NEW YORK—MPLX LP said on Jan. 29 the reversal of the Capline pipeline was progressing as planned, with the line on track to begin light crude service in mid-2021 and heavy crude service in 2022.
Capline, the largest U.S. crude pipeline, currently runs from the Gulf Coast to refineries in the Midwest.
Volumes on Capline, once a major artery for imports and Gulf of Mexico crude used by U.S. Midwest refiners, have declined sharply as the U.S. shale boom has pushed inland crude to the East Coast and Gulf Coast.
The line, once reversed, is expected to boost flows of Canadian and Midcontinent crude to the St. James, La., market.
MPLX said that during the fourth quarter, it completed purging on the mainline, a process during which contaminants are removed from the piping.
Wink-to-Webster
The Wink-to-Webster Permian crude oil project, in which MPLX has a 15% equity ownership, is also advancing, the company said during its fourth-quarter earnings call.
The 1.5 million barrel-per-day (bbl/d) pipeline system is expected to be in service in early 2021 and all of the contractable capacity of the line is covered by minimum volume commitments, MPLX said.
Midstream companies have raced to add pipeline capacity from the Permian, the biggest U.S. shale oil basin, to the Gulf Coast as the shale boom has helped send U.S. crude exports to record highs.
However, the pace of new projects has slowed as production growth is expected to ease due to producers’ plans to reduce spending on new drilling for a second year in a row in 2020.
During the fourth quarter, the 2 billion cubic feet per day (Bcf/d) Whistler natural gas pipeline progressed further, with about 95% of its capacity committed with minimum volume contracts, MPLX said.
The line is expected to start up in the second half of 2021.
MPLX said a final investment decision on its Permian to Gulf Coast NGL pipeline, called BANGL, is expected in the near term.
Recommended Reading
SilverBow Rejects Kimmeridge’s Latest Offer, ‘Sets the Record Straight’
2024-03-28 - In a letter to SilverBow shareholders, the E&P said Kimmeridge’s offer “substantially undervalues SilverBow” and that Kimmeridge’s own South Texas gas asset values are “overstated.”
SM Energy Declares Quarterly Cash Dividend
2024-03-26 - SM Energy’s dividend will be paid out on May 3 to stockholders on record as of April 19.
Matador Stock Offering to Pay for New Permian A&D—Analyst
2024-03-26 - Matador Resources is offering more than 5 million shares of stock for proceeds of $347 million to pay for newly disclosed transactions in Texas and New Mexico.
Par Pacific Asset-based Revolving Credit Bumped Up by 55%
2024-03-25 - The amendment increases Par Pacific Holdings’ existing asset-based revolving credit facility to $1.4 billion from $900 million.
California Resources Corp. Nominates Christian Kendall to Board of Directors
2024-03-21 - California Resources Corp. has nominated Christian Kendall, former president and CEO of Denbury, to serve on its board.