P.4 ~ Continued - Survey shows increase in gas processing, pipeline construction

Nov. 7, 2011

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Other gas, sulfur

South African energy and chemicals group Sasol has chosen southwestern Louisiana for the site for its planned gas-to-liquids plant, according to the company. The project is to be the first in the US to produce GTL transportation fuels and other products (OGJ Online, Sept. 13, 2011).

Over 18 months, Sasol will undertake a feasibility study to evaluate the viability of a GTL venture in Calcasieu Parish. The study will consider a 2-million tpy plant or a 4 million tpy plant.

Meanwhile, Black & Veatch is working on sulfur projects for PetroChina. Both projects, in engineering phases, are in Guangxi and scheduled for completion in 2013. B&V is also working on sulfur projects in India, Oman, and the US Virgin Islands.


Enbridge Inc. said it will construct a twin to the southern section of its Athabasca Pipeline from Kirby Lake, Alta., to the oil hub at Hardisty, Alta., at an estimated cost of $1.2 billion (OGJ Online, Sept. 16, 2011).

The twin line will initially add 450,000 b/d of capacity between Kirby Lake and Hardisty, with what Enbridge called "low-cost expansion potential to 800,000 b/d." The line is expected to be capable of accepting initial volumes by early 2015, with its full initial capacity available by 2016. The new line will include 345 km of 36-in. pipe largely within the existing Athabasca Pipeline right-of-way.

Lone Star NGL LLC, a joint venture of Energy Transfer Partners LP and Regency Energy Partners LP, will build a 530-mile NGL pipeline from Winkler County in West Texas to the Jackson County processing plant in Jackson County, Tex., moving Permian basin production eastward (OGJ Online, June 24, 2011).

The new line will have a minimum capacity of 130,000 b/d, with the potential to upsize depending on commercial demand. The project currently has more than 65% of capacity subscribed under 15-year agreements. Lone Star expects the pipeline to be completed by first-quarter 2013 at an estimated cost of $700 million, of which ETP will pay 70% and Regency 30%.

Williams Partners LP received US Federal Energy Regulatory Commission approval for its proposal to expand its Transco Gas Pipeline by 225 MMcfd to serve the Southeast US (OGJ Online, Sept. 2, 2011).

The expansion will include 23 miles of pipeline, a compressor facility in Dallas County, Ala., and upgrades to existing compressor facilities in Alabama, Georgia, South Carolina, and North Carolina. Williams will complete the project in two phases: 95,000 MMcfd entering service in fourth-quarter 2012 and 130,000 MMcfd service second-quarter 2013. Williams estimates the capital cost of the project at $217 million.

Southern Union Co., Houston, will spend $235 million to build the Red Bluff project, a 200-MMcfd gas processing plant and associated gathering, compression, and treating facilities, through its midstream unit, Southern Union Gas Services.

As part of the project, SUGS will build about 60 miles of pipeline to deliver up to 20,000 b/d of NGLs into Lone Star NGL's planned Permian-to-Mt. Belvieu pipeline expansion, under a 15-year firm agreement (OGJ Online, June 24, 2011). Southern Union expects the project to be completed in mid-2013.

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