must go to investorvillage mwe to get link. for those new investorvillage is free to read and allows links to still be posted
A 50-mile pipeline to cross from Washington to Westmoreland
February 7, 2013 5:00 am
By Tom Barnes
Folks who live in parts of Washington and Westmoreland counties can expect to see a "big ditch" being dug across the region starting in midsummer.
Sunoco Oil Co. plans to construct an underground pipeline about 50 miles long, starting in Houston, Washington County, and stretching to Delmont, Westmoreland County. It will carry liquid products derived from natural gas, such as propane and ethane.
When they reach Delmont, the "hydrocarbon derivatives" from the natural gas will be shipped through an existing pipeline that stretches all the way across the state to the southeastern Pennsylvania town of Marcus Hook, on the border of Pennsylvania and Delaware.
Marcus Hook is a large port and industrial complex along the Delaware River that once was the site of an oil refinery, said Joseph McGinn, a spokesman for Sunoco, which is headquartered in Philadelphia.
The natural gas products to be shipped under high pressure through the new Houston-to-Delmont pipeline will come from the massive area of Marcellus Shale that is deep underground.
Sunoco said the pipeline is one part of a $600 million project called Mariner East. Mr. McGinn said Sunoco is "in the site survey process to determine the route of the pipeline."
The pipeline will be run just south and east of the Pittsburgh border, but the exact route and the exact properties involved haven't been disclosed yet. The precise route probably won't be known for at least two more weeks.
Construction "will follow existing utility rights-of-way wherever possible, to minimize impacts to communities," Sunoco said in a statement.
Houston Mayor James Stubenbordt said he hasn't been told which properties in his area will be affected. "Nobody has met with us to discuss this," he said in a phone interview Tuesday. He said a council meeting is scheduled for next week, but he doesn't know whether Sunoco wi
NEOS Europe and Evergas enter into long-term shipping agreements
23 January 2013
INEOS Europe has entered into 15-years shipping agreements with Evergas for the transportation of ethane into Europe from the US Mariner East project.
Under the agreements, Evergas will build and operate new customised vessels that will be dedicated to the transportation of ethane from Marcus Hook, US to Rafnes, Norway.
These new agreements follow the recent completion of supply and infrastructure agreements by INEOS, to access ethane feedstocks from the US for use in its European cracker complexes and the announcement of the construction of a new ethane tank in Rafnes.
The new vessels, that will enter into service in 2015, are tailored to meet the specific needs of this project and will be built to the latest specifications matching highest environmental and efficiency performance measures.
David Thompson, Procurement & Supply Chain Director at INEOS Olefins & Polymers North said: "These shipping agreements are the final piece of the Mariner East Project, allowing INEOS to import competitively priced ethane to our Rafnes cracker from the US. Evergas' proposed solution matches perfectly our needs and offers innovative solutions such as the dual-fuel capability. We look forward to a mutually successful long-term relationship"
Martin Ackermann, CEO of Evergas said: "A strong commercial relationship, an open mind and a willingness to look to the future by INEOS has been imperative in developing innovative and technically advanced vessels that will offer safe, flexible, green and efficient transport solutions to the benefit of all involved parties."
The shipping agreement with Evergas follows a number of well timed investments by INEOS that will help secure a significant volume of ethane feedstock from the US, for use in its European cracker complexes.
On 26th September 2012, INEOS Europe announced that it had completed supply agreements with Range Resources for the lifting, of ethane from the Marcus Hook Facility from 2015. At the same time INEOS finalised Pipeline Transportation Services and Terminal Services Agreements for the shipping of ethane from Houston, Pennsylvania, to Marcus Hook, Pennsylvania, with subsidiaries of Sunoco.
On the 4th December 2012 INEOS also confirmed that it will invest in the construction of a new ethane tank at its Rafnes site in Norway. An EPC contract with TGE Gas Engineering for the construction of a new tank and expanded infrastructure has been signed, and the facilities will be commissioned in 2015. Construction work has already started.
