April 7, 2017 • Volume 10, No. 04 Midstream Intelligence Serving the marketplace with news, analysis and business opportunities

KMI, NAmerico announce competing Permian gas pipelines Permian-to-Corpus becomes A proposed pair of natural gas pipelines is seeking to capture associated gas the popular pipeline path from crude drilling in Permian Basin and send it to South . Kinder Morgan’s Since the Permian Basin has been 1.7 Bcf/d pipeline and NAmerico Partners LP’s 1.85 Bcf/d pipeline also could feed rising the hottest area in upstream, it was only demand in Mexico starting in 2019. a matter of time until it would dominate The new natural gas projects KMI’s open season for the Gulf Coast midstream. This month, several projects mirror two crude oil projects Express is underway while NAmerico talking to shippers about Pecos Trail. were announced in West Texas, but that announced in March. Buckeye they are all flowing to South Texas shows Partners LP is proposing a crude oil pipeline of up to 400,000 bbl/d from the Permian that demand in Mexico to Corpus Christi, Texas, while three companies announced an open season for their IN THIS is expected to grow with ISSUE 440,000 bbl/d planned Permian-to-Corpus pipeline (PG. 3). Permian production. On top of the newly proposed pipelines, KMI is also looking at expanding Midstream giant Kinder Morgan the El Paso Natural Gas pipeline system takeaway capacity to the Waha Hub leads the group this issue with the Waha- by 900 MMcf/d. Continues On Pg 4 to-Agua Dolce 1.7 Bcf/d Gulf Coast Express pipeline, which could be fed by a Crude enters Dakota Access, boosting Bakken transport 900 MMcf/d expansion of the El Paso Gas Crude is flowing under Lake Oahe, North Dakota, the final stage of the , as the project overcame months of intense environmental Petronas becomes first to export floating LNG(PG. 14). protests from supporters of a nearby Sioux reservation. Once at full capacity, Dakota Access will send 470,000 bbl/d of Bakken crude to Patoka, Illinois, with the improved transport Pipeline system from southeastern New options making the region more competitive. Mexico to Waha. Competing with KMI will ETP launched on March 29 Dakota Access is expected to eliminate be newcomer NAmerico Partners, whose the Bakken discount to the WTI price. a binding supplemental open 1.85 Bcf/d Pecos Trail pipeline would run season for transport of Bakken/Three Forks production to multiple markets from Waha to Cheniere Energy’s Corpus through the Dakota Access. The open season also includes joint tariff service from Christi LNG export facility (PG. 1). On Patoka to Nederland, Texas, via the Energy Transfer Crude Oil Co. pipeline system. the crude oil side, Buckeye Partners Bakken oil output has fallen 23% since its 2015 peak, but the pipeline should eliminate announced a 400,000 bbl/d South Texas the “Bakken discount,” where Bakken sells for less that the WTI price to compensate for Gateway pipeline from Permian to Corpus the difficulty of sending the crude by rail instead of pipeline. Continues On Pg 6 Christi, the second such crude pipeline announced in a month (PG. 3). Two of the most controversial Dakota Access To Improve Bakken Differential pipelines in recent memory took big steps •Basin expected to be significantly over-piped upon DAPL completion as crude entered Dakota Access despite a –Enerplus is well positioned to take advantage of expected differential improvement final round of protest from bankers(PG. 1) –Forecasting US($4.50)/bbldifferential to WTI for 2017 and the Keystone XL received its delayed presidential permit to bring crude from the Williston Basin Takeaway Capacity Enerplus’ Bakken Crude Oil Mbbl/d Mbbl/d Discount to WTI (US$/bbl) Alberta oil sands into the US (PG. 3). In 3,000 Rail Loading Facility Only Total 50 2014 2015 2016 2017E Canadian pipelines, Pembina Pipeline Pipeline/Refining Total declared Phase III of its Alberta expansion 2,500 Williston Basin Production Enerplus Firm Sales/Transport (Right Axis) 40 successful enough to turn to Phases IV and V (PG 5) and TransCanada is seeking 2,000 Mid-2017 Estimated timing for 30 -$4.50 Dakota Access pipeline regulatory approval for its North Montney 1,500 (450 Mbbl/d) Mainline (PG. 4).

20 -$7.46 In LNG, the Federal Energy 1,000 Regulatory Commission gave Cheniere -$9.44 10 permission to start commercial operations 500 >US$8.00/bbl IMPROVEMENT on Trains 3 and 4 on Sabine Pass (PG. - - -$12.94 5), while Tellurian filed with FERC 2013 2014 2015 2016 2017 2018 2019 for permission to build its Driftwood Source: Enerplus April 4 Presentation via PLS docFinder www.plsx.com/finder facility (PG. 13).

All Standard Disclaimers & Seller Rights Apply. Midstream Intelligence 2 April 7, 2017

Selected Current Midstream Construction Projects Facility Owner/ Comple- name Operator Type Flow from Flow to Miles Capacity Diameter Cost tion Notes Agua Whitewater Pipeline, 1.25 Includes options for Blanca Midstream gas Orla, Texas Waha Hub 75 Bcf/d 36-inch N/A 4Q17 delivery to Mexico Atlantic Pipeline, Northern Mid-Atlan- 1.7 30/36/42- Added capacity to Sunrise Williams Partners gas Pennsylvania tic states 183 Bcd/d inch $B 2018 Transco pipeline Energy Transfer, Nederland, Texas, to Bayou Logistics, Pipeline, oil Lake Charles, St. James, 144 N/A 24-inch $750 4Q17 Lake Charles segment Bridge Phillips 66 La. La. MM opened in 2016 Magellen Mid- Enhancing pumps and BridgeTex stream and Plains Pipeline, oil Permian Gulf Coast N/A 400,000 20-inch N/A 3Q17 related equipment adds Pipeline All American Basin bbl/d 100,000 bbl/d Corpus Cactus Plains All Pipeline, oil Permian Christi, 310 390,000 20-inch N/A 3Q17 Increases capacity by Pipeline American Basin Texas bbl/d 60,000 bbl/d Bakken, Dakota Energy Transfer Three Forks, Patoka, 500,000 Crude already being put Access Partners Pipeline, oil North Illinois 1,200 bbl/d 30-inch $3.8B 2Q17 into pipeline Dakota Corpus Epic Castleton, TexStar, Pipeline, oil Permian Christi, 730 200,000 16/20/24/ N/A 1Q19 Announced March 2017 Irownwood Basin Texas bbl/d 30-in Keystone Hardisty, Steele City, 830,000 Got presidential permit XL TransCanada Pipeline, oil Alberta Neb. 1,179 bbl/d 36-inch $10.0B N/A from US State Dept. EnLink Loving Co., 120 Lobo II Midstream Cryo plant Texas N/A N/A MMcf/d N/A N/A 2Q17 Double Lobo's capacity Mariner East system can Mariner Sunoco Pipeline, Houston, Marcus 350 275,000 N/A $2.5B 2018 be expanded to 800,000 East 2 NGLs Ohio Hook, PA bbl/d bbl/d Northern Includes compression Access National Fuel Pipeline, Pennsylvania New York 99 490 N/A $445 2Q18 station and dehydration Pipeline Gas Co. gas MMcf/d MM facility B.L. Pinelands Pipeline, Pinelands England Approved by New Jersey Pipeline South Jersey Gas gas Preserve, NJ power 22 N/A N/A N/A 4Q17 Pinelands Commission plant Gas Including gathering Redcliff Canyon Mid- processing Woodward N/A N/A 200 N/A N/A 1Q18 system in four STACK stream facility Co., Okla. MMcf/d continues Pipeline, Western Revolu- Energy Transfer gas and Butler Pennsylva- 100 100 24-30-inch $1.5B 2Q17 Includes fractionation tion cryo plant County, Pa. nia MMcf/d facility Rover Pipeline, Utica, Marcel- Defiance, 3.25 24/30/42- Includes 10 compression Pipeline Energy Transfer gas lus plays Ohio 713 Bcf/d inch $4.2B 2019 stations Gas Long-term commit- Sendero Sendero Mid- processing N/A N/A 130 N/A N/A 3Q17 ments and funding are Cryo Plant stream Partners plant Basin MMcf/d secured Gas To be the largest gas Sunrise Veresen Inc. processing Western Western N/A 400 N/A N/A 4Q17 plant built in western gas plant facility Canada Canada MMcf/d Canada in 30 years Strathcona Trans- Kinder Morgan, Pipeline, oil County, Al- Burnaby, 1,031 890,000 36-inch $5.5B 2019 Estimated cost increase Mountain Enbridge berta BC bbl/d by $500MM Trans- Pipeline, Presidio, 1.4 In service listed as end of Pecos Energy Transfer gas Waha, Texas Texas 148 Bcf/d 42-inch n/a 1Q17 March Valley Pipeline, Agua Dulce, Brownsville, 2.6 Construction to start this Crossing Enbridge gas Texas texas 168 Bcf/d n/a $1.5B 3Q18 month Source: PLS Research

