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FERC Approves CMS Trunklines' Centennial Project

CMS Energy Corporation's CMS Trunkline Gas Company has received Federal Energy Regulatory Commission (FERC) approval for the abandonment of one of Trunkline's three parallel natural gas pipelines, paving the way for its conversion to refined petroleum products service.

CMS Trunkline, along with Marathon Ashland Petroleum LLC and TEPPCO Partners, L.P., have agreed to convert the 26-inch diameter pipeline to carry much-needed refined petroleum products such as gasoline, diesel fuel and jet fuel from Gulf Coast refineries to the growing Midwest market. The new petroleum products pipeline is called Centennial Pipeline.

"FERC's action allowing us to take this underutilized line out of natural gas service is a significant milestone in successfully completing the Centennial Pipeline," said Christopher A. Helms, president of CMS Trunkline. "FERC's approval will allow us to meet Centennial's in-service target date of January 2002, which would be in time for next summer's prime driving season."

As part of the project, the partners will extend Centennial by building a 74-mile, 24-inch diameter pipeline connecting TEPPCO's facility near Beaumont, TX, with the start of the existing 720-mile pipeline extending from Longville, LA., to Bourbon, IL. The pipeline will pass through portions of seven slates--Texas, Louisiana, Arkansas, Mississippi, Tennessee, Kentucky and Illinois. The Centennial Pipeline will intersect TEPPCO's existing mainline in southern Illinois, where a new petroleum products storage facility also is under construction. The project is planned for completion by year-end.

In other news, FERC approved a request of CMS Trunkline LNG, a unit of CMS Energy Corporation, to expand the peak send out capacity of its LNG terminal at Lake Charles, LA. The 700 MMcf/d terminal, already the largest operating capacity LNG facility in the U.S., will be increased to 1 Bcf/d. Work is expected to start immediately and be completed next month.

Kvaerner To Install Record Length Gas Line In Hong Kong Waters

Hongkong Electric Company (HEC) has awarded Kvaerner's Singapore office a contract for the detailed design of a 92 km (57-mile) 24-inch diameter submarine gas from the planned LNG Terminal at Chen Tou Jiao, Shenzhen to HEC's proposed power plant at Lamma Island, Hong Kong. What sets this project apart is the pipeline length. This pipeline will be the longest submarine pipeline within Hong Kong waters and will traverse numerous existing and future submarine cables and a large number of fairways, all subject to very heavy shipping traffic. Kvaerner conducted the feasibility study for the pipeline in 1998.

The scope of work extends to the submarine pipeline, sub-sea tees and an onshore receiving station. Protection of the pipeline against accidental anchor drop/drag is one of the primary concerns of the project. Kvaerner will also supervise the marine soils investigation on behalf of HEC.

In accordance with the Hong Kong environmental protection requirements, Environmental Impact and Quantitative Risk Assessments (EIA/QRA) for the submarine pipeline and onshore receiving station have already been conducted by a third party specialist--Environmental Resources Management Hong Kong (ERM). Kvaerner interfaced with ERM on the EIA/QRA issues relating to pipeline engineering, construction and cost impacts and was involved in reviewing the reports prepared by ERM. The recommendations will be incorporated into the detailed engineering study.

Stolt Offshore Wins Deepwater Job Off Nigeria

Stolt Offshore S.A. has landed another major offshore contract. This time the company signed an interim agreement with Shell Nigeria Exploration and Production Company to undertake a turnkey subsea construction project for the deepwater Bonga development off the coast of Nigeria. This contract, which is valued at about $200 million, covers design engineering, procurement, installation and commissioning of the gas export pipeline, production flow lines, water injection lines and steel catenary risers.

Shell Nigeria's Bonga field, located in 1,100 meters of water, is the first ultra deepwater development to be undertaken off the Nigerian coast.

