INDUSTRY BRIEFS

Nov. 23, 1992
MITSUBISHI HEAVY INDUSTRIES LTD. this month unveiled the world's first very large crude carrier fitted with fuel saving contrarotating propellers. The propellers, developed by Mitsubishi, are mounted on concentric shafts and turn in opposite directions. The aft propeller absorbs swirl flow energy generated by the fore propeller, giving a VLCC a 15% fuel savings. The 258,000 dwt tanker was to be launched last week and will be delivered to owner Cosmo Oil Co. in March.

TANKERS

MITSUBISHI HEAVY INDUSTRIES LTD. this month unveiled the world's first very large crude carrier fitted with fuel saving contrarotating propellers. The propellers, developed by Mitsubishi, are mounted on concentric shafts and turn in opposite directions. The aft propeller absorbs swirl flow energy generated by the fore propeller, giving a VLCC a 15% fuel savings. The 258,000 dwt tanker was to be launched last week and will be delivered to owner Cosmo Oil Co. in March.

GAS PROCESSING

PHILLIPS PETROLEUM CO. began restoring the site of its closed Tajiguas gas processing plant on the Santa Barbara County, Calif., coast near Gaviota. Gaviota Maintenance Services Inc., Ventura, Calif., is prime contractor on the $2 million project. The plant was built in 1964 and processed gas and associated liquids from four offshore wells until it was shut down in December 1990. It is the county's first approved abandonment and restoration project for an onshore energy plant.

MARKETING

CHEVRON U.S.A. PRODUCTS CO. will begin selling a midgrade 88 octane unleaded gasoline in Albuquerque by mid November. Chevron Unleaded Plus will replace regular leaded gasoline, and Chevron began converting stations last week. The move brings Chevron into early compliance with air quality regulations that call for removal of lead additives in gasoline by 1995.

PETROCHEMICALS

CHINA PETROCHEMICAL INTERNATIONAL CO. let a $38 million contract to Snamprogetti SpA for construction of a 100,000 metric ton/year styrene monomer plant to be built at Maoming in Guangdong Province, China. The lump sum contract covers basic engineering and part of detailed engineering, imported material, construction supervision, and operator training. ABB Lummus Crest Inc. will provide the technology license and basic design for the plant.

JAPAN'S Itochu Corp. will participate in a joint venture to build a $360 million petrochemical complex at Hazira, Gujarat, India (OGJ, Oct. 30, 1989, p. 31). Itochu will put up about $50 million for a 15% stake in the project, planned by Reliance Industries Ltd. The complex will produce a total of 410,000 metric tons/year of polyethylene and polypropylene starting in 1995 and is the largest petrochemical project in the country.

MOBIL CHEMICAL CO. completed an upgrade of its Beaumont, Tex., aromatics plant to produce a higher grade toluene. The unit, fed by Mobil's adjacent refinery, has capacity of 230,000 metric tons/year of toluene and can now produce a nitration grade product for use as a petrochemical feedstock. It also has capacity to produce 330,000 tons/year of benzene. Mobil said supply of aromatics could increase when a new continuous catalytic reformer comes on stream at the refinery later this year.

PIPELINES

CANADA'S National Energy Board approved a $501 million (Canadian) expansion by TransCanada PipeLines Ltd., Calgary, of its transcontinental natural gas pipeline system (OGJ, June 15, p. 31). The construction program in 1993 includes adding 227 miles of pipeline and 42,800 kw of compression, increasing capacity by 217 MMcfd. Average 1992 throughput on the system, which delivers Alberta gas to markets in Central Canada and the U.S., is pegged at 5.1 bcfd.

TRANSCANADA let a pipeline construction contract valued at $35 40 million (Canadian) to O.J. Pipelines, a unit of Ocelot Energy Inc., Calgary, covering the winter main line looping program. The project involves three sections covering 35 miles of 42 in. pipe in the Kenora, Ont., area.

COLUMBIA GAS TRANSMISSION CORP. and Columbia Gulf Transmission Co. asked Federal Energy Regulatory Commission to approve an agreement with customers to settle pending rate cases establishing rates until Nov. 1, 1993, when Order 636 is to be implemented. The settlement includes a provision for a pretax rate of return of 15% for Columbia Transmission and 14.32% for Columbia Gulf and resolves issues in two rate cases filed by the companies. Meantime, the U.S. Bankruptcy Court for the District of Delaware extended until Mar. 25, 1993, the time in which Columbia Gas System Inc. and Columbia Transmission have to file reorganization plans (OGJ, Nov. 9, p. 40).

