November 2016, Vol. 243, No. 11
Projects
Projects
Joint Venture Partners Win Atlantic Coast Pipeline Construction Contract
Atlantic Coast Pipeline, which has proposed a 600-mile natural gas pipeline to bring energy to Virginia and North Carolina, signed a contract making Spring Ridge Constructors, (SRC) its lead construction contractor.
The pipeline will run from Harrison County, WV southeast through Virginia with a lateral extension to Chesapeake, VA., and then south through eastern North Carolina to Robeson County. If approved, construction is scheduled to begin in fall 2017. According to economic impact studies conducted in 2015, the project’s construction is expected to generate over 17,000 jobs, $2.7 billion in total economic activity and $4.2 million in average annual tax revenue for cities and counties in the project area.
Atlantic Coast Pipeline, LLC is comprised of Dominion, Duke Energy, Piedmont Natural Gas and Southern Company Gas.
SUEZ to Deliver Total Gas Treatment Package for Australia Pipeline Project
As part of expanding its activities in the oil and gas sector, The SUEZ Group has recently been awarded an equipment design and supply contract by energy infrastructure company Jemena, which owns and operates a diverse portfolio of energy transportation assets across the east coast of Australia, to deliver a complete gas treatment system for the Northern Gas Pipeline Project in Northern Territory.
The Northern Gas Pipeline Project involves the construction of a 622 km, 12 inch gas transmission pipeline between Tennant Creek in the Northern Territory and Mount Isa in Queensland. In order to meet the East Coast Market sales gas specifications, the start of line compressor station will be designed with the ability to treat gas from various Northern Territory sources. SUEZ will be responsible for the design and manufacture of a complete gas treatment system including cryogenic nitrogen removal technologies for the Phillip Creek Compressor Station.
The SUEZ gas treatment system incorporates nitrogen removal technology not currently installed in the Australian domestic natural gas market in addition to filtration, sweetening (CO2 removal) via an amine system, dehydration using a molecular sieve and a guard-bed for the nitrogen removal
Gulf Coast’s First Ethane Shipment En Route to Europe
The first ethane shipment out of Enterprise Products Partners’ (EPP) new export terminal in Morgan’s Point, TX recently set sail for Norway. In mid-September, the JS INEOS Intrepid was docked at the terminal to take on its ethane cargo. The terminal, located on the Houston Ship Channel, is the second to open in the United States, and has an export capacity of up to 200,000 bpd of liquefied ethane, of which about 90% is contracted. The United States’ first ethane export terminal at Marcus Hook, PA has been shipping ethane cargoes since March.
Recent rapid growth in natural gas production from resources rich in natural gas plant liquids (NGPLs) has yielded higher quantities of ethane than the U.S. market can absorb, leading to growing amounts left in the processed gas stream. Increased ethane exports could slow or reverse this trend.
Natural gas produced in the Marcellus and Utica formations, located primarily in Pennsylvania and Ohio, respectively, tends to be rich in ethane. The Marcus Hook terminal sources all of its ethane from these formations. Some of this Appalachian ethane likely will be delivered to Morgan’s Point via EPP’s Appalachia-to-Texas Express (ATEX) pipeline, which moves ethane from gas fractionation plants in the Marcellus and Utica to the company’s storage complex in Mont Belvieu, TX.
Ethane cargoes from the United States are also used as feedstock in European ethylene crackers. A cracker at Stenungsund in Sweden, owned by Borealis, is expected to begin receiving ethane from Marcus Hook later this year, while another INEOS cracker in Grangemouth, Scotland, is scheduled to come online in the fall and will receive ethane deliveries primarily from Morgan’s Point.
Steelhead and Seven Generations Plan Low-cost LNG Supply for Asia
An agreement between Steelhead LNG and Seven Generations Energy Ltd. (7G) sets the stage for engaging Aboriginal groups and communities as the two companies explore the development of new midstream infrastructure to support Steelhead LNG’s proposed natural gas liquefaction and export projects on Vancouver Island.
