Guidelines offered for choosing cryogenics or absorption for gas processing
Poco Petroleums Ltd.'s O'Chiese gas plant in central Alberta added a 60-MMscfd enhanced absorption NGL-recovery unit. Worldwide, the gas-processing industry meets a variety of economic and recovery objectives. These range from simply meeting a gas-transportation specification to achieving extremely high ethane recovery for providing feed to an ethylene facility.
East Texas gas plant improves efficiencies with operations analysis
Union Pacific Resources' East Texas gas-processing plant achieved ambitious performance goals after an extensive review of its operations and maintenance. East Texas gas-plant personnel participated in every aspect of the analysis of plant procedures and practices. [33,038 bytes] In 1997 and 1998, Union Pacific Resource Co.'s East Texas plant at Carthage, Tex., achieved several historic performance milestones for its customers, producers, key investment partners, and stockholders.
Williams presses power, petrochemical diversification strategy
Tulsa-based integrated energy firm Williams has formed some innovative agreements that are furthering its diversification into the power and petrochemical sectors. In an arrangement that may prove to be an indicator of future trends, Williams has signed a fuel supply and power marketing agreement with AES Corp., Arlington, Va. Under this second such deal with AES, Williams will supply natural gas to the firm for use in an AES generation unit and will market the plant's electricity output.
Japan pulling the plug on support for JNOC's E&D investments
As if Japan's petroleum companies having to cope with the crushing downstream competition at home were not enough, Japan's government has recently agreed to pull the plug on continuing financial support for state-owned upstream company Japan National Oil Co. (JNOC). Unlike most foreign oil majors, which derive a significant proportion of their profits from exploration and development, Japanese E&D activity is minimal, making the domestic refining and retail markets the sole areas of
Major energy distribution firms plan mergers
Two major planned mergers have been announced that point to accelerating competition and consolidation in the natural gas, power, and energy services sectors. Sempra Energy and KN Energy Inc. have signed a definitive merger agreement that would form a major, integrated energy company with combined assets of $20 billion. Under terms of the deal, valued at $6 billion, KN will be merged into Sempra.
Low oil prices squeeze Caspian Sea projects
Investment in Caspian Sea oil and gas projects is likely to be delayed by low oil prices, but the region is still set to become a significant producer. This was the message presented at a London conference on Feb. 18 by Robert Priddle, executive director of the International Energy Agency. Priddle noted that, while recent disappointing Caspian Sea drilling results have inspired talk of downgrading reserves estimates for the region, "Keep in mind, however, that many dry holes were drilled in the
Growth slows in independent power market
The international market for independent power projects has grown during the past 12 months, although less so than it would have if not for the Asian financial crisis. This is the conclusion of Hagler Bailly Consulting, Arlington, Va., based on the results of its most recent semiannual survey of the international independent power (IIP) market. The growth of independent power projects is significant for the oil and gas industry, because so much of the projected additional power capacity they
East-West Center: IPP systems fail to manage power supplies
Much as utility or monopoly systems have failed to manage a country's electric power system effectively, the newer business model in the industry, known as independent power producers (IPPs), also has proven to be a failure. So says the East-West Center, Honolulu, in a recent report. Analyst Ronald E. Hagen says the term IPP is misleading, because the type of power supply system that has emerged in this decade is not truly independent but rather is based on long-term contracts for both fuel
Shell, BP trim sails
Royal Dutch/Shell and BP Amoco plc have furled their sails in anticipation that oil prices will stay becalmed at $10-11/bbl, with BP Amoco preparing for further reductions in its crew. Disclosing results for 1998, both blamed dramatically reduced income on low oil prices.
Ventech Process Equipment Inc., Pasadena, Tex., suspended the relocation of its Calgary refinery to Russia due to Russia's current economic crisis. Ventech, which acquired the refinery from Shell Canada Products Ltd. last year, expected to have completed the move in second half 1999 (OGJ, Sept. 7, 1998, p. 42). Ventech will maintain the facility at the current site. Enron Corp.