P. 5 ~ Continued - OGJ Newsletter

Nov. 7, 2011

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PROCESSINGQuick Takes

Commissioning of Punjab refinery delayed

Although construction is nearly complete of the 180,000 b/d Guru Gobind Singh refinery near Bathinda in the Indian state of Punjab, commissioning has been delayed (OGJ Online, May 11, 2011).

Hindustan Petroleum Corp. Ltd., Mumbai, which is building the zero-bottoms refinery in a joint venture with Mittal Energy Investment Pte. Ltd., Singapore, says commissioning will occur in the second half of its current fiscal year, which ends in March. Earlier this year it had projected start-up by July.

In an earnings announcement, HPCL said commissioning is complete of the refinery's crude distillation and vacuum distillation units and of a single-point mooring system and terminal at Mundra, Gujarat. A 1,014-km pipeline laid to carry crude from Mundra to Bathinda in conjunction with the refinery project is operational, it said.

Eagle Rock to expand processing in Granite Wash

Eagle Rock Energy Partners LP, Houston, will build a 125-MMcfd high-efficiency cryogenic processing plant in Wheeler County, Tex., in the Texas Panhandle's Granite Wash natural gas play.

Company plans call for construction of the Wheeler plant and associated systems to be completed in early fourth-quarter 2012.

In addition, the company said construction of the 30-MMcfd expansion of its Phoenix-Arrington Ranch plant is complete and expects it shortly to be operating fully at 80 MMcfd.

Eagle Rock Chairman and Chief Executive Officer Joseph A. Mills noted that, when combined with the Phoenix-Arrington Ranch plant expansion and installation of previously announced Woodall plant (OGJ Online, Aug. 1, 2011), addition of the Wheeler plant will allow Eagle Rock to accommodate producers' increased drilling in the Granite Wash. The Woodall plant is currently under construction and will be in service in late first-quarter 2012. "Once the Wheeler plant is in service, Eagle Rock will have more than 300 MMcfd of high-efficiency cryogenic processing capacity in the area," he said.

Construction of the Wheeler plant and associated gathering and compression is to cost about $100 million. Eagle Rock's announcement said it anticipates no downtime or reduced throughput across its east or west Panhandle systems during completion of the Wheeler plant.

Pembina Pipeline to build NGL extraction

Pembina Pipeline Corp. will build, own, and operate a 200 MMcfd NGL extraction plant and associated NGL and gas gathering pipelines in the Berland area of west central Alberta, the company reported.

The Saturn plant will be connected to Talisman Energy Inc.'s Wild River and Bigstone gas plants through existing and newly constructed gas gathering lines. Once operational, the Saturn Plant will be able to extract up to 13,500 b/d of liquids, said the company. It plans to build an 83-km, 8-in. NGL pipeline to move the extracted NGL from to Pembina's Peace pipeline, which delivers product into Edmonton.

Pembina said it expects the Saturn plant, associated NGL and gas gathering pipelines, and storage to cost about $200 million (Can). Subject to regulatory and environmental approval, Pembina said it expects the plant and associated pipelines to be in-service in fourth-quarter 2013. Pembina has entered into a long-term, firm service agreement with Talisman.

Saturn, combined with Pembina's Musreau Deep Cut plant and its recently announced Resthaven plant, will bring Pembina's total enhanced NGL extraction capacity to about 600 MMcfd, said the announcement, which could add up to about 40,000 b/d of NGL for transportation on Pembina's conventional pipelines by yearend 2013. To accommodate this expected volume increase, Pembina is currently "assessing its mainline capacity to determine potential expansion requirements," it said.

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