Pipeline Gas Journal
Established in1996
Located inHouston, Texas, United States
News CoverageOIL GAS
10
PGJ Publishers' Articles
Filter by
View by
Pipeline Gas Journal
Spain’S 1,615-Mile Hydrogen Network Advances Ahead Of Schedule, Enagas Says(Reuters) — Plans to build a 2,600 km (1,615 mile) hydrogen network in Spain are advancing ahead of schedule and the infrastructure is on track to start operations in 2030, the chief of Spanish gas grid operator Enagas said on Friday.
The network will be part of the planned trans-European H2Med corridor aimed at connecting the Iberian region with northwest Europe.
The company plans to take a final investment decision in 2027 and start construction the following year, CEO Arturo Gonzalo said at an event to launch a public consultation process related to the project.
The Spanish network will include new pipelines as well as some repurposed gas assets, he said, for an overall investment of some 2.6 billion euros ($2.95 billion).
"The project is starting to become a reality, it is progressing at a very good pace, even faster than expected," he said.
"Today we are setting in motion a key milestone to make a hydrogen infrastructure a reality in Spain."
Enagas is among the staunchest supporters of a green hydrogen industry, which uses renewable energy for its production, and still faces high costs, heavily depends on subsidies and is struggling to find buyers for its production.
With Spanish gas demand falling, the company is diversifying into managing a network of hydrogen infrastructure. It is also targeting ammonia and CO2 capture. To fund its plans, it has sold assets, reduced dividends and cut debt.
The plans are in line with Spain's ambitious green agenda. Thanks to abundant solar and wind power, the country is vying to be a European leader in green hydrogen. It set a 2030 target of 12 gigawatts for electrolyzers used to make green hydrogen.
($1 = 0.8811 euros)oil-gas
Apr 28, 2025
Pipeline Gas Journal
U.S. To Host Alaska Lng Summit, Urges Asian Support For $44 Billion Project(Reuters) — U.S. President Donald Trump's energy security council plans to host a summit in Alaska in early June, when it hopes Japan and South Korea will announce commitments to the Alaska LNG project, a source familiar with the matter said on April 24.
Trump has touted the $44 billion Alaska liquefied natural gas project, which would deliver gas from the state's North Slope fields via an 800-mile (1,300 km) pipeline for domestic use and send it to customers in Asia as LNG, bypassing the Panama Canal.
While the project has been talked about for years, progress has been limited by cost and the amount of work needed.
Trump, who has pushed allies to buy U.S. energy while simultaneously threatening trade tariffs, has asked Japanese Prime Minister Shigeru Ishiba to support the Alaskan plan.
Last month, Taiwanese state energy company CPC Corp. signed a non-binding agreement with the state-run Alaska Gasline Development Corp., to buy LNG and invest in the project, a move Taiwan's President Lai Ching-te said would ensure the island's energy security.
The summit being planned by Trump's National Energy Dominance Council, which wants to maximize production of oil and gas, would take place around June 2. It was first reported by The New York Times.
The White House and the Interior Department did not immediately respond to a request for comment.
Separately, officials from Thailand, which could also be a consumer of the LNG from Alaska, and South Korea are expected to visit the state to talk about the project sometime in the next two weeks, said the source who spoke on the condition of anonymity.
It would be the first visit to Alaska by officials from Thailand to talk about the project in Trump's second administration.
South Korea's Industry Minister Ahn Duk-geun said on Thursday in Washington that he was not aware of a plan to announce its commitment, and "there are still a lot of things that need to be done" through due diligence of the Alaska LNG project in order "to understand the local situation more accurately".
Ahn said that the country is dispatching an inspection team, and results of the due diligence would need to be seen to see how discussions will proceed.oil-gas
Apr 25, 2025
Pipeline Gas Journal
Morgan Stanley Infra Partners Eyes $2 Billion Permian Pipelines Sale, Sources Say(Reuters) — Morgan Stanley Infrastructure Partners is exploring the sale of its majority stake in Brazos Midstream II, with a deal expected to value its holding at more than $2 billion including debt, three people familiar with the matter said.
Brazos moves natural gas, natural gas liquids and oil from the wellheads of five Texas counties to larger pipelines in the Delaware portion of the Permian Basin. The company also owns associated infrastructure including natural gas compression capabilities and crude storage.
Investment bankers at Jefferies Financial Group in recent weeks have been shopping MSIP's controlling stake in Brazos to potential buyers, including midstream companies and investment firms, the people said, asking not to be identified because the discussions are private.
The sale process is ongoing and a deal, along with the price sought by MSIP, may not materialize, they cautioned. MSIP may also choose to hold onto its investment, they added.
Spokespeople for Morgan Stanley, Brazos, and Jefferies all declined comment.
