MIDSTREAM NEWS

TOTAL TO SUPPLY LNG TO ENN IN CHINA

Total has signed a binding heads of agreement with China's privately run ENN LNG Trading for the delivery of 0.5 million tonnes per year of liquefied natural gas (LNG) for a period of 10 years. The deliveries will be sourced from Total's global LNG portfolio and are expected to begin in 2018 upon completion of ENN's Zhoushan LNG receiving terminal. Laurent Vivier, president of Total's gas division, stated that Total was the first major to sign a binding LNG supply agreement with ENN, one of the largest natural gas distributors in China.

PEREGRINE MIDSTREAM PARTNERS, AFFILIATES FILE CHAPTER 11

Peregrine Midstream Partners LLC, and its affiliates Peregrine Rocky Mountains LLC, Ryckman Creek Resources Holding Company LLC, and Ryckman Creek Resources LLC filed for voluntary bankruptcy under Chapter 11 of the US Bankruptcy Code in the Bankruptcy Court for the District of Delaware on February 2, 2016. The court provided interim approval for the companies' debtor-in-possession bridge facility, providing the companies with liquidity to continue operations during the Chapter 11 process, and continue ongoing discussions with their lenders to restructure the companies' capital structure. The companies' operations at the Ryckman Creek Natural Gas Storage Facility in Uinta County, Wyoming continue, and the facility will continue to operate during the Chapter 11 process. In November 2014, Ryckman Creek Resources LLC secured $110 million financing to complete its gas storage project in southwestern Wyoming. The financing facility was provided by Peregrine's private equity owner, EQT Infrastructure, and a consortium of banks led by ING Capital LLC. In the filings, ING Capital is among the list of creditors with the 30 largest unsecured claims. Skadden, Arps, Slate, Meagher & Flom LLP is advising Ryckman Creek Resources LLC. The meeting of creditors was scheduled to take place in Wilmington, Delaware on March 10, 2016.

WILLIAMS PARTNERS TO SERVE TWO GULF COAST LNG EXPORT FACILITIES

Williams Partners LP has executed long-term contracts with two shippers for Gulf Connector, a 475,000 dekatherm per day expansion of the Transco pipeline system to connect US natural gas supplies with global liquefied natural gas (LNG) markets.

Gulf Connector will deliver gas for the Cheniere Energy Inc. Corpus Christi liquefaction project and a shipper in Freeport LNG Development LP's liquefaction project near Freeport, TX. Both facilities are currently under construction.

The Gulf Connector project involves adding compression and making the natural gas flow bi-directional on a portion of the Transco system between Louisiana and south Texas, pending regulatory approvals. It's designed to provide incremental firm transportation from Transco's Station 65 in St. Helena Parish, La., to mainline interconnects with proposed header pipelines in Wharton County, TX and San Patricio County, TX.

As previously announced, Williams Partners is also building the Gulf Trace Project to serve Cheniere's Sabine Pass Liquefaction project in Cameron Parish, La., the first large-scale LNG export facility in operation in the continental US. The first shipment of LNG from that facility is expected late February or March and the Gulf Trace Project is expected to be completed in early 2017. Both Gulf Connector and the Gulf Trace Project are included in Williams Partners' 2016 growth capital funding plan.

Cheniere's Corpus Christi export terminal is proposed to have up to five liquefaction trains (two of which are under construction) with expected aggregate nominal production capacity of up to 22.5 million tonnes per annum (mtpa) of LNG. Train 1 and 2 are expected to become operational in late 2018 and mid-2019, respectively.

The Freeport LNG export terminal will have three liquefaction trains with expected aggregate export capacity of 15.3 mtpa. The Freeport export facility is also planned to commence operations in phases between September 2018 and August 2019.

TWIN EAGLE BEGINS COMMERCIAL OPERATIONS AT PERMIAN RAIL PARK

Twin Eagle Sand Logistics LLC, a subsidiary of Twin Eagle Resource Management LLC, has commenced commercial operations at the Permian Rail Park. The Permian Rail Park is located on the Union Pacific Railway approximately eight miles west of the city of Big Spring. The 530-acre rail park is Twin Eagle's fifth terminal development and is centrally located to serve Permian's Midland Basin. Phase I of the project comprised more than 33,000 feet of rail track, which will be initially used for rail-to-truck frac sand trans-loading services. Twin Eagle also has Phase II plans to develop a loop track capable of supporting crude-by-rail market activity as well as infrastructure to handle trucking solutions for both crude and frac sand.

