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8 Pipeline News • September 2008 • www.pipeline-news.com GAS - The Americas U.S. ALASKA (STATE OF)/TRANS CANADA/ FOOTHILLS – (REV. 7/08) The State of Alaska has completed its review of applications submitted by five companies for the exclusive right to build the Alaska Gas Pipeline to transport North Slope gas to market with TransCanada the apparent early winner. The application from TransCanada Alaska Company, LLC/Foothills Pipelines, Ltd. (TransCanada) satisfied all of the man- datory requirements set out in the required Alaska Gasline Inducement Act (AGIA). Thus, TransCanada’s application will move to the evaluation phase. In other news, Alaska’s Gov. Sarah Palin recom- mended in May 2008 that state lawmaker approve TransCanada proposal to build the project. She said the Calgary-based company’s plan merits issuance of a license under the AGIA. The long awaited Alaska Gas Pipeline, if completed, could transport 4.5 Bcf/d from Alaska’s North Slope primarily to Chicago for distribution throughout the U. S. The proposed route involves an estimated 2,100 miles of 52-inch diameter pipeline. The pipeline was estimated in 2001 to cost at least $20 billion, but steel prices have risen dramatically since then, and no steel company currently makes that diameter of pipe. At this date, there is no timetable for building the pipeline. ALGONQUIN GAS TRANSMISSION – (REV. 7/08) Algonquin Gas Transmission, a subsidiary of Spectra Energy, has filed an application with FERC to con- struct the $1.5 billion East-to-West Expansion project to transport more than 1 Bcfd of eastern LNG-based supplies to Northeast markets. The project will require modifications to four existing compressor stations, the construction of one new compressor station, the loop- ing and/or replacement of approximately 17.3 miles of existing pipelines, construction of approximately 13 miles of new pipeline, and installation of gas chromato- graphs at 29 existing meter stations and over-pressure protection at four locations along its right-of-way. The project will direct significant new supplies of re- gasified LNG from the eastern end of the Algonquin system into high-growth markets in the Northeast United States, including New England, New York and New Jersey, by November 2009. ALLIANCE/DUKE/NJR – (REV. 1/07) Alliance Pipeline, Duke Energy Gas Transmission and NJR Pipeline Company, a subsidiary of New Jersey Resources have signed a MOU to construct the Lebanon Connector Pipeline. An open season is being conducted for the natural gas pipeline to bring Canadian gas supplies to U.S. Northeast markets and regional storage. The pipeline would connect from either the Alliance Pipeline in Joliet, IL or from an interconnect with the Vector Pipeline at or near Springville, IN. Dependent upon the final route, the pipeline would be 125-170 miles in length and would follow the existing Texas Eastern Lebanon Lateral. Plans call for the project to be completed in 2008. ALLIANCE PIPELINE/QUESTAR OVERTHRUST PIPELINE – (REV 6/08) Alliance Pipeline Inc. and Questar Overthrust Pipeline Company conducted a binding open season from May 12 to June 16, 2008 for the proposed Rockies Alliance Pipeline (RAP), a jointly owned interstate natural gas transportation system from the Rocky Mountain Region to the Ventura, IA, and Chicago, IL trading hubs. Based on discussions with prospective shippers following the project announcement on March 25, 2008, the sponsors have revised the route to better meet market needs. The new route connects Rocky Mountain producing areas directly to the Ventura and Chicago trading hubs. Capacity for RAP is 1.2 Bcf/d with expansion capability to 1.8 Bcf/d. By capitalizing on both Questar’s and Alliance’s existing systems, RAP will allow shippers to transport growing natural gas production volumes from the Greater Green River, Piceance and Powder River basins to growing mid-western and eastern markets. The project will require approximately 900 miles of new 42-inch pipe, extending east from Wamsutter, WY to Ventura where it will connect to Alliance Pipeline and Northern Natural Gas. Questar’s Overthrust Pipeline can be expanded at low cost to connect multiple receipt points between Opal and Wamsutter. In a separate open season, Overthrust Pipeline is proposing to add up to 1.0 bcf/d incremental capacity from Opal to Wamsutter and construct a proposed new White River Lateral from the White River Hub in the Piceance Basin to Wamsutter. With minor modifications, Alliance can enhance downstream capacity on its system which connects to Guardian, Vector, Peoples, Nicor, ANR, NGPL and Midwestern. Subject to obtaining shipper commitment for this system and regulatory approvals, the pipeline is expected to be placed into service as early as third quarter 2011. ANR PIPELINE CO. – (12/07) ANR Pipeline Co., a subsidiary of El Paso Corp., recent- ly held an open season for its proposed Wisconsin/ Illinois 2009 Pipeline Expansion. The project proposes the expansion of ANR’s existing mainline and lateral facilities within Wisconsin and Illinois. Service is antici- pated to commence on Nov. 1, 2009. ASPEN PIPELINE – (8/07) Aspen Pipeline plans to build a high pressure natural gas pipeline to transport gas from Arena Resources’ Yates formation in Andrews County, TX to a fired electric utility in Odessa, TX. The 50-mile pipeline is scheduled for completion in mid-2008. ATLAS PIPELINE PARTNERS - (6/08) Atlas Pipeline Partners, L.P., through a wholly owned subsidiary, Atlas Pipeline Mid-Continent L.L.C has proposed building a natural gas pipeline extension, designated as the Tenark Pipeline Project. The line would extend from Ozark’s existing interstate natural gas transmission system in White County, AR to points of interconnection with Trunkline Gas Company and Texas Gas Transmission near Dyersburg, TN. Tenark is expected to consist of approximately 160 miles of 36-inch pipe, compression and related facilities. The line will extend northeast from Ozark’s existing inter- state natural gas transmission system in White County, AR to its terminus at interconnections with Trunkline Gas Company (Zone 1B) and Texas Gas Transmission (Zone 2) near Dyersburg, TN. Initial capacity of Tenark is expected to be 700,000 Dth/d with the potential to expand at a later date to 1,200,000 Dth/d. The ultimate capacity of Tenark will be determined by the level of shipper commitments during an open season. The pro- jected in-service date is November 2010. BISON PIPELINE LLC – (REV. 7/08) Northern Border Pipeline Co.’s wholly owned subsidiary, Bison Pipeline LLC, received a boost for its proposed Bison natural gas pipeline system when Anadarko Energy Services Co. signed a letter of intent to be a foundation shipper on the pipeline. The agreement is subject to approval by the Anadarko board. As proposed, the pipeline extends from natural gas gathering facilities located in the Powder River Basin supply area to a point of interconnection with Northern Border Pipeline Company in Morton County, ND. The Bison project will consist of 289 miles of 24-inch pipe, compression and added plant facilities, originating at the natural gas gathering facilities of Fort Union Gas Gathering, L.L.C. and Bighorn Gas Gathering, LLC near Dead Horse, Wyo. The pipeline will extend in a northeasterly direction to its terminus in Morton County, North Dakota near Northern Border’s Compressor Station No. 6. Initial capacity is expected to be 400 MMcf/d with a maximum capacity of 600 MMcf/d. The projected in service date is November 2010. BP/ CONOCOPHILLIPS – (REV. 6/08) BP and ConocoPhillips, through their joint venture company, Denali—The Alaska Gas Pipeline LLC, have submitted a letter to the Federal Energy Regulatory Commission seeking permission to use the agency’s pre-filing procedures for the natural gas project. With a pre-filing status, Denali could kick off at least 18 months of engineering and other planning work for the multibillion-dollar pipeline from the North Slope gas fields to Alberta, Canada. The pipeline will move approximately 4 Bcf/d of natural gas to market, and will be the largest private sector construction project ever built in North America. The project combines the financial strength, arctic experience and technical resources of the two companies. BP and ConocoPhillips plan to spend $600 million to achieve the first major project milestone, an open season, commencing before year end 2010. Following a successful open season, the companies intend to obtain FERC and NEB certification and move forward with project construction. The timetable calls for the pipeline to be in service in 2018. As proposed, the project consists of a gas treatment plant on Alaska’s North Slope and a large-diameter pipeline that extends 700 miles through Alaska, and then into Canada through the Yukon Territory and British Columbia to Alberta. The proposed line closely follows the original route from 1976. Should it be required to transport gas from Alberta, the project also will include a large diameter pipeline from Alberta to the Lower 48 states. BP and ConocoPhillips will seek other equity partners, including pipeline companies, who can add value to the project and help manage the risks involved. Total cost estimates range from $25 billion to $40 billion. In recent developments, TransCanada Corp. and Enbridge Inc. report they are ready to participate with the two producers noting that statements from BP and ConocoPhillips indicate they would welcome pipeline company partners. BRADFORD LANDING LLC – (7/08) Bradwood Landing LLC’s Bradwood Landing LNG project in Oregon and Washington, has received the environmental go-ahead. From the FERC. As pro- posed, the project would consist of an LNG import terminal located about 38 miles up the Columbia River from its mouth, in Clatsop County, OR, and a 36.3-mile- Planned pipeline construction projects in the feasibility stage or not yet permitted.
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Planned Pipeline Construction Projects in the Feasibility Stage or Not