Morgan Stanley's infrastructure investment arm first bought into Brazos Midstream II in 2018, purchasing the company for $1.75 billion. Later that year, a deal was struck with Williams Companies WMB.N, in which Williams contributed assets in exchange for a 15% stake in Brazos.
Williams is not expected to bid on the MSIP majority stake, the sources said.
Williams did not respond to a comment request.
A transaction involving Brazos Midstream II would join the steady stream of midstream dealmaking in the last year involving privately-owned pipeline companies in the heart of the U.S. shale industry. Most are being bought by publicly-listed infrastructure operators seeking to boost scale.
Energy Transfer acquired WTG Midstream for $3.25 billion from a group led by infrastructure fund Stonepeak. ONEOK spent $2.6 billion to buy Medallion Midstream from Global Infrastructure Partners. And Kinetik purchased Durango Permian for $765 million from an affiliate of Morgan Stanley Energy Partners.oil-gas
Apr 24, 2025
Pipeline Gas Journal
Eqt To Buy Olympus Energy Assets For $1.8 Billion To Boost Marcellus Presence(Reuters) — EQT said on Tuesday it plans to buy the upstream and midstream assets of oil-and-gas producer Olympus Energy for $1.8 billion to expand its presence in the natural gas-rich Marcellus region in the U.S.
A wave of consolidation in the U.S. energy sector since 2023 started to show signs of fatigue towards the end of last year, but North America is expected to remain a leader in global M&A activity.
EQT's cash-and-stock deal comes even as the natural gas producer attempts to reduce debt it had accumulated after the $14 billion purchase of pipeline operator Equitrans Midstream last year.
It had net debt of $8.1 billion as of March 31 and expects to reach about $7 billion by the year-end.
The deal with Olympus, expected to close early in the third quarter of 2025, consists of 26 million shares of EQT common stock worth $1.3 billion and $500 million in cash, which the company expects to fund with cash on hand and borrowings under its revolving credit facility.
"Olympus Energy has over 10 years of high-quality Marcellus inventory at maintenance activity levels, with an additional 7 years of upside from the Utica," EQT said in a statement. Both Marcellus and Utica are large shale formations in the United States.
The Marcellus formation accounts for about 21% of all U.S. gross natural gas production, according to the Energy Information Administration (EIA).
First-Quarter Results
EQT also beat first-quarter profit estimates, benefiting from higher natural gas prices and sales volumes.
Average natural gas prices NGc1 have risen over the past few quarters, reaching a two-year high on March 10, supported by record flows to liquefied natural gas (LNG) export facilities and concerns over supply in the lead-up to the summer season.
EQT's average realized price for natural gas during the quarter was up 17% year-over-year, at $3.77 per thousand cubic feet equivalent (Mcfe), while sales volume was up 6.9% to 570,751 million cubic feet equivalent (MMcfe).
The company also raised its full-year production forecast by 25 billion cubic feet equivalent (Bcfe) to between 2,200 and 2,300 Bcfe.
EQT reported an adjusted profit of $1.18 per share for the quarter ended March 31, above analysts' average estimate of $1.02 per share, according to data compiled by LSEG.oil-gas
Apr 23, 2025
Pipeline Gas Journal
Baker Hughes Sees $200 Million Hit From Tariffs, Trims Spending Outlook(Reuters) — U.S. oilfield service provider Baker Hughes on Wednesday forecast steeper drops in spending by global oil producers as tariffs dent demand expectations and push down prices for crude.
Baker Hughes echoed rival Halliburton's concerns on Tuesday, that weak oil prices could push down oilfield activity in North America.
Houston-based Baker Hughes, which reported better-than-expected first-quarter profit on Tuesday, now expects global upstream spending to be down by high-single digits in 2025.
Oil and gas producer spending in North America, excluding Mexico, is set to decline in the low-double digits, Baker Hughes said, compared with a previous expectation for a drop in the mid-single digit range.
Internationally, spending is expected to ease to mid- to high-single digits compared with a previous forecast for spending to be flat to down year-on-year.
"In North America, discretionary spending delays are extending into the second quarter, driven by ongoing uncertainty. Additionally, recent oil price volatility presents potential downside to second half activity, particularly in U.S. land," said Baker Hughes CEO Lorenzo Simonelli.
The prospect of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels, Simonelli said, adding that some of the weakness would be offset by strength in markets like Brazil and several countries in the Middle East and Asia Pacific.
The company also warned of cost impacts from tariffs on U.S. imports from China, Germany, Britain and Italy, as well as a modest impact from steel and aluminum tariffs. Baker Hughes also sources some oilfield components and chemicals from Canada and Mexico, it said.
It said it was working to increase domestic sourcing, and was talking with customers to recover some costs.
