Projects in February came rolling in, targeting multiple areas throughout the U.S. New announcements include pipeline and gathering system expansions, logistical railroad facilities, a gas processing plant and a project to further the facilitation of exports of natural gas resources.
As the discussion on liquefied natural gas (LNG) exports heats up, Shell US Gas & Power LLC, a subsidiary of Royal Dutch Shell plc, and Southern Liquefaction Co. LLC, a Kinder Morgan company and unit of El Paso Pipeline Partners LP, announced they will jointly develop a natural gas liquefaction plant at the existing Elba Island LNG Terminal near Savannah, Georgia.
According to a statement released by the companies, the project, which is subject to regulatory approvals, is expected to have liquefaction capacity of approximately 350 million cubic feet (MMcf) of gas per day. The Elba Island terminal has already received approval from the U.S. Department of Energy (DOE) to export 500 MMcf per day of LNG to Free Trade Agreement (FTA) countries. The companies are currently awaiting a DOE decision on exports to non-FTA countries.
As the growing need for infrastructure continues, ONEOK Partners LP announced that the company plans to invest nearly $500 million into growth projects from now until 2015. The company said it plans to build a new 100 MMcf per day natural gas processing facility in eastern McKenzie County, North Dakota, construct a new 95-mile natural gas liquids (NGL) pipeline between Hutchinson, Kansas, and Medford, Oklahoma, and modify NGL fractionation infrastructure at Hutchinson, Kansas. These three projects bring the partnership’s total investments program to between $4.7 billion and $5.3 billion. All three projects are expected to be in service by the first quarter of 2015.
Elsewhere, Genesis Energy LP announced plans to invest approximately $125 million to improve and expand the company’s existing assets as well as develop new infrastructure in Louisiana. In a statement, Genesis said it plans to improve its existing terminal at Port Hudson, Louisiana, and build a new 18-mile, 20-inch crude oil pipeline connecting Port Hudson to the Maryland Terminal in Baton Rouge. According to the company, construction is scheduled to begin early this year. The Port Hudson upgrades and crude oil pipeline are expected to be completed by the end of 2013. The Maryland Terminal completion is scheduled for the second quarter of 2014.
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