The ethane imported from the US will allow INEOS to enhance the competitiveness of its business in world markets and as a consequence, secure the long term future of its sites in Europe.
thanks. not sure why you are deducting "non cash comp" in arriving at dcf. It is an adju in getting from cash flow to ebitda and would not be added back in unless there was a cash portion not included in G&A. I would only deduct maint. cap and cash int. exp. based on what they disclosed which gets you to $195 mm of $1.95 based on 100mm units or $1.91 based on 102 mm units and ye distribution is $1.88 unit so an est. coverage of 1.016 unit
from 4th quarter cc transcript-part 1
William H. Shea -
"...We expect our quarterly volume growth anticipated -- with the quarterly volume growth anticipated and the accompanying EBITDA and DCF, that our coverage ratio will be greater than 1x for 2013 on an as-paid basis.
Also remember that our results are somewhat seasonal, with the first quarter being a little lighter, due predominantly to weather that impacts well hookups and a general slowdown in activity levels. The second quarter will resume the growth, and the second half is anticipated to be strong...."
Michael J. Blum - Wells Fargo Securities, LLC, Research Division
Okay. Great. That will be very helpful. Can you also just talk about the decision to increase the distribution in the fourth quarter, just given where the guidance is going and where the fourth quarter numbers came in?
William H. Shea -
Sure, Michael. This is Bill, I'll take that one. Again, as I stated earlier, the Board of Directors takes a look at that issue every single quarter, and based on management's view of the future in terms of our ability to generate EBITDA and DCF to pay the distribution, and taking a look at our ratability and consistency of EBITDA and cash flow that we expect throughout 2013 and beyond, the decision was made to increase the distribution and continue the distributions that have occurred over the past several quarters. So I think the -- while the guidance has come down, the confidence level in the increase in EBITDA and DCF growth is there and supports the distribution increase on an as-paid basis. And as you know, the other units will be paid as of, I think, the middle of 2014. And at that point, we should be in a good shape to cover those as well.
ng processing margins are impacted by a drop in oil prices and an increase in ng prices or by an oversupply of process liquids components such as ethane, propane, etc. also all infrastructure mlps are hurtto some extent by a drop in prices that results in a drop in producer production volumes transported, even with minimum quantity terms
"Corbett: Shell not considering other sites for Beaver County ethane cracker
January 30, 2013 10:52 pm
By Erich Schwartzel / Pittsburgh Post-Gazette
Royal Dutch Shell is not scouting other states for sites to put the massive petrochemical plant that it has delayed building in Pennsylvania, Gov. Tom Corbett said Wednesday.
"If they're going to build it, they're going to build it here," said Mr. Corbett in an interview following a morning speech at a natural gas conference at the David L. Lawrence Convention Center, Downtown.
Shell signed a purchase agreement in March to build the ethane cracker plant on 300 acres in Monaca, a move that was heralded as a coup for the governor, who orchestrated a massive tax-incentive plan that helped beat offers from West Virginia and Ohio. The plant will process ethane extracted from the Marcellus Shale natural gas formation underlying the region.
But some feared the site selection wasn't a done deal when the company extended the purchase agreement by six months in December.
Mr. Corbett said Wednesday the extension is due to lawyers "dotting I's and crossing T's."
"I've not heard anything that's taking it off the rails," he said.
The nation's overall economic health, and not state jockeying, will determine whether Shell delays further or decides to pursue the project at all, he said.
During a speech delivered at the Marcellus Midstream conference Wednesday, Mr. Corbett had added a caveat to his section on the cracker plant, saying the facility -- "if built" -- will lead to thousands of jobs and a robust economy of spinoff companies.
The state has offered Shell a tax exemption package that is thought to be worth more than $1 billion for the plant."
Hi jdm. the Apache deal is an excellent add on. They continue to demonstrate their growth is in the midstream with the BP deal and then an add on like this.
