Midstream News

Global Partners LP, a Massachusetts-based company, has acquired a liquid energy terminal in East Providence, Rhode Island from Exxon Mobil Oil Corporation.

The East Providence terminal, with a storage capacity of 959,730 barrels across 10 product tanks, serves as a strategic storage hub for various products, including gasoline, additives, distillates, and ethanol. The terminal’s infrastructure includes a six-bay truck rack catering to the Rhode Island, Northern Connecticut, and Southern Massachusetts markets, as well as a large dock capable of accommodating long-range vessels.

Global Partners aims to optimize its significant marketing and retail presence in the region by leveraging the additional gasoline infrastructure gained through this acquisition.

Sunoco LP (SUN) officially acquired NuStar Energy L.P. (NS) on May 3, 2024, finalizing a deal announced in January. This all-stock transaction valued at $7.3 billion marks a significant consolidation in the energy infrastructure landscape.

What the Deal Means

The combined entity boasts an extensive network of pipelines and terminals, solidifying Sunoco’s position as a major player in fuel distribution and midstream operations. Sunoco gains access to NuStar’s well-established presence across the United States. This geographic reach strengthens Sunoco’s ability to serve a wider customer base and navigate potential fluctuations in regional markets.

Source: EnergyConnexions – Industry’s only connected energy data platform

Benefits for Investors

Sunoco expects the acquisition to generate at least $150 million in annual cost and commercial synergies. Additionally, Sunoco announced a 4% increase in its quarterly distribution, signaling confidence in the company’s future financial performance.

Looking Ahead

The completion of this acquisition is a strategic move for Sunoco. With a more robust infrastructure network and a broader market reach, the combined company is poised to enhance its stability, credit profile, and growth potential. 

For more information and insights on the Midstream/Energy Infrastructure sector or to learn how Industry’s only “Connected Energy” data platform can help understand the complex infrastructure dependencies, feel free to shoot an email at: info@aurainformatica.com

Williams (NYSE: WMB) is diving deeper into the natural gas game with a strategic $1.95 billion acquisition of six Gulf Coast storage facilities boasting a massive 115 billion cubic feet (Bcf.) capacity. This move strengthens Williams’ grip on pipeline infrastructure and unlocks prime access to key markets, supporting LNG export and power generation needs.

The Storage deal consists of 6 assets owned by Hartree Partners.

In 2019, Hartree acquired Cardinal Gas Storage, which is comprised of four gas storage facilities: Arcadia Gas Storage, Cadeville Gas Storage, Perryville Gas Storage, and Monroe Gas Storage. In 2021, Hartree acquired two additional facilities: Pine Prairie Energy Center and Southern Pines Energy Center.

Source: EnergyConnexions; Press Release

The acquisition encompasses 230 miles of pipeline and 30 critical interconnects, including a direct connection to Transco, the nation’s largest gas transmission system.

Source: EnergyConnexions; Press Release

Transaction Summary:

• Six Louisiana and Mississippi storage facilities totaling 115 Bcf capacity.
• 230 miles of gas transmission pipeline and 30 pipeline interconnects.
• Expected closing in January 2024.

Chevron’s plans increased investment in both traditional and new energy projects, while prioritizing cash flow and shareholder returns. Chevron plans to spend $15.5- $16.5 billion on organic capex and $3 billion on affiliate projects in 2024, totaling $18.5 billion.

• Upstream spending focuses on U.S. shale and tight plays, Permian Basin, and the Anchor project in the Gulf of Mexico.
• Downstream and lower carbon capex are focused on U.S. operations and renewable diesel expansion.
• Nearly half of affiliate capex supports Kazakhstan’s FGP/WPMP project and Chevron Phillips Chemical projects.
• Chevron sees durable free cash flow growth and continued shareholder returns, with higher capex expected after the Hess acquisition closes.