VALERO NATURAL GAS PARTNERS LP last week was investigating a Nov. 16 pipeline accident near Corpus Christi that injured three Tennessee Pipeline Construction Co. employees two critically and required evacuation of about 60 residents. The incident involved two parallel 16 in., 125 MMcfd gas pipelines A Line and B Line and a 6 in. natural gas liquids line from Valero's Shoup gas processing plant to other Valero facilities. As workers were preparing B Line for maintenance work, the A Line exploded, damaging the NGL line and igniting a fire. Valero isolated the damaged segments to allow the flames to burn out.

QUESTAR PIPELINE CO., Salt Lake City, received FERC approval for settlement of its latest general rate case establishing rates beginning Nov. 1, 1991, and allowing the company to recover its cost of transporting and storing natural gas on the open access market. The agreement provides for nongas revenues of $105 million if total throughput reaches projected levels.

COGENERATION

INDECK-OLEAN LP, Olean, N.Y., let a turnkey engineering, procurement, construction, and commissioning contract to CRS Sirrine Engineers Inc., Greenville, S.C., for a $50 million, 79,000 kw cogeneration plant at Olean. The plant will provide electricity to Niagara Mohawk Power Co. and steam to Dresser Rand Corp. Natural gas will be primary fuel with fuel oil as backup. Construction is to be complete in early 1994.

REFINING

IRAQ brought a crude distillation unit and a kerosine unit back on line at its 100,000 b/d Al Doura refinery at Baghdad, which have been out of commission since the 1991 Persian Gulf conflict. The refinery, which started up in 1955, is the main domestic supplier of certain refined products and has capacity to produce 140,000 metric tons/year of base lubricants, 150,000 tons/year of finished oil, 1,500 tons of petroleum jelly, 400,000 tons/year of asphalt, 4,000 tons/year of wax, and 80,000 tons/year of liquefied petroleum gas.

NIGERIAN NATIONAL PETROLEUM CORP. (NNPC) expects to complete work on a unit at the Port Harcourt refinery and put it back on stream this month with 20,000 b/d of crude refining capacity. That will bring Nigeria's refining capacity to 445,000 b/d. The 60,000 b/d Port Harcourt plant was severely damaged in a January 1989 fire, and repairs began on process units in 1990. Soimi (Nigeria) Co. handled the repair work, estimated at $21 million. NNPC expects to shut down the 125,000 b/d Warri refinery in January for a revamp.

REPSOL PETROLEO SA let contract to Edeleanu GmbH for licensing and technical services for a 30,000 metric ton/year wax hydrogenation unit at its 120,000 b/d Cartagena, Spain, refinery. The unit will employ BASF high pressure catalytic hydrogenation technology. Start up is scheduled for 1994.

PLACID REFINING CO. let contract to TPA Inc. for engineering, procurement, and fabrication of a 20 long ton/day (44,800 lb/day) sulfur recovery unit (SRU) and a 20 long ton/day Resulf unit for SRU tail gas treating. The modular construction units are expected to be operational at Placid's 48,000 b/d Port Allen, La., refinery by third quarter 1993.

SOUTH AFRICA'S Engen Ltd., Cape Town, plans to spend 800 million rands ($266 million) upgrading its 65,000 b/d Genref refinery at Durban, Agence France Presse reported. Engen said the goal was to improve the yield of high value fuels and reduce production of low value bunker oil. The company expects construction to take 26 months.

COMPANIES

THE REICHMANN FAMILY filed a restructuring program to solve the financial problems of its real estate empire in Canada, U.S., and Britain, calling for its 75% stake in Gulf Canada Resources Ltd., Calgary, to be shared by Olympia & York Developments Ltd., a Reichmann company, and its creditors. Lenders are scheduled to vote on the proposal Nov. 25. Meanwhile, GW Utilities Ltd., another Reichmann controlled company, said negotiations are under way to sell its 40.7% stake in Home Oil Ltd., Calgary, for at least $250 million (Canadian) by yearend.

TENNECO GAS, Houston, plans to buy all common stock of EnTrade Corp., a Louisville, Ky., gas marketing company with annual sales of more than 230 bcf. In addition to EnTrade's marketing alliances with gas producers, EnTrade subsidiaries gather gas and market gas engines. Terms of the acquisition to close by Dec. 31 were not disclosed.

