Transportation news briefs, Jan. 3

Alliance Pipeline � OGE Energy � Calpine � Centennial Pipeline � Willbros Group � Sonatrach � Saipem � Spie Capag


Alliance Pipeline LP said a 7-day physical performance test of its recently started-up system was completed, rating the line capable of meeting its contractual obligations to shippers. The 2,300-mile Alliance system transports natural gas and liquids from Western Canada to the Chicago market. The test was required under Alliance's debt financing agreements. Now that the test is complete, Alliance can, among other things, alter the rate of interest on some debt and release security held by some creditors.

OGE Energy Corp., Oklahoma City, Okla., said its gas pipeline subsidiary has signed a long-term contract to transport up to 185 MMcfd of gas to fuel a 1,100-Mw power plant under construction in Coweta, Okla. Lead developer is Calpine Corp., San Jose, Calif., The facility will be connected to the Transok pipeline system, operated by Enogex Inc., an OGE Energy subsidiary.

Centennial Pipeline LLC awarded a contract to Willbros Group Inc. subsidiaries Willbros Engineers Inc. of Tulsa and Rogers & Phillips Inc. of Houston for project management, engineering, procurement, field services, and construction of pipeline components for its liquids transportation system. The project scope includes construction of 74 miles of 24-in. pipe from Beaumont, Tex., to Longville, La., and conversion of an existing 720-mile, 26-in. gas pipeline from Longville to Bourbon, Ill., to refined product service. Centennial Pipeline is a venture of Marathon Ashland Petroleum LLC, Panhandle Eastern Pipe Line Co., and TE Products Pipeline Co. LLC. Project approval from regulatory agencies is expected in 2001.

Algerian state oil company Sonatrach has awarded a $324 million contract to Italian company Saipem SPA and the French company Spie Capag SA for the construction of six pumping stations and terminal for the Haoudh El Hamra-Arzew oil pipeline. Saipem said the project's workscope covers engineering, procurement of materials and equipment, and construction activities, and will be carried out in two phases, the first scheduled to run 24 months from the time the contract starts.

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