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Natural gas plant planned for Oklahoma
SemGroup Corp., Tulsa, and Exterran Holdings Inc., Houston, will develop a 60-MMcfd natural gas processing plant for SemGas LP. The plant and equipment are needed, the companies report, to meet the growing demand for midstream services in the Mississippi play.
SemGroup spokesperson Liz Barclay told OGJ the precise location for the plant has yet to be decided but it will be in the northern Oklahoma and southern Kansas.
Exterran will design and fabricate the plant that will "feature state-of-the-art cryogenic technology for natural gas liquid extraction and enhanced ethane recovery."
Plains to buy, scrap idle Virginia refinery
Western Refining Inc. agreed to sell its idle 70,000-b/d Yorktown refinery and working terminal in York County, Va., and part of a crude oil pipeline in southeastern New Mexico to units of Plains All American Pipeline LP for $220 million.
The refinery has been idle since September 2010, operating as a products terminal and storage facility (OGJ Online, Sept. 13, 2010). The buyers are Plains Marketing LP and Plains Pipeline LP. Plains All American said it will disassemble and sell surplus equipment at the site and "enhance connectivity and performance of the Yorktown terminal," which has storage capacity of 6.6 million bbl of crude oil, products, and LPG.
The company will acquire an 82-mile, 16-in. crude oil pipeline segment and related connections and tanks in New Mexico, adding as much as 100,000 b/d of delivery capacity to the Jal station on its Basin Pipeline system.
TRANSPORTATION — Quick Takes
Enbridge to expand Bakken shale crude rail terminal
Enbridge Energy Partners LP (EEP) will expand its Berthold rail terminal capacity in the Bakken shale by 80,000 b/d and include a rail car loading terminal to accommodate the additional volume. EEP has contractual commitments for 70% of the rail loading capacity and anticipates it will soon finalize agreements for the remaining capacity.
The Berthold Rail Project includes construction of a double-loop unit-train terminal, crude oil tankage, and other terminal facilities adjacent to its existing facilities near Berthold, ND. The project will have capacity to stage three unit-trains at Berthold at any given time. After an initial 10,000 b/d Phase I start-up in July 2012, the full 80,000 b/d of rail export capacity will enter service in early 2013.
EEP described the $145 million project as complementing its Bakken Expansion Program, integrating gathering pipeline capacity in western North Dakota and eastern Montana with increased North Dakota export capacity.
EEP expects Bakken Expansion, announced August 2010, to add 145,000 b/d of takeaway capacity from the Bakken and Three Forks formations in Montana, North Dakota, and southeast Saskatchewan, 25,000 b/d of which is already available (OGJ Online, Feb. 18, 2011). The company expects the remaining 120,000 b/d to enter service by early 2013, a slight delay from initial predictions of late 2012. The Bakken Expansion will cost roughly $370 million for the US projects and $190 million (Can.) for the Canadian projects.
EEP also announced the $90 million Bakken Access Program in October. Bakken Access involves increasing gathering pipeline capacities, construction of additional storage tanks, and addition of truck access facilities at multiple locations in western North Dakota to supply the Bakken Expansion.
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