MPLX LP’s pipeline utilization remains high, while its terminal volumes are in “record territory,” as demand for refined products stays strong, the company said in its first quarter earnings call on May 3.
MPLX, which operates midstream energy infrastructure and provides fuel distribution services, also said it will advance projects focused on expansion and reducing bottlenecks including on crude and natural gas long-haul pipelines supporting the Permian Basin and Bakken.
The company, formed in 2012 by Marathon Petroleum Corp. (MPC), is in the process of finalizing agreements to renew and extend several pipeline contracts it has with MPC for 10 years, it said.
MPLX’s total pipeline throughputs were 5.3 million bbl/d in the first quarter, 4% higher than the same quarter of 2021, it said. Its processed volumes averaged 8.3 Bcf/d, a 1% decrease versus the first quarter last year.
The company’s income from operations for its gathering and processing segment increased for the quarter by $46 million, versus the same time last year.
MPLX will continue to add crude gathering infrastructure in the Permian Basin, which is in Texas and New Mexico, and the Bakken, located primarily in North Dakota.
Construction is continuing on the company’s 200 MMcf/d Torñado-2 processing plant in the Delaware Basin in the Permian, expected to come online in the second half of 2022, the company said.
In the Marcellus Shale region, the 68,000 bbl/d Smithburg “de-ethanizer” is expected to come online in the second half of 2022 as well, the company said.
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
APA Corp. Latest E&P to Bow to Weak NatGas Prices, Curtail Volumes
2024-05-07 - APA Corp. plans to curtail gas and NGL production in the U.S. owing to weak Waha prices but remains confident it can deliver in the Permian Basin, CEO John Christmann said during a quarterly webcast with analysts.
Kissler: Mideast Tension Elevates Crude Prices—But for How Long?
2024-05-09 - Producers should be aggressive in locking in desirable crude oil prices on an abnormal market strength.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-05-10 - Baker Hughes said oil rigs fell three to 496 this week, their lowest since November, while gas rigs rose one to 103.
The Secret to Record US Oil Output? Drilling Efficiencies—EIA
2024-03-06 - Advances in horizontal drilling and fracking technologies are yielding more efficient oil wells in the U.S. even as the rig count plummets, the Energy Information Administration reported.