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Permian Basin 2017

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PERMIAN BASIN: MIDSTREAM 68 | November 2017 | hartenergy.com tation business in the Eagle Ford and the Rockies as well as a national gas marketing system." Capobianco is particularly sanguine about the prospect of gas exports to Mexico. "We are already an important supplier, and that is going to grow. I see 4 Bcf/d to 6 Bcf/d or more of gas flowing south over the next five years." Roll out the barrels While gas processing accelerates, crude transport remains on pace. There had been reports that the Permian Express III expansion that Energy Transfer Partners has underway had its start date delayed by six months, but the company confirmed to Hart Energy that the project is on schedule for initial operations by the end of this year. In a written statement ETP clarified that "in the earnings call Aug. 8 we stated Phase 1 of PE III is expected to be completed by year-end. As stated in the [May 15] press release, we may launch another open season later this year, which would be Phase 2, which would reflect the [mid-]2018 date." Sources in the basin who are familiar with the project confirm that the taps will turn by the end of the year, but the expansion is not expected to reach its full 100,000-bbl/d capacity until mid-2018. Ultimately the line could reach 300,000 bbl/d with debottlenecking and addi- tional intermediate pump stations. Decisions on further capacity enhancements depend on the next open season. At Hart Energy's third annual Midstream Texas conference in Midland, Texas, in June, Magellan's senior vice president for the crude oil division, Robb Barnes, spoke about the Permian and his firm's BridgeTex pipeline in detail. As an update for this report the company detailed that, "the capacity of BridgeTex has now been expanded from 300,000 bbl/d to 400,000 bbl/d to deliver Permian crude to the Houston area. Bridge- Tex has open season in process [in late August] to solicit binding commitments for that incremental increase in capacity. The open season has not yet closed, but we have already received committed vol- umes and are optimistic that additional commit- ments will be secured before the open season closes. In addition, if warranted by customer demand, BridgeTex may further expand the capacity of the line up to approximately 440,000 bbl/d, which is what we estimate to be the maximum capacity." Rangeland Energy is something of a leading indicator in North American unconventional plays. It was among the first to build a commercial unit- train terminal in the Bakken, then sold its interests in that play in 2012 to form Rangeland II in the Permian in 2013 and then Rangeland III to focus on Canada and Mexico more recently. A new office in Calgary was opened last year. The Rangeland Geneva Terminal, with the sister terminal at Zurich, is part of the RIO pipeline system from Eddy County, N.M., to Midland, Texas. (Photo courtesy of Rangeland Energy)

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