Baker Hughes forecast a $100 million to $200 million impact on its annual earnings before interest, tax, depreciation and amortization.
Baker shares were down 5% at $36.46 late Wednesday morning.
Liquefied natural gas (LNG) technologies and equipment are expected to be a bright spot for Baker Hughes, after U.S. President Donald Trump ended the moratorium on new LNG export permits, and on the back of rising gas and power demand for data centers.
Several key LNG customers in the Gulf Coast are indicating plans to further expand capacity beyond 2030, offering greater clarity regarding the potential increase in installed capacity above the anticipated 800 million tonnes per annum by the end of the decade, Simonelli said.
"We're really not seeing customers pull back from LNG, gas infrastructure or the data center projects," Simonelli said.
The company said it expects to book at least $1.5 billion of orders in data center equipment over the next three years.oil-gas
Apr 23, 2025
Pipeline Gas Journal
Woodside Weighs Trump Tariff Impact On $1.2 Billion Louisiana Lng Project(Reuters) — Woodside Energy, Australia’s top gas producer, said on Wednesday it was assessing the impact of U.S. tariffs and other trade measures on its Louisiana liquefied natural gas plant project as it inches towards a final go-ahead.
Woodside acquired the project, formerly called Driftwood, from Tellurian for $1.2 billion last year to position itself as a “global LNG powerhouse”. The first of four development phases is expected to cost $16 billion.
In a quarterly update, CEO Meg O’Neill said the company was “assessing the potential impacts of recent tariff announcements and potential further trade measures on Louisiana LNG”, after U.S. President Donald Trump imposed universal tariffs on nearly all trading partners this month.
O’Neill said the plant was in a foreign-trade zone which allowed it to defer payment of tariffs until each LNG train was completed.
However, around half of the equipment and materials needed to develop the project would need to be imported.
“Around 25% of Louisiana LNG’s estimated capital expenditure is equipment and materials, approximately half of which is currently expected to be sourced from the U.S.,” she said.
"If energy prices come under further pressure as a result of tariff-related growth pressures, it could make things trickier for Woodside down the track," said Tim Waterer, chief market analyst at KCM Trade Global.
To improve the project’s economics, Woodside announced earlier this month it sold a 40% interest in Louisiana LNG’s export terminal to U.S. investment firm Stonepeak, funding 75% of the project’s spending in 2025 and 2026. It also signed its first offtake agreement with Germany’s Uniper for 1 million tonnes per annum last week.
“We are pleased with the strong level of interest from potential strategic partners and are advancing discussions targeting further equity sell-down,” O’Neill said.
“We are progressing at pace towards a final investment decision on Louisiana LNG, positioning Woodside as a global LNG powerhouse.”
The update comes as the company reported revenue of $3.32 billion for the quarter ended March 31 on strong gas hub-linked prices and the start-up of its Senegal-based Sangomar project.
The result beat a Visible Alpha consensus estimate of $2.79 billion and was up 13% from the $2.95 billion reported a year ago.
On a quarterly basis, the firm reported a decline of 5% in revenue, attributed to a fall in oil-linked prices, cyclone impacts at its North West Shelf project and unplanned train outages at its Pluto LNG project.
Shares of the company rose as much as 3.9% to A$20.470 as of 0036 GMT, while the broader energy sub-index .AXEJ gained 3.1%, tracking a rise in global oil prices.
Woodside kept its 2025 production and capital expenditure forecast unchanged.oil-gas
Apr 23, 2025
Pipeline Gas Journal
Spain Approves $455 Million In Aid To Boost Renewable Hydrogen Production(P&GJ) — The European Commission has approved a €400 million (approximately $455 million) Spanish state aid program to support renewable hydrogen production through the European Hydrogen Bank’s “Auctions-as-a-Service” tool, part of the EU's broader push for decarbonization and energy independence.
The scheme will fund the construction of up to 345 megawatts of electrolyzer capacity and enable the production of as much as 221,000 tonnes of renewable hydrogen in Spain. Officials estimate this could prevent up to one million tonnes of carbon dioxide emissions.
The aid, to be awarded through a competitive bidding process, will be provided as a direct grant per kilogram of renewable hydrogen produced and will last up to 10 years. Projects must comply with EU renewable fuel standards, including criteria for emissions reductions and renewable energy sourcing.
The Commission cited improved environmental outcomes, minimal market distortion, and strategic alignment with the European Green Deal as reasons for the program's approval. The aid will support Spain’s target of installing 12 gigawatts of electrolyzer capacity by 2030 and contribute toward broader EU hydrogen and energy transition goals.
