Jul 25, 2017

Monkey Island LNG selects AECOM to guide FERC application

Romily Broad
2 min
The Monkey Island LNG project, Louisiana
Monkey Island LNG, formerly known as SCT&E LNG, has selected AECOM to coordinate...

Monkey Island LNG, formerly known as SCT&E LNG, has selected AECOM to coordinate the environmental analysis and engineering services for the Company’s FERC pre-filing review process and application.

FERC is the siting and construction authority for Monkey Island LNG’s 15.75mn tons per annum (mtpa) LNG export facility to be developed on Monkey Island in Cameron Parish, Louisiana.

Read Constuction Global's in-depth profile of the project here

AECOM will draw upon decades of experience permitting major industrial facilities, particularly LNG facilities and natural gas pipelines on the Gulf Coast, to prepare the permitting strategy for the Monkey Island LNG project and begin the FERC application process.

AECOM had previously completed the Phase 1 Environmental study for the project site and will support the project from their Houston, Texas, Baton Rouge and New Orleans, Louisiana, offices.

Monkey Island LNG Chairman and CEO, Greg Michaels, said: “Incorporating AECOM’s environmental and LNG expertise with our Monkey Island LNG technical team will instill confidence with key customers and investors in our project.

"This choice aligns with our corporate commitment to selecting industry-proven technologies and contractors, such as Air Products & Chemicals Inc. and TechnipFMC, to develop this great clean-energy project.”

Monkey Island LNG’s President, Engineering and Construction, Scott Ray, added: “AECOM’s Technical Practice Network and experience with impact assessment and permitting LNG facilities and natural gas pipelines on the Gulf Coast are a significant asset to our project team. We look forward to working with this talented organization to successfully and efficiently complete the FERC permitting process.”

The Monkey Island LNG facility is expected to reach Final Investment Decision in the 4th quarter of 2020, at which point the project development team plans to begin construction of the facility.

During construction, the project will provide thousands of local and statewide jobs. Once operational, the Monkey Island LNG facility will create hundreds of well-paying permanent jobs and will return billions of dollars in revenue to the United States.

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Jun 21, 2021

Magellan, Enterprise and ICE unveil new futures contract

futures
Oil
trading
USA
Dominic Ellis
4 min
The Midland WTI American Gulf Coast contract is being launched in response to market interest for a Houston-based index

Magellan Midstream Partners, Enterprise Products Partners and Intercontinental Exchange (ICE) are establishing a new futures contract for the physical delivery of crude oil in the Houston area.

The Midland WTI American Gulf Coast contract is being launched in response to market interest for a Houston-based index with greater scale, flow assurance and price transparency. It will use the capabilities and global reach of ICE’s trading platform and is due to be launched by ICE by early 2022, subject to regulatory approval. 

The quality specifications of the new futures contract will be consistent with a West Texas Intermediate crude oil originating from the Permian Basin with common delivery options at either the Magellan East Houston terminal or the Enterprise Crude Houston terminal. In support of this new futures contract, Magellan and Enterprise anticipate discontinuing their existing provisions for delivery services under the current futures contracts deliverable at each terminal once the new contract receives regulatory approval and is finalised. 

“Magellan is pleased to join forces with Enterprise and ICE to offer this leading-edge joint futures contract,” said Aaron Milford, Magellan’s chief operating officer. “The new contract improves the transparency, flexibility and marketability of Midland WTI crude oil for Gulf Coast and export customers while maintaining industry-recognized quality and consistency.”

Harold Hamm, Chairman of the Board of Continental Resources and Founding Member of the American Gulf Coast Select Best Practices Task Force Association said on April 20 last year, when the Cushing, Oklahoma WTI contract traded down to -$38, it was a wake-up call to the oil industry that the storage constraints and landlocked location of the Cushing contract could no longer be ignored.

"I started the American Gulf Coast Select Best Practices Task Force to develop specifications for a new US light sweet crude oil price benchmark in the American Gulf Coast, and to advocate for its implementation and adoption as the main pricing point for the US oil markets," he said.

"We think a futures contract in the most interconnected market center in the country, with a widely accepted quality spec, which settles with guaranteed delivery of crude oil is an important new alternative for the industry. The task force has worked tirelessly to create a marker with transparency and liquidity that is waterborne for this modern era. The Midland WTI American Gulf Coast futures contract ... is a huge step forward for the industry and goes a long way to accomplishing the mission on which the task force has been working.”

Brent Secrest, Executive Vice President and Chief Commercial Officer of Enterprise’s general partner, said: “We are excited about this new crude oil futures contract, which features the combined strength of two extensive and complementary networks of midstream assets with a world-class trading platform to provide customers with greater supply reliability, flexibility and price transparency. 

As the market hub for Permian Basin production, Houston represents the most logical choice for a new futures contract. Between Magellan and Enterprise, we offer access to virtually all of the export capacity in the Houston region, redundant connectivity to all area refineries, a robust Gulf Coast storage position and interconnects to all of the relevant supply pipelines, including those owned by third parties.”

Jeff Barbuto, Global Head of Oil Markets at ICE, said combining efforts with Magellan and Enterprise to establish a benchmark for pricing Midland quality WTI on the Gulf Coast allows it to offer the industry a futures contract with over four million bpd of supply capacity from Midland into Houston, access to both domestic and foreign demand, and nearly 60 million barrels of storage capacity in the Magellan and Enterprise systems. 

"Traded on the same global platform as ICE Brent, Murban and Platts Dubai Crude Oil futures contracts, the new Midland WTI American Gulf Coast contract can also offer significant capital efficiencies to the industry and provide industry-leading quality that buyers have grown accustomed to in the Houston market," he said.

According to EIA forecastsglobal consumption of petroleum and liquid fuels will average 97.7 million bpd for all of 2021, a 5.4 million bpd increase from 2020. US crude oil production averaged 11.2 million bpd in March, up 1.4 million on February. 

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