Enterprise Products Pipeline Gets Green Light in Austin County TX

Enterprise Product's Eagle Ford Shale pipeline has gotten the green light from the town of Sealy, TX and Austin County, TX. We're closer to having the needed infrastructure for moving larges volumes of Eagle Ford crude. The pipeline has a planned capacity of 350,000 barrels of oil per day. Hopefully, the pipeline companies stay in front of oil production and we don't see the oil price discounts experienced in North Dakota's Bakken Shale.

"Enterprise Crude Pipeline LLC is making its own play to tap the resource, near Sealy, and Austin County commissioners’ have agreed to proceed with installation of a new pipeline. But, with conditions."“ 'It needs to be contingent on whether we can get everything we need to get it done,” said Precinct 4 Commissioner Douglas King."

"Commissioners agreed, and gave a green light to the project, but only if all supplies are available."

"Enterprise Crude Pipeline LLC is the petitioner, and will be given permission to begin construction as soon as equipment details can be resolved."

"The project is to tap the resources of one of the deepest and oldest shale plays in the nation, the Eagle Ford Shale, of which Austin County is a part."

Read the full news release at SealyNews.com

Kinder Morgan Expects Eagle Ford Shale Growth

Kinder Morgan expects future growth in its Eagle Ford Shale pipeline gathering and transport assets. The company expects the acquisition of Petrohawk by BHP to only enhance value across the Haynesville Shale and Eagle Ford Shale.

"On July 1, we closed on our agreement to buy Petrohawk's 50% interest in KinderHawk Fuel Services, and a 25% interest at Petrohawk's Gathering and Treating business in the Eagle Ford Shale in South Texas.  Now we own 100% KinderHawk, which has over 400 miles of pipeline in the Haynesville Shale play and approximately 2 Bcf a day of capacity. We have throughput that is now above 1 Bcf a day and growing. And we think this is just a tremendous long-term asset. We believe its value has been enhanced by the pending purchase of Petrohawk by BHP. And if you look at the BHP's presentation, we saw some pretty significant ramp up in dollars they expect to spend on their drilling program. Now that drilling program embraces Haynesville and Eagle Ford together with smaller position in the Permian. But we think this bodes very well for our assets, both in Haynesville and Eagle Ford.""We now own also the 25% of what's called EagleHawk Fuel Services in the Eagle Ford. That's 280 miles of gas gathering lines and 120 miles of condensate gathering lines. And we think the Eagle Ford Shale is an area that where throughput will grow dramatically as drilling down there continues to expand."

Read the full press release at SeekingAlpha.com

Blue Dolphin Enters the Eagle Ford Shale

Blue Dolphin enters the Eagle Ford Shale processing game through its latest acquisition. The facility sits near Nixon, TX, between Gonzales County and Wilson County. Processing capacity is 15,000 barrels per day with storage capacity of 295,000 barrels.

"Houston-based Blue Dolphin Energy Co. (OTCQB: BDCO) has acquired a processing facility in the Eagle Ford shale play."

"Blue Dolphin bought the 56-acre Nixon Crude Processing Facility from a privately held company in an all stock transaction."

"The Nixon Facility is in the final phase of refurbishment and should restart this quarter."

The processing facility is actually an idled refinery that Blue Dolphin will likely refurbish and bring back online.

NuStar Energy - Koch Move Eagle Ford Shale Crude

Eagle Ford Shale crude oil can be moved by truck, but pipelines are much more efficient. NuStar and Koch can now move 30,000 barrels per day of crude from Pettus, TX in Bee County to Corpus Christi. The pipeline is the latest of many to help alleviate crude oil transportation issues in South Texas

"It takes a day for 30,000 barrels of crude oil to flow 60 miles through a 10-inch-diameter pipeline.""That's the amount of Eagle Ford Shale crude oil that has been pulsing from Pettus, in Bee County, to Corpus Christi since the line's valves opened on June 21."

"It would require more than 150 tanker trucks — with all the costs for fuel, drivers and other overhead — to do the same job, NuStar Energy spokesman Greg Matula said."

"The company is looking into rejuvenating other unused lines, which it has throughout the region, and hooking them into its growing distribution network, Matula said."

"NuStar's and Koch's partnership boosts regional carrying capacity for shipping Eagle Ford Shale oil from interior South Texas to Corpus Christi."

" 'This project is part of a larger strategy to create even greater logistical options for our customers in the Eagle Ford region,' said Curt Anastasio, president and CEO of NuStar, in a news release. 'The Pettus South pipeline complements Koch's expanded pipeline system in South Texas so it's a win-win for both our companies.' "

Meritage Building Webb County TX Gathering

Meritage Midstream is constructing a Webb County, TX, wet gas gathering system. The Cuervo Creek Pipeline will cover a large portion of the county from Encinal, TX, to Laredo, TX. The gathering system will benefit from the growing volumes of gas production from the Eagle Ford Shale. The 16 inch Cuervo Creek Pipeline will stretch over 60 mills with a capacity of 150 mmcfd. Escondido Resources will be the anchor shipper on the pipe.

"Meritage Midstream Services is planning to construct a new rich gas gathering system, known as Cuervo Creek Pipeline in the US state of Texas.""Located in Webb County, the Cuervo Creek Pipeline will cover nearly 1,300sq m from Encinal south to Laredo."

"The 60-mile system, having multiple downstream interconnects, enables Meritage customers to move rich gas to high value markets out of the multizone, rich gas developments taking place in the region, including the Eagle Ford shale."

Read the full news release at EBR.com