eagle Ford shale in Karnes County, Texas
7 PROJECTS PARTIALLY IN SERVICE OR NEARING COMPLETION
PROJECT: West Texas crude system
OPERATOR: Sunoco Logistics Partners LP
ORIGIN/DESTINATION: Three different projects to bring Permian basin crude to Gulf Coast market. West Texas to Houston line – 40,000 bpd, expandable to 44,000 bpd, will carry West Texas Sour and West Texas Intermediate at Midland; West Texas to Longview Access – 30,000 bpd, to carry Permian crudes to the Mid-Valley pipeline to the Midwest; West Texas to Nederland Access – 40,000 bpd
COST: n/a
STARTUP: West Texas to Houston operational; West Texas to Longview to start up at the end of May 2013; West Texas to Nederland delayed by Exxon Mobil Corp’s shutdown of its Pegasus crude oil pipeline that carries heavy Canadian crude to Texas from Illinois. The Sunoco line is connected to the Exxon line, which shut in late March when it spilled 5,000 barrels into an Arkansas housing subdivision. Sunoco is awaiting word from Exxon on restart.
PROJECT: Permian Express, Phase I
OPERATOR: Sunoco Logistics Partners LP
ORIGIN/DESTINATION: Wichita Falls, Texas to Nederland, Texas
CAPACITY: Initial capacity will be 90,000 bpd, expected to reach 150,000 bpd. Phase II 200,000 bpd, under development, would go from Colorado City, Texas, to Nederland and further east to St. James, Louisiana and Louisiana refineries.
COST: n/a
STARTUP: Initial 90,000 bpd in June 2013, up to 150,000 bpd in late 2013 or early 2014.
PROJECT: Eagle Ford Pipeline
OPERATOR: Plains All American
ORIGIN/DESTINATION: 140-mile crude line and condensate from Eagle Ford production in Gardendale, Texas, to refineries in Three Rivers and Corpus Christi; and a new 35-mile segment from Three Rivers to Enterprise Products Partners’ Lyssy station in Wilson County.
CAPACITY: Targeted 350,000 bpd take-away from western Eagle Ford to Three Rivers/Corpus Christi, plus a marine terminal facility at Corpus Christi and 1.8 million barrels of operational storage capacity across the system.
COST: n/a
STARTUP: 140-mile pipeline operational; Corpus Christi dock in service in June 2013; and Lyssy line in service in August 2013.
PROJECT: Gardendale Gathering System expansion
OPERATOR: Plains All American
ORIGIN/DESTINATION: Four crude oil gathering pipelines, a total of 90 miles in length, extending from Dimmitt and La Salle counties to Plains’ Gardendale Terminal in South Texas. Will connect at Gardendale to long-haul pipelines that deliver crude to refineries in Three Rivers, Corpus Christi and the Houston area. Project includes construction of new Eagle Ford condensate stabilization facility adjacent to Gardendale terminal. Also a new 40-mile Gulf Coast crude oil pipeline originating from Plains’ Ten Mile terminal in Mobile, Alabama.
CAPACITY: 115,000 bpd of incremental gathering capacity; condensate facility 80,000 bpd.
COST: US$190-million for all three projects
STARTUP: Gardendale expansion completed in stages from autumn 2012 through the first half of 2013; 40,000 bpd of condensate facility started end 2012, second half in first quarter 2013; 40-mile Gulf Coast line to Alabama in service fourth quarter 2013.
PROJECT: Permian Basin Expansion Projects
OPERATOR: Plains All American
ORIGIN/DESTINATION: Various links extending, expanding crude oil lines in Permian Basin, West Texas.
CAPACITY: 145 miles of expansions of existing system to add total of 150,000 bpd in capacity in Texas, plus projects in southeast New Mexico
COST: US$250-million
START-UP: Late 2012 through 2013
PROJECT: Houma-to-Houston pipeline reversal
OPERATOR: Shell Pipeline LP
ORIGIN/DESTINATION: Houma, Louisiana, to Houston, Texas; reversal will run from Houston to Houma. Initial phase to allow deliveries of crude from connecting pipelines and terminals in Houston to Nederland and Port Arthur started up in January 2013; second phase extending reversal to move crude from Texas to Louisiana to be operational by the end of 2013. Phase Three expansion, adding additional pumping capability to push the line to its 250,000 bpd capacity, to be done by early 2014.
