PERSIAN GULF-ASIA LINE GAINS MOMENTUM

A proposed multibillion dollar pipeline to ship Persian Gulf natural gas to Asia has picked up more support. New members of a group sponsoring the Gulf-South Asia Gas Project are TransCanada PipeLines Ltd., Calgary, and the Brown & Root Inc. unit of Halliburton Co., Dallas. Lead sponsor is Crescent Petroleum Inc. of the United Arab Emirates. TransCanada signed an interim agreement to participate as a cosponsor of the proposed first phase, $3.2 billion (U.S.), 1,600 km transmission line and

May 2, 1994

2 min read

A proposed multibillion dollar pipeline to ship Persian Gulf natural gas to Asia has picked up more support.

New members of a group sponsoring the Gulf-South Asia Gas Project are TransCanada PipeLines Ltd., Calgary, and the Brown & Root Inc. unit of Halliburton Co., Dallas. Lead sponsor is Crescent Petroleum Inc. of the United Arab Emirates.

TransCanada signed an interim agreement to participate as a cosponsor of the proposed first phase, $3.2 billion (U.S.), 1,600 km transmission line and related facilities. The agreement also will give TransCanada at least a 25% interest in the system.

Capacity of the 40+ in. diameter line is tentatively pegged at 2 bcfd (OGJ, May 17, 1993, p. 20). About 1,500 km of the line will he offshore.

Brown & Root will assist in project development and serve as turnkey contractor for engineering, project management, procurement, and construction.

The line is to run from Qatar across the lower Persian Gulf to U.A.E.'s western coast, then overland to the Gulf of Oman. It will then run off Iran's coast to a terminal near Karachi.

TransCanada Pres. George Watson said the project is part of the company's expansion program outside North America (OGJ, Apr. 25, p. 19). Watson was appointed chief executive officer at the company's annual meeting Apr. 22. As CEO, he replaces Gerald J. Maier, who continues as chairman.

Maier said the company is considering investments of about $6.5 billion in North America and internationally.