MIDSTREAM NEWS

Cheniere donates $1M to Red Cross Relief effort

Cheniere Energy Inc. will make a $1 million donation to the American Red Cross to assist in the relief and recovery efforts following Hurricane Harvey.

As the storm continued to impact the Houston area, Cheniere activated its emergency office location in Dallas to support its gas supply and trading division and other essential functions to ensure obligations are met to continue producing LNG at Sabine Pass.

Valiant secures equity commitment from Tailwater Capital

Valiant Midstream has secured a $150 million commitment from a Dallas-based Tailwater Capital. The commitment is the first from Tailwater's midstream fund, Energy Fund III. Tailwater expects to increase its commitment to Valiant as the company executes its growth strategy.

Permico Energia plans NGL pipeline and fractionator project

Permico Energia, a privately held Houston-based midstream energy company, plans to construct a new Texas natural gas liquids (NGL) system comprised of 510 miles of 24-inch pipeline to ship West Texas Permian Basin NGL production to its planned 300,000 barrels per day fractionator near Corpus Christi, Texas. The project scope also includes construction of a 350-mile system of downstream product pipelines which will provide access to an eight-million-barrel NGL storage facility and to Texas Gulf Coast industrial markets, including the Mont Belvieu area.

Construction is expected to commence in the second quarter of 2018 and the system's initial capacity of 300,000 barrels per day will be operational in the fourth quarter of 2020.

"Permico's new energy corridor will provide operating and cost advantages over the traditional Mont Belvieu options, which will enable us to provide reliable, economically superior solutions to the growing demands of our customer partners," said Jeff Beicker, CEO of Texas Permico Partners, a wholly owned subsidiary of Permico Energia. "We have enjoyed a positive reception from both sides of the pipe and are currently negotiating long term producer and industrial partner contracts."

Project funding has been secured through long term commitments from Korean investment banking and pension fund institutions, with Sumitomo Mitsui Bank Corp. serving as lead syndicator for the senior debt financing. At present, all project equity has been committed and senior debt financing is expected to close in the first quarter of 2018.

Founded in 2015, Permico Energia LLC has offices in Houston and Washington DC. Permico Energia is focused on developing, constructing and operating midstream assets in Texas, as well as the domestic and international marketing of hydrocarbons.

American Midstream enters Cayenne Pipeline JV

American Midstream Partners LP (AMID) has entered into a joint venture agreement between AMID and Targa Midstream Services LLC creating Cayenne Pipeline LLC, Cayenne will transport Y-grade NGLs from the Targa-operated Venice Energy Services Company LLC gas processing plant to Enterprise Products' pipeline at Toca, Louisiana, for delivery to Enterprise Products' Norco Fractionator.

As part of the Cayenne joint venture, AMID is contributing an underutilized natural gas pipeline that will convert into natural gas liquids service. The project is supported by a 15-year dedication for all NGL production from Targa's 750 MMcf/d Venice plant with inlet from six offshore pipelines in the Gulf of Mexico, including the prolific deep-water Mississippi Canyon area. The pipeline will have initial capacity of over 40,000 barrels per day with the ability to throughput more than 50,000 barrels per day. AMID and Targa will each have 50% economic interests and 50% voting rights, respectively, with Targa serving as the operator of the venture. The costs of conversion and associated construction will be shared equally by AMID and Targa.

The project has received necessary change of service permits and is expected to be fully operational by year-end 2017.

Williams Partners receives permits for Marcellus projects

Williams Partners LP reported that the Pennsylvania Department of Environmental Protection (PADEP) and US Army Corps of Engineers have issued required permits for the Atlantic Sunrise pipeline project - an expansion of the existing Transco natural gas pipeline to connect Marcellus gas supplies with markets in the Mid-Atlantic and Southeastern US.

PADEP & USACE Permits

The company received the Chapter 105 (Water Obstruction and Encroachment) and Chapter 102 (Erosion and Sediment Control) permits from PADEP on Aug. 30 and the Clean Water Act Section 404 permit from the US Army Corps of Engineers on Aug. 29.

The receipt of these remaining permits will allow the company to request a Notice to Proceed with construction from the Federal Energy Regulatory Commission (FERC), targeting commencing greenfield pipeline construction in Pennsylvania this fall. The full project capacity is scheduled to be placed into service in mid-2018.

Early Partial Mainline Service

In advance of the greenfield portion of the project, Williams has received FERC approval to place a portion of the project into service early and, at the time of this writing, expects to begin partial service Sept. 1, providing 400,000 dth/day of firm transportation service on Transco's existing mainline facilities to delivery points as far south as Choctaw County, Alabama. The FERC authorized the project in February 2017.

