P. 7 ~ Continued - OGJ Newsletter

Dec. 5, 2011

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Ryckman Creek lets contract for Opal storage

Ryckman Creek Resources LLC, a subsidiary of Peregrine Midstream Partners LLC, let a contract for the project management support of the 35-bcf Ryckman Creek gas storage facility to Foster Wheeler Upstream. The new facility will serve Opal Hub.

The storage field will lie 25 miles southwest of the hub in Uinta County, Wyo. Storage will occur in a partially depleted oil and gas field converted to high-deliverability, multicycle gas storage. Initial maximum injection capability will exceed 350 MMcfd, with maximum withdrawals of roughly 480 MMcfd.

The project will include drilling new horizontal wells, construction of new pipeline facilities, and upgrades to an existing compressor station, formerly known as Canyon Creek Compression Co. when operated by Kinder Morgan. Foster Wheeler expects to complete the project, which will have connections to five interstate pipelines, in third-quarter 2012.

Ryckman held an open season on the storage in late 2010, offering 15 bcf beginning in April 2012, and received market-priced bids requesting more than 50 bcf of capacity from 25 companies (OGJ Online, Nov. 4, 2010). Ryckman is considering a Phase II expansion to that capacity.

Qatargas signs EPC contract for LNG plant

Qatargas Operating Co. Ltd. signed an engineering, procurement, and construction agreement with a unit of Global Engineering & Construction Group and with the subsidiary's joint-venture partner Qatar Kentz WLL.

The framework agreement covers projects associated with the existing Qatargas LNG plant at Ras Laffan Industrial City, north of Doha, and will include both onshore and offshore work. The agreement will be for 3 years with an option to extend for a further 2 years, Qatargas said.

Qatargas plans to issue invitations to its framework contractors to bid for specific work packages, which may include prefront-end engineering design, FEED, and EPC services.

Petronet board OKs additional capacity at Kochi

Regasification capacity at Petronet LNG Ltd.'s Kochi LNG terminal has been approved for expansion to 5 million tonnes/year from the originally planned 2.5 million tpy.

The first 2.5 million tpy has been on track to open early next year. Mechanical completion of the entire capacity, says the company on its website, "is expected to be commissioned" by 2013. The terminal is under construction at Puthuvypu, north of Kochi, on India's southwest coastline.

Local media have said the project would supply LNG to Karnataka and Tamil Nadu states and downstream industries in Kerala such as NTPC power plant at Kayamkulam and FACT, Kalamassery.

GAIL is reported to be laying gas distribution pipelines to connect industrial consumers in Kerala and later in Bangalore and Mangalore.

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