Find more on the midstream sector at To learn more about PLS, call 713-650-1212 Volume 10, No. 04 3 Infrastructure Pipelines Buckeye plans 400,000 bbl/d South Texas Gateway pipeline ■■ Energy Transfer Partners can Buckeye Partners is proposing a crude oil pipeline of up to 400,000 bbl/d from the now send another 1.4 Bcf/d from the Permian to Corpus Christi, Texas, the second such project announced in a month. The Permian Basin to the Mexican border. South Texas Gateway pipeline would deliver crude and condensate from origination The Trans-Pecos pipeline, which heads points in Wink and Midland, Texas, to the existing Buckeye Texas Partners refining south from Waha to the border and export facilities in Corpus Christi. near Presido, Texas, launched The South Texas Gateway would be part of a new distribution system. operations at the end of March. The Buckeye Texas Market Center would deliver crude oil from new and The gas will be picked up at the border existing pipelines originating in the Eagle Ford shale and the Permian Basin to refining by Mexican state utility CFE. The and processing markets in Corpus Christi. Buckeye said it was considering a similar Trans-Pecos joins ETP’s Comanche pipeline for natural gas liquids (NGL) from the Permian Basin to Corpus Christi. Trail, which started sending up to 1.1 Another different set of investors planning its own 440,000 bbl/d planned Bcf/d west to the border just south of El Permian-to-Corpus pipeline is conducting its first open season. The open season for Paso in January. the Epic pipeline, which is scheduled to start operations in 1Q19, continues until ■■ Birchcliff Energy has signed 10- April 15. Castleton Commodities International, TexStar Midstream Logistics and year agreements with TransCanada Ironwood Midstream Energy are planning the Epic, named for Eagle Ford, Permian, Pipelines for firm service transportation Ingleside and Corpus. of 155MMcf/d of For Buckeye, creating the South Texas Gateway is also part of a series of moves to natural gas on the enhance its Corpus Christi capabilities. BTP will add a fifth deepwater dock at Corpus Canadian Mainline. The natural gas will Christi that is Suezmax capable and expand storage capabilities there. Buckeye Texas be transported from the Empress receipt Hub currently has storage for 2.5 MMbbl and can handle only Aframax craft. point in Alberta to the Dawn Hub in Buckeye, a Houston-based MLP, has scheduled a binding open season for the southern Ontario. South Texas Gateway for Q3 with the pipeline commencing operations on 2019. Buckeye is one of the largest independent liquid petroleum products pipeline operators in the US in terms of volumes delivered, with approximately 6,000 miles of pipeline, ABOUT PLS and seven liquid petroleum product terminals.

MidstreamNews is published every three US State Department approves Keystone XL weeks by PLS Inc. TransCanada‘s Keystone XL received a presidential permit from the US State PLS Midstream News covers the midstream, Department, giving it permission to cross the border with crude from the Alberta oil downstream and LNG sectors with news sands. But with oil floating around at $50/bbl and oil majors bailing out the oil sands, and analysis. Topics include gathering, analysts have doubts that the $10.0 billion project that runs through Nebraska before marketing, pipelines, mergers, acquisitions connecting with the existing Keystone will be built. and capital financing. The permit gives TransCanada permission for a crude oil pipeline to In addition, Midstream has deals for sale, cross the border in Phillips County, Montana. The permit had been denied coded alpha-numerically. Clients interested by the Obama administration, but President Trump signed an executive memorandum in listing details can contact PLS with provided listing code(s). reopening the process during his first week in office. TransCanada reapplied, and the permit was approved shortly after the mandatory 60-day review process expired. To obtain additional PLS product details, drill www.plsx.com/publications. TransCanada President and CEO Russ Girling was standing in the Oval Office with Trump when the permit was publically announced. PLS Inc. The permit was signed by Undersecretary of State for Political Affairs Thomas One Riverway, Ste 2500 Shannon, an Obama appointee. US Secretary of State Rex Tillerson recused himself Houston, Texas 77056 from the process to avert conflict-of-interest allegations stemming from his years as 713-650-1212 (Main) 713-658-1922 (Facsimile) CEO of ExxonMobil. A collection of green groups has already challenged the presidential permit in a To obtain additional listing info, contact us federal court in Montana. The groups charge that the Trump administration violated at 713-650-1212 or [email protected] the National Environmental Policy Act by issuing the permit without public input or with the listing code. Only clients are able to receive additional information. To become a an updated environmental impact assessment. client call 713-650-1212. © Copyright 2017 by PLS, Inc. A simpler way A unique tool for monitoring global Any means of unauthorized reproduction is activity by country, project, etc.

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For general inquiries, email [email protected] Access PLS’ archive for previous midstream news Midstream Intelligence 4 April 7, 2017 Pipelines TransCanada reapplies for KMI, NAmerico announce pipelines Continued From Pg 1 North Montney Mainline The change would go contrary to the system’s primary focus of moving gas from TransCanada has filed a variance the Permian to the west. Instead, the proposed increase would be aimed at taking gas application with Canada’s National from the upper Delaware Basin to Waha, where it could connect with KMI's newly Energy Board to proceed with construction proposed Gulf Coast Express pipeline to points east. of the North Montney Mainline (NMML) KMI subsidiary Kinder Morgan Texas Pipeline LLC (KMTP) has launched project in northeast British a non-binding open season for the 430-mile Gulf Coast Express pipeline from Waha Columbia without waiting to Agua Dulce, Texas, just west of Corpus Christi. Receipt points are planned with on a related LNG project. KMTP’s western system as well as the El TransCanada had previously been Paso Natural Gas pipeline system and other KMI owns an interest in or operates granted government approval to construct 70,000 miles of gas pipelines while the pipelines in the Waha area. NMML, with the condition of a positive Pecos Trail would be NAmerico’s first. Delivery options from Agua Dulce final investment decision on the proposed include KMTP’s existing Gulf Coast network and KMI-owned KM Tejas. The Pacific NorthWest LNG (PNW) project. Gulf Coast Express will also deliver to three pipelines specifically designed to send The requested variance would allow natural gas to Mexico: KMI’s KM Border, Enbridge’s Valley Crossing and NET TransCanada to move forward with Midstream’s Mexico. construction of most of the NMML project, Depending on shipper commitments, the 42-in. pipeline will be in service in 2H19. at an estimated cost of C$1.4 billion ($1.0 Financial terms were not disclosed. The open season will continue until April 20. billion), prior to a final investment decision On the El Paso system, KMI has launched a binding open season for 150MMcf/d on the PNW LNG project. TransCanada on gas going to Waha, with two-thirds of that capacity being available as early as May. has already secured 20-year commercial The market interest in the open season will affect KMI’s decision on the possible 900 contracts with 11 shippers for 1.5 Bcf/d MMcf/d expansion, Argus Media reported. of firm service, the latest being Black Meanwhile, NAmerico announced that it was in advanced discussions with Swan Energy, which entered a long-term shippers on its own pipeline from the Permian Basin to Corpus Christi. The Pecos agreement for 299 MMcf/d. Trail pipeline would begin operations in 2019, depending on shipper interest. The company said it plans to begin NAmerico is backed by Cresta Energy LP, a PE fund whose management includes construction in the first half of 2018, with former executives of Regency Energy Partners. The proposed 468-mile pipeline facilities being phased into service over a would be NAmerico’s first major project since the company was created in 2015. two-year period beginning in April 2019. Pecos Trail would send gas to Cheniere Energy’s planned LNG export facility Even with PNW LNG up in the air, on Corpus Christi Bay. Construction is underway for the first two trains of the project, TransCanada sees sufficient value with which would put 9.0 mtpa of LNG in service in 2019. The pipeline would also connect a connection to subsidiary Nova Gas with Enbridge’s ValleyKMTP Gu Crossing.lf Coast Expres Ans Pip eestimatedline System M acostp Ope wasn Seas onotn given. Transmission Ltd.’s NGTL System, which spans 23,500 km (14,300 miles). KMI Proposes Gulf Coast Express Pipeline This project will connect new gas supplies from the prolific Montney to Agua Dulce Delivery Points KM Tejas markets across North America, said Karl KM Border Spectra Valley Crossing Johannson, TransCanada’s EVP and NET Mexico Howard Webb County Header president, natural gas pipelines. Katy Hub Tres Palacios Storage TransCanada received the NGPL TGP provisional approvals for NMML in 2015 HPL Southcross and predicted that the pipeline would be in service in 2017. Petronas, the lead company behind PNW LNG, said its FID was conditional upon an agreement with the BC legislature and a federal environmental assessment.