Spain's program follows similar national initiatives by Germany, Austria, and Lithuania and reflects growing interest in harmonizing national and EU funding through the Hydrogen Bank’s auction framework.oil-gas
Apr 21, 2025
Pipeline Gas Journal
Valero Plans To Shut California Refinery, Takes $1.1 Billion Hit(P&GJ) — Valero Energy Corp. said it plans to shut down or significantly restructure its refinery in Benicia, California, by the end of April 2026, citing long-term strategic considerations and rising regulatory costs in the state.
In a filing with the California Energy Commission, Valero said the move is part of a broader evaluation of its operations in California, which also includes its Wilmington refinery near Los Angeles. The company emphasized that no final decision has been made but noted it continues to assess alternatives.
Valero's Benicia refinery, located northeast of San Francisco Bay, processes about 145,000 barrels of crude oil per day and is one of the largest in Northern California.
RELATED: Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
“We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” said Lane Riggs, Valero’s chairman, CEO, and president.
The company also recorded a $1.1 billion pre-tax impairment charge related to both its Benicia and Wilmington facilities. This includes $337 million in expected asset retirement obligations. The charge will be excluded from first-quarter 2025 adjusted earnings.
California’s aggressive clean energy targets, including a ban on new gasoline-powered car sales by 2035 and stricter refinery regulations, have increased operational pressure on refiners. Since 2008, six refineries in the state have shut down, two of which have been converted to renewable diesel production.
Valero joins a growing list of refiners reconsidering their long-term presence in California. Phillips 66 announced plans in October to close its Los Angeles-area refinery within a year.
Mary Holcomb is the Digital Editor & Operations Manager at Gulf Energy Information, overseeing the Pipeline & Gas Journal, World Oil, and Underground Infrastructure brands. With over 5 years of experience, she drives digital content strategy and operations for these industry-leading publications.oil-gas
Apr 21, 2025
Pipeline Gas Journal
$182 Million Gas Pipeline Replacement Project Kicks Off In Southeast Michigan(P&GJ) — Consumers Energy has launched construction on its Four Cities Metro Pipeline project, a $182 million upgrade to ensure continued natural gas reliability for customers across Oakland and Macomb counties.
The project will replace aging infrastructure serving the cities of Royal Oak, Clawson, Madison Heights, and Warren, with eight miles of new 24-inch pipeline expected to be installed by 2029. Construction is now underway at four intersections in the metro Detroit region.
“Replacing and modernizing this large-scale pipeline means people in metro Detroit will continue to have safe and reliable service,” said Holly Bowers, Consumers Energy’s vice president of natural gas engineering and supply. “This project is a critical part of our work to deliver natural gas around the clock 24/7/365, today and in the future.”
The Four Cities Metro Pipeline replaces segments of a system originally built in the 1950s. Consumers Energy has coordinated with local governments to minimize disruptions and adjust pipeline routing where needed. The project is expected to create about 100 construction jobs annually.
“We serve over 750,000 homes and businesses in Oakland and Macomb counties, and we’re committed to providing them with natural gas that’s safe, affordable and reliable,” said Chris Fultz, Consumers Energy’s vice president of natural gas operations. “We appreciate the patience of our customers as we do this important work and promise to work with communities to address any questions or concerns.”
Consumers Energy provides natural gas and electricity to 6.8 million Michigan residents across 68 Lower Peninsula counties.oil-gas
Apr 19, 2025
Pipeline Gas Journal
Intensity Launches Open Season For 208-Mile Bakken Gas Pipeline Expansion(P&GJ) — Intensity Infrastructure Partners LLC has launched an open season for the Phase II Extension of its proposed Intensity Pipeline project, following positive feedback from stakeholders during its initial open season earlier this year.
The extension includes construction of 208 miles of 30-inch natural gas transmission pipeline, mainline compression, and interconnection facilities to expand the pipeline’s reach across eastern North Dakota. It will connect with the planned Phase I pipeline in southern McLean County and extend to Casselton, North Dakota. The expected in-service date is January 1, 2030.
When complete, Phases I and II will make up a 344-mile system of 36-inch and 30-inch pipe with an initial capacity of approximately 1.1 billion cubic feet per day (Bcf/d), expandable to 1.5 Bcf/d with added compression. Final project design will be shaped by customer demand during this second open season.
Intensity said the decision to launch the second open season, which will run from April 17 through May 23, 2025, was driven by “significant interest and support from community leaders, government agencies and potential customers.”
During the open season, interested parties can submit a Service Interest Form specifying their desired transport capacity, contract term, rate, and preferred receipt and delivery points.
Customers can contact Matthew Griffin at mgriffin@intensityinfra.com for bidding details, while other stakeholders are invited to reach out to Mike Higgins at mhiggins@intensityinfra.com.oil-gas
Apr 18, 2025