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Page 1: Planned Pipeline Construction Projects in the Feasibility Stage or Not

8 Pipeline News • September 2008 • www.pipeline-news.com

GAS - The Americas U.S.ALASKA (STATE OF)/TRANS CANADA/FOOTHILLS – (REV. 7/08) The State of Alaska has completed its review of applications submitted by five companies for the exclusive right to build the Alaska Gas Pipeline to transport North Slope gas to market with TransCanada the apparent early winner. The application from TransCanada Alaska Company, LLC/Foothills Pipelines, Ltd. (TransCanada) satisfied all of the man-datory requirements set out in the required Alaska Gasline Inducement Act (AGIA). Thus, TransCanada’s application will move to the evaluation phase.

In other news, Alaska’s Gov. Sarah Palin recom-mended in May 2008 that state lawmaker approve TransCanada proposal to build the project. She said the Calgary-based company’s plan merits issuance of a license under the AGIA.

The long awaited Alaska Gas Pipeline, if completed, could transport 4.5 Bcf/d from Alaska’s North Slope primarily to Chicago for distribution throughout the U. S. The proposed route involves an estimated 2,100 miles of 52-inch diameter pipeline. The pipeline was estimated in 2001 to cost at least $20 billion, but steel prices have risen dramatically since then, and no steel company currently makes that diameter of pipe. At this date, there is no timetable for building the pipeline.

ALGONQUIN GAS TRANSMISSION – (REV. 7/08)Algonquin Gas Transmission, a subsidiary of Spectra Energy, has filed an application with FERC to con-struct the $1.5 billion East-to-West Expansion project to transport more than 1 Bcfd of eastern LNG-based supplies to Northeast markets. The project will require modifications to four existing compressor stations, the construction of one new compressor station, the loop-ing and/or replacement of approximately 17.3 miles of existing pipelines, construction of approximately 13 miles of new pipeline, and installation of gas chromato-graphs at 29 existing meter stations and over-pressure protection at four locations along its right-of-way.

The project will direct significant new supplies of re-gasified LNG from the eastern end of the Algonquin system into high-growth markets in the Northeast United States, including New England, New York and New Jersey, by November 2009.

ALLIANCE/DUKE/NJR – (REV. 1/07)Alliance Pipeline, Duke Energy Gas Transmission and NJR Pipeline Company, a subsidiary of New Jersey Resources have signed a MOU to construct the Lebanon Connector Pipeline. An open season is being conducted for the natural gas pipeline to bring Canadian gas supplies to U.S. Northeast markets and regional storage. The pipeline would connect from either the Alliance Pipeline in Joliet, IL or from an interconnect with the Vector Pipeline at or near Springville, IN. Dependent upon the final route, the pipeline would be 125-170 miles in length and would follow the existing Texas Eastern Lebanon Lateral. Plans call for the project to be completed in 2008.

ALLIANCE PIPELINE/QUESTAR OVERTHRUST PIPELINE – (REV 6/08)Alliance Pipeline Inc. and Questar Overthrust Pipeline Company conducted a binding open season from May 12 to June 16, 2008 for the proposed Rockies Alliance

Pipeline (RAP), a jointly owned interstate natural gas transportation system from the Rocky Mountain Region to the Ventura, IA, and Chicago, IL trading hubs. Based on discussions with prospective shippers following the project announcement on March 25, 2008, the sponsors have revised the route to better meet market needs. The new route connects Rocky Mountain producing areas directly to the Ventura and Chicago trading hubs. Capacity for RAP is 1.2 Bcf/d with expansion capability to 1.8 Bcf/d.

By capitalizing on both Questar’s and Alliance’s existing systems, RAP will allow shippers to transport growing natural gas production volumes from the Greater Green River, Piceance and Powder River basins to growing mid-western and eastern markets. The project will require approximately 900 miles of new 42-inch pipe, extending east from Wamsutter, WY to Ventura where it will connect to Alliance Pipeline and Northern Natural Gas. Questar’s Overthrust Pipeline can be expanded at low cost to connect multiple receipt points between Opal and Wamsutter.

In a separate open season, Overthrust Pipeline is proposing to add up to 1.0 bcf/d incremental capacity from Opal to Wamsutter and construct a proposed new White River Lateral from the White River Hub in the Piceance Basin to Wamsutter. With minor modifications, Alliance can enhance downstream capacity on its system which connects to Guardian, Vector, Peoples, Nicor, ANR, NGPL and Midwestern.

Subject to obtaining shipper commitment for this system and regulatory approvals, the pipeline is expected to be placed into service as early as third quarter 2011.

ANR PIPELINE CO. – (12/07)ANR Pipeline Co., a subsidiary of El Paso Corp., recent-ly held an open season for its proposed Wisconsin/Illinois 2009 Pipeline Expansion. The project proposes the expansion of ANR’s existing mainline and lateral facilities within Wisconsin and Illinois. Service is antici-pated to commence on Nov. 1, 2009.

ASPEN PIPELINE – (8/07) Aspen Pipeline plans to build a high pressure natural gas pipeline to transport gas from Arena Resources’ Yates formation in Andrews County, TX to a fired electric utility in Odessa, TX. The 50-mile pipeline is scheduled for completion in mid-2008.

ATLAS PIPELINE PARTNERS - (6/08)Atlas Pipeline Partners, L.P., through a wholly owned subsidiary, Atlas Pipeline Mid-Continent L.L.C has proposed building a natural gas pipeline extension, designated as the Tenark Pipeline Project. The line would extend from Ozark’s existing interstate natural gas transmission system in White County, AR to points of interconnection with Trunkline Gas Company and Texas Gas Transmission near Dyersburg, TN. Tenark is expected to consist of approximately 160 miles of 36-inch pipe, compression and related facilities. The line will extend northeast from Ozark’s existing inter-state natural gas transmission system in White County, AR to its terminus at interconnections with Trunkline Gas Company (Zone 1B) and Texas Gas Transmission (Zone 2) near Dyersburg, TN. Initial capacity of Tenark is expected to be 700,000 Dth/d with the potential to expand at a later date to 1,200,000 Dth/d. The ultimate capacity of Tenark will be determined by the level of shipper commitments during an open season. The pro-jected in-service date is November 2010.

