Agua Blanca Pipeline
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Agua Blanca Pipeline is an operating natural gas pipeline in Texas, USA. An expansion of the pipeline entered service in January 2021.[1]
Location
The pipeline system services Culberson, Loving, Pecos, Reeves, Ward, and Winkler counties in Texas, including multiple deliveries to the Waha, Texas hub.[2]
Project Details
- Operator: WhiteWater Midstream[3]
- Owner: WhiteWater Midstream, MPLX LP[4]
- Parent Company: First Infrastructure Capital, MPLX[5]
- Capacity: 1,250 million cubic feet per day[6][4]
- Length: 160.13 miles / 262.3 km[2][4]
- Diameter: 36-inches[2][6]
- Status: Operating[6]
- Start Year: 2018[6]
- Financing: US$141 million in debt financing from MUFG, Sumitomo Mitsui Banking Corporation and Siemens[7], additional debt financing of US$113 million[8]
Background
Located in the Delaware Basin, the intrastate natural gas pipeline services Culberson, Loving, Pecos, Reeves, Ward, and Winkler counties in Texas, including multiple deliveries to the Waha, Texas hub. The system currently comprises 145 km of 36 inch (915 mm) diameter pipeline and 112.7 km of smaller diameter pipelines with a system capacity of 3.9 million m3/d.[2]
Financing
In July 2017, debt financing of US$141 million was provided for the project's initial development (along with that of the Waha Connector Pipeline) by MUFG, Sumitomo Mitsui Banking Corporation and Siemens.[7] The same institutions provided additional debt financing of US$113 million in July 2018 for the expansion project.[8]
The pipeline was owned by WhiteWater Midstream (60.00%), WPX Energy (20.00%), MPLX LP (10.00%), and Targa Resources Corp (10.00%).[9][10] WhiteWater Midstream’s investment in the Agua Blanca joint venture is led by First Infrastructure Capital.[11] In February 2019, First Infrastructure Capital acquired 60% stake in the pipeline system through the acquisition of WhiteWater Midstream. First Infrastructure Capital also agreed to acquire WPX Energy’s 20% stake in the Agua Blanca pipeline.[12]
Expansion Project
Sendero Gateway Expansion Project
In October 2019, the Federal Energy Regulatory Commission (FERC) issued a certificate to the 400 MMcf/d natural gas pipeline to transport Permian Basin supply across the New Mexico/Texas border. Sendero, a subsidiary of Sendero Midstream Holdings, filed with FERC last year seeking approval to construct and operate the 23-mile, 24-inch diameter pipeline.[13] FERC issued an Environmental Assessment for the project in January 2020, finding that with proper mitigation it “would not constitute a major federal action significantly affecting the quality of the human environment.” One of the three sitting FERC commissioners dissented to the environmental approval. In his dissent, Democratic Commissioner Richard Glick argued that FERC failed to adequately consider climate change impacts, specifically greenhouse gas emissions (GHG) from fossil fuels. He further stated that neither the Natural Gas Act nor the National Environmental Policy Act “permit the Commission to assume away the climate change implications of constructing and operating this project. Yet that is precisely what the Commission is doing here.” Glick also stated that by sidestepping an analysis of the potential GHG emissions from the project and their contribution to climate change, FERC had fallen short of the “reasoned decision-making” required in a public interest determination.[14]
The Sendero Gateway Project, also known as the Carlsbad Gateway Project, received a positive environmental assessment from FERC in January 2019.
In November 2019, joint venture (JV) partners reached a final investment decision to proceed with the expansion of the Delaware Basin Agua Blanca Pipeline System. The expansion is supported by multiple take-or-pay transportation agreements for 10-year terms. The Agua Blanca JV partners, WhiteWater Midstream and MPLX with lead investor First Infrastructure Capital, will double the system’s capacity to over 8.4 million m3/d with a 42 inch (1,067 mm) diameter trunkline.[2][15]
According to the U.S. Energy Information Administration, the pipeline entered service in May 2020.[6]
The expansion consists of 23 miles of new pipeline from Sendero’s Carlsbad Plant in Eddy County, New Mexico to the Agua Blanca pipeline in Culberson County, Texas.[16][17] The pipeline transports residue gas from a processing plant in Carlsbad, NM to the Waha hub via the Agua Blanca Pipeline.
