Gas Processing is Produced by Gulf Publishing Company

Your source for technology information for the gas processing industry

Startup Permico joins crowded field looking to build Texas NGL pipelines

HOUSTON (Reuters) — Permico Energia LLC has become the sixth company in recent months to propose building a natural gas liquids pipeline from the nation's largest oil field in West Texas to market hubs a few hundred miles away.

Permico Pipeline Resized
Photo courtesy of Permico Energia LLC.

The Houston-based midstream company plans to construct a 510-mi pipeline from the Permian Basin and Eagle Ford shale regions to Corpus Christi, a refining and fuels export center, beginning next year, said Jeffrey Beicker, co-founder and chief executive of Texas Permico Partners, a subsidiary of two-year-old Permico Energia.

The $1.8 B project would carry 330,000 bpd and includes a fractionator to separate ethane, propane and other liquids. It would also have an 8-MMbbl storage facility, and spurs to the Mont Belvieu, Texas, gas liquids storage and trading hub.

Operations could begin in late 2020, Beicker said in an interview this week. The company is in discussions with natural gas liquid (NGL) suppliers, which it declined to identify.

South Korean pension funds have provided $800 million in financing, with an additional $1 B in debt for the project to be raised by Japan's Sumitomo Mitsui Bank, Beicker said.

The system would compete with proposed NGL pipelines linking the Permian to Mont Belvieu announced by Energy Transfer Partners, Enterprise Products Partners, Targa Resources and others.

Beicker said his company would buy NGL from producers for its pipeline and storage facility.

"Additional infrastructure is needed to connect these energy hubs to support increasing petroleum exports from the US and key supply points," said Ed Longanecker, president of Texas Independent Producers and Royalty Owners Association.

Permian NGL production is forecast to top 1.7 MMbpd by the end of 2025, up from nearly 1 MMbpd now, according to a report compiled by oil and gas exploration data provider Drillinginfo Inc.

Permico's founding partners include former CBRE Inc head of energy infrastructure John Porter, former Defense Intelligence Agency officer Jeffrey Sykes and Beicker, who worked for Royal Dutch Shell Plc, Spark Energy Inc and Marlin Midstream.

Reporting by Ruthy Munoz; Editing by Lisa Shumaker

Copyright © 2016. All market data is provided by Barchart Market Data Solutions. Futures: at least 10 minute delayed. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  Cmegroupicon                                     Icelogo


Business trends
-Adrienne Blume
The small-scale GTL (SSGTL) and small-scale LNG (SSLNG) sectors are gaining ground, providing alternative sources of power generation and transportation fuel in remote regions and areas not connected to major gas pipeline routes.
Editorial comment
-Adrienne Blume
Gas Processing and Hydrocarbon Processing are pleased to announce that as of August 2017, Gas Processing will be distributed along with both Pipeline & Gas Journal and Hydrocarbon Processing.
Regional focus
-Eugene Gerden
Novatek, Russia’s largest independent natural gas producer, plans to invest up to $11 B in the large-scale Arctic LNG 2 project. The project involves the construction of an LNG plant on the Gydan Peninsula—a geographical feature of the Siberian coast of the Kara Sea.


View on Demand

Shell Global Solutions International BV (Shell) is launching the improved process technology ADIP ULTRA, for cost-effective removal of CO2 down to <50ppmv. The ADIP ULTRA process is applicable in gas plants, LNG, pre-NGL, refinery HMUs and gasification syngas.
Why attend?
•Discover how looking back at decades of ADIP and ADIP-X operational experience has led to the cost effective ADIP ULTRA process
•Understand how Shell’s new absorption column internals can further enhance process performance
•Learn how Shell is a reliable partner of choice who helps you get the most out of your unit
•An opportunity to ask questions to Shell’s technical experts

May 9, 2017 9am UTC

View on Demand


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2015 Gulf Publishing Company.