BISON PIPELINE LLC – (REV. 7/08) Northern Border Pipeline Co.’s wholly owned subsidiary, Bison Pipeline LLC, received a boost for its proposed Bison natural gas pipeline system when Anadarko Energy Services Co. signed a letter of intent to be a foundation shipper on the pipeline. The agreement is subject to approval by the Anadarko board. As proposed, the pipeline extends from natural gas gathering facilities located in the Powder River Basin supply area to a point of interconnection with Northern Border Pipeline Company in Morton County, ND. The Bison project will consist of 289 miles of 24-inch pipe, compression and added plant facilities, originating at the natural gas gathering facilities of Fort Union Gas Gathering, L.L.C. and Bighorn Gas Gathering, LLC near Dead Horse, Wyo. The pipeline will extend in a northeasterly direction to its terminus in Morton County, North Dakota near Northern Border’s Compressor Station No. 6. Initial capacity is expected to be 400 MMcf/d with a maximum capacity of 600 MMcf/d. The projected in service date is November 2010.

BP/ CONOCOPHILLIPS – (REV. 6/08) BP and ConocoPhillips, through their joint venture company, Denali—The Alaska Gas Pipeline LLC, have submitted a letter to the Federal Energy Regulatory Commission seeking permission to use the agency’s pre-filing procedures for the natural gas project. With a pre-filing status, Denali could kick off at least 18 months of engineering and other planning work for the multibillion-dollar pipeline from the North Slope gas fields to Alberta, Canada. The pipeline will move approximately 4 Bcf/d of natural gas to market, and will be the largest private sector construction project ever built in North America. The project combines the financial strength, arctic experience and technical resources of the two companies.

BP and ConocoPhillips plan to spend $600 million to achieve the first major project milestone, an open season, commencing before year end 2010. Following a successful open season, the companies intend to obtain FERC and NEB certification and move forward with project construction. The timetable calls for the pipeline to be in service in 2018.

As proposed, the project consists of a gas treatment plant on Alaska’s North Slope and a large-diameter pipeline that extends 700 miles through Alaska, and then into Canada through the Yukon Territory and British Columbia to Alberta. The proposed line closely follows the original route from 1976. Should it be required to transport gas from Alberta, the project also will include a large diameter pipeline from Alberta to the Lower 48 states. BP and ConocoPhillips will seek other equity partners, including pipeline companies, who can add value to the project and help manage the risks involved. Total cost estimates range from $25 billion to $40 billion.

In recent developments, TransCanada Corp. and Enbridge Inc. report they are ready to participate with the two producers noting that statements from BP and ConocoPhillips indicate they would welcome pipeline company partners.

BRADFORD LANDING LLC – (7/08)Bradwood Landing LLC’s Bradwood Landing LNG project in Oregon and Washington, has received the environmental go-ahead. From the FERC. As pro-posed, the project would consist of an LNG import terminal located about 38 miles up the Columbia River from its mouth, in Clatsop County, OR, and a 36.3-mile-

Planned pipeline construction projects in the feasibility stage or not yet permitted.

Page 2: Planned Pipeline Construction Projects in the Feasibility Stage or Not

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Page 3: Planned Pipeline Construction Projects in the Feasibility Stage or Not

10 Pipeline News • September 2008 • www.pipeline-news.com

long sendout pipeline, crossing Clatsop and Columbia Counties OR and Cowlitz County, WA, connecting the terminal with the existing Williams Northwest Pipeline Corporation interstate system near Kelso, WA.

The LNG terminal would have a sendout capac-ity of 1.3 Bcf/d. Along the pipeline route, would be interconnections and meter stations to deliver natural gas to the Georgia-Pacific Wauna paper mill, Northwest Natural Gas Corporation intrastate system, the Portland General Electric Beaver power plant, and Williams Northwest.

CENTERPOINT ENERGY GAS TRANSMISSION – (6/08)CenterPoint Energy Gas Transmission (CEGT) held two non-binding open seasons to gauge market inter-est in new interconnect and interstate pipeline facili-ties to connect growing supplies of natural gas in the Fayetteville Shale in NE Arkansas to existing interstate facilities that provide access to markets in the Midwest and Northeast. As proposed, The Friendship lateral would be built from the terminus of CEGT’s Line J in NE Arkansas to potential interstate pipeline receipt points with Texas Gas Transmission’s Zone 2 and Trunkline Gas’ Zone 2b, both in western Tennessee, near the town of Friendship. The Searcy lateral would provide firm backhaul service for Fayetteville pro-ducers to move natural gas in eastern White County, AR into Texas Gas Transmission’s to-be-built 36-inch diameter Fayetteville lateral at a point near Searcy. The Searcy lateral is to begin service in first quarter 2009 and the Friendship lateral in third quarter 2010.

(4/08) CenterPoint Energy Gas Transmission Company (CEGT) plans to offer firm transportation capacity in its Bennington Lateral, a proposed 36-inch pipeline with a design capacity of 1.0 Bcf/d. The Bennington Lateral is expected to be built from near Wardville, OK, to various interstate pipeline receipt/delivery points near Bennington in Southeast Oklahoma, as well as providing access to existing CEGT storage facilities located near Ada and Chiles Dome, OK.

Upon confirmation that there is sufficient interest in the market to support this expansion, plans are to move quickly to execute binding precedent agree-ments, and place this project in service by winter 2009 - 2010.

CHAPARRAL PIPELINE COMPANY LLC – (3/08) TEPPCO Partners, L.P. affiliate, Chaparral Pipeline Company LLC, is holding an open season from Feb. 11, to April 12, 2008 to seek shipper support for a proposed expansion of its 845-mile NGL pipeline originating in the Permian Basin of West Texas and eastern New Mexico. The Chaparral pipeline delivers NGLs to the world’s largest NGL fractionation com-plex in Mont Belvieu, TX. The planned expansion is designed to increase annual average system capacity by approximately 15,000 or 20,000 bpd, depending on shipper response to the open season. The expansion would involve upgrading certain pipe sections, and may include installing additional pumping capability at existing pump stations. If there is sufficient shipper commitment, the additional capacity could be available as soon as early 2009.

CHENIERE ENERGY PARTNERS, L.P. – (REV. 3/08)Cheniere Energy Partners is moving forward with plans to build a natural gas transportation project to link growing demand markets in the Southeast with new incremental natural gas supplies sourced from

multiple LNG import terminals existing and under construction in and around Louisiana. The Southern Trail Pipeline, formerly known as the Louisiana Natural Gas Header, would also be able to interconnect with existing pipeline infrastructure, providing shippers with access to wellhead natural gas supply sources, including offshore, onshore conventional and recently developed unconventional resources.

As currently contemplated, the pipeline would involve the construction of approximately 348 miles of up to 42-inch pipe starting in Beauregard Parish near Dequincy, LA, to an interconnect with the Florida Gas Transmission pipeline near its Station 11 in Mobile County, AL. Cheniere’s next step to initiate an envi-ronmental pre-filing with FERC. Pending regulatory approvals, the project could be placed into service as early as mid-2010.

