MARCH 2016
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World Pipelines
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Construction of new Ethiopia-Djibouti
oil pipeline to begin soon
US Assistant Secretary of State Antony Blinken has
concluded a two day visit to Djibouti, which saw
the announcement of important new programmes,
one of which included: plans to construct a
pipeline carrying oil from Ethiopia’s Awash region
to Djibouti.
Black Rhino, an American company that invests
in African infrastructure development, will fund the
project, which will also include the creation of new
oil storage facilities in Djibouti. Work is set to begin
in June 2016.
Mr Blinken led the US delegation that attended
the second annual US-Djibouti Binational Forum.
During his visit, Mr Blinken held talks with HE Ismaïl
Omar Guelleh, the President of the Republic
Djibouti.
Mr Blinken praised the “quality of friendship and
co-operation between the two countries and its
two peoples”. He said that the Binational Forum
provided a “valuable opportunity to exchange ideas
concerning the implementation of multiple
initiatives and partnerships.”
“Djibouti is one of the few African countries
maintaining a privileged partnership with the US
concerning energy and economic developments,”
he said.
The US contributes more than US$100 million/y
to Djibouti’s economy and is one of the country’s
largest employers. More than 1700 Djiboutians work
at Camp Lemonnier, the only permanent US military
base in Africa.
Mr Blinken announced that more local
companies would be able to obtain work contracts
from Camp Lemonnier through the Djibouti First
programme.
TransCanada’s new pipeline in Vaughan under consideration
The National Energy Board (NEB) will hold a public hearing to
consider the application from TransCanada PipeLines Limited
(TransCanada) to construct and operate approximately 11.7 km of new
natural gas pipeline in the City of Vaughan, Ontario. The project will
be integrated into TransCanada’s existing mainline system and its
recently NEB approved King’s North Connection pipeline.
The NEB is committed to continual improvement of its hearing
process. The Hearing Panel has designed this process to provide
meaningful opportunities for participants to share their views about
the project. It includes improved certainty about who will have
standing and provides opportunities to participate orally. The panel
accepted comments on the Hearing Order until 2 March 2016.
Public participation is a fundamental part of the NEB review
process. The Hearing Panel must hear from participants who are
directly affected, and may choose to hear from those with relevant
information or expertise. The Panel has pre-approved certain parties
as participants in the hearing process. This includes Aboriginal
groups whose Traditional Territory is affected, the City of Vaughan,
and landowners or occupants whose land is traversed by the
project.
Participants could choose to be an Intervenor or Commenter
and could provide their views in writing, orally or both. Those who
wished to participate needed to submit an Application to Participate
form by 2 March 2016. Those who had already been granted standing
only needed to register their participation by this date. The Hearing
Order outlines complete hearing details.
Summit Midstream Partners begins operations on crude oil
pipeline
Summit Midstream Partners, LP announced that it has commenced operations
of the Stampede Lateral crude oil transmission pipeline in North Dakota and
is currently 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 (Global) 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 bpd of crude oil throughput
capacity. The 46 mile, 10 in. dia. transmission pipeline originates at SMLP’s
newly-built, Divide Station, which offers truck unloading capabilities and
75 000 bbls of crude oil storage capacity. The Stampede Lateral is underpinned
by a long-term, fee-based contract with Global, including minimum volume
commitments. Crude oil on the Stampede Lateral is delivered to Global’s Basin
Transload rail terminal, which offers single line haul rail access to Global’s
Albany, New York terminal.
The Little Muddy pipeline will connect SMLP’s Polar & Divide crude oil
gathering system with Enbridge’s North Dakota Pipeline System in Williams
County, North Dakota via Enbridge’s Little Muddy Facility located near
Marmon, North Dakota. This development project includes 14 miles of
10 in. dia. crude oil transmission pipeline with throughput capacity of
27 000 bpd. Crude oil delivered to the Little Muddy Interconnect will gain
pipeline access to various downstream markets including Chicago, Patoka,
Cushing, Eastern Canada, and the Gulf Coast.
Steve Newby, President and Chief Executive Officer of SMLP commented:
“The start-up of the Stampede Lateral and Little Muddy Interconnect
significantly diversifies our downstream takeaway options for our customers
on our crude oil gathering systems in the Bakken. We are excited to enhance
the interconnectivity of our crude gathering system and to provide our
customers with to access multiple downstream markets.”