CAPACITY: 250,000 bpd
COST: US$100-million
STARTUP: First phase operational; Phase Two end 2013; Phase Three 2014.
PROJECT: Toledo Pipeline (Line 79) Expansion
OPERATOR: Enbridge Inc
ORIGIN/DESTINATION: Stockbridge, Michigan, to Toledo, Ohio
CAPACITY: Will increase to 180,000 bpd from 100,000 bpd
COST: US$197.57-million
STARTUP: As of mid-May 2013, project complete and startup pending within weeks.
Handout/Enbridge
24 PROJECTS UNDER CONSTRUCTION OR PLANNED
PROJECT: Pecos River Pipeline
OPERATOR: Blueknight Energy Partners LP
ORIGIN/DESTINATION: Pecos, Texas, to Crane, Texas, where a 16-inch, 70-mile line will connect to Magellan Midstream Partners’ reversed Longhorn pipeline to move Permian Basin crude oil to the Gulf Coast; a 95-mile extension will move crude from southern New Mexico to Pecos.
CAPACITY: 150,000 bpd
COST: n/a
STARTUP: The 70-mile line to be completed in the second half of 2013; 95-mile extension expected to move forward as demand rises for more takeaway capacity.
PROJECT: Gulf Coast Pipeline Project (southern leg of Keystone XL)
OPERATOR: TransCanada Corp
ORIGIN/DESTINATION: 485-mile, 36-inch pipeline from Cushing, Oklahoma, to Nederland, Texas; 48-mile lateral pipeline to Houston.
CAPACITY: Initial capacity of 700,000 bpd, expandable to 830,000 bpd
COST: US$2.3-billion
STARTUP: Mid to late 2013.
PROJECT: Mississippian Lime pipeline
OPERATOR: Plains All American
ORIGIN/DESTINATION: 135-mile pipeline from Alfalfa County near Alva, Oklahoma, to Plains’ storage facility at the U.S. crude futures hub in Cushing, Oklahoma; 55-mile extension will bring move crude to Alfalfa County from Comanche County, Kansas
CAPACITY: 175,000 bpd for the 135-mile line; 75,000 bpd for the 55-mile line.
COST: n/a
STARTUP: July 2013 For the larger line, 4Q 2013 for the extension.
PROJECT: Sweeny Lateral
OPERATOR: Kinder Morgan Energy Partners
ORIGIN/DESTINATION: 27-mile, 12-inch lateral from Kinder Morgan’s crude-condensate pipeline to Phillips 66’s 247,000 bpd refinery in Sweeny, Texas. Project includes truck offloading capability in Dewitt County, Texas, and four storage tanks in Wharton County with 480,000 barrels of capacity.
COST: n/a
CAPACITY: 100,000 bpd, expanded from 30,000 bpd
STARTUP: End 2013
PROJECT: South Texas Crude Oil pipeline expansion
OPERATOR: NuStar Energy LP
ORIGIN/DESTINATION: Will originate at a 100,000-barrel terminal NuStar will build near Pawnee in Karnes County, Texas, and will connect to NuStar’s existing 12-inch pipeline system between Pettus and Three Rivers. Also will connect existing 12-inch pipeline to NuStar’s Oakville terminal for crude delivery to the NuStar North Beach terminal. Crude to be transported to Corpus Christi via existing 16-inch pipeline and via new systems to be built to Corpus refineries. Project also includes truck-receiving facilities at the Pawnee and Oakville terminals and a new ship dock in Corpus.
CAPACITY: 100,000 bpd
COST: US$100-million to US$120-million
STARTUP: Pipeline expansion in fourth quarter 2013 and dock facilities in first quarter 2014.
PROJECT: Western Oklahoma Extension
OPERATOR: Plains All American
ORIGIN/DESTINATION: 95-mile extension of Plains’ Oklahoma pipeline system from Orion, Oklahoma to Reydon, Oklahoma at the western state line; will provide access to the Granite Wash and Cleveland sands oil plays in western Oklahoma and the Texas Panhandle.
CAPACITY: 75,000 bpd
COST: n/a
STARTUP: First quarter 2014
PROJECT: Silver Eagle Pipeline
OPERATOR: Blueknight Energy, Silverado Pipeline LLC
ORIGIN/DESTINATION: Reactivate 200 miles of existing 10- and 12-inch crude oil pipelines between Longview, Texas, and Houston
CAPACITY: n/a
COST: n/a
STARTUP: May 2014
PROJECT: Allegheny Access Pipeline
OPERATOR: Sunoco Logistics Partners
ORIGIN/DESTINATION: Midwest to eastern Ohio and western Pennsylvania.