January 15, 2015 • Volume 06, No. 01 CanadianCapital LNG Export Supply Serving the marketplace with news, analysis and business opportunities Canadian Natural Resources cuts capex by $2.4 billion Eagle Energy Trust becomes Oil sands player Canadian Natural Resources is the latest producer to revisit its a Canadian asset holder capital spending plan forCanadian 2015, cutting it back by $2.4 billionCapital to $6.2 billion. That’s Nov. Eagle 30 Energy Trust unitholders down 30% from the $8.6 billion budget it laid out in November 2014 and about half have approved a special resolution to the $12 billion it expected to spend in 2014. The bulk of the reductions amend the investment restrictions in will come via reduced drilling and related facility capital for its North Eagle's trust indenture, enabling America and International conventional Exports to Mexico Will defer $470 million in spending it to invest in energy assets TransCanada’soperations. The company will also defer $4.5B+at Kirby North Phase 1raise project. helpsin Canada. Eaglepay had been $470 million in spending at its Kirby previously been limited to investing North Phase 1 in situ oil sands project, cutting spending by 82% to $105 million from on non-Canadian assets—the company downits previous forecast $6.9B of $575 million. bridge. The reduced budget wasn’t a complete surprise; currently has production of 1,900 boepd Source: Kinder Morgan when it released the original budget the company warned that it was prepared to cut from properties in Texas and . $2.0 billion from that if conditions warranted. CNRL said the reduced spending would The changes won’t have any impact allow it to continue its dividend unchanged. CFO Corey Bieber told the Globe and Mail he did not know when spending at To be taxed at rate other E&P firms pay, not at prior 34% on distributions. Kirby North might be restored. Continues On Pg 6 Crescent Point banking on service cost & efficiency savings on its US operations or the taxes on Find more on the midstream sector at HalfTo of oil learn hedged at US$90/bbl more for 2015 about PLS, calldistributions 713-650-1212 from those operations; the Although Crescent Point Energy is setting its capital budget for 2015 about 28% company’s Canadian investments will be lower than 2014, the company expects the slimmed down budget to deliver 9% YOY structured so that its Canadian operations production growth to 152,500 boepd. The company set its budget for the year at $1.45 will be taxed in the same manner as other million, down 28% from the $2.0 billion Canadian energy companies. forecast for 2014. Viewfield Bakken & Shaunavon plays Eagle wasted no time taking advantage to get nearly half of spending. The budget assumes an of the change, signing a deal with Spyglass initial 10% reduction in service costs. Crescent Point expects to see even Resources Corp. to buy a 50% non-op greater cost reductions if low prices persist. The company is looking at ways to improve interest in producing properties under its operational efficiency and is working on a number of drilling and completion waterflood in the Dixonville Montney C oil technologies that could cut costs even further. pool in north central Alberta, paying $100 “When prices fell dramatically in 2008 to 2009, we were able to realize a 30% million. The acquisition adds 1,250 boepd reduction in our Bakken drilling and completions costs,” said CEO Scott Saxberg. of low-decline production. Cont’s On Pg 10 “We'll be working hard with our service providers and fully expect to see rates come down even more than they already have.” Continues On Pg 8 FEATURED DEALS ALBERTA PROPERTIES SALE Producers banking on service company savings 5-Non-Core Properties As producers scale back their capital spending plans in the wake of falling oil CENTRAL & WESTERN ALBERTA PP prices, many are looking to the service sector to help them prop up their bottom lines. Abee, Highvale, Kakut, Majeau & Morinville Crescent Point Energy is already factoring a 10% reduction in service costs into its Up to 100% OPERATED WI FOR SALE 5.7 Net Production: ~400 BOED (82% Gas) MMCFED 2015 budget and will be pushing for more if prices remain low. Others are expected Avg Net Operating Income: ~$189,166/Mo to approach their capital Half of producers expect drilling CALL AGENT FOR MORE INFO budgets with the same mindset. PP 14403DV & completion costs to fall 10% in 2015. According to a survey con- ducted by Barclays, capital spending in the US and Canada is expected to fall by as CANADIAN JOINT VENTURE much as 30% from last year to $138.1 billion. In turn, about half of producers expect 1-Prospect. 43,000-Acres. 67-Sq Miles. MAGDALEN BASIN. GULF OF ST LAWRENCE DV drilling and completion costs to fall 10% in 2015, including in areas such as pressure 80-km West of SW Tip of Newfoundland. pumping, drilling fluids and directional drilling. And while producers may see the Water Depth 470 m. Drill Depth 2,500 m. service savings as a slight respite from the decline in oil prices, the news is doubly >1,000 km 2D Defines FourWay Closure. MAGDALEN disheartening for those service providers. Not only are they seeing declines in their 100% OPERATED WI; JOINT VENTURE Total Resource Potential: 5.0 BBO or -- own businesses, they’re being asked to take less for the services they do provide. - 7.0 TCF Carboniferous Clastic Targets. Service companies are already feeling the impact. Continues On Pg 13 CALL AGENT FOR UPDATE DV 15009 Volume 10, No. 04 5Infrastructure Pipelines Alliance Pipeline gauges interest in Chicago market hub Cheniere’s Midship Pipeline Prompted by high demand for its transportation service to the Chicago market hub, inks deals with shippers Alliance Pipeline has announced a non-binding request for expressions of interest for Cheniere Energy subsidiary additional natural gas transportation service on its system starting in 2020. Alliance is Midship Pipeline has signed precedent assessing the feasibility of adding more compression facilities along its pipeline system agreements with foundation shippers to to increase throughput capacity. Roughly 500 MMcf/d of new capacity could be made support construction of a 200-mile 36-in. available. Alliance currently transports 1.6 Bcf/d on average. Alliance is considering adding more interstate natural gas compression facilities along its pipeline pipeline project. The Alliance said the new system to increase capacity. project aims to create pipeline capacity compression facilities would of up to 1.4 Bcf/d to connect production be built between existing stations along the 2,391-mile pipeline to expand capacity to from the STACK and SCOOP resource the Chicago market by 30%, without requiring a system outage. Existing and potential plays in the Anadarko Basin to Gulf shippers interested in the incremental transportation service can contact Alliance. Coast and southeast markets. Alliance said if it determines there is sufficient interest it may commence a binding open season as early as 3Q17. The project would connect STACK and SCOOP resource plays to Gulf Coast Pembina launches new projects in Alberta expansion markets. In the midst of the biggest capex program in its history, Pembina Pipeline said The Midship Project will include its 420,000 bbl/d Phase III expansion of its Alberta infrastructure is going so well it’s roughly 200 miles of new mainline ready to proceed with phases IV and V. The two new phases, underpinned by long-term, pipeline, several laterals, compressor take-or-pay contracts, are expected to cost a combined C$325 million ($242 million) and will be in stations and interconnects that will Phase IV will add two compressor provide receipts from STACK and service in late 2018. stations to one of the 168-mile pipelines SCOOP processing plants and provide The Phase IV expansion is planned just built in Phase III. deliveries to Bennington, Oklahoma, to increase capacity between Fox Creek Texas, the TexOk Hub near Atlanta, and and Nanao, Alberta, by 180,000 bbl/d by adding two new pump stations on the 24-in. the Perryville Hub in Louisiana. Midship pipeline installed in Phase III. said it has already secured commitments For Phase V, Pembina will address current capacity constraints and expected from subsidiaries and affiliates of future growth in the Montney and Deep Basin by building a C$250 million 95-km (59- Cheniere, Devon Energy, Marathon Oil mile) pipeline from Lator to Fox Creek, Alberta. The 20-in. pipeline will add 260,000 and Gulfport Energy. bbl/d of capacity and connects to Pembina’s downstream in Fox Creek. Midship has also launched a binding Meanwhile, Phase III remains on schedule and under budget for a July start-up. open season to solicit additional long- This phase features 168 miles of 24-in. and 16-in. pipelines from Fox Creek to Namao.. term commitments from shippers. The open season ends March 30. Midship Pembina Pleased With Expansion Progress said it plans to submit its official FERC Phase III Expansion Phase III Expansions application after the open season and is Completed Phase III Expansion segment • Capital investment of $2.44 billion targeting an in-service date of early 2019. Pembina crude oil and condensate pipelines Pembina NGL pipelines • Initial capacity of 420 mbpd between Fox Other Pembina pipelines Creek and Edmonton à ability to increase Pipeline Laterals to over 680 mbpd

plus • 880 km total of new pipeline with four distinct lines that can separately transport C2+, C3+, condensate and crude oil LA GLACE • Currently in full construction mode Save time WAPITI • Project continues to trend under budget sourcing FOX CREEK FORT SASKATCHEWAN and on-time for a mid-2017 in-service critical data KAKWA NAMAO SIMONETTE Phase III represents Pembina's largest Over 1.5 million slides at EDMONTON ever growth project which continues to your fingertips in seconds. BRITISH trend under-budget and on-time COLUMBIA www.plsx.com/docFinder Source: Pembina March 30 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ archive for previous midstream news Midstream Intelligence 6 April 7, 2017 Pipelines Trans Mountain expansion Crude enters Dakota Access Continued From Pg 1 fully committed after hike Just days after crude entered Dakota Access, Bakken-focused Hess Midstream Kinder Morgan has increased its Partners LP announced it would go ahead with its midstream IPO after two years of estimated cost for the Trans Mountain delay (PG. 11). Before its listing on the NYSE on April 5, Hess Midstream upsized its pipeline expansion to C$7.4 billion ($5.5 offer price and number of common units available. billion), an 8.8% increase from February’s The 1,170-mile pipeline has been delayed for months over a disputed estimate, but as some shippers balked, 1,000-ft stretch under Lake Oahe, part of the Missouri River system. The others took their place. While shippers Army Corps of Engineers issued permission for the crossing at the lake in July scared off by the higher tolls that came 2015. After months of protests on the nearby Standing Rock Sioux reservation, the with the new price tag made 22,000 Corps denied a request for the easement to drill under in lake in December 2016 and bbl/d available, all were contracted in a announced in January that it intended to launch a new environmental assessment. supplemental open season, meaning that all President Trump intervened in his first week in office, signing an executive of the long-term firm service capacity for memorandum to expedite the review process. The Army promptly dropped its the project is committed. request for the new assessment and A group of 13 shippers have granted the easement. DNB, ING and BNP Paribas have sold made 15- and 20-year commitments a $570MM stake in the loan for Dakota Protests continued with some of 707,500 bbl/d, roughly 80% of Access in solidarity to with Sioux. targeting the syndicate of 17 banks, led the capacity of the expanded pipeline. by Citibank, which provided a $2.5 billion credit facility to Bakken Pipeline, the The remaining 20% will be reserves for consortium that owns the Dakota Access, to build the pipeline. Bakken Pipeline is spot volumes as required by Canada’s currently owned by ETP and Sunoco Logistics (38.25% WI); MarEn Bakken Co., National Energy Board (NEB). an entity formed by MPLX and Enbridge Energy Partners. (36.75% WI); and Phillips 66 (25% WI). Trans Mountain Expansion: Norwegian bank DNB, Dutch bank ING and French bank BNP Paribas sold • From 300,000 bbl/d to 890,000 bbl/d their shares of the loan to build Dakota Access as oil went into the pipeline. ING • 815 miles of new pipe declared that the tribe has its “full support,” while a DNB executive said the sale • 12 new pump stations was meant “to signal how important it is that the affected indigenous population is • 680,000 bbl/d tanker export capacity involved and their opinions are heard.” • 20 new storage tanks Norwegian media said DNB’s share was $331 million, while ING and BNP Paribas said their stakes were $120 million each. ING also said it has sold its shares in The NEB had approved KMI’s the parent companies and will do no more business with them in protest. plan to expand the 60-year-old system Another challenge facing Dakota Access is vandalism. An Iowa sheriff said a from 300,000 bbl/d to 890,000 bbl/d small hole was drilled in the 5/8-in. thick pipe in Iowa by a blowtorch, and a similar but set up 157 conditions. Many of attack was reported in South Dakota. those conditions were blamed for the increased project cost including thicker Phillips 66 announces open season for Rodeo project pipe wall, additional drilled crossings in Phillips 66 has announced an open season to secure binding commitments from environmentally sensitive areas and the prospective shippers for the Reeves-Odessa Origination (Rodeo) Project. The Rodeo Burnaby Mountain tunnel. Project will include a crude oil pipeline system for producers and other shippers Elvira Scotto, an analyst with RBC in the Delaware Basin, with origination stations in Reeves, Loving and Winkler Capital Markets, said the cost increase counties in Texas, along with another was within expectations, and that only in Odessa. The open season The project will have an initial 3% of the committed capacity rejected throughput of up to 130,000 bbl/d. kicked off March 24. the higher tolls was “a net neutral to The Rodeo Project will have anticipated initial throughput capacity of slight positive.” While KMI has not made up to 130,000 bbl/d, with an ultimate potential throughput capacity of up to 450,000 an FID and has been pursuing financing bbl/d, depending on shipper commitments in the open season. The pipeline system, options such as a JV or spinoff and IPO, it which is expected to be placed in service in the second half of 2018, will include still says it plans to start construction this destination options at Wink, Texas; the Phillips 66 Partners Odessa station; a new fall and expects a YE19 in-service date. terminal to be built near Odessa as part of the Rodeo Project; and at Midland. Phillips 66 said the open season terms and conditions include options for Fracture shippers to obtain committed shipper status through either an acreage dedication or a through your transportation and deficiency commitment. The company owns and operates, or has an data barriers Call For interest in, more than 18,000 miles of pipeline. Web Demo dataportal.plsx.com 713-650-1212

