STRONG NORTH AMERICAN ACTIVITY LEADS WORLD GAS PROCESSING

June 12, 1995
Warren R. True Pipeline/Gas Processing Editor US Gas Processing Trends (41274 bytes) US Plants Slide(33045 bytes) Worldwide Gas Processing Roundup (41274 bytes) Canada and the U.S. began 1995 leading the rest of the world in gas-processing capacity, gas throughput, and NGL production along with processing capacity and production of petroleum-derived sulfur.

Warren R. True
Pipeline/Gas Processing
Editor

US Gas Processing Trends (41274 bytes)
US Plants Slide(33045 bytes)

Worldwide Gas Processing Roundup (41274 bytes) Canada and the U.S. began 1995 leading the rest of the world in gas-processing capacity, gas throughput, and NGL production along with processing capacity and production of petroleum-derived sulfur.

Canada, with several major expansions under way on Jan. 1 at gas-export points in southern Alberta, reported more than 36.6 bcfd of capacity and was processing 28.6 bcfd. Average daily production in 1994 exceeded 43.6 million gpd (more than 1 million b/d).

In the U.S., where many plants were seeing strong petrochemical-market demand as late as mid-May, processing capacity on Jan. 1 was more than 70 bcfd and gas processed during 1994 was 47 bcfd. NGL production exceeded 75 million gpd (nearly 1.8 million b/d).

Oil & Gas Journal's most recent exclusive, plant-by-plant, worldwide gas-processing survey (p. 66) and its international survey of petroleum-derived sulfur recovery (p. 117) reflect these trends.

For some Alberta plants whose operators failed to report 1994 information, this report supplements operator-supplied capacity and production data for the province with figures from its Energy Resources Conservation Board (ERCB).

OGJ began incorporating ERCB data in the 1994 report for 1993 data; comparisons with 1992 or earlier years are therefore unreliable. Nonetheless, ERCB data confirm trends indicated in the reported data.

Gas-processing capacity outside Canada and the U.S. at the beginning of this year was nearly 74 bcfd; throughput during 1994 was more than 40.7 bcfd. Non-Canadian and U.S. NGL production averaged more than 77 million gpd (1.8 million b/d) last year.

Among those regions outside Canada and the U.S., Western Europe retained the most processing capacity (22.1 bcfd) followed by countries of Asia-Pacific (15 bcfd). Latin America led this group in reporting the most gas processed (9.7 bcfd) followed by Asia-Pacific (9.5 bcfd).

Latin America also reported more NGL production (26 million gpd; 622,000 b/d) than other regions outside the U.S. and Canada.

Canada and the U.S. also, as stated, continued to lead the world in petroleum-derived sulfur recovery in 1994, holding more than 55% of processing capacity and 56% of actual production.

For worldwide production of petroleum-derived sulfur last year, Canada accounted for more than 35% of the overall total; the U.S., more than 21%,.

SHARES, DIRECTIONS

For 1994, the U.S. continued to hold the largest share-39%-of the world's gas-processing capacity. Also last year, more of the world's produced natural gas-40.7%-flowed through U.S. gas plants.

U.S. NGL production similarly made up the largest share-38.5%-of the world's produced NGL.

Canada held onto second place with 20% of the world's processing capacity, 24% of throughput for 1994, and 22% of its NGL production.

In 1994, therefore, North America again dominated gas-processing activity with Canada and the U.S. holding nearly 60%, of worldwide capacity, nearly 65% of throughput, and nearly 61% of NGL production.

For last year, OGJ survey data show 1,591 operating gas plants worldwide. Companies reported operating 675 plants in the U.S., 677 in Canada. Recent OGJ data for new-plant construction show a drop in activity compared with a year ago (Table 2 (13677 bytes)).

Worldwide natural-gas reserves showed a decline in 1994 (Table 3 (20079 bytes)), while production (Table 4 (20079 bytes)) increased.

Finally, Table 5 (20302 bytes) presents the top 10 NGL-producing nations in the world.

IN THE STATES

U.S. plant utilization rate in 1994 stood at 67.4%, up from 66.3% in 1993. In 1986, the rate was 55%.

The number of large gas plants in Louisiana allowed that state in 1994 to retain its U.S. lead in processing capacity with more than 18.3 bcfd. The state also processed more gas-12.2 bcfd-than any other state.

Companies operating plants in Texas reported nearly 17 bcfd of capacity operating as of Jan. 1 with throughput slightly exceeding 11.8 bcfd.