COLORADO INTERSTATE GAS CO. – (8/08)Colorado Interstate Gas Co. (CIG), a subsidiary of El Paso Corporation, has proposed expanding its natural gas pipeline transmission system that serves the Raton Basin. The expansion will provide 130 MMcf/d of incremental firm capacity from the Las Animas County, CO area of the growing Raton Basin northward along the Front Range of Colorado to the Cheyenne Hub. Anticipated cost of the expansion is $146 million, which is supported by long-term firm transportation commitments with three shippers for nearly all of the expansion’s capacity. In service date for the new 118-mile, 16-inch line is targeted for the second quarter of 2010.

COLUMBIA GAS TRANSMISSION – (6/07)Columbia Gas Transmission Corp. has filed with the FERC for approval to construct its Eastern Market Expansion Project. As proposed, the project will require pipeline loops and expansions to compression and storage networks to provide an incremental 97,050 Dth/d of storage deliverability and associated firm pipeline transportation capacity to local gas distribu-tion company customers in Virginia and Pennsylvania. The project will represent investments in infrastructure of $175 million and serve the growing eastern markets and mid-Atlantic markets. The proposed in-service date is April 1, 2009.

COLUMBIA GAS OF PENNSYLVANIA – (11/07)Columbia Gas of Pennsylvania reports it will devote some $1.2 billion for a 20-year project to replace 2,400 miles of distribution and service lines in its 27-county service area. The cost will average $60 million a year to replace 600,000 feet of pipe to its 410,000 residential and business customers. Columbia Gas says is it will hire subcontractors. The plan is to work on nine or 10 sites next year including South Hills, Uniontown, plus a couple of site in Washington and Beaver Counties.

DCP MIDSTREAM PARTNERS/M3MIDSTREAM LLC – (9/08) DCP Midstream Partners, LP and M2 Midstream LLC haves signed an agreement to develop a large diameter natural gas pipeline to move gas from the emerging Haynesville Shale play in North Louisiana. As an extension of DCP’s Pelico Intrastate Pipeline, the new pipeline, named the Haynesville Connector, would originate in western DeSoto Parish and extend over 150 miles to Delhi, LA., providing access to take-away pipelines in the area such as the Southeast Supply Header, Columbia Gulf Transmission, ANR Pipeline, Trunkline Gas, Texas Gas Transmission, Tennessee Gas,

CenterPoint Energy and Gulf South Pipeline. If built, the Haynesville Connector is expected to commence initial deliveries in the third quarter of 2009 and would offer an estimated 1.5 Bcf/d of takeaway capacity by early 2010 to help meet anticipated needs for pipeline infrastructure in the Haynesville Shale.

DCP MIDSTREAM/DCP MIDSTREAM PARTNERS – (9/08)DCP Midstream, LLC and its master limited partner-ship DCP Midstream Partners, LP announced a $56 million pipeline project which will extend their East Texas joint venture gathering footprint in southern Panola County and access volumes from the rapidly growing Minden Field in Rusk County. The 30-mile, 20 inch pipeline with a designed capacity of 175 MMcf/d will gather gas for processing at the joint venture’s East Texas complex. The gathering system is scheduled to be in-service during the second quarter of 2009. Upon completion, the pipeline will receive dedicated volumes from third parties and expand the reach of the system into a new development area of East Texas.

The East Texas joint venture is 75% owned by DCP Midstream, LLC, and 25 percent owned by DCP Midstream Partners, LP. It includes over 500 miles of gathering pipeline and over 25,000 horsepower of compression and has a processing capacity of nearly 800 MMcf/d across five plants. The East Texas complex is strategically linked to the Carthage Hub with access to 10 different residue lines with 1.5 Bcf/d of delivery capacity.

DOMINION TRANSMISSION – (REV. 3/08) Dominion Gas Transmission, a unit of Dominion, has secured firm, long-term commitments to receive gas from the Rockies Express (REX) Natural Gas Pipeline and move it to major markets in the Northeast and Mid-Atlantic regions. Dominion’s project, named Dominion Hub I, is the first transportation project to provide firm access from the REX pipeline to the Northeast and Mid-Atlantic regions. Subject to regulatory approval, Dominion expects to complete related facility construction in Westmoreland County, PA and begin firm service in November 2009.

EAST TENNESSE NATURAL GAS – (8/08)East Tennessee Natural Gas (ETNG), a subsidiary of Spectra Energy Partners LP, has filed an application with FERC for the Greenway/Nora Expansion project to transport up to 50 MMcf/d of Appalachian natural gas. The expansion will be constructed entirely within ETNG’s existing facilities footprint through the addi-tion of 5.65 miles of 24-inch pipeline replacement in Virginia and various meter interconnect upgrades. The estimated cost of the project is $18.9 million. In-service is anticipated in December 2009.

EASTERN SHORE NATURAL GAS – (8/07)The Eastern Shore Natural Gas Co. is seeking FERC approval to build a 78.5 mile pipeline across southern Delaware and Maryland’s eastern shore by early 2009. The proposed Eastern Energy Link would connect to Dominion’s Cove Point, MD LNG terminal. The planned pipeline would require a 2-mile, 24-inch con-nection to the Cove Point, MD terminal; 8-mile, 24-inch submerged pipeline from Cove Point to Taylor’s Island, MD; 17-mile, 16-inch line between Taylor’s Island and U.S. 50; 26-mile, 10-inch pipe from U.S. 50 to south of Bridgeville, DE; 12-mile, 10-inch pipe along existing company ROW in Laurel, MD; and a 13.5 mile, 6-inch pipe from Millsboro, to the Bishop, MD area.

Eastern Shore Natural Gas officials say the project will provide gas at lower cost than the current network,

Future Jobs

Page 4: Planned Pipeline Construction Projects in the Feasibility Stage or Not
Page 5: Planned Pipeline Construction Projects in the Feasibility Stage or Not

12 Pipeline News • September 2008 • www.pipeline-news.com

which pipes gas from Pennsylvania to the Delmarva Peninsula as far as Salisbury, MD.

EL PASO NATURAL GAS – (9/07) El Paso Natural Gas, a subsidiary of El Paso Corporation, plans to build the Arizona Natural Gas Storage Project to enhance gas supply in Arizona. The plan is to solution mine four caverns in the Picacho bedded salt. Each cavern will be from a depth of 2,300 feet to 3,000 feet below the surface and some 200 feet in diameter. The four caverns will have a total capacity of 3.5 Bcf of natural gas. Some 9 miles of 30-inch pipe will be required to connect the storage facility to El Paso’s interstate transmission network to move gas to Phoenix and Tucson. The site will include compression. The timeline includes filing an application with FERC late 2007 or early 2008. Pending FERC and other regu-latory approvals, construction could start in 2008 with an estimated in service date mid-2011.

EL PASO CORPORATION – (REV. 8/08)El Paso Corporation has received binding commit-ments for more than 1.1 Bcfd from customers under 10 to 15-year contracts for the Ruby Pipeline Project. The company is in discussions to obtain additional commitments for the project and plans to file a cer-tificate of application with FERC in January 2009. El Paso early filed a federal right of way application with the U.S. Department of the Interior’s Bureau of Land Management for the Ruby Pipeline Project. As planned, the Ruby Pipeline will extend 680 miles with 42-inch pipe from the Opal Hub in Wyoming and terminate at the Malin, OR, interconnect, near the California northern border. The line’s initial designed capacity of 1.3 Bcf/d and 1.5 Bcfd, depending on final

commitments, will be expandable to 2 Bcf/d. Subject to FERC approval and other regulatory approvals the in service date is March 2011. El Paso and PG&E have entered into a letter of intent for PG&E to acquire a 25.5% interest in the project. EL PASO CORP./EQUITABLE RESOURCES – ( 1/08)El Paso Corp.’s subsidiary, Tennessee Gas Pipeline Co and Equitable Resources Inc. have plans to jointly develop a natural gas pipeline to serve northeast markets. The Northeast Passage Project will measure 471 miles with 36-inch pipe between the terminus of the Rockies Express pipeline at Clarington, OH and a new interconnect with Iroquois Gas Transmission at Pleasant Valley, NY. The new line also will have inter-connects with pipelines operated by Transcontinental Gas Pipeline, Texas Eastern Transmission, Algonquin Gas Transmission and Millennium Pipeline. Some 70,000 hp will be installed to accommodate the line’s initial capacity of 1.1 Bcfd. In addition, Tennessee Gas plans to expand its 300 and 200 lines to provide access to New York and New England. The planned in service date is November 2011.

