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Thursday, August 9, 2018

When Did This Pop Up? Where Did This Come From? The Black Snake May Get Bigger -- August 9, 2018

ETP plans to expand DAPL by 100,000 bopd. How do I almost miss these stories? From the linked site:
Energy Transfer is planning an expansion of its two key oil pipelines in the Bakken and Permian as crude output continues to grow substantially in both basins and producers seek more access to markets.
The 100,000 b/d expansion of Dakota Access Pipeline, commonly known as DAPL, is on the cards, Chief Operating Officer Marshall McCrea said on an earnings webcast, without indicating a timeline.
"We recently maintained [a throughput] over 500,000 b/d on DAPL and producers are still seeking options to move those barrels to multiple markets," McCrea said.
DAPL provides an outlet for producers in the land-locked Bakken and Three Forks areas of the Williston Basin to ship their barrels south under two options.
The first is to deliver crude to a storage hub in Pakota, Illinois, from where they will be able to access refineries in the US Midwest and also take the barrels on rail cars to the US East Coast.
The other option is taking the barrels farther south to Nederland, Texas, through the Energy Transfer Crude Oil Pipeline, where it can be run by local refineries or exported from the US Gulf Coast.
The 700-mile ETCO pipeline of capacity some 550,000 b/d is operated by Energy Transfer and runs from Patoka to Nederland, where it also owns a 26 million-barrel oil storage terminal.
More at the link.

The pipeline in the Permian: Permian Express-4. At the linked article:
Energy Transfer also plans to expand its Permian Express pipeline system, which ships barrels from that basin to Nederland, CFO Thomas Long said on the same earnings webcast. In the second quarter, the company successfully completed an open season to add up to 50,000 b/d on the Permian Express-3 line, with that new capacity to be made available to shippers by later this year, Long said. Energy Transfer is also planning an 80,000-100,000 b/d expansion to be dubbed Permian Express-4, Long said without indicating a time line.

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