Combined, Louisiana and Texas held more than 35.6 bcfd (50%) of U.S. capacity and 24 bcfd (50.4%) of throughout for the year. In both states, 338 plants were reported to be operating at Jan. 1, more than half of the 675 reported operating in the entire U.S.

Texas' NGL production, however, dwarfed that of any other state, yielding nearly 31.6 million gpd (752,209 b/d) in 1994. That's nearly 42%, of total U.S. production last year.

Totals for the three nearest producing states Louisiana (10.8 million gpd), Oklahoma (8.8 million gpd), and New Mexico (6.6 million gpd)-made up 26.2 million gpd (nearly 627,000 b/d), or almost 35% of total U.S. production.

In 1994, El Paso Natural Gas Co. and Burlington Resources Inc., a unit of Meridian Oil Inc., Houston, agreed for El Paso to build and own a $75 million, 400-MMcfd cryogenic straddle gas plant at El Paso's Chaco, N.M., site. Start-up is set for mid 1996.

Also in the same area, Williams Field Services, Tulsa, started up its 110-MMcfd Esperanza treating plant near San Juan, pushing Manzanares system volumes to more than 800 MMcfd.

Elsewhere in New Mexico, GPM Gas Corp., Houston, began expanding its recently opened Zia gas plant in Lea County to 40 MMcfd from 29 MMcfd.

North of the San Joan area, in southwest Wyoming, Coastal Gas Gathering & Processing Co. and Questar Pipeline Co. are building an 84-MMcfd Blacks Fork gas plant on Questar's Moxa Arch gathering system in the Green River basin.

In Colorado, Amoco Production Co. spent $10 million to expand its Wattenberg gas plant in the Denver-Julesburg basin. Capacity increased to 200 MMcfd from 150 MMcfd and liquids recovery to more than 13,000 b/d from 9,800 b/d.

In a major announcement affecting Hugoton volumes, Amoco Production Co. and Trident NGL Holding Inc. unit Trident NGL Inc., Houston, will build a 500-MMcfd cryogenic gas plant with helium recovery and nitrogen-rejection units in southwest Kansas.

The plant would begin operation in 1996 and is envisioned to replace Amoco's 400-MMcfd Ulysses plant and Trident's 500-MMcfd Jayhawk plant. Trident was officially folded into Natural Gas Clearinghouse in March.

In neighboring Oklahoma in 1994, Delhi Gas Pipeline Corp., Dallas, started up its Panther Creek gas plant with 45 MMcfd of capacity.

In Texas, Rockland Pipeline Co., Houston, announced it is building a 25-MMcfd turboexpander gas plant in Sterling County.

Williams Field Service Group last year began building a 30 MMcfd, Ortloff-process cryogenic turboexpander gas plant in southwest Hemphill County. Start-up was to occur before yearend.

When Gulf Coast Fractionators' Mont Belvieu plant returned to operation last summer following a fire and explosion in April, it brought a capacity of 102,000 b/d, up from 80,000 b/d at the time of the fire.

And in northern Louisiana, Cornerstone Natural Gas Inc., Dallas, started up a cryogenic gas plant at Dubach. It processes 40 MMcfd with two cryogenic units moved from the company's Bear Wallow site in South Texas.

CANADA AND THE WORLD

What Louisiana and Texas are to the U.S., Canada, primarily Alberta, is to the rest of the gas-processing world.

Canadian utilization was 78.1% in 1994; Alberta's, 78.8%.

OGJ's survey determined that 677 plants were operating in Canada in 1994, processing capacity exceeded 36.6 bcfd; gas processed was 28.6 bcfd; and NGL production was nearly 43.6 million gpd (1.04 million b/d).

Alberta alone operated 624 plants with 33.1 held in capacity and processed 26.1 bcfd of gas.

Industry-wide speculation during 1994 about prospects for an ethane pipeline to Conway, Kan., can be understood when it is seen that more than 13.8 million gpd of ethane were produced on average in Alberta. That amounted to nearly a third of all NGL produced in the province and more than twice as much as produced in the entire U.S.

In 1994, PanCanadian Gas Products Ltd. and Alberta Energy Co. Ltd., both of Calgary, planned to begin construction on an 800-MMcfd gas liquids straddle plant near Empress, Alta. Propane, heavier hydrocarbons, along with ethane, were to be emphasized.

Alberta Natural Gas Co., Calgary, in a $55 million (Canadian) expansion completed late last year, boosted capacity at its Cochrane, Alta., plant to 2.2 bcfd from 1.3 bcfd. The plant also increased gas liquids production capacity to 26,000 b/d.

