P. 5 ~ Continued - OGJ Newsletter

Jan. 2, 2012

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TRANSPORTATIONQuick Takes

BLM decision amends Ruby Pipeline's right-of-way

The US Bureau of Land Management signed a decision amending the Ruby Pipeline Project's right-of-way on Dec. 7, BLM's Reno, Nev., field office announced on Dec. 13.

The changes include construction of 4 above-ground cathode sites to control pipeline corrosion and 15 small roads to main line valves, it said.

The system includes a 678-mile, 42-in. interstate natural gas pipeline crossing 368 miles of federal land from Opal, Wyo., across northern Utah and Nevada to a terminus near Malin, Ore., BLM said. BLM and the US Federal Energy Regulatory Commission issued permits for the project in 2010, and the pipeline went into service this year on July 28.

BLM said it and FERC would continue to monitor and evaluate restoration progress along the entire pipeline's ROW several years.

Questions about the cathodes and roads decision may be directed to BLM National Project Manager Mark Mackiewicz in the US Department of the Interior agency's field office in Price, Utah, it added.

Colonial Pipeline to add 100,000 b/d capacity

Colonial Pipeline Co. has approved a 100,000 b/d expansion of Colonial's main gasoline pipeline, originating in Houston and connecting Gulf Coast refineries with markets across Colonial's system. Colonial will add the capacity to its Line 01 during first-quarter 2013.

Line 01 begins in Houston and runs to Greensboro, NC, from where shipments to the Northeastern US are made.

The expansion will increase Colonial's overall gasoline delivery capacity by roughly 10%, and is the third capacity enhancement announced by Colonial in 2011. Previously announced were:

• A 100,000 b/d increase to the mainline serving the Northeast, put into operation earlier this year. This line begins in Greensboro and serves the Philadelphia, New Jersey, and New York markets.

• A 75,000 b/d capacity increase to the distillate mainline, with 20,000 b/d completed and 55,000 b/d due online by mid-2012. This line starts in Houston and ends in Greensboro.

Recent refinery closings in the Northeast have contributed to allocating space on Colonial mainlines, the company said, primarily between Houston and Greensboro. The announced and completed expansions are intended to help alleviate this condition.

Contract let for Kinneil degasification work

BP Exploration Operating Co. Ltd. has let a contract to a unit of Foster Wheeler AG's Global Engineering & Construction Group for work related to the debottlenecking of the Forties Pipeline System crude degasification facilities at BP Exploration's Kinneil Terminal in Scotland.

The Foster Wheeler unit will handle engineering, procurement, and construction management under the new contract. It has completed pre-front end design and FEED for the project, which will allow the terminal to handle high gas-to-oil-ratio unstabilized crude oil and natural gas liquids.

Expected to be completed in 2013, the debottlenecking involves plant modifications that include improvements to heater and process-control systems as well as new facilities, including crude coolers and a cooling-water system.

The Forties Pipeline System has nominal capacity exceeding 1 million b/d. It handles oil and gas liquids from more than 30 fields and the St. Fergus gas terminal.

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