Stolt Offshore will commence design engineering and procurement work immediately. The risers will be fabricated in the second half of 2002 at Stolt Offshore's pipe reeling facility in Nigeria. The offshore installation is targeted for 2003. The installation work scope includes rigid steel flow lines together with steel catenary oil and gas production risers. The Seaway Polaris will install 36 kilometers (22 miles) of 10-inch diameter production flowlines and all the project's steel catenary risers by the "J Lay" method. Additionally the Seaway Polaris will handle installation of the 92 kilometer (60 miles) 16-inch diameter gas export pipeline from the Bonga FPSO to the Shell EA riser platform. The Seaway Kestrd will install 25 kilometers (15.5 miles) of 12-inch diameter water injection flowlines. Survey and tie-in work will be undertaken by the Seaway Legend.

The Bonga field is owned by the Nigerian National Petroleum Company and is operated by SNEPCO, with partners in the development being Esso Exploration and Production Company Nigeria Ltd, Nigeria Agip Exploration Ltd., and Elf Petroleum Nigeria Ltd.

Bernard Vossier, Chief Executive Officer of Stolt Offshore said, "We are delighted to be awarded this major deepwater project which confirms the strength of our position in this very important market."

With Bonga and Girassol, Stolt Offshore has now been the successful bidder for both of the very large deepwater projects that have been awarded in West Africa to date.

As reported by P&GJ last month, Stolt Offshore was awarded a contract valued at $150 million to install the 437-mile offshore portion of 753-mile Gulfstream Pipeline, (P&GJ, April 2001.)

PYPSA To Modernize 10 Sour Gas Sweetening Plants In Mexico

PYPSA (Grupo Profesional Planeacion y Proyectos, S.A. de C.V.) of Mexico City, has won a $5 million EPC--engineering, procurement and construction--contract from Petroleos Mexicanos (PEMEX) to modernize 10 sour gas sweetening plants at the Cactus Petrochemical Complex, in Chiapas, Mexico.

The contract award comes on the heels of PYPSA's nearly completed rehabilitation of PEMEX's compression station No. 7 at Cempoala, Veracruz, also in Mexico. The plant upgrades--representing a $13 million contract to PYPSA--are part of PEMEX's drive to optimize use of its national gas transmission system, with ready supply of natural gas, a cleaner burning fuel, to the central and northern areas of Mexico.

"Mexico remains dependent on U.S. imports for gas supply; however, this year's start-up of the Cempoala and Cactus facilities will help to lessen that dependency," said Guillermo Barnetche, director general and founder of PYPSA.

Mexico began development of its national gas system in 1977 with the intent of both supplying northern Mexico--with destinations at Reynosa, near the Texas border, and at Santa Ana in northern Mexico--and exporting to the United States. U.S. gas contracts, however, did not materialize and three of the seven compression stations built have not been placed in operation; however, two are being rehabilitated for operation, which includes station No. 7 at Cempoala.

New developments offshore Mexico, and the upgrades to the prolific Cantarell Field, now make use of the additional facilities viable, with associated gas from the fields coming ashore at the Atasta gathering station in Chiapas. From Atasta, the gas is transported to the Cactus plant along Mexico's Gulf Coast, and onward to Cempoala, tapping into a nationwide 780-mile, 48-inch diameter trunk line.

The Cempoala facility, some 275 miles from Cactus and near Mexico City, ties into a 1,366-mile gas network. At Cempoala, the 48-inch diameter pipeline bifurcates, moving gas north to Santa Ana and Reynosa.

PEMEX's Cempoala facility will re-compress gas transported from the Cactus plant and has a design capacity of some 1.5 MMscf/d. The facility also will supply gas to the Mexico City area. Upgrades to the Cempoala facility are expected to complete in June and the Cactus plant is scheduled to start-up in mid-September.

For the Cactus project, which includes the gas conditioning of the plants, PYPSA is proceeding on a fast track, observing strict safety procedures and holding plant shutdowns to a minimum. Procurement completes in May, with all equipment following a standardized design to reduce the need for spare parts. PYPSA also is responsible for plant commissioning and start-up. Some 80 PYPSA people are on the project.

One of the significant enhancements to the Cactus plant, and the entire national gas transmission system, says Jose Luis Vera, PYPSA's vice president of operations, is the implementation of a centralized gas detection and fire system.

