Transportation news briefs, June 28
Bahia de Bizkaia Gas � SN Technigaz � Initec � Sofregaz � ILF Consulting Engineer � Karachaganak Petroleum Operating � Pembina Pipeline � Western Facilities Fund � Vector Pipeline � Northern Indiana Public Service Co. � Crossroads Pipeline � Spinnaker Exploration � Horizon Offshore .. Enbridge � Williams � Northfill Industries ... Imperial Oil Ltd. ... Pembina Pipeline Corp.
Bahia de Bizkaia Gas (BBG) has let a 203 million euro turnkey contract to SN Technigaz, a wholly owned affiliate of Bouygues Offshore SA, to construct an LNG import and regasification terminal in the newly extended port of Bilbao in Spain's Basque region. The contract will be carried out through a joint venture of SN Technigaz, 40%; Initec, 33%; and Sofregaz, 27%. Delivery of all units is expected within 36 months of administrative and legal approval of the contract (expected in the next few weeks). BBG is a Spanish gas marketing company owned equally by BP Amoco PLC, Repsol-YPF SA, Spanish company Iberdrola Energia SA, and Ente Vasco de la Energia (OGJ Online, June 23, 2000).
Karachaganak Petroleum Operating BV has awarded a contract to ILF Consulting Engineers for engineering and consultancy services on the oil-condensate pipeline from Bolshoi Chagan to Atyrau. This 10 million tonne/year pipeline will be part of an export system running from Kazakhstan's Karachaganak field through Bolshoi Chagan to Atyrau, where it will feed into the Caspian Pipeline Consortium pipeline. The contract includes, among other things, detailed design of the 449 km, 24-in. pipeline, pumping stations at Bolshoi Chagan and Kalmikovo, and a terminal in Atyrau. Completion of the pipeline is expected by 2002.
Pembina Pipeline Income Fund, Calgary, said its subsidiary, Pembina Pipeline Corp., will acquire the pipeline assets of the Western Facilities Fund for $40.3 million cash. The 575 km of pipelines comprise British Columbia's largest feeder pipeline system. The system transports 95% of all oil produced in the province and has 400,000 bbl of storage and related facilities at Taylor, BC. Once required approvals are acquired, which Pembina expects to occur by mid-August 2000, closing should follow promptly. The transaction has an effective date of July 1, 2000.
NiSource Inc. subsidiary Northern Indiana Public Service Co. (NIPSCO) has signed a firm transportation agreement with Vector Pipeline LP, Calgary. Vector will provide NIPSCO with 200 MMcfd of firm short-haul transportation service after completion of Vector's mainline facilities and new interconnections to be constructed with NIPSCO and Crossroads Pipeline Co. The Vector Pipeline is designed to transport Western Canadian and US-sourced natural gas from the Chicago market hub in Joliet, Illinois, to the hub at Dawn, Ontario, as well as access to markets and storage in the upper Midwest.
Spinnaker Exploration Co. LLC has awarded Horizon Offshore Inc. a letter of intent to lay and bury 14 miles of 24-in. pipeline in the High Island area of the Gulf of Mexico. Horizon will use its lay barge, the Lone Star Horizon, to lay the pipeline and its bury barge, the Canyon Horizon, to bury the line, which will require deep burial conditions, as it is in a ship fairway.
Enbridge Inc., Calgary, and partners report Petroleos de Venezuela has unexpectedly cancelled a contract to operate the Jose oil terminal on Venezuela�s northern coast. Enbridge operates the terminal with Williams and Northfill Industries Corp. Enbridge said the cancellation could jeopardize a plan by the companies to buy the facility for $385 million. Enbridge said PDVSA terminated the contract in a three-paragraph letter. The Venezuelan state oil firm later said the companies can operate the 800,000 b/d facility until the end of July to ensure a smooth transition. Enbridge and Williams each have a 40% interest in the operating contract; Northfill has 20%.
Pembina Pipeline Corp. has reached an agreement with Canada's Imperial Oil Ltd. to acquire Imperial's 50% stake in Federated Pipe Lines Ltd. In a related transaction, Pembina will purchase the Cynthia Pipeline, which is wholly owned by Imperial. Federated Pipe Lines, which is jointly owned by Imperial and Home Oil Co. Ltd.�a subsidiary of Anderson Exploration Ltd.�operates 3,200 km of pipelines in Western Canada, transporting crude oil and natural gas liquids. The Cynthia Pipeline is a 121-km pipeline in west-central Alberta. Subject to regulatory approvals, the transaction is expected to close in July. Imperial predicts the deal will result in an after-tax earnings gain of about $60 million (Can.).