Phillips 66 Approves Funding for Two Midstream Projects in Southeast Texas – $3 Billion

Projects Will Create 50 Full-Time and 1,000 Temporary Construction Jobs
Sweeny, TX Refinery Phillips 66

Sweeny, TX Refinery Phillips 66 | Click to Enlarge

Funding for two Southeast Texas midstream projects was approved in early February 2014 by Phillips 66’s board of directors. Costs for the construction of a fractionator in Old Ocean, TX, announced in August of 2013, and a liquefied petroleum gas export terminal in Freeport, TX, are an estimated $3 billion combined.

According to Phillip’s 66, the projects will create more than 50 full-time jobs and over 1,000 temporary construction jobs.

Read morePhillips 66 Plans Gulf Coast Fractionator

[Read more…]

Sand Hills NGL Pipeline In Service & Moving Permian & Eagle Ford Liquids

DCP Midstream, Phillips 66, & Spectra Own The Pipeline
DCP Sand Hills Pipeline Map - Eagle Ford Segment

DCP Sand Hills Pipeline – Eagle Ford Segment | Click to Enlarge

The Sand Hills NGL Pipeline is online and taking NGLs from the Permian & Eagle Ford regions to fractionation facilities in the Gulf Coast and near Mont Belvieu.

The pipeline is 720 miles and runs from West Texas, near Midland, into South Texas on to Mont Belvieu. The pipeline will have initial capacity of 200,000 b/d and could be expanded to 350,000 b/d if needed. [Read more…]

Talisman Energy Shopping For Eagle Ford Buyers

The Company Could Sell 74,000 Acres And ~30,000 boe/d
Talisman Eagle Ford Map

Talisman Eagle Ford Map | Click to Enlarge

Talisman Energy has retained the Royal Bank of Canada to determine if buyers are interested in the company’s Eagle Ford acreage.

Talisman previously announced plans to divest $2-3 billion in non-core assets. The Eagle Ford is a core holding, but there are hopes the company could get as much as $2 billion for its 74,000 acres and 30,000 boe/d (2013 guidance). [Read more…]

Kinder Morgan & Phillips 66 Eagle Ford Crude Delivery Deal to Supply Sweeny Refinery

KMP will build a 12-inch, 27 mile lateral with initial capactiy of 30,000 b/d

Phillips 66 Sweeny, TX | Click to Enlarge

Kinder Morgan (KMP) and Phillips 66 have reached an Eagle Ford crude delivery deal. KMP will build a 12-inch, 27 mile lateral from its Eagle Ford Crude Condensate pipeline to Phillips 66’s Sweeney Refinery in Brazoria County.

Phillips is committing to take a “significant portion” of the pipeline’s initial 30,000 b/d of capacity. The pipeline will have the potential to be expanded to 100,000 b/d if needed.

KMP will invest approximately $90 million in the project, which also involves adding associated receipt facilities by constructing a five-bay truck offloading facility and three new storage tanks with approximately 360,000 barrels of crude/condensate capacity at Kinder Morgan’s DeWitt Station in DeWitt County, Texas, and Wharton Pump Station in Wharton County, Texas. Pending receipt of environmental and regulatory approvals, construction is scheduled to begin in the fourth quarter of 2012.

Kinder Morgan’s Eagle Ford Crude Condensate pipeline was brought online in June of 2012.

Read the full press release at

ConocoPhillips Revenue Down in Q1 – Eagle Ford Activity Up

$37/bbl WTI Breakeven on Average Eagle Ford Wells
ConocoPhillips Eagle Ford Production

ConocoPhillips Eagle Ford Production - Click to Enlarge

ConocoPhillips (COP) is in the process of spinning off its crude oil refining business into a new company named Phillips 66. The company reported lower revenues than expected in the first quarter of 2012. I’m sure the details of the split are distracting corporate executives, but there isn’t any sign of letting up in the Eagle Ford. Conoco ran an average of more than 16 rigs targeting the Eagle Ford during the first quarter of 2012. That’s up two rigs from 14 during the fourth quarter of 2011.

The company is on pace to grow production to more than 60,000 boe/d in 2012 and to almost 120,000 boe/d in 2013. [Read more…]