Find more on the midstream sector at To learn more about PLS, call 713-650-1212 Volume 10, No. 04 7Infrastructure Pipelines Sanchez Production Partners on track for Q2 cryo start-up The midstream growth strategy of Sanchez Production Partners LP (SPP) is taking shape in South Texas with the 200 MMcf/d Raptor cryogenic facility on time for a Q2 start with an expansion coming and the Carnero gathering pipeline to Raptor now complete. SPP acquired the 50% of Carnero Processing LLC, which includes the La Salle County facility and the high-pressure gathering line, from Sanchez Energy last year. The midstream projects support production in Sanchez’s Catarina assets in the Eagle Ford. Targa Resources, the other partner in the Carnero JV, is building and will operate Raptor and the pipeline. Sanchez also looking to sell its wells to focus on Eagle Ford midstream. A lateral from the Carnero pipeline will connect to Sanchez’s Comanche assets, which it bought from Anadarko in January and are contiguous with Catarina. To handle the new lateral, Raptor was recently approved to be upgraded to 260 MMcf/d, which should be operational in Q3. "With these assets, we have successfully transformed the partnership to a midstream-focused master limited partnership and, in the process, have significantly reduced our commodity price exposure,” Gerry Willinger, CEO of the general partner of SPP, told investors in SPP’s Q4 conference call.

May 21, 2015 www.plsx.com/docFinder Willinger said the company was looking www.plsx.com e&P Petro Scout to sell its remaining oil and natural gas wells, Serving the US upstream industry with information, analysis & prospects for sale Volume 26, No. 08 Devon surges past guidance on Eagle Ford performance Hess’s Bakken costs falling, Completion mods push positive results across multiple plays targeting $6.0-6.5MM/well Fueled by the Eagle Ford, Devon’s oil production exceeded guidance by 12,000 Hess’s lean manufacturing approach in bo/d during Q1 at 272,000 bo/d. Based on the results, the company has increased its the Bakken is leading to higher production leases and associated assets and interests oil growth target from 20-25%PetroScout to 25-30% (270,000 bo/d) for the full year. Q1Feb. overall and cheaper 13 wells. Q1 volumes averaged volumes also overshot guidance, averaging 685,000 boe/d (60% liquids), 108,000 boe/d, up 70% YOY up 3% vs. Q4 and 22% YOY. Devon expects volumes to grow 5-10% and 6% sequentially. A total this year to an average of 667,000 boe/d. Capex was reduced by $250 million to $3.9- of 70 wells were brought 4.1 billion on an improved LOE outlook online in the play during the quarter, and accretive midstream transactions. Eagle Ford output has risen 140% since down from 96 in Q4. Well costs fell to in Oklahoma and Kansas to make SPP it took over the assets in March 2014. Since it took control of the Eagle Ford $6.8 million from $7.1 million in Q4 and position it acquired from GeoSouthern in March 2014, Devon has grown production in Sanchez poised to execute Bakken well costs stood at $7.1MMon the play 140% to 122,000 boe/d (62% oil). In the last quarter alone volumes jumped 24,000 at YE14, already down to $6.5MM in '15. boe/d, exceeding expectations and creating a bottleneck that will prevent growth in Q2. completely an Eagle Ford midstream company. Devon’s Eagle Ford drilling is concentrated in the Lower Eagle Ford where the $7.5 million in 1Q14. Hess expects costs company added 79 new wells to production in Q1. Continues On Pg 4 to fall further, with 2015 wells averaging high-quality Eagle Ford.$6.0-6.5 million. Parsley’s rookie hz drilling season delivers peer-leading results During Q1 Hess reduced its Bakken Parsley Energy’s well performance has continuously improved since it began rig count to 12 from 17 at the end of drilling horizontal wells a year and a half ago. The company has drilled 30 Wolfcamp A 2014. The company is running currently “I have an excited potential purchaser,” he said. or B wells thus far and, based on the 30-day data, recently introduced a type curve with eight rigs in the play and will continue estimated recoveries of 1 MMboe. In the Wolfcamp B during Q1, the 30-day with that number for the remainder of peak IP per 1,000 ft of lateral the year. D&C plans call for 178 wells improved 30% YOY to 231 Wolfcamp B rates are 75% higher Find it now! than peers in Upton County. drilled, 214 completed and 213 turned to boe/d. According to COO Matt Gallagher, sales compared to 261, 230 and 238 last the improved performance is owed to higher stage density, more slickwater stages, year, respectively. Continues On Pg 22 increased proppant per stage and optimal placement of the lateral within the zone. Parsley’s improved wells are outperforming many of its peers in the Midland Basin. In Upton County, the company’s Wolfcamp B 24-hr IPs are 75% higher than the average FEATURED DEALS when adjusted for lateral length. The Ratliff-28-1 H Wolfcamp B well is credited with Find critical oil and gas information REEVES CO., TX PROSPECT flowing the highest reported oil rate of all horizontals in Upton, according to IHS. In ~4,600-Net Acres. Reagan County, data suggests Parlsey’s 24-hr IPs for Wolfcamp B wells are 55% higher DELAWARE BASIN than the county average when adjusted for lateral length. Continues On Pg 21 Objectives: Wolfcamp (A,B,C) All Depths. All Rights. L Pipeline M&A YTD 80-Acre Down Spacing Pilots Underway. in seconds through docFinder, a Noble’s DJ Basin spud-to-rig release days fall to seven Subsurface Geology Data Available In the DJ Basin, Noble Energy has driven spud to rig release times for 4,500-ft 100% OPERATED WI; 75% NRI WOLFCAMP laterals down to just seven days as of Q1, a 23% reduction YOY. Notably, the company Wolfcamp A Approx. IP: ~1,091 BOED drilled a 9,280-ft lateral in just seven days. Wolfcamp B/C Approx. IP: ~1,190 BOED Wolfcamp EUR’s: 300-450 MBO/Well “We’re now averaging seven days from spud-to-rig release for a standard lateral unique search tool and investor PKG UPDATED WITH NEW ACREAGE Deal length well, almost as fast as we used to drill vertical wells,” said chairman, president L 5187DV and CEO David L. Stover during a conference call. The company is drilling COLORADO DRILLING PROJECT Noble nearly drilling horizontals in the ~43,700 Net Acres. wells so quickly that it time it used to take it to drill a vertical. presentation database. will end up drilling more wells than LINCOLN & KIT CARSON COUNTIES Announce Value Deal Asset PrimaryMISSISSIPPIAN / PENN TARGETS anticipated in 2015 and has taken funds from the Marcellus and reallocated them to Miss-Spergen & Penn-Cherokee. <7,500’. L the DJ. Currently Noble is drilling 70% of the footage of 2014 with 40% of the rigs. Multipay Objectives. Shallow Depths. The company ended Q1 running four rigs and one completion crew in the DJ. In H2, Defined By Extensive 3-D Seismic-- MULTIPAY an additional completion crew will be added as needed. -- Geology & Geophysics Data. 100% OPERATED WI; ~80% NRI Date Buyers Sellers ($MM) Type Reduced drilling times and equipmentType optimization has led to a 5-15%Asset reduction 221 Active Offset Wells, 150 Offset Permits. in costs vs. 2014. Noble foresees further savings via lower service costs and possible L 4489DV use of slickwater, which could save $2.0 million per well. Continues On Pg 6 PLS docFinder plus is a must-have 25%All Standard in Disclaimers & Seller Rights Apply. tool for oil and gas executives, Tallgrass Tallgrass Rockies financial professionals, explorationists, 4/3/17 Energy $400 Dropdown Gas Partners Development Express landmen, engineers and M&A teams Pipeline looking for immediate access to critical PNGTS and business information required for 2/27/17 TC Pipelines TransCanada – Dropdown Gas Iroquois Gas market analysis, peer-group studies, Transmission System new trends, best-in-class producers Enbridge and production anomalies. Ozark 2/13/17 MPLX LP Energy $220 Asset Oil Pipeline Search through over 50 thousand Partners slide presentations or 1.5MM slides Noble by classified filters indexed to a Midstream variety of fields and 21 key industry Partners; Advantage Advantage 2/13/17 Plains All Pipeline LLC $133 JV Oil Pipeline metrics. Users then download American individual slides and full presentations Pipeline or share with colleagues via email. 1/30/17 Mirage 4Ward Energy – Corporate Gas – For more details or a demo call Energy Inc Ali Rizvi at 713-600-0115, or email Plains All 1/24/17 Undisclosed American $310 Asset Gas – [email protected] Buyer Pipeline Valero Plains All 40% in 1/18/17 Energy American $70 Asset Oil Red River Information. Transactions. Advisory. Partners Pipeline Pipeline Note: Based on deals with disclosed values. Source: PLS Global M&A Database