“This arrangement with Seven Generations creates an opportunity, in the current price environment, for an LNG solution from wellhead to customer that’s uniquely led by Canadian companies,” said Steelhead LNG CEO Nigel Kuzemko.
Steelhead LNG continues to refine its At-Shore LNG (ASLNG) design, which makes use of floating LNG production and storage units moored to marine jetties. The concept will contribute to the low-impact, low-cost development of Steelhead LNG’s proposed Malahat LNG and Sarita LNG projects. Canada’s National Energy Board granted Steelhead LNG five licenses to export in the aggregate of up to 30 mtpa of LNG for 25 years.
Gazprom Receives First Permits for TurkStream
Gazprom received the first construction permit for the TurkStream pipeline’s offshore section from the authorities of the Turkish Republic as part of the preparatory procedures for resuming the TurkStream project.
The planned route of TurkStream will run 660 km along the old route of the cancelled South Stream and cover 250 km of a new route toward the European part of Turkey. It is planned that the first gas pipeline string will be used exclusively for gas supplies to the Turkish market.
WBI Energy Moves Ahead with Valley Expansion Project
WBI Energy, the pipeline and midstream subsidiary of MDU Resources Group, plans to move forward with construction of its Valley Expansion Pipeline project in eastern North Dakota and western Minnesota.
WBI Energy has secured the capacity commitments needed for the 38-mile, 16-inch natural gas pipeline that will connect WBI Energy’s existing system near Mapleton, ND to the Viking Gas Transmission Company pipeline near Felton, MN. Survey work has begun on the route and construction is expected to start in early 2018. Cost of the expansion is estimated at $55-60 million. The project is designed to transport 40 MMcf/d of natural gas.
Navigator Energy Providing Gathering Services for Surge Energy
Navigator Energy Services will provide crude oil gathering services to Surge Operating for an area of mutual interest spanning 25,000 acres in Howard County, TX. Navigator plans to begin construction later this year on a new gathering system for Surge Energy in Howard County, TX which will have multiple tie-ins into the existing Big Spring Gateway System (BSG System) and 30,000 bbls of crude oil storage capacity.
The BSG System, which spans Martin, Glasscock, Howard and Midland counties in the Permian Basin, has been in service for over a year and is expected to transport in excess of 100,000 bpd of crude by the fourth quarter. The system has 140,000 bpd of throughput capacity and 500,000 bbls of crude oil storage capacity.
In conjunction with the new gathering system, Navigator plans to expand the capacity of the BSG System by 30,000 bpd to 170,000 bpd. Additionally, Navigator will expand its storage capacity by over 50,000 bbls to 750,000 bbls. Navigator will launch an open season shortly for the new capacity.
Rangeland Energy Brings RIO Pipeline into Service
Rangeland Energy said its RIO Pipeline is in commercial service for shippers transporting crude oil and condensate to market from the Delaware Basin.
The 110-mile, 12-inch pipeline originates at the RIO State Line Terminal in Loving County, TX, a gathering hub at the Texas-New Mexico border in the heart of the Delaware Basin, with tankage and truck unloading facilities. The pipeline can transport over 125,000 bpd from the State Line Terminal to Rangeland’s Geneva and Zurich terminals in Midland, TX. The Geneva and Zurich terminals provide connectivity through Plains Pipeline L.P.’s Midland terminals to other area terminals and interstate pipelines that access Cushing, East Texas and Gulf Coast markets.
Construction of the RIO Pipeline began in January. The State Line and Geneva terminals were completed in July. The Zurich Terminal is expected to come into service next spring. As demand increases, Rangeland expects to construct a 10-inch, bi-directional pipeline to connect the State Line Terminal to the RIO Hub, near Loving, NM. The RIO Hub provides unit train service and storage for inbound frac sand and outbound crude oil and condensate.
