More Oil & Gas Pipeline News

DRILLING SURGES OFF NORTHERN EUROPE

Aug 20, 1990 Drilling activity off northern Europe is climbing to record levels. The number of offshore rigs available in the region has increased to 130; only six are stacked. The midsummer 1990 figures show a considerable increase in drilling compared with the same period of 1989, when the region's rig count totaled 122 available units with 12 stacked. The U.K. sector remains busiest. At midsummer it accounted for 61 of 92 wells in progress off northern Europe. British sector operators were drilling

DUTCH PIPELINE PROJECT CREATING GAS DEVELOPMENT OPPORTUNITIES

Aug 20, 1990 Two-stage construction of the Nogat gas pipeline from the northern part of the Dutch North Sea to the mainland is opening development opportunities. A series of gas finds will be linked to the new pipeline. The level of development in this area should accelerate as presence of the pipeline encourages exploration along the route. Dutch waters remain mostly a gas play. Gas production averages about 1.7 bcfd, while oil output has slipped below 50,000 b/d.

U.K. SECTOR BUSY DURING WEATHER WINDOW

Aug 20, 1990 A yearend deadline for installing emergency shutdown valves (ESVs) on most platform risers in the U.K. North Sea has turned the normal summer maintenance period into one of the most active ever in British waters. The ESVs are required by legislation introduced after the July 1988 Piper Alpha explosion and fire. They will be installed in addition to the normal weather window inspection and maintenance work. A number of operators have started to install subsea isolation valves.

TRANSCANADA EXPANSION CLEARS LEGAL HURDLE

Aug 27, 1990 A $2.6 billion pipeline project aimed at increased exports of Canadian gas to the U.S. Northeast has cleared a legal roadblock. The Federal Court of Canada rejected an appeal by an association representing major Canadian gas users that threatened an expansion program by TransCanada PipeLines Ltd. With that issue heading toward a decision before Canada's National Energy Board (NEB), another continued to shape up when the Alberta government warned California energy regulators they have gone

LABOR STRIKE DELAYS NORTH SEA FIELD PROJECT

Aug 27, 1990 A continuing threat of unofficial strikes by contractors' workers in the U.K. North Sea has forced Chevron U.K. Ltd. to postpone a 20 million ($$38.2 million) program to install subsea isolation valves on oil and gas pipelines in Ninian field. First side effect of the Chevron action is a decision by a unit of British Petroleum Co. plc, operator of a 36 in. pipeline from Ninian to Sullom Voe terminal, to postpone a 10 million ($19.1 million) program to install a subsea valve on the trunkline

INTERNATIONAL BRIEFS

Aug 27, 1990 ULTRAMAR PLC of the U.K. let a $212 million contract to Samsung Shipbuilding & Heavy Industries Ltd. of South Korea to build three crude oil tankers for Canadian unit Ultramar Canada Inc. They will service the Ultramar Quebec refinery on the St. Lawrence River. The 148,500 metric ton vessels with 1 million bbl capacity will be ice strengthened and double hulled. Two are scheduled for 1992 delivery, the third in 1993.

U.S. INDEPENDENTS RESPOND TO MARKET RACES

Aug 27, 1990 Several U.S. independent producers plan to hike 1990 capital outlays mainly because the Middle East crisis has improved the outlook for oil and gas production. But action by another independent reflects the summer doldrums in spot wellhead gas prices. Questar Corp., Salt Lake City, will spend 15% more this year than it earlier planned because of what it foresees as increased U.S. gas usage due to environmental and national security concerns.