SMLP STARTS UP BAKKEN CRUDE OIL TRANSMISSION PIPELINES

Summit Midstream Partners LP has begun operations of the Stampede Lateral crude oil transmission pipeline in North Dakota and is in the final stages of completing the nearby Little Muddy crude oil transmission pipeline, which includes an interconnect with Enbridge's North Dakota Pipeline System. These crude oil development projects provide customers on the Polar & Divide gathering system with two new delivery points and enhanced optionality to access additional downstream markets via rail and pipeline infrastructure. Prior to the commissioning these projects, crude oil on the Polar & Divide system was delivered exclusively to the Colt Hub rail terminal in Epping, North Dakota. The Stampede Lateral connects SMLP's Polar & Divide crude oil gathering system with Global Partners LP's Basin Transload rail terminal located near Columbus, North Dakota. The Stampede Lateral provides Global and other producers in the region with up to 60,000 bbl/d of crude oil throughput capacity.

HEP PLANS NEW PIPELINE SYSTEM FROM CORPUS CHRISTI TO MONTERREY

Howard Midstream Energy Partners LLC's (HEP's) subsidiary, Dos Águilas LLC, plans to permit, construct, and operate its proposed Dos Águilas project, an open access system of refined products terminals and pipelines spanning from Corpus Christi, Texas, to northern Mexico. The Dos Águilas project will offer direct and seamless transportation services for gasoline, ultra-low-sulfur diesel, and jet fuel from the Corpus Christi refinery complex to Laredo, Texas, and on to northern Mexico markets through deliveries to Nuevo Laredo, Tamaulipas, and Santa Catarina, Nuevo León, near Monterrey. Pending all government approvals, the project is expected to be in-service in the first quarter of 2018, at a cost of $500 million dollars. The US and Mexican governmental processes have commenced. Dos Águilas intends to launch simultaneous open seasons for the US and Mexican pipelines in the first quarter of this year to solicit indications of interest for transportation services.

MURPHY OIL SELLS MONTNEY MIDSTREAM ASSETS

Murphy Oil Corp.'s Canadian subsidiary, Murphy Oil Company Ltd. (MOCL), has agreed to sell its natural gas processing and sales pipeline assets that support Murphy's Montney natural gas fields in the Tupper and Tupper West areas of northeastern British Columbia to Enbridge G&P LP, a subsidiary of Enbridge Inc. The transaction includes the sale of existing infrastructure capable of processing up to 320 million cubic feet per day. Total cash consideration to Murphy upon closing of the transaction will be C$538 million.

Enbridge will own and operate the natural gas processing plants and sales pipeline assets which include a 20-year arrangement, customary fee structure and an opportunity for plant expansion ensuring flexibility for both parties. The transaction is subject to typical closing conditions and is anticipated to close promptly upon receipt of regulatory approval early in the second quarter 2016.

A sizable portion of the proceeds will be invested in a new JV with Athabasca Oil to develop fields in the Kaybob play. In transaction separate from the sale to Enbridge, MOCL agreed to acquire, from Athabasca Oil Corp. affiliates, a 70% operated working interest (WI) of Athabasca's production, acreage, infrastructure and facilities in the Kaybob Duvernay lands, and a 30% non-operated WI of Athabasca's production, acreage, infrastructure and facilities in the Montney lands in Alberta. Under the terms of the JV the total consideration amounts to C$475 million, of which Murphy will pay approximately C$250 million in cash at closing and the remaining C$225 million in the form of a carry for a period of up to five years. The transaction is subject to regulatory approval and normal closing conditions, and is anticipated to close late in the first quarter 2016, with an effective date of January 1, 2016.

KMI CREDIT FACILITIES RAISED $2B

In January, Kinder Morgan noted the closing of a three-year, unsecured $1 billion term loan in addition to a $1 billion expansion of an existing unsecured revolving credit facility (increasing its capacity from $4 billion to $5 billion), Raymond James analysts detailed in a note to clients. Proceeds will be used for general corporate purposes and the repayment of existing borrowings ($1.67 billion in 2016 long-term debt maturities, according to Raymond James). Pricing for the two revolvers (Libor + 150 basis points) is in line with KMI's existing credit facilities, and the company further commented they will not need to access capital markets in 2016. The analysts said the fact that Kinder Morgan could access credit at prices consistent with its current debt profile, as well as management's reiteration that the company expects no need to access the capital market through 2016, was encouraging, yet ultimately surprising.

FORMER CHENIERE CEO SOUKI RESIGNS FROM BOARD

Former Cheniere Energy CEO Charif Souki, who was replaced in December 2015, has resigned from the company's board, the company said in an SEC filing mid-February.

Souki was replaced as CEO late last year after finding himself at odds with company investor Carl Icahn, who reportedly disagreed with Souki's plan to speed the growth of Cheniere's liquefied natural gas projects. Souki left the company just weeks before Cheniere was scheduled to export the first-ever cargo of US shale gas - a shipment that has now been delayed until late February or later.