- Operator: WhiteWater Midstream[3]
- Owner: WhiteWater Midstream, MPLX LP[4]
- Parent Company: First Infrastructure Capital, MPLX[5]
- Capacity: 400 Mmcf/day[6]
- Length: 23 miles / 37 km[20][6]
- Diameter: 24-inches[20][6]
- Status: Operating[1]
- Start Year: 2020[1]
- Cost: US $45 million[6]
- Financing: US$113 million in debt financing from MUFG, Sumitomo Mitsui Financing Corporation and Siemens[8]
Articles and resources
References
- ↑ 1.0 1.1 1.2 Agua Blanca Pipeline Expansion in Service Ahead of Schedule, North American Oil and Gas Pipelines, Jan. 28, 2021
- ↑ 2.0 2.1 2.2 2.3 2.4 Major expansion for Agua Blanca System, Pipelines International, Nov. 15, 2019, accessed Aug. 25, 2021.
- ↑ 3.0 3.1 "Natural Gas Data - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2023-09-04.
- ↑ 4.0 4.1 4.2 4.3 "WhiteWater, MPLX Substantially Complete Agua Blanca Expansion". pgjonline.com. Retrieved 2023-09-04.
- ↑ 5.0 5.1 "Projects". WhiteWater Midstream. Retrieved 04 September, 2023.
{{cite web}}: Check date values in:|access-date=(help)CS1 maint: url-status (link) - ↑ 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 Natural Gas Data, Pipeline Projects Energy Information Agency, September 04, 2023
- ↑ 7.0 7.1 Agua Blanca and Waha Connector Pipelines (121KM), IJGlobal, accessed Aug. 18, 2020.
- ↑ 8.0 8.1 8.2 Agua Blanca and Waha Connector Pipelines (121KM) Expansion, IJGlobal, accessed Aug. 18, 2020
- ↑ "Article Search". www.ijglobal.com. Retrieved 2023-09-04.
- ↑ "WhiteWater Midstream Adds Strategic Partners and New Commitments to Its Delaware Basin Agua Blanca Pipeline". Business Wire. 02 May, 2018. Retrieved 04 September, 2023.
{{cite web}}: Check date values in:|access-date=and|date=(help)CS1 maint: url-status (link) - ↑ Kramer, Brad (28 January, 2021). "Agua Blanca Pipeline Expansion in service ahead of schedule". North American Energy Pipelines. Retrieved 04 September, 2023.
{{cite web}}: Check date values in:|access-date=and|date=(help)CS1 maint: url-status (link) - ↑ "First Infrastructure Capital to acquire 80% stake in Agua Blanca pipeline". NS Energy. 05 February, 2019. Retrieved 04 September, 2023.
{{cite web}}: Check date values in:|access-date=and|date=(help)CS1 maint: url-status (link) - ↑ Jeremiah Shelor, FERC OKs Sendero’s Permian Carlsbad Gateway Pipeline; Glick Dissents, Natural Gas Intel, October 14, 2019
- ↑ Jeremiah Shelor, FERC OKs Sendero’s Permian Carlsbad Gateway Pipeline; Glick Dissents, Natural Gas Intel, October 14, 2019
- ↑ In the first half of 2020, about 5 Bcf/d of natural gas pipeline capacity entered service, U.S. Energy Information Administration, Aug. 24, 2020
- ↑ The Economic Importance of New Mexico Oil and Natural Gas Infrastructure, ICF, Sep. 2019, accessed Aug. 25, 2021.
- ↑ National Energy and Petrochemical Map , FracTracker, Feb. 28, 2020, accessed Aug. 25, 2021.
- ↑ Natural Gas Data, Pipeline Projects Energy Information Agency, July 21, 2020
- ↑ Gateway Project Environmental Assessment, Federal Energy Regulatory Commission, January 2019
- ↑ 20.0 20.1 "WhiteWater Announces Acquisition of Sendero's Gateway Pipeline". WhiteWater Midstream. 26 August, 2021. Retrieved 04 September, 2023.
{{cite web}}: Check date values in:|access-date=and|date=(help)CS1 maint: url-status (link)