For general inquiries, email [email protected] Access PLS’ archive for previous midstream news Midstream Intelligence 8 April 7, 2017 Pipelines CSV Midstream to build Transco asks FERC for final OK for northeastern US project Alberta processing facility Williams Partners LP’s wholly owned subsidiary Transco has filed its final Calgary-based CSV Midstream application with the Federal Energy Regulatory Commission (FERC) for a project Solutions said it has reached a non- to send 400 MMcf/d in the northeastern US for the 2019/2020 winter heating season. binding agreement in principle with For the $925.5 million Northeast Supply Enhancement project, Transco has executed an intermediate exploration precedent agreements with subsidiaries of National Grid for firm transportation and production company to service under the project. build, own and operate a gas The Northeast Supply Enhancement project includes of 10 miles processing facility in the Resthaven area of 42-in. pipeline, three miles of onshore 26-in. pipeline and 23 of Alberta. The facility will be capable miles of offshore 26-in. pipeline. The project will also add 21,902 hp at an existing of processing 100 MMcf/d of sweet gas compressor station and a new 32,000 hp compressor station. from the Resthaven area. CSV did not Transco said the project was fully subscribed during a binding open season in disclose the name of the producer. the middle of 2016. Construction is scheduled to begin in August 2018. The facility will be capable of processing One of the main markets of the projects is New York, specifically the 1.8 100 MMcf/d of sweet gas from the million customers served by National Grid in Brooklyn, Queens, Staten Island and Resthaven area. Long Island. In 2015, New York City Mayor Bill de Blasio said the city would phasing out the use of No. 4 fuel oil by 2030 as part of an effort to cut emissions CSV, which announced the initial by 80% by 2050. deal March 10, said it expects to enter into a definitive agreement by early May. Enable Midstream to expand Anadarko Basin capacity Construction of the facility is expected Enable Midstream Partners LP will expand its pipeline capacity in the to begin in Q3, with an anticipated Anadarko Basin by 205 MMcf/d after signing a long-term, fee-based agreement with completion late in 1Q18. The company Newfield Exploration. The 10-year project by Enable wholly owned subsidiary said it expects the facility to be operating Enable Gas Transmission is expected to start at an initial capacity of 45 MMcf/d in at full capacity with the possibility for early 2018, growing to the full expansions or repeatable facilities in capacity by 4Q18. Enable has 8,000 miles in natural gas system in the Anadarko Basin. “the near future.” The expansion is a direct CSV said the construction of the result of Enable’s Cana, STACK and SCOOP expansion. Enable offered producers facility will give it a template modular capacity on its EGT and Enable Oklahoma Intrastate Transmission lines design that allows the company to during an open season in March, testing interest for a possible installation of new deliver similar facilities multiple times facilities to provide 600 MMcf/d of firm natural gas transportation. The open season with only slight variations to account ended March 28. for the different resource opportunities. Enable has 8,000 miles of system in the Anadarko Basin with 1.65 Tcf/d of “During this challenging economic gathering, 11 processing plants and 1.845 Bcf/d of processing. environment, CSV has been deliberately integrating its engineering and design Enterprise sees enough support for 2 ethylene expansions capabilities, and with this project we are Customers have committed to support two Enterprise Products Partners now delivering on our commitment to ethylene infrastructure expansions including a 24-mile pipeline to carry ethylene excellence as a standard,” said President from Mont Belvieu to Bayport, Texas. The pipeline could connect both producing and CEO Daniel Clarke. and consuming sites south of the Houston Ship Channel. Enterprise will route the 12-in. pipeline through its ethane export terminal at Morgan’s Point and will keep the option open of exporting ethylene at the Morgan’s Point marine terminal. In the other project, EPP is repurposing an ethylene storage well at its Mont Belvieu complex so the 5.3 MMbbl cavern can inject and withdraw at a rate of Quick 2,000 bbl per hour, with possible expansion to 4,000 bbl per hour. Seven third- party ethylene pipelines are within two miles of the ethylene well, which should be evaluations completed as early as 3Q18. for everyone “As US ethylene production capacity expands over the next three years, access to reliable logistics services will be needed, and Enterprise is ideally positioned to fill Now anyone can easily prepare the gap,” said R.B. Herrscher, SVP, petrochemical for Enterprise’s general partner. accurate property evaluations. Expected costs of the projects were not given. www.plsx.com/quickdecline

Find more on the midstream sector at To learn more about PLS, call 713-650-1212 Volume 10, No. 04 9 Infrastructure Developments & Trends A&D Magellan drops splitter suit Harmony and NextDecade agree to pursue merger as signs back up Harmony Merger Corp. and privately held LNG company NextDecade said they Magellan Midstream Partners and have signed a non-binding LOI to merge their operations and transform NextDecade Trafigura Trading have patched things up into a publicly traded company. NextDecade is an LNG development company focused over Magellan’s new condensate splitter on export projects and associated pipelines in Texas. The company has applied for in Corpus Christi, Texas. FERC approval for its first proposed LNG export facility, the Rio Grande LNG project Trafigura has signed a new fee- located in Brownsville, along with the associated Rio Bravo pipeline originating in the based, take-or-pay agreement Agua Dulce market area near Corpus Christi, Texas. The company said it has signed 30 that makes it the exclusive customer for mtpa of non-binding customer commitments to date for the project. the 50,000 bbl/d splitter, replacing the Harmony is a publicly traded special purpose acquisition contract it terminated in January. Harmony company aimed at taking companies public via reverse mergers. The Trafigura signed an agreement in proposed all-stock transaction with NextDecade is expected to yield a combined entity with 2014 to be the exclusive customer for a value exceeding $1.0 billion at closing, with additional stock consideration to be paid to the $300 million splitter. That same year, NextDecade shareholders when certain milestones are met. Harmony stockholders will own the US began allowing exports of light roughly 13.4% of the combined company immediately following the merger, the company condensate, which made the splitter less said. Harmony and NextDecade have also reserved capacity for strategic partners to invest necessary. Magellan Midstream accused in the company prior to the closing of the merger. The companies said the proposed merger Trafigura of breach of contract and filed a is expected to close late in 2Q17. lawsuit, which it has now dismissed. “We are pleased to work towards bringing our stockholders this unique opportunity As part of the agreement, Magellan to participate in the US LNG export market at what we at Harmony believe to be agreed to build an additional 300,000 bbl of a discount to intrinsic value,” said Harmony CEO Eric Rosenfeld. “NextDecade’s storage, which will increase the storage for commercial and regulatory progress, coupled with its location on the Texas Gulf Coast the splitter to 1.5 MMbbl and make other in close proximity to the Permian Basin and Eagle Ford shale, positions the company minor modifications to the splitter, adding to provide low-cost LNG to customers around the world.” $30 million to the price tag. The splitter will begin commercial operations in late Q2. US Midstream Market Movers—Last 30 Days Source: CapIQ % Company Ticker $/Share $/Share % Change ■■ An opponent of Williams Partners’ 04/06/17 03/07/17 Change YOY Atlantic Sunrise expansion said its filing of Southcross Energy Partners SXE $4.11 $3.19 29% 229% a motion of rehearing before the Federal Sunoco SUN $28.69 $24.43 17% -11% Energy Regulatory Commission (FERC) should stop the expansion. A spokesperson Enbridge Energy Partners EEP $19.36 $17.77 9% 12% for the complainant, Geraldine Nesbitt, Enable Midstream Partners ENBL $17.05 $16.25 5% 105% said parties affected by FERC certifications Global Partners GLP $19.40 $18.50 5% 50% Crestwood Equity Partners CEQP $27.20 $26.20 4% 140% can request a rehearing to address errors 10 Top they believe FERC has made. However, Dominion Midstream DM $32.20 $31.05 4% -2% FERC lacks a quorum, preventing it from Rice Midstream Partners RMP $25.35 $24.57 3% 73% ruling on the motion. FERC approved the Holly Energy Partners HEP $35.95 $34.90 3% 9% 1.7 Bcf/d project in February during its last Williams Partners WPZ $41.78 $40.58 3% 104% meeting before commissioner Norman Energy Transfer Partners ETP $36.49 $38.33 -5% 17% Bay resigned, leaving the five-seat FERC Plains GP Holdings PAGP $31.43 $33.00 -5% 44% board with only two members. Plains All American Pipeline PAA $31.33 $32.77 -4% 50% ■■ Pinnacle Midstream has started up TC PipeLines TCP $59.83 $62.00 -4% 23% a new truck transloading facility in the Antero Midstream Partners AM $33.82 $34.92 -3% 63% Delaware Basin. The Sierra Grande CDP CONE Midstream Partners CNNX $23.09 $23.84 -3% 72% in Culberson County, Texas, includes Bottom 10 Phillips 66 Partners PSXP $53.33 $54.99 -3% -10% truck offloading racks with the ability Genesis Energy GEL $33.29 $34.32 -3% 13% of receive crude oil. The crude received at the Pinnacle Midstream CDP is then Western Gas Partners WES $61.33 $63.14 -3% 45% redelivered into the Plains All American EnLink Midstream ENLC $19.70 $20.10 -2% 80% Pipeline’s 100,000 bbl/d Avalon Extension Note: Includes public, US-based companies operating in the midstream space, limited to to PAA’s Permian Basin network. >$1.00/share and market cap >$500 million.