Atlantic Sunrise

Once complete, the Atlantic Sunrise expansion will help alleviate bottlenecks in Pennsylvania, connecting Marcellus gas supplies with markets in the Mid-Atlantic and Southeastern US. The nearly $3 billion expansion of the existing Transco natural gas pipeline is designed to increase deliveries by 1.7 bcf/d. Williams Partners' net investment in the Atlantic Sunrise project is expected to be approximately $1.9 billion.

Kingfisher Midstream secures $200M credit facility for STACK growth

Kingfisher Midstream LLC (KFM), a private gathering and processing midstream company, has entered into a $200 million senior secured revolving credit facility with ABN AMRO Capital USA LLC as Administrative Agent, Book Runner, and Lead Arranger. East West Bank and Wells Fargo Bank NA act as Syndication Agent and Documentation Agent, respectively. Proceeds from the revolving credit facility will be primarily used to fund capital expenditures, including completion of a new, under-construction 200 Mmcf/d cryogenic processing plant expected to be in service during the fourth quarter of 2017.

Commenting on the agreement, Michael Christopher, CFO of KFM, said that the company's "underlying acreage dedications and STACK footprint are the cornerstone of the credit facility being upsized from $150 million to $200 million."

Durham Jones & Pinegar served as legal advisors to KFM. Thompson & Knight LLP served as legal advisors to ABN AMRO.

Kingfisher Midstream LLC is a partnership formed in 2015 with HPS Investments Partners LLC to provide crude oil gathering and natural gas gathering and processing services in the STACK play of Oklahoma.

Tallgrass Energy Partners acquires Powder River Oil Gathering System

Through its subsidiary Tallgrass Midstream LLC (TMID), Tallgrass Energy Partners LP has closed on the acquisition of Outrigger Energy LLC's crude oil gathering system in the Powder River Basin for approximately $36 million, subject to potential adjustments specified in the purchase agreement. The acquired assets include approximately 34 miles of gathering lines and approximately 150,000 acres dedicated on a long-term fee-based contract. Tallgrass estimates approximately $7 million in additional capital expenditures for the remainder of 2017 on the Outrigger system.

As a result of the acquisition, Tallgrass Interstate Gas Transmission LLC (TIGT) intends to abandon by sale to TMID an underutilized segment of its system from Labonte, Wyo., to Guernsey, Wyo. The abandonment is subject to approval by the Federal Energy Regulatory Commission.

TMID intends to convert the acquired pipeline segment from TIGT into crude oil service and also construct the necessary facilities to establish a new crude oil line from Labonte to the Outrigger system along with additional laterals into other producing areas in the Powder River Basin. This project will provide direct access for producers on the Outrigger system to Tallgrass Pony Express Pipeline LLC's crude oil pipeline system.

TEP also announced that Dean Dick will lead its crude oil gathering business housed under TMID. Dean has nearly 30 years of experience in crude oil transportation services including trucking, gathering, terminals and DOT regulated pipeline transportation. He has previously worked for Marathon Petroleum and Kinder Morgan in operations, facility development and expansion, new market development and pipeline optimization. He holds a BSEE from the University of Wyoming and an MBA from Grand Canyon University.

Williams supports Hurricane Harvey Relief efforts

Williams is contributing $500,000 to the United Way of Greater Houston's flood relief fund. The company is also deploying direct assistance efforts for any of its nearly 900 employees in Houston and surrounding areas in the Gulf who are in need as a result of this unprecedented event.

"Williams has had a major presence in the Houston area for decades and our thoughts and prayers are with all of those affected, and especially our employees and their families, many of whom have deep roots in the community," said Williams' president and CEO Alan Armstrong. "While the effects of Hurricane Harvey are still ongoing and uncertain, we are focused on making sure our employees remain safe and are receiving necessary assistance. Additionally, we are committed to supporting the long-term recovery and rebuilding of the Texas Gulf Coast."

Armstrong said that Williams employees affected by Harvey are being supported through its emergency disaster relief fund, which includes direct assistance for Williams employees with immediate financial needs. Williams employees outside of the affected areas can also contribute directly to the fund to support fellow employees and their families. As part of its corporate charitable giving program, Williams matches contributions made by its employees and its retirees.

WaterBridge Resources acquires EnWater Solutions

WaterBridge Resources LLC has acquired EnWater Solutions LLC, a produced water gathering and disposal company in the southern Delaware Basin. EnWater's current assets include five saltwater disposal wells with over 100 miles of interconnected gathering pipeline and nearly 150,000 b/d of permitted disposal capacity. By year-end 2018, WaterBridge expects to reach more than 300,000 barrels per day of total disposal capacity and 200 total miles of interconnected pipeline for gathering.