EL PASO PIPELINE PARTNERS – (1/08)El Paso Pipeline Partners reports it will expand the company’s Wyoming Interstate Company Piceance Basin lateral to transport additional natural gas from Colorado producing areas. Some 230,000 Dth/d of new capacity will be added to the system by install-ing an additional 25,300 hp of compression at the Greasewood Compressor Station and a new Midpoint Compressor station in northwestern Colorado. The company says the project will be completed November 2008. Estimated cost of the project is $62 million.

EL PASO PIPELINE PARTNERS, L.P. – (8/08)El Paso Pipeline Partners, L.P. reports its wholly owned subsidiary, Wyoming Interstate Company, Ltd. (WIC), plans to expand the WIC system upstream of the Opal Hub to transport increased natural gas supplies from the Uinta Basin and Wamsutter production areas. In Utah, WIC will build a 6,200-hp compressor station on the existing 24-inch, 124-mile Kanda Lateral. The new compression will increase the Kanda Lateral capacity to 515 MDth/d by providing 100 MDth/d of incremental capacity from the outlets of two existing third-party processing plants in the Uinta Basin. Anticipated in service date for this portion of the project is November 2010. Further, plans call for installing three miles of 24-inch pipeline and reconfigure one compressor at its Wamsutter station in Wyoming. With modifications, the line will provide 155 MDth/d natural gas deliveries from the WIC Mainline into Overthrust Pipeline and on to the Opal Hub and Ruby Pipeline. In service date for the project is March 2011. The estimated expansion cost is $55 million.

ENCANA OIL & GAS – (3/08) Federal officials are reviewing a plan by EnCana Oil and Gas for a new gas pipeline that would run 26 miles from Collbran to Parachute, CO. The Bureau of Land Management is starting an environmental assess-ment of the project which could be built sometime in 2009. The pipeline would ship natural gas from Mesa County to a gas plant in Meeker. The line would be up to 24 inches in diameter and is expected to carry 650 MMcf/d of gas.

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Page 7: Planned Pipeline Construction Projects in the Feasibility Stage or Not

ENERGY TRANSFER PARTNERS – (5/08) Energy Transfer Partners, L.P. reports the board of directors of the Partnership has approved the construction of the Texas Independence Pipeline, a $485 million 42-inch natural gas pipeline, that will serve the Bossier and Barnett Shale natural gas resource plays of East and North Central Texas.

The 160-mile pipeline will expand Energy Transfer’s Texas Intrastate Systems’ capacity by an incremental 1.1 Bcfd. The line will connect the Partnership’s existing central and north Texas infrastructure to its East Texas pipeline network. With the addition of compression, the project may be expanded to transport natural gas volumes in excess of 1.75 Bcfd. Construction is scheduled to start in the fourth quarter of 2008, with completion expected in the third quarter of 2009.

(Rev. 1/08) Energy Transfer Partners is planning a $260 million expansion of two major pipelines in Texas. The company plans to add 56 miles of 36-inch pipeline and 20,000 horsepower of compression to increase the capacity of the Katy Pipeline in southeast Texas to more than 1.1 Bcf/d from 700,000 MMcf/d. Energy Transfer also will expand a newly constructed 42-inch pipeline, which runs from Cleburne to Carthage, MO, to the Houston Pipe Line interconnect at Texoma, on the border between Texas and Oklahoma. Construction on the projects will begin in June 2008, and the two pipeline expansions should be ready for service in September 2008.

ENOGEN LLC – (6/08) Enogen is proposing the construction of the Heartland Crossing Pipeline to meet the growing gas demand in Oklahoma. With a potential capacity of up to 1.0 Bcf/d the proposed project is expected to begin in western Oklahoma and connect to markets on the Enogen system, including delivery interconnects in Bennington. The line could be in service by 2010. ENTERPRISE TEXAS – (3/07)Enterprise Texas Pipeline L.P., a subsidiary of Enterprise Products Partners L.P., plans to build an extension to its intrastate natural gas pipeline system in the Barnett Shale area of North Texas. The Sherman Extension project will consist of a 178-mile, 30 and 36-inch pipeline originating at a central delivery point on its system near Morgan Mill, southwest of Fort Worth, and extend through the center of the current Barnett Shale development area to Sherman, TX. From that point, it will connect with the Boardwalk’s proposed Gulf Crossing project to deliver gas to the Perryville, LA area. The extension will cost approxi-mately $400 million and is expected to be placed into service in the fourth quarter of 2008.

ENTERPRISE PRODUCTS PARTNERS - (REV/ 1/08)Enterprise Gas Processing, L. L.C., an affiliate of Enterprise Products Partners, has entered into a con-tract with Marathon Oil Co, to provide natural gas gathering, compression, treating and processing for Marathon’s natural gas production in the Piceance Basin of northwest Colorado. Under the contract, Enterprise will build 50 miles of new gathering lines to connect multi-well drilling sites to the Piceance Creek Gathering System.. From there, the gas will be delivered to the Meeker processing complex in Rio County, Colo. Also, Enterprise will build a 22,000-hp compressor station some 25 miles south of the Meeker complex, as well as condensate handling and natural gas dehydration facilities. The facilities are planned for an in-service date of July 2008.

FALCON GAS STORAGE – (REV. 9/08) Falcon Gas Storage Company Inc. has received a final permit from the U.S. Army Corps of Engineers autho-rizing MoBay Storage Hub LLC to build its 50 Bcf MoBay gas storage facility in Mobile County, AL. The storage facility will provide natural gas storage and hub services to local and interstate gas customers, including natural gas utilities, electric generators and industrial end users. The facility is expected to be operational by October 2009.

FLORIDA GAS TRANS. – (REV. 9/08)Florida Gas Transmission has received final approval from the FERC for its Phase VII Expansion project. Plans call for 32.2 mile of 36-inch diameter pipeline in three separate loops in Gilchrist, Levy and Hernando counties, FL. The project calls for a two phase construc-tion. Phase I was placed in-service in 2007. Phase II is planned to begin in Oct. 2008 and be in service by May 2009.

Following Florida Power and Light Company’s deci-sion to be the anchor shipper on the Phase VIII Expansion, Florida Gas said it would seek regula-tory approval for the expansion project. The pro-posed Phase VIII expansion includes laying some 568 miles of pipeline in Alabama, Mississippi and Florida with approximately 439 miles built parallel to existing pipelines. The project will add approximately 207,900 horsepower of compression at eight existing stations with one new compressor station to be built in Okeechobee County, FL. FGT plans to have the line in service by the summer of 2011, pending regulatory approval dates.

Although a contract to provide engineering, sur-vey and map drafting for the Phase VIII Expansion was awarded to Mustang Engineering in May 2008, no pipeline construction contract awards have been announced.