These projects are part of the ongoing work in southern Alberta as more Canadian gas exports move to the U.S. over U.S. pipeline expansions serving California as well as the upper Midwest and Northeast.

Canadian 88 Energy Corp., Calgary, expanded its Three Hills, Alta., plant at yearend 1994 to 40 MMcfd from 30 MMcfd.

In British Columbia, however, Westcoast Energy Inc., Vancouver, recently announced it had canceled plans for the $672 million (Canadian), 313-MMcfd Rumbler Ridge gas plant.

Rather, Westcoast will expand by 230 MMcfd its Pine River plant near Chetwynd, B.C. The $400 million expansion will follow a $300 million expansion finished there in November 1994.

In Latin America, nearly 11.7 bcfd of capacity was operating as of Jan, 1, processing 9.7 bcfd during the year and producing more than 26 million gpd (622,000 b/d) of NGLs.

In Argentina, YPF S.A. plans a 1.5-bcfd plant and cryogenic NGL extraction plant in Neuquen province.

As part of the project, also planned are a gas production system, residue-gas recompression system, and 600 km of pipeline to deliver as much as 70,000 b/d of NGL to Bahia Blanca on the Atlantic.

Product fractionation/purification, storage, handling, and tanker loading facilities are to be installed at Bahia Blanca.

Venezuela's Corpoven S.A. is expanding its cryogenic complex in eastern Venezuela, doubling cryogenic gas-separation capacity to 800 MMscfd at Santa Barbara, Monagas state, and building a third 35,000-b/d NGL fractionation train at Jose, Anzoategui state.

Start-up for both is set for first quarter 1996.

Elsewhere, Saudi Aramco Oil Co. plans a gas-treating plant in eastern Saudi Arabia, 20 km north of Jubail, to start up by mid-1996 and include a high-pressure amine train, gas sweetening, amine regeneration, and triethylene glycol gas drying units.

The company also announced plans last year to expand by 350 MMcfd a 1.6 bcfd plant at Uthmaniyah.

In Western Europe, Amoco (U.K.) Exploration Co. plans to modify its processing terminal at Bacton on the eastern coast of England by installing a glycol-recovery plant, two glycol-recycling units, and new pig receivers.

Also for North Sea gas, Chevron U.K. Ltd. and Conoco U.K. Ltd. are building a $330 million, 750-MMcfd gas plant to process gas from U.K.'s Britannia field. Start-up is set for late 1998.

Enron Corp. plans to start up later this year or in early 1996 its second process train at Teesside, U.K., for gas from North Sea Judy and Joanne fields. Gas will flow through the Central Area Transmission System in 1996.

In Asia, Pakistan commissioned late last year a $98.4 million gas and condensate processing complex in Dhodak field.

The plant will provide 47 MMcfd of gas to the Kot Addu power plant. As much as 2,500 b/d of liquids are being processed at a nearby topping plant into gasoline, diesel fuel, and kerosine.

In early 1994, Pakistan approved plans by Sui Southern Gas Co. for a $30 million LPG-extraction plant at Hyderabad to process gas from the offshore Badin block.

In Viet Nam, a feasibility study for a $400 million LPG export project is under way, sponsored by Mitsui & Co., Vietnam Oil & Gas Corp., and TransCanada PipeLines Ltd.

The study envisions a 130-km line from offshore Bach Ho oil field to a gas plant near Ho Chi Minh City. Export volumes are projected at 260,000 metric tons/year (mty).

In Africa in early 1994, the Nigerian National Petroleum Corp. let the first contract in the first phase of a $483 million project to develop the Escravos oil field offshore southeast Nigeria.

Algeria's Sonatrach is looking to 1996 to start up a $450 million, 2-million mty gas plant near Arzew, Algeria, 400 km west of Algiers.

SULFUR RECOVERY

Worldwide sulfur recovery rose in 1994 to more than 115,500 metric tons/day (mtd) from almost 110,000 mtd in 1993.

Canada reported more than 32,500 mtd of sulfur recovery capacity, 28.2% of the world's total. The U.S. held more than 31,800 mtd, or 27.5% of the world's total.

Outside the U.S. and Canada, worldwide capacity rose to more than 51,100 mtd from slightly less than 50,000 mtd in 1993.

Worldwide production of petroleum-derived sulfur increased last year to more than 60,000 mtd from more than 55,500 mtd in 1993.

Canada accounted for more than 21,350 mtd; the U.S., for slightly more than 13,000 mtd.

Copyright 1995 Oil & Gas Journal. All Rights Reserved.