If you can listen to the evep cc for last quarter they discussed why they are adding gathering and processing around their Utica production assets and they why the G&P supports and add value to their production, but clearly state not as a separate business line where the gathering and processing does not support their production assets. Look at many of the large E&P's except Exxon, chevron and maybe a couple of others. They have put their midstream assets into separate companies, mainly mlps and no longer try to run as a business line within their E&P company. Examples are ConocoPhillips (Phillips 66), Anadarko, Chesapeake (who eventually sold all of their midstream assets), EQT etc. I believe eroc has developed a unique franchise branding with their midstream assets in the panhandle and around SE Texas and should consider monetizing or spinning off their E&P assets into an e&p mlp to focus on midstream. As an example of a midstream opportunity mhr is going to monetize their midstream assets in Utica/Marcellus and eroc could consider trading some or all of their E&P assets with mhr for their gathering assets in the utica/marcellus and Texas if values were comparable for instance. another example is xtex just entered the Utica by buying some liquids transportation assets. EROC has an excellent chance to grow their midstream with their valuable e&p assets being monetized and I think the market would reward them for such a redirection in strategy
".. ExxonMobil Chemical has filed permit applications for a multi-billion dollar petrochemical expansion at the company’s integrated Baytown complex in Texas. The project would include a new ethane cracker and premium product facilities to capitalize on abundant supplies of U.S. natural gas.."
By combining new construction with an existing pipeline, Williams and Boardwalk believe that the Bluegrass Pipeline can be placed into service and begin serving customers sooner than other options. Williams and Boardwalk are engaged in comprehensive project development planning including project design, cost estimating, economic and risk analysis, customer contracting, permitting and other legal and regulatory approvals and right-of-way acquisition. Williams and Boardwalk expect to sanction the project this year and place the planned project into service in the second half of 2015 assuming all necessary conditions are met.
Sanctioning and completion of this project is subject to, among other conditions, negotiation and execution of definitive joint venture and related agreements; execution of customer contracts sufficient to support the project; and the parties receipt of all necessary approvals, including board approvals and regulatory approvals, such as antitrust clearance under the Hart-Scott-Rodino Antitrust Improvements Act, approvals by the Federal Energy Regulatory Commission (FERC), among others. Before Texas Gas Transmission may begin converting the TGT Loop Line, it must receive abandonment authority from FERC. Boardwalk plans to file the abandonment application with FERC by May 1, 2013 and the abandonment process is estimated to take between nine to twelve months.
Williams Cos. (NYSE: WMB) and Boardwalk Pipeline Partners, LP (NYSE: BWP) today announced that they have executed a letter of intent to form a joint venture that would develop a pipeline project to transport natural gas liquids from the infrastructure-constrained Marcellus and Utica shale plays to the rapidly expanding petrochemical and export complex on the U.S. Gulf Coast, as well as the developing petrochemical market in the Northeast U.S.
The proposed Bluegrass Pipeline design would provide producers with 200,000 barrels per day of mixed NGLs take-away capacity in Ohio, West Virginia and Pennsylvania. The proposed pipeline could be increased to 400,000 barrels per day to meet market demand, primarily by adding additional liquids pumping capacity. It would deliver mixed NGLs from these producing areas to proposed new fractionation and storage facilities, which would have connectivity to petrochemical facilities and product pipelines along the coasts of Louisiana and Texas. Williams and Boardwalk are also exploring development of a new export liquefied petroleum gas terminal and related facilities on the Gulf Coast to provide customers access to international markets.
As proposed, the Bluegrass Pipeline would include the following:
* Constructing a new NGL pipeline from producing areas in West Virginia and Ohio to an interconnect with Boardwalk s Texas Gas Transmission, LLC system (Texas Gas) in Hardinsburg, Ky.; * Converting a portion of Texas Gas from Hardinsburg, Ky. to Eunice, La. (the TGT Loop Line ) from natural gas service to NGL service, including construction of new pump stations and related facilities; and * Constructing a new large-scale fractionation plant and expanding natural gas liquids storage facilities in Louisiana and a new pipeline connecting these facilities to the converted TGT Loop Line. ..."
