19 US oil and gas pipelines are completed this year



U.S. operators have completed, started construction or announced a total of 19 petroleum liquids pipeline projects so far this year, the Energy Information Administration (EIA) mentionned Friday.

Two pipelines have so far been completed in 2021, while 17 projects are either under construction or announced, according to the latest data from the EIA’s Liquid Pipeline Projects Database.

Of the 19 petroleum liquids pipelines, 12 are crude oil projects, six are gaseous hydrocarbon liquids (GLH) projects and one project is for the transportation of petroleum products. Ten of the 19 projects are new pipelines, 7 projects are extensions or extensions of existing systems, and 2 projects are conversions of the product carried on the pipeline.

Last year, the United States saw a total of 24 petroleum liquids pipeline projects completed, including 11 crude oil projects, 12 HGL projects, and 1 petroleum products project. In 2020, a total of 11 projects were new pipelines and a further 11 projects were extensions of existing systems, according to EIA data.

The record year for petroleum liquids pipelines was 2014, with up to 35 projects completed, followed by 30 projects completed in 2019, according to EIA data.

In 2019, much of the crude pipeline capacity was commissioned in the Permian Basin to transport the sharply increasing crude production in the Basin to refining hubs and export terminals.

More pipelines have entered service in recent months to transport gas from the Permian Basin to Mexico, increasing U.S. gas exports to the southern U.S. neighbor and reducing the large discount at which gas is traded at the Waha Hub in the United States. Texas, the EIA said earlier this month.

The increase in the pipeline’s carrying capacity raised gas prices at the Waha Hub and lowered the gas price discount in West Texas from the US benchmark at the Henry Hub.

In the years leading up to the 2020 crisis, prices at the Waha Hub even turned negative at times due to pipeline constraints and occasional problems at compressor stations.

By Charles Kennedy for Oil chauffage

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