For general inquiries, email [email protected] Access PLS’ archive for previous midstream news Midstream Intelligence 10 April 7, 2017 A&D ■■ Williams Partners has completed a set of deals reducing its Delaware Tallgrass shifts 25% of Rockies Express in $400MM deal Basin assets in exchange for a stronger Publicly traded partnership Tallgrass Energy Partners LP has acquired an position in the Marcellus. Western Gas additional 24.99% membership interest in Rockies Express Pipeline LLC (REX) Partners and its affiliates from privately held Tallgrass Development LP for $400 million. The transaction picked up Williams’ 50% increases TEP’s ownership of REX to ~50% while keeping the stake of the Tallgrass WI in Delaware Basin JV Energy family of companies at 75%. Phillips 66 owns the remaining 25%. Gathering LLC, sending to Williams “We are pleased to acquire an additional interest in REX at a very attractive Partners’ its 33.75% WI in the Rome and price, and we expect the transaction to be immediately accretive to unitholders,” Liberty natural gas gathering systems in said Tallgrass President and CEO David G. Dehaemers Jr. northern Pennsylvania and $155 million The 1.8 Bcf/d Rockies Express bidirectional pipeline runs 1,698 miles from in cash. Williams Partners sold its 33 1/3% southwestern Wyoming to eastern Ohio, the only pipeline linking Appalachia with WI in Ranch Westex JV LLC, owner the Rockies. Shortly after the start of this year, Tallgrass Energy and REX completed of the Bone Spring gas processing plant a bidirectional 800 MMcf/d expansion from Clarington, Ohio, to Mexico, Missouri, in the Delaware Basin, for $45 million, through its 20 pipeline interconnects and delivery points. which was split to Anadarko Petroleum Spectra Energy to double stake in PennEast project and Energy Transfer Partners. Spectra Energy Partners has agreed to buy a larger stake in a $1.2 billion ■■ EVX Midstream Partners is PennEast pipeline project. The 120-mile, $1.2 billion pipeline project by the New Jersey building additional crude oil gathering utility will transport natural gas from the Marcellus shale in northern Pennsylvania to infrastructure in the Eagle Ford. The New Jersey. The pipeline is partnership has also acquired additional awaiting FERC approval. Spectra, which already owns a 10% strategic saltwater-disposal facilities. Under the deal, Spectra, stake in the pipeline project, will acquire “Area activity has been strong and the PSEG's 10% equity stake. which already owns a 10% stake in the strategic expansion of our assets will pipeline project, will acquire the 10% equity of PSEG Power, a subsidiary of Public position EVX to provide additional Service Enterprise Group. Financial details of the transaction were not disclosed. gathering, storage and blending PSEG told the AP the company intends to remain a customer of the pipeline but wants opportunities,” EVX President and CEO to focus on its core power plant business. Herb Chambers IV said. Specific locations and financial terms were not disclosed. American Midstream completes acquisition of JP Energy ■■ A 50:50 joint venture of Noble American Midstream Partners’ acquisition of JP Energy Partners is complete Midstream Partners and Plains All after a majority of the JP Energy unitholders voted in favor of the merger. The result is American Pipeline now owns the a diverse combined company with an estimated $2 billion enterprise value. Advantage pipeline as the $133 million The new company will have a footprint in the top US producing basins including cash-and-stock deal was completed this the Permian, Bakken and Eagle Ford as well as the Gulf of Mexico. The move week. Noble will operate the Advantage pairs AMP’s large pipeline footprint with JP’s storage, terminal and truck-transport system, which includes a 70-mile crude capabilities. Combined, the company owns and operates more than 3,100 miles of gathering oil pipeline that originates in Reeves and transportation pipeline in the Permian Basin, Eagle Ford, East Texas and the Bakken. County, Texas, and runs through Pecos JP Energy has ceased to be a publicly traded partnership and its common units and Ward counties before ending in will now trade on the NYSE under the ticker AMID. The combined company is Crane County. The pipeline also includes headquartered in Houston. 490,000 bbl of crude storage.

Bond Offerings Since The Last Issue Launch Principle Amount Net Proceeds Coupon Announced Company Description Price ($MM) ($MM) (% or bps) Maturity 4/3/17 Williams Companies Senior Notes 99.64% $250 $245 4.00% 4/1/27 3/14/17 Crestwood Midstream Partners Senior Notes 100% $500 $490 5.75% 4/1/25 Equity Offering Since The Last Issue Deal Amount Net Proceeds Shares Issued Offer Price Announced Company Sector Description ($MM) ($MM) (MM) Per Share 3/22/17 Genesis Energy Midstream Common Units $125.12 $122.60 4 $31.28 *Midstream Intelligence was last published Feb. 17; offering before that date may not have writeups in this issue.

Find more on the midstream sector at To learn more about PLS, call 713-650-1212 Volume 10, No. 04 11 Infrastructure Finance Hess Midstream upsizes and launches delayed IPO ■■ -based midstream provider Two years after its postponement, the IPO of Hess Midstream Partners is Lucid Energy Group said it has completed underway with roughly a quarter of the company available to the public. On April 5, the refinancing and expansion of its two senior the company started trading on the NYSE under “HESM” its offering of 14.78 million revolving credit facilities. The additional common units at $23 each. The underwriters will have a 30-day greenshoe of up to financing will be used to support the Dallas- 2,217,000 common units in the Bakken midstream company. If the greenshoe is fully based company’s growth strategies in the exercised, the IPO would raise $390.9 million. The IPO was upsized, announced only Midland and Delaware basins. The new nine days earlier at 12.5 million common units priced at $19-$21. credit facilities bring Lucid’s total financing The units offered to more than $1.45 billion. to the public represent Hess filed the paperwork for a midstream IPO in 2014, but ended up 22.5% limited partner interest or 25.8% ■■ Crestwood Midstream Partners forming a JV instead. said it received valid tenders for more than if the underwriters fully use their $744 million for its cash tender offers that option to purchase more units. Hess Corp. and independent fund manager Global expired March 13. Crestwood Infrastructure Partners II will each own 50% of the remaining limited partner interest. Midstream offered $807.7 Hess Infrastructure Partners, a 50:50 JV by Hess and GIP, will own Hess Midstream million in cash for all outstanding Partners’ general partner and all of the partnership’s incentive distribution rights. 6.0% senior notes due 2020 and 6.125% Paperwork for an IPO of Hess senior notes due 2022. The subsidiary of Hess Midstream Assets Include: Midstream was initially filed with the Crestwood Equity Partners funded the SEC in September 2014 with an offering • 345 MMcf/d compression buyback through a $500 million private slated for 1Q15, but the IPO never system (20% WI) offering of unsecured 5.75% senior notes happened. GIP bought into the JV in July • 161,000 bbl/d crude gathering due 2025 and its revolving credit facility. 2015 for $2.675 billion. system (20% WI) JP Morgan was the bookrunner of the Goldman, Sachs & Co., Morgan • Propane storage cavern (100% WI) new debt offering. Stanley, Citigroup, J.P. Morgan, • 60,000 bbl/d fractionation plant (20% WI) MUFG and Wells Fargo Securities are ■■ Enable Midstream Partners • 140,000 bbl/d crude and 30,000 bbl/d bookrunning managers for the offering has priced its $700 million offering NGL rail loading terminal (20% WI) and Barclays, HSBC, ING Financial of 4.400% senior notes due 2027 at a • 100,000 bbl/d Johnson’s Corner Markets, Scotia Howard Weil, SMBC price to the public of 99.615% Header System (20% WI) of their face value. Enable Nikko and TD Securities are co-managers. Midstream said it will use Service & Supply the net proceeds from the offering for general partnership purposes, including Tenaris CEO: North America behind soaring pipe demand the repayment of outstanding amounts Tenaris has increased its global sales demand estimate for oil country tubular goods (OCTG) in 2017 to 12.1 million tonnes (13.3 million tons) from a previous under its revolving credit facility. estimate of 10.4 million tonnes. Leading the way is a 136% YOY increase in US Citigroup, MUFG and RBC Capital and Canada demand. Markets are acting as joint book- The world’s largest maker of seamless-steel pipes for oil and gas running managers for the offering. predicted demand in the US and Canada would rise to 5.2 million tonnes ■■ Energy Transfer Equity bought from 2.2 million tonnes in 2016, making up nearly all of the global demand growth. $300 million in Sunoco LP preferred Worldwide OCGT demand was 8.8 million tonnes in 2016. equity in a private placement. Sunoco LP CEO Paolo Rocca, who gave the increased demand estimate during an industry will use the proceeds of the transaction conference in New Orleans, said that higher demand has caused pipe pricing to to repay borrowings under its revolving increase 19% over the past couple of months. Teneris plans to hire another 1,800 credit facility. ETE is the parent to Sunoco, workers around the world, he said. owning its general partner and incentive Rocca also predicted that this Luxembourg-based company would be unaffected distribution rights. ETE also owns by President Trump’s order that new US pipelines should use US steel. He noted that 18.4 million common units of Energy his company’s $1.8 billion plant in Bay City, Texas, which will open this fall, will Transfer Partners and approximately show a commitment to US jobs. The plant will serve shale wells, but is not designed 81.0 million ETP Class H Units, which to make the larger pipes needed in wells in the Gulf of Mexico, which Tenaris imports track 90% of the general partner interest from Italy, Mexico and Argentina. and IDRs of Sunoco Logistics Partners “We cannot have the scale of production of every product in the states,” Rocca (SXL). In addition, ETP has set a special told Bloomberg. “But you can have the major part of your immense supplies from the shareholders meeting for April 26 to vote United States. This is exactly in line with what the administration would like to have on its merger agreement with SXL. from the industrial deployment.” For general inquiries, email [email protected] Access PLS’ archive for previous midstream news Midstream Intelligence 12 April 7, 2017 Storage M2, TransCanada agree to develop storage at Cushing Change in Lower 48 Natural Gas Storage M2 Infrastructure has entered into 200 an MOU with TransCanada to build 150 5 Yr Avg 6.2 MMbbl of new crude oil storage at TransCanada’s terminal in 100 Cushing, Oklahoma. The new 50 crude oil storage will be owned 0 by M2 Infrastructure and operated by 2017 -50 2016 TransCanada. Under the agreement, M2 has an option to build up to 20 MMbbl -100 April 1 marks the beginning of of storage, which would be constructed in -150 injection season and this year a 2 Bcf phases. Construction is expected to begin -200 build was reported. in late 2017, pending finalization of the -250 agreement and acquisition of land rights. 5 Yr Range -300 M2 Infrastructure has an option to build up to 20 MMbbl of storage. -350 Jul Jan Jun Oct Feb Sep Apr Dec Mar Nov Aug

