More Gas Processing News

OSHA UNVEILS CHEMICAL PROCESS SAFETY RULES

Jul 23, 1990 U.S. refiners, petrochemical producers, and gas processing plant operators face a new layer of federal regulatory oversight under new safety rules proposed by the Occupational Safety & Health Administration. Although many practices included in the proposed standard are already in effect at many processing plants as a course of generally accepted engineering practices or existing safety and health codes, the new standard would give those practices the force of federal law.

U.S. BRIEFS

Jul 23, 1990 NATURAL GAS CLEARINGHOUSE, Houston, agreed to buy Mesa Operating LP's Madill, Binger, and Ringwood gas processing plants and related gathering systems. The three plants in western Oklahoma have combined capacity of 120 MMcfd and produce more than 208,000 gal/day of NGL. Closing is expected by Sept. 1. CONSOLIDATED NATURAL GAS CO., plans to merge its exploration and production units CNG Producing Co. and CNG Development Go. into a single unit with home offices in New Orleans by yearend.

UNOCAL, TOYO SUED FOR THAI PLANT DAMAGE

Jul 23, 1990 Petroleum Authority of Thailand (PTT) has sued Unocal Thailand and Toyo Engineering Corp. for about $37.68 million for damages to its Rayong natural gas processing plant last year. Unocal said it is confident it will prevail in the suit. PTT alleges Unocal supplied mercury contaminated gas from Gulf of Thailand fields and Toyo provided poor plant construction. The plant at Mab Ta Phud was crippled for 124 days in June-October 1989 because 10-25 mg of mercury per cubic meter of gas contaminated

CRUDE PRICE SLUMP TEMPERS MIDYEAR OUTLOOK

Jul 30, 1990 Robert J. Beck Economics Editor The rollercoaster ride for world crude prices that started in 1986 is continuing through 1990. Once again, excess production by members of the Organization of Petroleum Exporting Countries has created a sharp drop in crude prices. The drop, however, hasn't been as severe as in past cycles. Exploration and production activity in the U.S. and elsewhere is up from a year ago.

INTERNATIONAL BRIEFS

Jul 30, 1990 PT BADAK NGL CO. started up the fifth 2.3 million ton/year gas liquefaction train at the Badak LNG plant on the east coast of Kalimantan, Indonesia, at a cost of about $294 million. PT Badak capacity is 11.5 million tons/year of LNG and 400,000 tons/year of LPG. Chiyoda Corp. handled engineering design and construction, and Union Carbide Co. provided its solvent gas treating technology for the plant.

SEVERAL PIPELINES PRESS CONSTRUCTION PROJECTS ACROSS U.S.

Jul 30, 1990 Transwestern Pipeline Co., Houston, secured contracts to anchor a 340 MMcfd expansion of its mainline system and a proposed 520 MMcfd supply lateral into the San Juan basin of Northwest New Mexico. Several other pipelines around the U.S. also reported new developments: Florida Gas Transmission Co., Houston, received Federal Energy Regulatory Commission clearance to open its system Aug. 1 and expand it by 100 MMcfd, to 925 MMcfd, by fall 1991. ANR Pipeline Co., Detroit, completed hydrostatic

AUSTIN CHALK BOOSTS OIL RESERVES FOR ORYX

Jul 30, 1990 Oryx Energy Co., Dallas, last week disclosed reserve additions of a net 42 million bbl of oil equivalent (BOE) from its Cretaceous Austin chalk drilling program in South Texas. Oryx booked a net 28 million BOE this year, supplementing the 14 million BOE recorded in 1989. The company has drilled a total of 46 horizontal wells in the Austin chalk trend. The company also gauged a 1,700 b/d discovery, the latest Austin chalk success in its exploratory drilling program in the Pearsall field area.

