Pipeline operator Energy Transfer Partners LP (NYSE: ETP) has restored power to a pumping station in West Texas and is in the process of restarting operations on two crude pipelines impacted by an outage following storms, a company spokeswoman said June 8.
The storms knocked out the company's Colorado City pumping station and storage facility, and impacted its West Texas Gulf and Permian Express II pipelines, the spokeswoman said.
Operations would be restored shortly, the spokeswoman added.
The West Texas Gulf crude pipeline runs from Colorado City to Goodrich, Texas, and the Permian Express II runs from origin points in West Texas to Nederland, Texas, near the U.S. Gulf Coast.
News of the outages weakened West Texas Intermediate (WTI) Midland differentials further on fears of more barrels being backed up in the region. WTI Midland weakened to trade as much as $9 a barrel under benchmark U.S. crude futures during the session.
WTI at East Houston, also known as MEH, strengthened on expectations of reduced flows to the region before easing to trade at about $8.20 a barrel over WTI.
RELATED: WTI Midland Market Future Remains Murky
The BridgeTex pipeline, a joint venture between Magellan Midstream Partners LP (NYSE: MMP) and Plains All American Pipeline LP (NYSE: PAA) which moves crude oil from West Texas to East Houston, was also shut and decreased power consumption was observed late on June 7, market intelligence firm Genscape reported.
BridgeTex was recently expanded from 300,000 bbl/d to a capacity of 400,000 bbl/d and is expanding again to about 440,000 bbl/d, to be operational in early 2019.
Traders said other lines affected include the Mesa Pipeline crude oil system and the 450,000 bbl/d Basin pipeline, which runs from the Permian Basin to Cushing, Okla.
Plains and Magellan did not immediately respond to requests for comment.
Recommended Reading
Guyana’s Stabroek Boosts Production as Chevron Watches, Waits
2024-04-25 - Chevron Corp.’s planned $53 billion acquisition of Hess Corp. could potentially close in 2025, but in the meantime, the California-based energy giant is in a “read only” mode as an Exxon Mobil-led consortium boosts Guyana production.
US Interior Department Releases Offshore Wind Lease Schedule
2024-04-24 - The U.S. Interior Department’s schedule includes up to a dozen lease sales through 2028 for offshore wind, compared to three for oil and gas lease sales through 2029.
Utah’s Ute Tribe Demands FTC Allow XCL-Altamont Deal
2024-04-24 - More than 90% of the Utah Ute tribe’s income is from energy development on its 4.5-million-acre reservation and the tribe says XCL Resources’ bid to buy Altamont Energy shouldn’t be blocked.
Mexico Presidential Hopeful Sheinbaum Emphasizes Energy Sovereignty
2024-04-24 - Claudia Sheinbaum, vying to becoming Mexico’s next president this summer, says she isn’t in favor of an absolute privatization of the energy sector but she isn’t against private investments either.
Venture Global Gets FERC Nod to Process Gas for LNG
2024-04-23 - Venture Global’s massive export terminal will change natural gas flows across the Gulf of Mexico but its Plaquemines LNG export terminal may still be years away from delivering LNG to long-term customers.