May M2 Infrastructure said it plans to work Source: OTC Global Holdings Market Data and EIA with Matrix Global Holdings to sell storage capacity to its customers through online auctions of futures contracts and/ Current US Petroleum Stocks by Type (MMbbl) or physical forward agreements. Robert For Weeks Ending Collins Jr., co-founder and manager of M2 Infrastructure and Matrix Global 03/31/17 03/24/17 Net 04/01/16 Holdings, said the project’s position Change in Cushing “should provide the lowest Crude Oil (Excluding SPR) 535.5 534 1.50 498.6 cost, highest throughput, most liquid Motor Gasoline 239.1 239.7 -0.60 244 and most connected storage solution in the Midcontinent.” Distillate Fuel Oil* 152.4 152.9 -0.50 163 All Other Oils 410.4 409.8 0.60 420.1 Crude Oil in SPR 692.1 692.7 -0.60 695.1 Total 2,029.5 2,029.1 0.40 2,020.8 *Distillate fuel oil stocks located in the “Northeast Heating Oil Reserve” are not included. Note: Data may not add to total due to independent rounding. Source: EIA Weekly Petroleum Status Report Locate worldwide Current Natural Gas Stocks by Region (Bcf) oil & gas % % Diff. Net Change From 5-Yr opportunities 3/31/17 3/24/17 Change 3/31/16 YOY Avg. East Region 268 278 -10 435 -38.4% -19.3% A global database of asset sales, farmouts & international concessions Midwest Region 479 486 -7 549 -12.8% 28.8% This unique relational database is Mountain 142 141 1 149 -4.7% 17.4% a multiple listing service of global Pacific 216 212 4 265 -18.5% -5.7% deals for sale outside North America. South Central 946 932 14 1,081 -12.5% 29.4% The unique value-add component of OpFinder is its historical archives, log Total Lower 48 2,051 2,049 2 2,479 -17.2% 14.8% book and innovative tracking system. Source: Energy Information Administration: Form EIA 912, “Weekly Underground Natural Gas Storage Report” and the Historical Weekly Storage Estimates Database. Row and column sums www.opfinder.com may not equal totals due to independent rounding.

Find more on the midstream sector at To learn more about PLS, call 713-650-1212 Volume 10, No. 04 13 Infrastructure LNG LNG Export Terminal FERC gives Cheniere’s Sabine Pass Trains 3 & 4 greenlights Permitting Status Cheniere Energy’s Sabine Pass LNG project in Louisiana has received two major Import Terminals approvals from the Federal Energy Regulatory Commission. FERC approved Cheniere’s Approved -Under Construction -FERC requests to begin commercial activities at Train 3 and introduce natural gas into Train 4. Corpus Christi, TX: 0.4 Bcfd (Cheniere South Korea’s Kogas has a 20-year free-on-board contract –Corpus Christi LNG) for 3.5 mtpa of the 4.5 mtpa Train 3 and Shell has a contract Approved - Not Under Construction -FERC for 0.7 mtpa. The train is undergoing commissions-related operations. Train 5 is under construction and Train 6 Salinas, PR: 0.6 Bcfd (Aguirre Offshore is waiting for an FID. GasPort, LLC) The addition of natural gas to Train 4 marks the start of the commissioning activities before its scheduled start-up sometime in H2. Approved - Not Under Construction -MARAD/Coast Guard Sabine Pass will have a Train 5 that is under construction but its scheduled start Gulf of Mexico: 1.0 Bcfd (Main Pass up isn’t until 2H19. The facility is planned for a Train 6, but that is still awaiting a final McMoRanExp.) investment decision. th Gulf of Mexico: 1.4 Bcfd (TORP Cheniere also celebrated a milestone on April 1—the 100 LNG cargo to leave Technology-Bienville LNG) Sabine Pass. Since the first shipment on Feb. 24, 2016, Cheniere has delivered cargoes Export Terminals to 18 countries on five continents. Approved -Under Construction -FERC Tellurian’s Driftwood LNG sends application to FERC Corpus Christi, TX: 2.14 Bcfd (Cheniere Tellurian wholly owned subsidiaries Driftwood LNG and Driftwood Pipeline –Corpus Christi LNG) have submitted a formal application with the Federal Energy Regulatory Commission Cove Point, MD: 0.82 Bcfd (Dominion– for its LNG export facility near Lake Charles, Louisiana. The application seeks Cove Point LNG) permission to construct and operate the 26 mtpa export facility and a 96-mile pipeline Elba Island, GA: 0.35 Bcfd (Southern connecting Driftwood LNG to interstate pipelines. LNG Company) Engineering, procurement, and construction will cost $13-16 billion Freeport, TX: 2.14 Bcfd (Freeport LNG for the LNG export facility, with a final investment decision to begin Dev/Freeport LNG Expansion/FLNG construction expected after regulatory approval in mid-2018. First LNG is expected in 2022. Liquefaction)) Last month, the US Department of Energy has given the company’s Driftwood Hackberry, LA: 2.1 Bcfd (Sempra– facility permission to export LNG for free-trade agreement countries. Driftwood Cameron LNG) LNG’s application to export to non-FTA countries is pending DOE action. Sabine Pass, LA: 1.40 Bcfd (Sabine Pass Earlier in March, Tellurian reported it has retained a Société Générale subsidiary Liquefaction has a financial advisor to Driftwood. Sabine, LA: 1.4 Bcfd (Cheniere/Sabine Tellurian Investments Inc. was founded as a private company in 2016 and later Pass LNG) merged with a subsidiary of Magellan Petroleum. The company has targeted the Approved - Not Under Construction -FERC Gulf Coast for several low-cost LNG infrastructure projects. Hackberry, LA: 1.41 Bcfd (Sempra Service & Supply -Cameron LNG) Lake Charles, LA: 1.08 Bcfd (Magnolia CB&I awarded $1.3B EPC contract for Texas ethane cracker LNG) CB&I received a $1.3 billion contract from Total Petrochemicals & Refining Lake Charles, LA: 2.2 Bcfd (Southern USA for engineering, procurement and construction of an ethane cracker project in Union –Lake Charles LNG) Port Arthur, Texas. This builds off of a contract for front-end engineering and design Sabine Pass, TX: 2.1 Bcfd (ExxonMobil services and an ethylene technology license. –Golden Pass) “The cracker project, the fourth new ethane project for CB&I on the Approved - Not Under Construction US Gulf Coast, will allow Total to capitalize on the abundance of shale - Canada gas in the US and realize significant operational synergies,” CB&I President and CEO Port Hawkesbury, NS: 0.5 Bcfd (Bear Philip K. Asherman said. Head LNG) Based in The Woodlands, Texas, the energy infrastructure company has been Kitimat, BC: 3.23 Bcfd (LNG Canada) adding projects worldwide at a fast clip. In late March, it announced it had been Squamish, BC: 0.29 awarded a $460 million contract for an oil refinery project in Krasnodar, Russia, and Bcfd(WoodfibreLNG Ltd) a “substantial” contract for proprietary technologies in an integrated refining and Prince Rupert Island, BC: 2.74 Bcfd petrochemical project in China. (Pacific Northwest LNG)

Source: AIMS LLC, aimsllc.biz First in U.S. energy news & analysis www.plsx.com/reports/us

