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Crude Pipelines Infrastructure Developing at Enbridge Ingleside Energy Center
05/11/2022
Due to Humble press release, the joint project to improve and market a low-carbon hydrogen and ammonia production and export facility was presented on May, 6 by Enbridge Inc. and Humble Midstream LLC.
Deployment of the facility is taken under the Enbridge Ingleside Energy Center (EIEC) basis close by Corpus Christi. Negotiating with some potential offtake customers, the companies are eager to market the capacity of this facility. Moreover, its construction will be organised in case there is enough customer support and after getting obligatory regulatory approvals.
As the Enbridge executive vice president and president of liquids pipelines, Colin Gruending states, it is a good example of how Enbridge is holding existing energy assets and capabilities in order to raise growth and take advantage of low carbon opportunities in the transition of energy. Being the premier export facility on the U.S. Gulf Coast, the EIEC plays a vital role in world energy security and sustainability.
Enbridge with help of Humble plan to develop a utility-scale efficiently low carbon production facility, able to combine both low-carbon hydrogen and ammonia to meet the growing global and domestic demand.
Enbridge Inc. is a leading North American energy infrastructure company. The core businesses include Liquids Pipelines, which transports approximately 30 per cent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 per cent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.9 million retail customers in Ontario and Quebec; and Renewable Power Generation, which owns approximately 1,766 MW (net) in renewable power generation capacity in North America and Europe.
It is expected to sequester up to 95% of CO2 generated in the production process in carbon capture facilities, especially ones owned and operated by Enbridge which makes this process a fully integrated low-carbon solution. Additionally, its affiliate - Texas Eastern Transmission Pipeline will supply the feed gas for the production process.
Not only is it a pleasure to cooperate with Enbridge in that very first effort to ameliorate clean energy alternatives on a world-class scale, but also our company is convinced that our joint midstream expertise helps us to provide affordable hydrogen and ammonia to a marketplace seeking low carbon alternative fuels, Humble CEO Steven Huckaby commented.
Humble Midstream is focused on solutions to transform energy markets by delivering sustainable and scalable low carbon solutions to accelerate the net-zero future. Leveraging decades of midstream energy experience, the Humble team is positioned to lead in the development and operation of clean hydrogen, clean ammonia, and carbon capture, utilization, and sequestration (CCUS) projects.
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Inconvenient Time for Canadian Crude: US Gulf Coast Is Glutted
Canadian heavy crude, being deeply discounted for several years due to a lack of pipelines, is eventually trading like a “North American” grade, moving in tandem with U.S. sour crudes sold on the GulfCoast thanks to Enbridge’s expansion of its 3 pipeline late last year. Meanwhile, the Gulf is full of sour crude over Washington’s largest-ever release from the Strategic Petroleum Reserve (SPR) that will amount to 180 MMbbl during six months, trying to tame exorbitant fuel prices after the Russian invasion of Ukraine. The market is flooded with millions of barrels of sour crude from storage caverns in Louisiana and Texas. At the world’s biggest heavy crude refining center, U.S. Gulf Coast, heavy grades like Mars and Poseidon are languishing. According to U.S. Energy Information Administration (EIA) data, Canada exports around 4.3 MMbbl/d to the United States, whereas until last year demand to ship crude on export pipelines increased capacity, leaving barrels bottlenecked in Hardisty.
Growing Export of US Crude Oil Is Expected to Set Record This Quarter
On 27 June, the analysts at Kpler spread the word that the exports of crude oil from the U.S. Gulf Coast could break a record 3.3 MMbbl/d this quarter as Europe has regard to U.S. crude which can outweigh sanctioned Russian oil. Due to Washington's decision to release 180 MMbbl of oil from the nation's Strategic Petroleum Reserve, U.S. exports have increased in the last three months, as it has flooded the domestic market. Exports to Europe are anticipated averaging approximately 1.4 MMbbl/d this quarter, about 30% higher than the year-ago quarter, meanwhile, export to Asia is set to decrease to less than 1 MMbbl/d. Despite that the U.S. has lost about 1 MMbbl/d of refining capacity since 2020, it also boosted exports thanks to the government’s intervention to back crude supplies which has had consequences in growth in exports. Throughput via the Port of Corpus Christi has grown by more than 150,000 bbl/d and has become 1.86 MMbbl/d. Nevertheless, Port of Houston exports also have been increasing since the third quarter of last year, they remain below pre-pandemic levels.
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