FLORIDIAN NATURAL GAS STORAGE – (9/08)Floridian Natural Gas Storage plans to build an LNG facility near Indiantown in Martin County, FL. The project will require 4,18 miles of new 12-inch diam-eter incoming pipeline and 24-inch diameter sendout pipeline extending from the storage facility to the Gulfstream and FGT interstate pipeline systems; and a 2.75 acre metering and regulating station.

FERC awarded a final Environmental Impact Statement for the project in July 2008. FORT UNION GAS GATHERING – (4/07) Fort Union Gas Gathering is doubling its existing gathering pipeline capacity by adding 148 miles of new gathering lines and 649 MMcf/d of additional capac-ity. The gathering system in the Powder River Basin gathers coal bed methane gas from wells in northeast Wyoming, including the Big George coals. The expan-sion project will cost an estimated $110 million and occur in two phases. No completion date has been announced.

GAS TRANSMISSION LLC – (6/08)Gas Transmission LLC, a subsidiary of Houston-based Spectra Energy, is seeking regulatory approval to enhance and extend its pipeline system to satisfy grow-ing residential and commercial demand in the Greater Boston metropolitan region. The project calls for the installation of approximately two miles of 14-inch diameter pipeline in the Greater Boston communities of Medford and Somerville, MA. The approximately $35 million project is expected to begin operations in the fall of 2009.

GULF COAST CONNECTOR LLC – (REV. 6/08)Gulf Coast Connector LLC, a wholly owned subsidiary of NGS Energy LP, has extended its open season for service offerings at the company’s proposed natural gas storage and transportation hub in northeastern Louisiana. The company is soliciting non-binding pro-posals for up to 16 Bcf of storage capacity as well as firm transportation and wheeling services independent of storage. Permit applications are expected to be filled with FERC by July 2008 with a projected in service date of December 2009 for the pipeline and summer of 2011 for Phase I storage services.

The project’s pipeline will extend 40 miles from the Perryville hub area to Delhi transporting the natural gas sourced from key supply areas to highly valued downstream markets. Up to 13 direct, bi-directional interconnections are planned with existing ANR, Columbia Gulf, MRT, Tennessee, Texas Eastern, Trunkline, Texas Gas, and SNG pipelines. Links also are planned for Centerpoint’s Carthage to Perryville and Gulf South’s East Texas to Mississippi expansions; as well as Kinder Morgan’s planned Midcontinent Express, Boardwalk Gulf Crossing and the Spectra/CenterPoint Southeast Supply Header.

GULFSTREAM NATURAL GAS – (7/08)Gulstream Natural Gas held an open season that ran through Aug. 31, 2008 to solicit market interest in an expansion of its existing 691-mile gas pipeline system with the capacity to deliver 1.1 Bcf/d of natural gas to Florida’s rapidly growing gas market. New service from the mainline expansion is expected to be avail-able beginning in late 2011, pending federal and other agency approvals. Up to 750,000 Dth/d of incremental firm transportation service will be made available through the open season.

(Rev. 11/07) Gulfstream Natural Gas System, L.L.C. reports it has received FERC’s approval to build a 17.7- mile, 20-inch diameter pipeline that will connect to the existing Gulfstream Pipeline. The proposed route extends approximately 17.8 miles from the exist-ing Gulfstream pipeline in the vicinity of Port Manatee north across the middle bay to the existing Bartow Power Plant on the east shore of St. Petersburg. The plant is in the midst of a conversion from fuel oil to natural gas. Construction of the expansion project, known as Phase IV, will begin in January 2008, with the facilities ready for service in January 2009.

INERGY, L.P. – (9/08)Inergy, L.P. reports its wholly owned subsidiary, Inergy Midstream, LLC, has received indications of inter-est exceeding 200% of the capacity to construct the 43-mile Marc I Hub Line. The 24-inch bi-directional gas pipeline extending between Inergy’s Stagecoach South Lateral pipeline interconnect at Tennessee Gas Pipeline Company’s 300 Line and Transcontinental Gas Pipeline Corporation’s Leidy Line. The Tennessee and the Transcontinental lines are located in Bradford County, PA. Inergy says it is finalizing design and route selection and continues to have discussions with additional shippers. Once the company reaches firm agreements, Inergy will make the required regulatory applications and filings.

IROQUOIS GAS TRANSMISSION SYSTEM – (4/08) Iroquois Gas Transmission System, L.P. recently com-menced a non-binding Open Season to obtain ship-per interest in the proposed MetroExpress Project which will provide incremental mainline transportation

14 Pipeline News • September 2008 • www.pipeline-news.com

Future Jobs

Page 8: Planned Pipeline Construction Projects in the Feasibility Stage or Not

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Page 9: Planned Pipeline Construction Projects in the Feasibility Stage or Not

16 Pipeline News • September 2008 • www.pipeline-news.com

capacity from existing interconnects with TransCanada Pipelines at Waddington, NY and Algonquin Gas Transmission at Brookfield, CT as well as from a proposed interconnect with Tennessee Gas Pipeline at Pleasant Valley, NY to delivery points across Iroquois’ market area. The project also will offer prospective shippers the opportunity to request market laterals to new points of delivery in Connecticut, Long Island and New York City beginning as early as November 1, 2010.

(Rev. 11/07) Iroquois Gas Transmission System has filed an application with FERC for a Certificate of Public Convenience and Necessity for the company’s 08/09 Expansion Project. A pre-filing notice was filed with the commission in March 2007. Work will be con-ducted in three phases with the first phase calling for 8.4 miles of 36-inch looping along the company’s ROW in New York and Connecticut. Looping construction will be performed in late 2008 to meet a November 2008 in-service date. The second phase includes the addition of two new 10,300 hp compressor units at Milford, CT. Phase III involves building a new 10,300 hp station at Brookfield, CT. Phase II completion is scheduled for January 2009 and Phase III completion is scheduled for November 2009.The project involves the construction of three sections of new 36-inch diameter buried pipeline looping and associated above ground facilities along Iroquois’ existing mainline in NY and CT, a new compressor station in Milford, CT and additional compression at Iroquois’ recently certificated compressor station to be constructed in Brookfield, CT. The Project would be constructed in three phases to accommodate facility in-service dates as requested by Iroquois’ customers.

KINDER MORGAN ENERGY PARTNERS – (12/07) Kinder Morgan Energy Partners, L.P. has entered into an agreement with various parties to expand its Kinder Morgan Interstate Gas Transmission (KMIGT) pipeline to serve five new plants near Grand Island, NB. The $23-million capital project will increase capacity on KMIGT by 25,000 Dth/d, which is already fully subscribed through long-term contracts. Four of the five plants will produce ethanol. The KMIGT expansion will include 9 miles of 16-inch looping upstream of Grand Island and 17 miles of 12-inch looping downstream. Subject to receipt of regulatory approvals, the Grand Island expansion is expected to be fully operational by fall 2008.

LOWER VALLEY ENERGY – (3/07)The Wyoming Public Service Commission has issued its approval that will allow Lower Valley Energy to take the next step toward building its planned 49-mile, 6-inch diameter natural gas pipeline. The company still needs environmental approvals, which are expected this sum-mer. The pipeline extends from the Mema gas produc-tion field near Bondurant to Jackson, WY.

According to the planned route, the line will extend through the Hoback Canyon and cross about 58% of U.S. Forrest Service property. The project is designed to replace LNG truck transportation, which currently involves some 500 trucks a year. When completed, the estimated cost will reach $12 to 13 million. Lower Valley Energy‘s plans to transport 5.81 MMcf/d through the gas line. Rooney Engineering is providing engineer-ing consultant services for the project. Lower Valley plans to send construction bids out during the fourth quarter of this year. The plan is to start construction third quarter of 2008 with completion in the fourth quarter.