"Using an electronic network for a control and data acquisition system (SCADA), PEMEX will have a state-of-the-art mechanism for ensuring the safety of its nationwide gas transmission facilities," said Vera.

The Cempoala project is about 75 percent completed, with PYPSA providing a turnkey service for engineering, procurement and construction. PYPSA has had a work force totaling some 450 people on the project over the past year, investing 344 workdays and 564,229 man-hours with no lost-time accidents.

PYPSA's project scope on the Cempoala facility has included stress analysis of all piping; civil works for both concrete supports and steel assemblies; electronic controls and instrumentation; detailed engineering; mechanical supply and handling; cathodic protection; supply and fabrication of towers and vessels; safety and fire protection; and supply, handling and installation of all piping.

World's Largest LNG Sale/Purchase Agreement

ExxonMobil Corporation reports that Ras Laffan Liquefied Natural Gas Company Limited (II) (RasGas), a joint venture between Qatar Petroleum (70 percent) and ExxonMobil (30 percent), has concluded the first phase of the world's largest LNG sale and purchase agreement with Petronet Ltd. of India. The conclusion of the negotiations triggers a period of major gas expansion in Qatar, beginning with the construction of additional offshore production facilities in the North Field and the building of the world's largest and most cost efficient LNG train at Ras Laffan Industrial City.

Petronet is a joint venture between the Indian Oil Corporation, Bharat Petroleum Corporation, the Gas Authority of India Ltd., and The Oil and Natural Gas Corporation. The agreement covers the supply of LNG for 25 years and involves deliveries of 5 million metric tons per year (MMT/y) of LNG to a new import terminal at Dahej, Gujarat State, while plans for a further 2.5 MMT/y to a second import terminal at Cochin, Kerala State, are under development. Construction of the Dahej terminal began earlier this year and deliveries are slated to begin upon completion in late 2003.

Stuart McGill, president of ExxonMobil Gas Marketing, said: "This represents the culmination of a lot of hard work, commitment and dedication by Petronet and its shareholders, the Indian Government, the State of Qatar and ExxonMobil. As the largest LNG contract ever signed, it is a milestone for the industry. We are proud to be part of such a historic and important agreement. It will provide a competitive new gas supply to support the impressive growth in India's economy and opens an important new market for Qatar's LNG."

The final condition precedent for the SPA enabled RasGas to sign two world-scale engineering, procurement and construction (EPC) contracts. The first, with a joint venture consisting of Chiyoda Corporation, Mitsui Co. Ltd. and Snamprogetti S.p.A., is to build a record 4.7 MMT/y LNG liquefaction train. The second, with J. Ray McDermott Middle East (Indian Ocean) Ltd., covers the offshore and gathering facilities that will produce 800 MMscf/d of natural gas to supply the new LNG train along with some 30,000 barrels per day of associated condensate. With this first phase of onshore and offshore development, ExxonMobil expects to book more than 350 million boe of proved reserves.

"We are excited to be moving into the next phase of LNG expansion, building on our joint experience with Qatar Petroleum to increase deliverability and capture economy of scale efficiencies with Train 3," said Morris Foster, president of ExxonMobil Development Company. "These EPC contracts will set the stage for a period of expansion in Qatar of more than 3 Bcf/d of natural gas."

The EPC contracts also provide terms for the construction of another 4.7 MMT/y LNG train and the development of offshore and onshore facilities for domestic and export pipeline gas sales. The two new trains follow the existing two RasGas LNG trains that have a combined capacity of 6.6 MMT/y.

In addition to LNG development projects, ExxonMobil and Qatar Petroleum finalized an agreement last year for the Enhanced Gas Utilization (EGU) project. The EGU project will produce gas from Qatar's North Field with nominal capacity of 1.75 Bcf/d to help meet growing domestic and regional export pipeline gas demand.
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Title Annotation:various natural gas and piepline-related projects from around the world
Comment:PROJECTS.(various natural gas and piepline-related projects from around the world)
Publication:Pipeline & Gas Journal
Article Type:Statistical Data Included
Geographic Code:1USA
Date:May 1, 2001

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