DRILLING-PRODUCTION

SHELL GABON SA let a contract to Fluor Daniel to perform a field development study for phase two of the progressive expansion of Rabi oil field gas/oil processing facilities. Fluor began work on the project early this month, and the study was to have been complete by midmonth. Rabi field is a remote inland field east of Port Gentil on the Sette Cama exploration block in Gabon.

OCELOT ENERGY INC., Calgary, agreed to acquire the Sylvan Lake area production and facilities of Encor Inc., also of Calgary, for $52.5 million (Canadian). The deal includes proven and probable reserves of 7 million bbl of oil and liquids and 52.5 bcf of gas, with production of 2,215 b/d of liquids and 8.9 MMcfd of gas. The acquisition increases Ocelot's proved and probable reserves by 25% and its production by more than 60%.

ENCOR reached agreement in four transactions to sell leases for $93 million (Canadian). The company expects to reach agreements on another five sales that could total $43 million. The sales represent proved reserves of about 8.3 million bbl of liquids and 212 bcf of gas. The transactions are expected to be complete by the end of first quarter 1993. Transactions representing about half the proceeds are to be completed through the sale of shares of newly incorporated subsidiaries of the company.

BITECH CORP., Toronto, let a contract to SNC Partec Inc., Calgary, to prepare a feasibility study on proposed development of Verkhnechonskoye oil and Kaviktinskoye gas fields in Irkutsk Oblast, Russia. A team was to leave for East Siberia early this month to begin compiling data. The study is to be complete in May 1993. The project is being developed by Rusia Bitech Petroleum, a joint stock company established by Bitech and Rusia Petroleum.

SENECA RESOURCES CORP., Houston, installed a four pile platform and facilities capable of handling 50 MMcfd of gas on West Cameron Block 230 in the Gulf of Mexico. First production is expected this month. The 1 OCS G 10560 wildcat encountered pay in Miocene sands at 10,154 10,230 ft, and two more wells were completed on the block. Production tests from the wells totaled 27.18 MMcfd of gas and 427 b/d of condensate. The project was developed from spudding to production in less than 6 months.

TOTAL OIL MARINE PLC will develop Dunbar field in the North Sea as a minimally manned satellite of North Alwyn, not an unmanned satellite as reported incorrectly (OGJ, Oct. 26, p. 37). A crew of 16 will be based on the platform.

RESEARCH

FEDERAL ENERGY REGULATORY COMMISSION approved Gas Research Institute's (GRI) 1993 research and development program and related 5 year research plan. It approved GRI's request for a $201.8 million budget, down $11.1 million from the 1992 level. And it approved a settlement between GRI and the Process Gas Consumers Group, American Iron & Steel Institute, and Georgia Industrial Group under which GRI agreed not to increase its budget in 1994.

EXPLORATION

BRITISH GAS PLC sent a seismic survey team to Cambodia where it plans to begin data acquisition soon on a block held jointly with Enterprise Oil Exploration Ltd.

BRITISH GEOLOGICAL SURVEY, London, completed a 20 year project to map the geology of the U.K. continental shelf. A total of 341 maps and 11 regional reports was compiled from 200,000 line km of shallow seismic data, 250,000 seabed cores, and 500 boreholes. The maps feature water depths to 200 m.

EXPORTS-IMPORTS

SPAIN will extend $1 billion in export credits to Algeria under an agreement reached in late October. The credits are planned in two $500 million packages that combine two $150 million short term loans. The longer term loans are for capital projects that include a new gas pipeline to move Algerian gas to the Iberian Peninsula. Spain expects to triple its purchases of Algerian gas to 353 bcf by the end of the decade.

SPILLS

A CRUDE PIPELINE owned by Koch Gathering Systems Inc., Wichita, ruptured in a rainstorm Nov. 11 spilling 5,000 bbl of oil into Council Creek and the Cimmaron River near Cushing, Okla. The 6 in. pipeline split along a seam in a 3 4 ft section of pipe. Koch plans to have the pipe analyzed to determine the rupture's cause. By Nov. 17, 80 85% of the spill had been cleaned up, and the Oklahoma Corporation Commission said the project should be complete by Nov. 26.

Copyright 1992 Oil & Gas Journal. All Rights Reserved.