pylene and 300,000 tpy of polypropylene, according to separate
releases from the Pinghu Municipal Government and Sinopec
Ningbo Engineering Co. Ltd., which completed work on the
Commissioned in 2014, Phase 1 of Satellite Energy’s PDH
plant produces 450,000 tpy of propylene from propane using
Honeywell UOP LLC’s proprietary C3 Oleflex process technology, according to a Dec. 23, 2014, from UOP.
Chengzhi Yongqing lets contract for second MTO unit
Nanjing Chengzhi Yongqing Energy Technology Co. Ltd., a subsidiary of Chengzhi Shareholding Co. Ltd., the investment arm
of China’s Tsinghua University, has let a contract to Honeywell
UOP LLC, Des Plaines, Ill., to deliver technology licensing for a
grassroots methanol-to-olefins (MTO) unit at its existing coal-to-chemical complex in the Changlu area of Nanjing Chemical
Industrial Park, Nanjing, Jiangsu Province, China.
As part of the order, Honeywell UOP will license its proprietary advanced MTO process technology for the 600,000-tonne/
year unit, which will convert coal-derived methanol into ethylene and propylene, the service provider said.
Alongside technology licensing, Honeywell UOP also will
supply its proprietary catalysts, which will enable Chengzhi
Yongqing to efficiently adjust the unit’s propylene-ethylene production ratio to most effectively meet demand for those products.
The proposed unit comes as part of China’s broader investment in coal-to-chemicals technology, which during the next
5 years, is slated to exceed more than $100 billion, said John
Gugel, vice-president and general manager of UOP’s process
technology and equipment business.
Honeywell UOP, however, did not disclose a value of the
At a planned investment of 4.1 billion yuan, Chengzhi
Yongqing’s MTO unit—which will be the operator’s second at
the site—is scheduled for startup in 2019, Chengzhi said on its
Commissioned in 2013 under previous owner Wison (
Nanjing) Clean Energy Co. Ltd., the complex’s existing 300,000-
tpy MTO unit also is based on UOP’s MTO technology.
Wison (Nanjing) Clean Energy officially became Chengzhi
Yongqing on Nov. 25, 2016, after Chengzhi acquired the business, according to a Dec. 26, 2016, release from Chengzhi.
TRANSPOR TATION QUICK TAKES
GIP to buy Medallion Pipeline for nearly $2 billion
An affiliate of Global Infrastructure Partners (GIP) has agreed
to acquire Medallion Gathering & Processing LLC from affiliates of Energy & Minerals Group (EMG) and Laredo Petroleum
Inc. for $1.825 billion in cash plus additional consideration.
The Medallion crude oil transportation system, owned 51%
by EMG and 49% by Laredo, consists of more than 800 miles
of pipeline, 670,000 dedicated acres, and total areas of mutual
interest of almost 4 million acres, serving the Midland basin of
Medallion will retain its name and headquarters in Irving,
Tex., where it will operate as a GIP portfolio company. The
leadership team, including Pres. and Chief Executive Officer
Randy Lentz, will remain in their current roles and are invest-
ing alongside GIP in the deal.
Lentz noted that the deal “will be the catalyst for further ex-
pansion of Medallion’s midstream infrastructure in the Perm-
Randy A. Foutch, chairman and chief executive officer of
Tulsa-based Laredo, said his firm intends to use proceeds from
the deal to repay debt, which should cut its outstanding debt
balance by more than half.
“This will afford Laredo additional flexibility in our develop-
ment plan as we test tighter spacing to add premium locations
in the Upper and Middle Wolfcamp formations,” Foutch said.
As part of the deal, GIP also will pay additional cash linked
to its realized profits at exit. Funding of the $1.825 billion is
expected to occur on or before Nov. 1 and includes $725 mil-
lion of stapled debt financing.
All proceeds from the sale of Medallion, including both the
base payment and the additional payment, will be distributed
51% to EMG and 49% to Laredo. EMG will continue to own
Medallion Delaware Basin LLC.
Epic Pipeline to build 650-mile NGL line in Texas
Epic Y Grade Pipeline LP, a subsidiary of Epic Y Grade Services
LP and Epic Midstream Holdings LP, has agreed with BP Energy
Co., a subsidiary of BP PLC, to anchor a 650-mile NGL pipeline
that will link the Permian and Eagle Ford regions to Gulf Coast
refiners, petrochemical companies, and export markets.
Construction already has begun on the Epic NGL Pipeline,
which will have throughput capacity of at least 220,000 b/d
with multiple origin points in the Delaware and Midland basins. Destinations will include interconnects near Orla, Ben-edum, and Corpus Christi in Texas, where Epic’s affiliate plans
to build a complex with multiple 100,000-b/d fractionators to
accommodate the pipeline’s volume.
Epic will conduct an open season for the pipeline in the
fourth quarter. It plans to have the initial phase of the pipeline
in-service in early 2018 and fully completed in 2019.
The pipeline will run side-by-side with the previously announced 700-mile, 550,000-b/d Epic Crude Oil Pipeline for
most of the route. Epic is actively acquiring rights of way, and
in some cases, multiline rights will be pursued to accommodate
both NGL and crude oil projects.
The Epic NGL Pipeline has secured a capital commitment
from funds managed by global alternative asset manager Ares
Epic’s predecessors, TexStar Midstream Logistics LP and
TexStar Midstream Services LP, owned and operated oil and
gas midstream infrastructure throughout South Texas.