MAGELLAN MIDSTREAM/BUCKEYE PARTNERS – (4/08) Magellan Midstream Partners and Buckeye Partners are assessing the feasibility of constructing a dedicated ethanol pipeline. As proposed, the pipeline would gather ethanol from production facilities in Iowa, Illinois, Minnesota and S. Dakota to serve terminals in major markets such as Pittsburgh, Philadelphia and the New York harbor. The proposed pipeline could supply more than 10 mgd, enough to meet the needs of millions of northeastern motorists who purchase 10% ethanol blended gasoline or higher ethanol blends such as E85.

The 1,700-mile project, which has an estimated cost in excess of $3 billion, would take several years to complete.

MARITIMES & NORTHEAST PIPELINE – (REV. 7/08)Maritimes & Northeast Pipelines has filed an appli-cation with FERC for the Phase IV Expansion of its natural gas pipeline system to provide additional natural gas supplies to customers in Atlantic Canada of the Northeastern United States. Maritimes pro-poses to construct and operate five new compressors in the towns of Eliot, Westbrook, Searsmont, Brewer and Woodchopping Ridge in Maine, and 1.7 miles of 30-inch looping adjacent to the company ROW from the Canadian-U.S. border to the Baileyville, Maine, compressor station. . The system will have a new meter station at the proposed compressor station at Westbrook, Maine. Also, there will be modifica-tions at the existing compressor stations at Baileyville and Richmond, Maine. An in-service date in 2008 is scheduled.

Following the open season for Maritimes, signed transportation agreements with two major energy com-panies. The contracts called for the company to trans-port 813,000 MMBtu/d of natural gas to Anadarko Petroleum Corp. from the proposed Bear Head LNG terminal near Point Tupper, Nova Scotia; and with Repsol YPF to transport 750,000 MMBtu/d of gas from the proposed Canaport LNG terminal near Saint John, New Brunswick. Plans for the U.S. section called for segments of pipeline looping totaling 146 miles located adjacent to its existing pipeline in Maine. However, Anadarko has changed its schedule for the Bear Head LNG Project resulting in the applica-tion filed for FERC. Maritimes has asked FERC to continue reviewing facilities necessary for the Bear Head project.

In the Phase V Expansion, Maritimes is propos-ing the installation of additional compression at its compressor stations in Baileyville and Richmond and Woodchopping Ridge, Brewer, Searsmont and Eliot that will be placed into service this year. Plans also call for approximately 4 miles of 36-inch diameter pipeline loop along the company’s existing pipeline corridor in Richmond.

In addition, Maritimes intends to implement an uprate of the operating pressure along its mainline system from Baileyville to Westbrook from 1440 psig to 1600 psig which was approved by the U.S. Department of Transportation in 2006. By implementing this uprate, Maritimes eliminates the need to construct approxi-mately 50 miles of additional pipeline loop for the expansion capacity needed for the Phase V Project.

In addition, Maritimes intends to implement an upgrate of the operating pressure along its main-line system from Baileyville to Westbrook from 1440 psig to 1600 psig which was approved by the U.S. Department of Transportation in 2006. By implement-ing this upgrate, Maritimes eliminates the need to construct approximately 50 miles of additional pipeline

loop for the expansion capacity needed for the Phase V Project.

Maritimes expects to place the approximately $240 million project into service in November of 2010.

MARKWEST ENERGY PARTNERS L.P. – (8/08) Range Resources Corp. and MarkWest Energy Partners, L.P. has signed an agreement for MarkWest to construct and operate gas gathering lines and pro-cessing facilities associated with Range’s Marcellus Shale play in the Appalachian Basin. Details were not announced except that Range plans to be selling natu-ral gas from Marcellus by the first quarter of 2009.

MARKWEST PIONEER, L.L.C. – (REV. 5/08)MarkWest Pioneer, L.L.C., a wholly owned subsidiary of MarkWest Energy Partners, L.P. has announced it held a binding open season that ended April 21, 2008, to solicit shipper commitments for firm year-round transportation service on its proposed Arkoma Connector Pipeline. The pipeline system would origi-nate northeast of Coalgate, OK, and extend south to near Bennington, OK, where the pipeline will intercon-nect with the proposed Midcontinent Express and Gulf Crossing pipelines. The targeted in-service date for the transportation service is the second quarter of 2009, subject to FERC approval. MarkWest will determine the capacity, scope, and cost of the pipeline based on the results of this open season. The estimated through-put capacity of the pipeline is 625,000 Dth/d.

MID-ATLANTIC EXPRESS, LLC – (6/08)Mid-Atlantic Express, LLC plans to build a natural gas pipeline project that will transport 1.5 billion Bcf/d of natural gas into the Mid-Atlantic regional market. The source of the natural gas will be a new LNG terminal to be built at Sparrows Point, in Baltimore County, MD. The Mid-Atlantic Express pipeline project will be approximately 85 miles in length and 28 inches in diameter. It will follow existing utility and/or roadway rights-of-way to the maximum extent practicable.

NATIONAL FUEL GAS SUPPLY CORP. – (9/08)National Fuel Gas Supply Corp., the pipeline and storage segment of National Fuel Gas Co., is conducting an Open Season for capacity in the Appalachian corridor in southwestern and central Pennsylvania that will provide transportation and storage services to key northeast market intercon-nects including Ellisburg, Leidy and Corning. The Open Season features a newly proposed pipeline system, the Appalachian Lateral, to provide new interstate pipeline infrastructure to move gas sup-plies produced from the Marcellus Shale and other Appalachian producing horizons to growing north-east markets. This Open Season will also provide shippers the opportunity to access incremental stor-age capacity of 8.5 Bcf via the company’s planned expansion of certain of its existing underground natural gas storage fields. This storage capacity will be offered in a complementary Open Season in the near future.

The scope and size of the Appalachian Lateral will be determined after the close of the Open Season.

(Rev. 3/08) National Fuel Gas Supply plans to build the $700 million, 324-mile West to East Natural Gas Pipeline from southeastern Ohio to Corning, NY. As proposed, the pipeline would carry gas produced in

Future Jobs

Page 10: Planned Pipeline Construction Projects in the Feasibility Stage or Not

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18 Pipeline News • September 2008 • www.pipeline-news.com

Future Jobsthe western U.S. and shipped eastward through the Rockies Express Pipeline. From here, it would carry gas farther east to link up with the Millennium Pipeline in Corning, NY. NORTH BAJA PIPELINE – (REV. 9/07)North Baja Pipeline LLC, a subsidiary of TransCanada, has received approval from the FERC for a two-phase expansion of its existing natural gas pipeline in southern California and the construction of a new pipeline lateral in California’s Imperial Valley. The company is proposing construction of up to 80 miles of 42- and 48-inch diameter pipeline in the existing right-of-way in La Paz County, AZ, and in Riverside and Imperial counties, CA. In addition to the expan-sion, the company is seeking a certificate for a new 46-mile, 16-inch diameter lateral to serve the Imperial Irrigation District. The lateral would deliver up to 103 MMcf/d gas. . If all phases proceed, the total estimated cost is $291 million. It is anticipated to be in service in late 2009.

