October 17, 2019

October 17, 2019
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  • WTI is down 31c to $53.05/Bbl, and Brent is down 29c to $59.13/Bbl
  • Kinder Morgan has completed a pipeline connection in South Texas that connects its 300 MBbl/d crude pipeline (KMCC) to the new Gray Oak pipeline
    • The new link will allow shippers to move up to 100 MBbl/d of crude from the Permian basin to KMCC delivery points along the Houston Ship Channel, according to Kinder Morgan
    • Phillips 66 is building the 900 MBbl/d Gray Oak in a joint venture with Marathon, Enbridge and Diamondback Energy
    • Gray Oak will move crude from the Permian and the Eagle Ford to Corpus Christi and to the Sweeny area south of Houston
  • EIA weekly data is due at 11am ET (a day later than usual due to the US holiday)
    • U.S. Crude Inventories:                  +      2,494 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:             –      1,369 MBbls
    • U.S. Distillate Inventories:             –      2,528 MBbls
    • U.S. Refinery Utilization:               +       0.17% change
  • The American Petroleum Institute (API) has estimated a massive crude oil build of 10.45 MMBbl for the week ending October 10
    • The industry group releases its estimate for crude oil inventories a day prior to government data
  • Natural gas is up 2.8c to $2.331/MMBtu
  • Kinder Morgan reported that its 2.0 Bcf/d Permian Highway Pipeline is being pushed back to early 2021 on account of local opposition to the proposed route
    • The pipeline originally had an anticipated in-service date in November 2020
    • Kinder Morgan also stated that Elba LNG’s second and third trains are in the startup phase and that units four through six are undergoing commissioning activities
  • Analysts estimate that natural gas storage will build by 108 Bcf for the week ending October 11, the corresponding build last year was 82 Bcf
    • Estimates ranged from 95 Bcf to 112 Bcf and would put total storage around 3.5 Tcf
    • Should the injection fall within estimates, it would be the largest October build since 2011
  • The Department of Energy approved Venture Global’s proposed Plaquemines LNG facility to export LNG
    • The 3.4 Bcf/d facility is expected to be built in two phases, with the first being completed in 4Q2022 and the second in 4Q2023
    • The company estimates that they should reach a Final Investment Decision by the end of 2019

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