CAPACITY: Initially 85,000 bpd, expandable to 110,000 bpd
COST: n/a
STARTUP: First half of 2014.
PROJECT: White Cliffs Pipeline
OPERATOR: SemGroup Corp
ORIGIN/DESTINATION: 527-mile, 12-inch crude oil pipeline from Platteville, Colorado, to Cushing, Oklahoma.
CAPACITY: 150,000 bpd
COST: n/a
STARTUP: First half of 2014.
PROJECT: BridgeTex Pipeline
OPERATOR: Occidental Petroleum Corp and Magellan Midstream Partners
ORIGIN/DESTINATION: 450-mile pipeline from Colorado City in the Permian Basin to Houston-area refineries, with access to Texas City and the Houston Ship Channel; project includes construction of 2.6 million barrels of crude storage
CAPACITY: 300,000 bpd
COST: US$1-billion; US$600-million from Magellan, US$400-million from Occidental
STARTUP: July 2014, construction under way.
PROJECT: Galena Park to Houston Gulf Coast crude distribution
OPERATOR: Magellan Midstream Partners
ORIGIN/DESTINATION: Pipeline and terminal system at Galena Park, Texas, to deliver crude from Magellan’s pipeline system Houston and Texas City refineries.
CAPACITY: n/a
COST: US$50-million
STARTUP: Mid-2014
PROJECT: Eaglebine Express
OPERATOR: Sunoco Logistics Partners
ORIGIN/DESTINATION: Proposal to reverse an underused refined products pipeline to move crude oil from the Eaglebine and Woodbine shale plays in Hearne, Texas, to Sunoco Logistics’ 22 million-barrel storage hub in Nederland, Texas
CAPACITY: n/a
COST: n/a
STARTUP: Open season launched; could start up by mid-2014.
PROJECT: Pony Express Pipeline
OPERATOR: Tallgrass Development LP
ORIGIN/DESTINATION: 430-mile converted natural gas pipeline and 260-mile new pipeline to carry North Dakota Bakken crude from Guernsey, Wyoming, to Cushing, Oklahoma
CAPACITY: 230,000 to 320,000 bpd
COST: n/a
STARTUP: Construction complete autumn 2013; full startup August 2014.
PROJECT: Cline Shale Pipeline System
OPERATOR: Centurion Pipeline, subsidiary of Occidental Petroleum
ORIGIN/DESTINATION: Irion, Sterling, Tom Green and Mitchell Counties in West Texas to Centurion’s existing Colorado City, Texas, station. 100 miles of new pipeline and several origination stations, each able to receive crude via truck or pipeline.
CAPACITY: 75,000 bpd
COST: n/a
STARTUP: Second quarter 2014
PROJECT: Eastern Gulf Crude Access Pipeline (formerly Trunkline Conversion)
OPERATOR: Energy Transfer Partners LP, 50/50 partner with Enbridge
ORIGIN/DESTINATION: Will convert and reverse a 30-inch natural gas pipeline to carry Bakken and Canadian crude from Patoka, Illinois to St. James, Louisiana, for refinery markets along the Mississippi River and the Louisiana Gulf Coast. Pipeline will span more than 700 miles including new lateral near Boyce, Louisiana, to St. James. Project also will include about 574 miles of converted natural gas pipeline, about 40 miles of new 30-inch pipeline from the Patoka hub to the northern end of the converted trunkline, and 160 miles of new 30-inch pipeline to the St. James hub. Depending on the response to an open season, the project may also include other lateral connections for deliveries to refineries.
CAPACITY: 420,000 bpd
COST: US$1.5-billion
STARTUP: Mid-2015; Open season launched June 5.
PROJECT: Cactus pipeline
OPERATOR: Plains All American
ORIGIN/DESTINATION: 20-inch crude pipeline from McCarney Texas to Gardendale, Texas
CAPACITY: Initially 200,000 bpd, expandable as demand warrants.
COST: US$350-million to US$375-million.