VANCOUVER ISLAND PIPELINE-1 LONG-AWAITED SYSTEM TO EXPAND CANADIAN GAS NETWORK

Jul 30, 1990 Henry M. Yamauchi Westcoast Energy Inc. Vancouver, B.C. After more than 30 years of discussions and planning, the Vancouver Island (B.C.) pipeline is finally under construction. The new pipeline will allow natural gas to replace the heavy oil now being used on the island, thereby significantly reducing both air emissions and oil-barge traffic along the southern coast of Canada. The pipeline is equally owned by Westcoast Energy Inc., Vancouver, and Alberta Energy Co. Ltd., Edmonton.

INTERNATIONAL BRIEFS

Aug 6, 1990 BP CANADA INC plans to cut staff by 170 jobs-about 10% of payroll-under a restructuring. Most layoffs will involve cutting management layers at its Calgary headquarters and at Bonneyville, Alta., where BP owns 50% of the Wolf Lake oil sands project. BP said its aggressive exploration program will not be affected by the cuts.

AUSTRALIAN LIQUIDS-HANDLING SYSTEM CUTS SURGES TO LPG PLANT

Aug 6, 1990 Geoff McKee Terry D. Stenner Bridge Oil Ltd. Sydney A pipeline liquids-handling facility recently commissioned by Bridge Oil Ltd., Sydney, allows gas production to be quickly ramped up to meet customer demand. Its design eliminates troublesome liquid surges which had hampered plant operations.

PIPELINE HUB PROJECT SETS UP GAS SERVICE FOR U.S. WEST COAST MARKETS

Aug 6, 1990 Phillip J. Murdock Lone Star Gas Co. Dallas Major reconfiguration of a West Texas pipeline hub will allow the operator significant flexibility in transporting natural gas either to U.S. West Coast markets or to similar pipeline hubs in central and East Texas for movement to Midwestern or eastern U.S. markets. In July 1988, Lone Star Gas Co., Dallas, declared itself an "open access" transporter under U.S. Federal Energy Regulatory Commission (FERC) Orders 436 and 500.

OIL FIELD CORROSION-CONCLUSION ECONOMICS IMPORTANT IN SELECTING MONITORING TECHNIQUES

Aug 6, 1990 Douglas P. Moore Harry G. Byars ARCO Oil & Gas Plano, Tex. Failure/risk costs need to be considered when deciding on the type of corrosion monitoring and inspection. Locations with high-pressure, high-velocity streams need closer monitoring. This concluding article of a three-part series discusses the risks associated with different types of fluid streams and the various inspection techniques that can range from a low-cost visual examination to mechanical calipers and electromagnetic,

U.S. BRIEFS

Aug 6, 1990 WESTERN GAS PROCESSORS LTD., Denver, acquired the pipeline assets of Parker Gas Cos. Inc., Tulsa, and its subsidiaries for an undisclosed price. Included were 450 miles of pipeline mainly in the Giddings, Tex., area and their gas gathering and measuring segments. The sale of Parker's gas treating assets, also to Western, is scheduled for Aug. 21 closing. THE MEGA BORG supertanker, involved in an oil explosion and oil spill off Galveston, was towed out of the Gulf of Mexico on a 2 month

PRICE HIKES, FEARS OF OIL SUPPLY CRISIS TRAIL IRAQ ATTACK ON KUWAIT

Aug 13, 1990 Iraq's blitzkrieg seizure of Kuwait has created chaos in world oil markets. At a time when oil demand was relatively soft and oil stocks brimming worldwide, events following Iraq's Aug. 2 invasion of its neighbor, a former Arab ally, have sent oil futures prices rocketing to levels not seen since before the 1986 oil price collapse.

PROPOSED OSHA SAFETY REGS TARGET PROCESS PLANT PROCEDURES

Aug 20, 1990 Richard A. Corbett Refining/Petrochemical Editor Existing codes, standards, and good engineering practices, already adhered to by much of the U.S. hydrocarbon processing industry, will gain the force of federal regulation when the process plant safety standard proposed by the U.S. Occupational Safety and Health Administration (OSHA) goes into effect, possibly late this year or early next (OGJ, July 23, p. 18).

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