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Transportation news briefs, July 25


Cross Bay Pipeline Co. LLC, a limited liability company formed by subsidiaries of Williams, Duke Energy Corp., and KeySpan Corp., has filed an application with the Federal Energy Regulatory Commission to increase natural gas deliveries into New York City by 125,000 dekatherms/day. At a cost of $59.5 million, the project will include transfer of about 37 miles of Williams' existing Transco lower New York bay extension to Cross Bay.; construction of a 16,000 hp compressor station in Middlesex County, NJ; pipe replacement; and system modifications. Once completed, the Cross Bay facilities will form a new interstate pipeline system extending from Middlesex County across lower New York bay to Nassau County, NY. The pipeline will have a total capacity of more than 600,000 dekatherms/day. Williams and Duke Energy each have a 37.5% ownership interest in Cross Bay, while KeySpan owns 25%. Construction is scheduled to begin in July 2001 with service scheduled to begin Dec. 1, 2002.

Shell International Gas Ltd. has announced the order of two LNG carriers from the Mitsubishi Heavy Industries shipyard in Japan. The vessels will serve a growing portfolio of Shell LNG projects around the world which require shipping. Each of the carriers will have a capacity of 135,000 cu m. They will be delivered in third quarter 2002 and first quarter 2003. A statement said: "In particular, the ships can assist in the start up of our Hazira LNG Terminal Project in Gujarat, Northwest India, while long-term shipping requirements are resolved, and in supply to the Cove Point LNG terminal, where we recently secured capacity." The vessels will be manned and operated by Shell International Trading & Shipping Co. Ltd.

Dow Benelux NV, the Dutch subsidiary of Dow Chemical Co., and Germany's Oiltanking GmbH announced plans to develop a bulk chemicals tank terminal on De Mosselbanken, part of Dow Benelux's complex in Terneuzen, the Netherlands. Oiltanking will own, manage, and operate the independent facility, which will serve third parties as well as Dow. The terminal will be located between the main ports of Rotterdam and Antwerp will and have access to deepsea port facilities for vessels of up to 100,000 dwt. Its planned capacity is 220,000 cu m, with tank sizes of 500-20,000 cu m. Both companies said they expect the project's first phase, which encompasses an initial investment of $27 million, to be commissioned by the end of 2001.

TransCanada PipeLines Ltd., Calgary, has sold its 49% interest in the Tuscarora Gas Transmission Pipeline Co. line to TC PipeLines LP. The line ships up to 111 MMcfd of natural gas from Malin, Ore., to Reno, Nev. TC PipeLines is a limited partnership that is one-third owned by TransCanada. TransCanada will retain a 1% interest in the line; Sierra Pacific Resources controls the remaining interest. The sale is part of a broad asset disposal program by TransCanada, which is focusing on its core gas transmission business in Canada.

The chemical company Orica Ltd. has sold its 1,375-km Moomba-Botany ethane supply pipeline for $124 million as part of its move to quit the noncore plastics industry. The proceeds will be used to repay debt. The line was bought by a group comprising Uni-Super, National Australia Asset Management, and John Lang Investments. It will continue to transport ethane under a long-term contract to the Qenos plant in Botany to make polyethylene. Qenos is an equal joint venture of Orica and ExxonMobil Corp.


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