IL&FS Engineering Executes India Projects
IL&FS Engineering and Construction Co. received a contract from the Gas Authority of India Limited (GAIL) for the laying and construction of a pipeline at Kuttanad. The length of the 30-inch pipeline is 91 km and completion and commissioning is scheduled within 26 months.
The company is already executing a second contract for GAIL to lay and construct a pipeline along with associated pipeline replacement work in the region. Additionally, IL&FS is working under contract for the government of India’s Indian Strategic Petroleum Reserves Limited Ministry of Petroleum and Natural Gas to lay a pipeline from a landfall location at the Mangalore Port to the Mangalore/Padur Cavern for storage of crude oil.
BP Spending $18 Billion to Develop Shah Deniz Gas Field
BP has signed contracts worth about $18 billion for the second developmental phase of Azerbaijan’s Shah Deniz gas and condensate field and the expansion of the South Caucasus pipeline, according to BP, an operator of these projects. The Shah Deniz field is thought to hold 1.2 Tcm of natural gas and an estimated 240 million tons of condensate.
The second phase of the Shah Deniz development will entail delivering gas to markets in Turkey and Europe via the expanded South Caucasus pipeline, and construction of the Trans-Anatolian Natural Gas Pipeline and the Trans-Adriatic Pipeline. Once the second phase is implemented, gas output from the region should be boosted from 9-16 Bcm annually. The project is reportedly about 82% completed.
According to BP, the pipe-lay barge Isafil Huseynov has completed the installation of the first flowline from the Shah Deniz field from the North Flank cluster to the platform location, and is in the process of installing a second flowline before it moves to the West Flank where it will install two more flowlines. The subsea construction ship Khankendi will be deployed to the Shah Deniz 2 area to build the necessary infrastructure, as well as commissioning and certification.
$1.9 Billion Intrastate Gas Pipeline Planned in New Delhi
The government in New Delhi appears committed to covering a portion of the capital investments needed to build natural gas links in India. According to news report, an economic affairs committee in the Indian government, which was chaired by Prime Minister Nardendra Modi, said it will cover 40% of the $1.93 billion needed to build an intrastate natural gas pipeline project connecting the eastern part of the country to the national grid. The government projects the pipeline could provide indirect employment for 21,000 people.
Technip Awarded Subsea Contract off Australia
Technip awarded a subsea contract by Woodside to support development of the Greater Enfield Project offshore Western Australia, at a water depth ranging from 340-850 meters. The contract covers project management, design, engineering, procurement, installation and pre-commissioning (EPIC) of carbon steel production flowline, carbon steel water injection flowline, flexible risers and flowlines, totaling 82 km. Also 39 km of umbilicals (dynamic and static); subsea structures and valves; multi-phase pump system (transport and installation).
Technip’s operating center in Perth, Australia will execute the contract with support from Technip’s Asia Pacific Subsea Hub in the Kuala Lumpur office in Malaysia, and office in Chennai, India. The offshore installation will be using several vessels from Technip’s fleet and is scheduled for completion in 2018.
Final EIS Released for Expansion of Westway Grays Harbor Terminal
The City of Hoquiam and the Washington State Department of Ecology released the final environmental impact statement (EIS) for expansion of the Westway Grays Harbor terminal. Part of Grays Harbor since 2009, Westway seeks to expand operations at its liquid bulk storage and transport facility to receive domestic crude oil to meet growing demand.
“Westway’s expansion in Grays Harbor represents a long-term commitment to this community. The final EIS released by the City of Hoquiam and Ecology shows how to build this project with the highest commitment to safety in a way that protects our neighbors and the environment we all value,” said Jerry Cardillo, president and CEO of Westway Terminals.
The proposed terminal expansion would enable the facility to receive up to 17.8 MMbbls of domestic crude per year and add 1 MMbbls of storage capacity. Once complete, the new terminal will contribute over $24 million to the economy each year and millions in state and local tax revenue.
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