Exolum, a major storage and logistics company, is acquiring a 50% stake in a top-tier ammonia and NGL storage terminal in Houston from Moda Midstream. This strategic move strengthens Exolum’s presence in the growing clean fuel market and expands its access to the crucial Houston Ship Channel logistics hub. The terminal boasts ample storage capacity for both ammonia (30,000 tonnes) and NGLs (1.1 million tonnes annually), potentially leading to increased competition and lower storage costs in the region. This could also play a key role in accelerating the adoption of ammonia as a low-carbon fuel and support broader decarbonization efforts in the petrochemical industry. However, navigating regulatory uncertainties and ensuring widespread market adoption remain important challenges.

In short, Exolum’s acquisition is a significant step towards cleaner energy, but navigating technical and market hurdles will be crucial for long-term success.

Dominion Energy plans to construct a liquefied natural gas (LNG) storage facility in Person County, North Carolina, to bolster natural gas service reliability for residential and business customers in the expanding region. The company meticulously evaluated multiple potential sites, gathering extensive data during the site selection process to ensure the project’s feasibility, minimize landowner impacts, connect seamlessly with the existing natural gas network, and avoid environmentally sensitive areas. Construction is slated to commence in early 2024, with the facility expected to be operational by late 2026.

Elliott Investment Management has acquired a $1 billion stake in Phillips 66 and is urging the company to improve its performance. Elliott believes that Phillips 66 has lost focus on its refining segment and is underperforming as a result. The activist investor is backing CEO Mark Lashier’s plan to turn the company around, but it is also pushing for two board seats in order to help achieve this goal.

Phillips 66 has welcomed Elliott’s input and is open to a constructive dialogue. The company agrees with Elliott that successful execution of its strategic priorities will drive substantial stock price performance. Phillips 66 has also announced enhancements to its strategic priorities, including raising its shareholder distributions target, monetizing non-core assets, returning operating cash flow to shareholders, increasing business transformation run-rate savings, and raising its mid-cycle adjusted EBITDA target.

Enbridge has announced its 2024 financial guidance, excluding contributions from the gas utilities acquisitions announced in September 2023. The company expects its 2024 base business EBITDA to grow by more than 4% and its DCF to increase by approximately 3% compared to the midpoint of its 2023 guidance. Enbridge has also declared its 29th consecutive annual common share dividend increase, raising it by 3.1% to $0.915 per quarter ($3.66 annualized), effective March 1, 2024. The company has reaffirmed its 2023 full year guidance for EBITDA and DCF, inclusive of the recent share offering dilution.

Key Highlights:

• Enbridge’s 2024 base business EBITDA is expected to be between $16.6 billion and $17.2 billion.
• Enbridge’s 2024 DCF per share is expected to be between $5.40 and $5.80.
• Enbridge has increased its dividend by 3.1% to $0.915 per quarter ($3.66 annualized).
• Enbridge has reaffirmed its 2023 full year guidance for EBITDA and DCF.

Cheniere Energy has signed a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with BASF SE. Under the SPA, BASF will purchase up to approximately 0.8 million tonnes per annum (mtpa) of LNG from Cheniere on a free-on-board (FOB) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. The SPA has a term of 20 years and is expected to commence deliveries in 2026. The LNG will be supplied from Cheniere’s Corpus Christi LNG export facility.

Cheniere’s President and Chief Executive Officer, Jack Fusco, said that the agreement demonstrates the strong demand for LNG from Europe and highlights Cheniere’s position as a leading provider of clean, reliable LNG to global markets.

BASF’s Chairman of the Board of Executive Directors, Martin Brudermüller, said that the SPA secures long-term access to competitive LNG supplies for BASF’s European operations. Brudermüller added that LNG is an essential part of BASF’s energy mix and will enable the company to reduce its reliance on coal and support its sustainability goals.

Washington’s debt ceiling deal includes a text for streamlined federal approval for Equitrans Midstream Corp’s long delayed Mountain Valley Pipeline. The pipeline would transport natural gas from the Appalachian basin. The project has been delayed amidst negative court rulings and protests/opposition by environmental groups.