STARTUP: First quarter of 2015
PROJECT: Westward Ho
OPERATOR: Shell Pipeline
ORIGIN/DESTINATION: St. James, Louisiana to Houston
CAPACITY: Initially 300,000 bpd, expandable to 900,000 bpd depending on shipper interest.
COST: n/a
STARTUP: Third quarter 2015 pending regulatory approvals.
PROJECT: Southern Access Extension
OPERATOR: Enbridge
ORIGIN/DESTINATION: Flanagan, Illinois to Patoka, Illinois
CAPACITY: 300,000 bpd
COST: US$800-million
STARTUP: Early 2015
PROJECT: U.S. Mainline/Line 62 Expansion
OPERATOR: Enbridge
ORIGIN/DESTINATION: Flanagan, Illinois to Griffith, Indiana
CAPACITY: 130,000 bpd to 235,000 bpd
COST: $500 million
STARTUP: Mid-2015
PROJECT: U.S. Mainline/ Line 61 Expansion
ORIGIN/DESTINATION: Superior, Wisconsin, to Flanagan, Illinois
CAPACITY: 400,000 bpd to 560,000 bpd
COST: US$1.3-billion
STARTUP: Mid-2015-early 2016
PROJECT: Sandpiper Pipeline
OPERATOR: Enbridge
ORIGIN/DESTINATION: Bakken shale region to Superior, Wisconsin
CAPACITY: 375,000 bpd
COST: US$2.5-billion
STARTUP: Early 2016
PROJECT: Eastern Access/Line 6B Expansion
OPERATOR: Enbridge
ORIGIN/DESTINATION: Griffith, Indiana to Sarnia, Ontario
CAPACITY: 231,000 bpd to 491,000 bpd
COST: US$400-million
STARTUP: Early 2016
PROJECT: Southern Trails Pipeline conversion
OPRATOR: Questar Pipeline
ORIGIN/DESTINATION: 485 miles from San Juan Basin in New Mexico to Southern California near Essex, California; west section runs 96 miles from Whitewater, California to a crude oil terminal Long Beach. 485-mile section currently in use for natural gas, but volumes are low.
CAPACITY: 120,000 bpd
COST: n/a
STARTUP: 2016, pending results of review through mid-2013
Daniel Acker/Bloomberg
PROJECT: Keystone XL, northern leg
OPERATOR: TransCanada
ORIGIN/DESTINATION: Hardisty, Alberta, to Steele City, Nebraska
CAPACITY: 1,179-mile, 36-inch pipeline to be able to move 830,000 bpd; awaiting presidential permit from the U.S. State Department.
COST: US$5.3-billion
STARTUP: If presidential permit received in 2013, startup in 2015
2 PROJECTS CANCELLED
PROJECT: Freedom Pipeline
OPERATOR: Kinder Morgan
ORIGIN/DESTINATION: Midland and Wink Texas in the Permian Basin to Los Angeles, Barstow and Emidio, California. Project includes conversion of 740 miles of existing natural gas pipeline to move crude, 22 miles of new pipeline for interconnections in California, and 200 miles of new pipeline between Wink and El Paso, Texas; also construction of tank facilities in Texas and delivery points in California.
CAPACITY: Initially 277,000 bpd, expandable to 400,000 bpd
COST: US$2-billion
STARTUP: Would have started up in the fourth quarter of 2014, but canceled on May 31 after open season ending May 30 failed to solicit sufficient shipper interest.
PROJECT: Niobrara Falls Project
OPERATOR: NuStar Energy LP
ORIGIN/DESTINATION: New crude oil pipelines from gathering locations in the Niobrara shale near Platteville and Watkins, Colorado, to a tie-in point on NuStar’s existing refined products pipeline that runs from McKee, Texas to Denver. The products line will be reversed and converted to carry crude from Denver to McKee, and then connected with NuStar’s 14-inch Wichita Falls-to-McKee crude line, which also will be reversed to move oil to Wichita Falls from McKee.
CAPACITY: 70,000 to 75,000 bpd for Colorado, 125,000 to 130,000 bpd for Wichita Falls.
COST: n/a
STARTUP: Had been planned for 2013 and early 2014, but project canceled on lack of shipper interest; could be revisited as Niobrara production increases over the next two years
Ben Nelms/Postmedia News filesAn Enbridge Inc line break in Michigan in 2010 sent more than 20,000 barrels of Canadian oil into the Kalamazoo River system.
With files from Yadullah Hussain