For general inquiries, email [email protected] Access PLS’ archive for previous midstream news Midstream Intelligence 14 April 7, 2017 LNG ■■ Construction has begun at the Jacksonville LNG small-scale facility LNG Ltd. applies for final lease deal for Magnolia LNG in Florida, a project of Crowley In a step called “critical” to make the Magnolia LNG export facility in Louisiana Maritime and Eagle LNG Partners. ready to build, Liquefied Natural Gas Ltd. has requested the Lake Charles Harbor Chart Industries is delivering two and Terminal District proceed with finalizing the project’s ground lease. LNGL secured new, 1-million liter cryogenic tanks for an option agreement for the 108-acre site with the port authority in 2013. LNG storage at the “Finalizing the ground lease is critical to maintaining the status of our facility, which will Magnolia project as fully construction ready,” said John Baguley, CEO be able to process 70,000 tonnes annually for Magnolia LNG LLC, a wholly owned subsidiary of Australia-owned LNGL. of LNG. The LNG bunker fueling Magnolia LNG plans to build up to four liquefaction trains, each with a 2 mtpa capacity. facility will serve Crowley’s new LNG- Filing to finalize the lease, however, does not mean that a FID has been made. powered, combination container/roll-on “The pacing item for our final investment decision and initiation of construction roll-off (ConRo) ships, which are under for Magnolia remains finalization of our LNG offtake agreements,” LNGL CEO construction to deliver LNG to Puerto Greg Vesey said. Rico. The ships, which are some of the In December, the US Department of Energy gave Magnolia LNG authorization to world’s first to be powered by LNG, will export LNG to countries with which US has not entered into a free trade agreement. begin service in the 2H17 and 1H18. The project has already received approval from the Federal Energy Regulatory ■■ Woodfibre LNG has started a Commission, which signed off on the terminal in April 2016. multimillion-dollar site cleanup by awarding a pre-construction contract Petronas becomes first to export from FLNG unit to Matcon Environmental, a civil Petronas has won the race to be the first to export LNG from a floating production contractor in British Columbia. Matcon unit, as the Petronas FLNG Satu loaded the 5.0 MMcf tanker Seri Camellia in late March. will start removing industrial debris The 1.2 mtpa LNG facility, which reportedly cost as much as $10 billion, moved off the from the former pulp mill site. More pre- coast of Bintulu on Malaysia's Borneo island last year to start operations. construction contracts will be awarded in Royal Dutch Shell was the first to make a final investment decision Q2. The engineering, procurement and of a FLNG unit, announcing the Prelude construction contract for the 2.1 mtpa FLNG, the world’s biggest maritime vessel, in December 31, 2014 • Volume 06, No. 15 InternatIonalCapItal LNG export facility near Squamish, BC, Serving the marketplace with news, analysis and business opportunities 2011. The $12 billion project, designed to produce Analysts assess project risk at various price points Petrobras scandal, possible In perhaps the most extreme prognostication to date, Goldman Sachs analysts default spurs lawsuits say $1.0 trillion in projects could fall by the wayside as $60/bbl Brent renders certain The ongoing investigation into the should be awarded in 2017. Woodfibre higher-priced projects around the world unprofitable. Projects aggregating $930 Petrobras scandal could soon have billion worth of future investment were no longer profitable with Brent at $70/bbl, the implications outside Brazil. That’s 5.3 mpta of liquids including 3.6 mtpa of LNG investment bank said, and that $10/bbl less would push that number to the $1.0 trillion because the company and its executives InternationalCapitalmark. The Goldman analysis looked at 400 of the world's largest new fields have been Jan. named 20 excluding US shale. as the target LNG is a subsidiary of Pacific Oil & Goldman estimates that more than Led by Canadian oil sands $1.0T in projects are at risk at current prices. of a new, $98-billion US class-action projects at $80/bbl and certain US shale lawsuit alleging Petrobras made material offshore Australia, remains under construction. plays and other tight oil plays at $76, Energy Aspects say more than 12% of global oil misstatements about the value of production would be uneconomic if the majors were to move forward on existing projects at today’s prices. Brazil’s deepwater fields just wouldn’t be worth the expense at $75 and S&P says Petrobras would be junk- Gas, which is part of the Singapore- rated if not for government support. PetronasMexican projects would cease to be profitable capex at $70. The group told spendingthe Financial Times not it believes 1.5 MMbopd of the world’s planned 2016 projects are at risk at $70 and that its assets. The suit, filed in Manhattan’s A FLNG unit is also part of INPEX‘s massive over 1.0 MMbopd of 2017 projects are chancy at that price point. Continues On Pg 4 federal court on behalf of the city Oil prices the scourge of noted investors in 2014 of Providence, Rhode Island by the Labaton Sucharow law firm, based RGE group. likelySome of the world’s to most astute rise and followed investorsin couldn’t2017, escape the grip bank says. covers all securities Petrobras sold that a slumped oil price had on various securities during 2014, and has given the since 2010: including debt issued by $2.8 trillion hedge fund sector its worst year since 2008. Most notable is the loss Petrobras International Finance Co. Ichthys project offshore Australia. incurred by legendary activist investor Carl Icahn courtesy and Petrobras Global Finance from of his investment in Talisman Energy, now prepping for a February, 2012. Continues On Pg 12 Repsol takeover (see story on page 7). After accumulating more than 7% of Talisman’s shares and gaining board seats and influence in the company, the golden Icahn touch was no match for oil prices FEATURED DEALS this year—his almost $900 million investment was down $540 million until Icahn's investment was down 40% at TUNISIA PROJECT one point before rebounding somewhat. the Repsol offer and the resulting share 1-Permit. 556,481-Acres. (2,252km2) GHADAMES BASIN price boost cut his losses down to $286 million. His company’s total portfolio was Contains One Discovery. FO up 4.4% through the end of Q3, filings show. Looking at his Talisman experience, 8 Identified Leads: Silurian Sandstone Icahn told the Wall St. Journal: “In this oil environment, I’m certainly glad a bidder Seismic Data Available. came along for it. Continues On Pg 6 Also Re-Entry Project for 2-Wells. RE-ENTRY SEEKING JV PARTNER FOR --- --EXPLORATION PROGRAM. FERC Pipeline Approvals YTD Oil-linked contracts put many LNG projects in limbo Est Mean EUR: 57 MMBO While BG Group celebrates the loading of the first commercial cargo at its Gladstone Est Total In-Place Reserves: 385 MMBO LNG plant on Queensland’s Curtis Island, the current pricing climate has already altered Exploration Term Expires April 2016. CA Required To View Data Room. the fate of the Pacific NorthWest LNG megaproject in Canada and may affect investment CONTACT AGENT TO LEARN MORE decisions in other large-scale LNG projects worldwide. While not an oil FO 1022DV drilling project, conventional or otherwise, the $32 billion, multi-partnered CapacityPetronas-led effort has been put on hold as the Malaysian NOCMiles defers a final OFFSHORE of AFRICA FARMOUT Filing Date/ investment decision on the gas project with a list of entirely Asian prospective customers 1-PSC. 420,079-Acres. (1,700km2) that are used to paying for LNG based on SENEGAL & GUINEA-BISSAU Company/Project AGC MARITIME COMMISSION ZONE DV Compression (HP) States oil-indexed contracts. LNG prices in Asia now below $10/MMbtu, disturbing to profitability. Contains One Identified Prospect. (MMcf/d)With the drop in crude, LNG prices PipeShallow Water: 328 Ft. (100m) Issue Date landing in Asia have now sunk below $10/MMbtu, down from $16/MMbtu as recently 3-D Seismic Data Available. SHALLOW as April 2014. In North America alone, nearly 40 mtpa of LNG projects are under 40% WORKING INTEREST AVAILABLE Estimated Reserves: 475 MMBO construction with another 30 mtpa expected to reach FID in the next twelve months. CA Required To View Data Room. In Australia, LNG breakeven prices are $13-$14/MMbtu. Globally, as with oil, LNG CALL AGENT FOR MORE INFORMATION landed prices will adjust to market dynamics. Continues On Pg 10 DV 5234L 11/13/2015; Millennium Pipeline Co.; Valley Lateral Project 130 7.8All Standard Disclaimers & Seller Rights Apply. 0 NY 11/09/2016 FERC Major Pipeline Projects Pending Capacity Miles of Compression Company/Project (MMcf/d) Pipe (HP) States Filing Date Valley Crossing Pipeline, LLC Border Crossing Project 2,600 0.2 0 TX 11/21/16 Dominion Cove Point LNG, LP Eastern Market Access Project 294 0 31,370.00 MD, VA 11/15/16 ANR pipeline Company Wisconsin South Expansion Project 231 0.5 6,130.00 IL, WI 11/03/16 Florida Gas Transmission, LLC East-West Project 275 24.7 0 LA, TX 10/31/16 FERC Pending Storage Projects Company (Storage Field or Project) Storage Field/Project State(s) County/ Parish Working Gas Capacity (Bcf) Tres Palacios Gas Storage Colorado, Matagorda, Tres Palacios Gas Storage LLC Facility Amendment TX Wharton -7.41 Source: PLS Research

Find more on the midstream sector at To learn more about PLS, call 713-650-1212 Volume 10, No. 04 15 Infrastructure People & Companies LNG ■■ TransCanada COO Alex Pourbaix Japanese mull Tellurian’s offer of $8/MMBtu LNG through ’28 will retire at the end of May after 23 Tellurian Chairman Charif Souki made an unexpected proposal to Japan’s LNG years with the company. He has been buyers: five-year, fixed-price deals of $8.00/MMBtu starting in 2023. The offer is a COO since October 2015 and bold break from the usual long-term contract that are indexed to oil prices, but traders was appointed TransCanada’s are wondering whether it’s a good deal for them. president of energy and oil Souki’s offer appeared calculated to cause a stir. He made the pipelines in 2010, when Russ Girling unexpected announcement at during \the year’s largest LNG conference, was named president and CEO. In 2014, Gastech at Chiba, Japan. The country is the world’s leading consumer of LNG. Pourbaix was named EVP and president “If you hear now that you can buy LNG for Japan at $8 in 2023, everybody of development. Pourbaix, 50, who had would probably say it's cheap,” said Hiroki Sato, chief transaction officer of JERA, been rumored to be a potential successor the world’s leading buyer of LNG. However, he told Reuters was unsure that the offer to Girling, 54, told the Financial Post it would remain a good deal. was “time to try some other opportunities” A price of $8.00/MMBtu would be below the average spot price of LNG exported and the awarding of the presidential to Japan in February, which the Japan’s trade ministry said was $8.50/MMBtu. permit to Keystone XL made it “a good Tellurian is planning its first LNG export project, Driftwood, which is still seeking time to enter a new stage.” regulatory approval (PG. 13). LNG operations are expected in 2022. ■■ Cryogenics manufacturer Chart Industries will change CEOs in May AMZ outperforms REITs, utilities & bonds in March and will relocate its headquarters from In the first quarter of 2017, the Alerian MLP Index (AMZ) grew 3.9% on a total Garfield Heights, Ohio, to a Canton, return basis, outpacing REITs and bonds, which returned 2.9% and 0.8% respectively. Georgia, facility. Samuel Thomas, current Over the same period, the S&P 500 and utilities outperformed the AMZ, growing 6.1% chairman and CEO, will move to the and 6.4%, respectively. Despite the recent series of rate increases by the Federal Reserve, position of executive chairman effective yield-bearing investments have not seen a significant pullback. The AMZ ended March May 25 and retire in May 2018. President with a 7.0% yield, far above REITs (3.9%), utilities (3.6%), and bonds (2.6%). and COO Bill Johnson will then become March was a relatively quiet month for MLPs, with lower the company’s CEO and president at than normal volume as investors wait for earnings and distribution that time. Johnson, a former president announcements in April. Enbridge Energy Partners LP (EEP) led the AMZ for the and CEO of Dover Refrigeration & month, growing 5.0% as the index itself fell 1.3%. Martin Midstream Partners LP Food Equipment, joined Chart in 2016. (MMLP) followed closely behind, growing 4.4%, with Western Refining Logistics Kenneth J. Webster will not to relocate LP (WNRL) rounding out the top 3, gaining 4.3%. During the most recent quarterly to the Georgia facility and stepped rebalancing, Western Refining Logistics LP (WNRL) and GasLog Partners LP down as CFO. Jillian Evanko, formerly (GLOP) were added to the AMZ. CFO of Dover Fluids and Truck-Lite Co., became CFO. ■■ Sanchez Production Partners LP Alerian MLP Index Vs. Other Sectors has appointed Patricio D. Sanchez as $4,000 president of the general partner in addition to COO. Sanchez, a member of AMZ REITs Utilities S&P 500 Bonds the board, was elected COO of the general partner in May 2015. $3,000 He has served as co-president of Sanchez Oil & Gas, a manager of oil and natural gas properties on behalf of $2,000 its related companies, since June 2014 and prior to that from April 2010 to June 2014 as EVP. $1,000

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