INDIA APPROVES NEELAM DEVELOPMENT PROJECT

Aug 27, 1990 India's government has approved Oil & Natural Gas Commission's proposed $1.335 billion full development plan for Neelam offshore field. Neelam, the biggest oil field off India's western coast after Bombay High, is expected to produce as much as 120,000 b/d of oil. Meanwhile, ONGC has submitted a proposal to develop the PY-3 oil and gas discovery off Tamil Nadu, 55 km northeast of Nagapattinam. The PY-3-2 discovery well yielded about 4,000 b/d of oil and 3.5 MMcfd of gas. ONGC

ANOTHER U.K. ONSHORE GAS PIPELINE PLANNED

Aug 27, 1990 Kinetica Ltd., a joint venture of Conoco (U.K.) Ltd, and PowerGen plc, plans a major addition to its independent gas pipeline proposal in Britain. It will lay a 175 mile line from the Conoco gas terminal at Theddlethorpe on the east coast of England to London and build a large gas fired power generation plant at Isle of Grain, east of the capital. Kinetica soon will begin detailed engineering studies and consultations with the U.K. Department of Energy, planning authorities, and others.

ANALYSIS SHOWS PROCESS INDUSTRY ACCIDENT LOSSES RISING

Aug 27, 1990 John A. Krembs, James M. Connolly M&M Protection Consultants Chicago An analysis of the 150 largest losses caused by accidents and natural phenomena in the hydrocarbon processing and chemical industries during a period of 30 years ending Jan. 1, 1989, shows that the cost and number of losses is increasing. The analysis is taken from data gathered for, "Large Property Damage Losses in the Hydrocarbon-Chemical Industries: A Thirty-Year Review," published by M&M Protection Consultants.

RECENT GULF OF MEXICO PIPELINE ACTIVITY REFLECTS INDUSTRY'S RECOVERY

Aug 27, 1990 Warren R. True Pipeline/Gas Processing Editor Pipeline construction in the U.S. Gulf of Mexico has improved considerably in recent years, especially activity in shallow water (less than 300 ft). Construction for middle depths (300-600 ft) has been flat, while deepwater (600+ ft) projects have held firm or increased slightly. Overall pipeline mileage constructed in federal waters 1985-89 showed a strengthening industry, especially during the 1988-89 period.

INTERNATIONAL BRIEFS

Sep 3, 1990 MTBE MALAYSIA SDN. BHD. let contract to an international group to design and engineer a plant at Kuantan, Malaysia, with capacities of 300,000 metric tons/year of MTBE and 80,000 metric tons/year of propylene. Kellogg Malaysia Inc. will design, construct, commission, and provide procurement and start-up advisory services for the project. Group members are M.W. Kellogg Co., Houston, Mitsubishi Heavy Industries Ltd. and Nichimen Corp. of Japan, and Pilecon Engineering Sdn. Bhd. of Malaysia.

WORLD PIPELINE CONSTRUCTION WORK PACE SET BY U.S. GAS LINE PROJECTS

Sep 3, 1990 World pipeline construction continues a recovery led by gas transmission projects in the U.S. U.S. pipeline companies plan to lay 3,226 miles of gas line this year, compared with 1,978 miles planned for 1989, according to Oil & Gas Journal's latest pipeline construction survey (OGJ, Feb. 5, p. 17). The survey covers only countries outside the former Communist bloc. Gas line projects planned in the U.S. for 1990 and beyond total 13,005 miles, an increase of more than 3,700 miles from the

NORTHERN BORDER ASSIGNS PROJECT CAPACITY

Sep 3, 1990 Northern Border Pipeline Co., Omaha, has assigned line capacity to 10 gas shippers on its $373 million expansion/extension project. Another seven firms met all the criteria during Northern Border's preliminary request period. They will be assigned capacity on the project, set for November 1991 start-up, if it becomes available (OGJ, June 25, p. 20).

U.S. BRIEFS

Sep 3, 1990 EXXON CO. U.S.A. agreed to spend $2.8 million to upgrade the wastewater treatment system at its Bayonne, N.J., refinery in settlement of a Clean Water Act lawsuit. The suit, filed in a Newark federal court by the New Jersey Public Interest Research Group and Friends of the Earth, alleged Exxon violated its permit for wastewater discharges into Kill Van Kull waterway.

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