Recent upsizing of Utica JV may need to be repeated into 2014/2015
"...The Blue Racer Midstream JV I mentioned again joint venture where they came in developers, sellers as well as with dominion and we have high expectations based on that footprint as that footprint in our business plan. So again Marcellus and Utica and we think is a great place for Williams and we’re developing a very large position. Also in that area ACMP in which we have that major investment also has positioned and both the Marcellus and Utica so we have some other ways to win up there. Finally I mentioned Transco has got a couple of significant projects the northeast supply link going into service this year and a proposed Leidy Southeast project to go in service in 2015. So a lot of activity in the northeast and we think there much more to come..."
"...Ohio Valley Midstream as I mentioned is the Caiman acquisition and what we called since then we bought into that business last year and we indicated we had about 1.3 billion of expected capital investment following that acquisition and we’re busy building pipelines, processing plans, compression, fractionators and the like. The Gulfstream is very rich with NGLs and condensate and we’re working hard to, to try to keep up with the producers and that’s been the real challenge but nonetheless it’s a high-class prom to have because there is so much rich gas in the area that the drilling economics are very, very attractive.
So we see a great long-term growth there. we’ve started out a little bit slowly than we would have expected because it’s taken this longer to get things dealt then we’d like to see but again producers are eager to drill even faster. We’re also working on an NGL pipeline solution to bring NGLs from the northeast from the Marcellus and Utica to the Gulf Coast, we’ve not sanctioned such a project but we’re working hard to make that a reality not just for the investment we’re able to make but also to provide better drilling economics to producers in the Marcellus and the Utica such that drilling accelerates further for an extended period of time..."
"...Susquehanna Supply Hub again that business started up kind of 2010 by 2015, we expect to have 3 Bcf of takeaway capacity and volume so aggressively growing to meet that need. We’ve seen continuous expansions and our customers needs in Susquehanna County and we’re well positioned to meet those needs.
Very big wells, amazing wells out there and things are going quite well that also created the need for this Constitution Pipeline, which we mentioned over here. This pipeline will run from Susquehanna County up into the Northeast to that Iroquois Pipeline up there. So, that the production in this can access four major interstate pipelines to get to as many markets as possible and to get the best possible price for that gas. So, that - it’s a new project. It’s been commissioned.
A couple of our E&P customers are joint owners with us and that projects moving along and we expect that 2015 in-service date that’s currently sized to 650 million cubic feet a day. The Laurel Mountain Midstream I mentioned we joined the Atlas in that back in 2009 and then shortly after that Chevron bought out Atlas and so Chevron is our customer partner and we’ve got about 900 million takeaway capacity there by 2014 and the very big position with Chevron that dedication also extends up in the Northwest Pennsylvania which is an NGL-rich area and we expect to see the fruits of that in the coming years as well...."
"...Maybe just turn the page and take a look at what’s happening in the Marcellus and the Utica. We’re probably investing somewhere close to 45% of our capital in the Marcellus Utica area over the next several years and for good reason. This is an enormous basin or basins and we’ve a very big footprint in the Northeast and we’re determined to be a leader in that market or markets. We established our first foothold their in 2009, when we bought 50% interest in Atlas’ Laurel Mountain gathering system and since then Atlas sold the E&P business to Chevron so Chevron is now our partner and our customer at Laurel Mountain.
And then we moved up sort of Cabot and WPX Energy and others up in Susquehanna County. And then we stepped into the Ohio Valley area down in West Virginia with an acquisition of the Caiman business about this time last year. And then in December, we announced a joint venture in the Utica, where we took the joint venture we had with the former Caiman owners and combine that with Dominion form of Blue Racer Midstream to compete in the Utica using a lot of Dominion’s existing assets and Williams and the Caiman teams’ capital and know-how...."
We Expect to Attain a 1.0x Coverage Ratio in the 4th quarter of 2013
In the fourth quarter of 2013 and for the full year of 2014 we expect our
coverage ratios to exceed 1.0x
Assumes no equity issuances in 2013 & 2014
These coverage ratio levels should be attained even if the TexStar NGL
Asset transaction does not close
was 45 mmcf/d. wonder if they are trucking to silioam which was briefly;y touched on in cc as an outlet for certain situations