NORTH COAST GAS TRANS. – (3/07)Somerset Gas Transmission Inc.’s subsidiary, North Coast Gas Transmission LLC, is awaiting approval before moving forward on its plans to expand Ohio’s natural gas infrastructure with a new northern Ohio Pipeline that will provide more reliable and diverse supplies of natural gas. The pipeline will run from Defiance to a point near Parma, then to gas storage facilities in the Canton area. It will be constructed using existing utility corridors where possible and will provide access to gas supplies from all western North American basins. The exact pipeline route will be determined through a review process conducted with Ohio regulatory authorities, including the Public Utilities Commission of Ohio. Current plans call for a 175-mile, 30-inch line with a capacity between 300 and 350 MMcf/d. Pending approvals, construction on the $350 million project could start in late 2007, with completion in late 2008.

NORTHWEST PIPELINE GP - (6/08)Williams’ Northwest Pipeline plans to construct the Colorado Hub Connection to provide shippers long-term firm transportation service from the Greasewood and Meeker Hubs located in Rio Blanco County, CO to various pipeline interconnects and Northwest’s existing system to access western markets. Northwest is proposing to build a 28-mile pipeline which would provide more than 445 MDth/day of transportation service, would tie the existing Greasewood and Meeker Hubs to Northwest’s mainline near Sands Springs, CO. The project will benefit Northwest’s customers by pro-viding increased access to Rockies natural gas supplies. Anticipated in-service date is 2009.

(3/08) Williams’ Northwest Pipeline GP plans to build a lateral to transport natural gas supplies near the Greasewood/Meeker Hubs in the Piceance Basin from the company’s Colorado Hub Connection project. The 29-mile Sundance Trail Expansion project will include building some 16-miles of 30-inch looping between Green River, Wyo. and Muddy Creek, WY. Addition compressor horsepower also will be added at Northwest’s existing compressor station at Vernal. The company is holding an open season for participation in the Sundance project. Subject to binding commitments and regulatory approvals, the company plans to start service on the expansion in November 2010.

ORBIT GAS STORAGE – (9/08)Orbit Gas Storage plans to build 10 underground stor-

age wells southwest of Madisonville, KY. The projects will include a compressor station and 22 miles of pipe-line. The proposed Kentucky Energy Hub is a 5 Bcf storage area, located about 1,500 feet underground, in a depleted natural gas field. No time line for develop-ment has been announced.

OZARK GAS TRANS. – (1/07)Ozark Gas Transmission announced plans for its Ozark East Expansion Project. Plans call for a 100-mile, 36-inch diameter pipeline, some of which will be constructed along Ozark’s existing pipeline from Conway County, AR to Calhoun County, MS. A system loop is also planned as part of the project. Assuming timely regulatory approval, the project is expected to begin service in the winter of 2008 or early 2009.

PALOMAR GAS TRANSMISISON –(REV. 7/08) Palomar Gas Transmission LLC a newly formed joint venture of TransCanada Corp. and Northwest Natural Gas Co. held an open season in June 2008 to gauge shipper interest in a pipeline to serve growing markets in Oregon, the Pacific Northwest and the western U.S. Palomar Pipeline will seek FERC approval to build and operate a 220-mile, 36-inch diameter pipeline extending from TransCanada’s existing GTN System in central Oregon with NW Natural’s distribution system near Molalla, OR. The total project cost is estimated at $600 to $700 million. If approved, the transmission line is scheduled to begin service in late 2011.

POINT COMFORT PIPELINE – (11/07)The FERC gave its approval to the seventh onshore LNG pipeline in the U.S., that would be the Calhoun LNG project at the Port of Port Lavaca – Point Comfort, TX, which will send out 1 Bcf/d of natural gas when it is completed. The company’s affiliate, Point Comfort Pipeline, will build a $62.6 million, 27.1 miles, 36-inch diameter pipeline to transport gas to local and interstate markets via pipelines owned by Florida Gas Transmission, Gulf South, Natural Gas Pipeline Company of America, Transcontinental Gas Pipe Line and Tennessee Natural Gas. The pipeline will end at a connection with Tennessee Gas approximately three miles southwest of Edna, TX in Jackson County.

QUESTAR PIPELINE COMPANY – (10/07) Questar Pipeline Company, a subsidiary of Questar Corp. and an affiliate of Enterprise Products Partners L.P., plan to develop a new natural gas pipeline hub in the Rockies. As proposed, the White River Hub would be a header system that will be owned equally by the two companies. The facilities would con-nect Enterprise’s natural gas processing complex near Meeker, CO, with up to six interstate pipelines in the Piceance Basin area, including Questar Pipeline.

As initially designed, the 30-inch hub pipeline would have the capacity to transport more than 2.5 Bcf/d and would provide hub-related services for natural gas producers, marketers and purchasers in the area. The White River Hub pipeline would extend about seven miles from Questar Pipeline’s Greasewood, CO facilities to the nearby Enterprise Meeker natural gas processing complex. In addition to Questar Pipeline, the pipelines that are expected to be connected to the White River Hub are the Rockies Express Pipeline, owned by Kinder Morgan, Sempra and ConocoPhillips; Kinder Morgan’s TransColorado Gas Transmission Company; El Paso’s Wyoming Interstate Company and Colorado Interstate Gas Company; and the Williams-owned Northwest Pipeline Corporation. Pending the results of the open season and regulatory approvals,

the proposed pipeline is expected to be constructed in the summer of 2008 and be in service during the fall of 2008. For information call Mike Smith at (303) 820-5606.

ROCKIES EXPRESS PIPELINE LLC (REX) – (REV. 7/08)Rockies Express Pipeline LLC, a joint venture of Kinder Morgan Energy Partners, Sempra Pipelines and Storage and ConocoPhillips, has received Federal Energy Regulatory Commission approval to construct the 638-mile, 42-inch diameter Rockies Express-East (REX-East) Pipeline that will extend from Audrain County, MO, to Clarington, OH. Construction is expected to start by August 2008. Subject to receipt of regulatory approvals, REX-East is expected to begin interim service to the Lebanon Hub in Warren County, OH by Dec. 31, 2008, and be fully operational in the summer of 2009.

Scott Parker, president of Kinder Morgan Energy Partners’ Natural Gas Pipelines group, noted that more than 1,000 miles of REX is in service. The 713-mile REX-West segment which runs from the Cheyenne Hub in Weld County, CO, to Audrain County, MO, became fully operational on May 20. The initial 327 miles of REX extends from the Meeker Hub in Rio Blanco County, CO to the Wamsutter Hub in Sweetwater County, WY, to the Cheyenne Hub. The Rockies Express Pipeline is one of the largest nat-ural gas pipelines to be constructed in North America. When completed, the 1,679-mile pipeline will transport gas from the prolific Rocky Mountain supply basins to markets in the Midwest and East and have a capacity of approximately 1.8 Bcf/d. Binding firm commitments from creditworthy shippers have been secured for all of the capacity on the pipeline.

KMP is overseeing construction of the project and will operate the pipeline.

If you are interested in working on this project, con-tact: [email protected].

(12/07) Rockies Express Pipeline LLC (REX) launched an open season to solicit market interest for the Northeast Express Project, a 375-mile extension of the Rockies Express natural gas pipeline project, stretch-ing the pipeline’s route from its originally planned Clarington, OH, endpoint to Princeton, NJ. Subject to regulatory approvals, the pipeline extension could go into service in late 2010 and transport as much as 1.5 million Dth/d. The Rockies Express Pipeline is a joint venture of KMP, Sempra Pipelines & Storage, ConocoPhillips, and is one of the largest natural gas pipelines to be constructed in North America

SEACOAST GAS TRANSMISSION LLC – (9/08)TECO Energy has formed a new subsidiary, SeaCoast Gas Transmission, LLC, to develop and own a high-volume Florida intrastate natural gas transmission pipeline. SeaCoast Gas has entered into an agreement with JEA (formerly Jacksonville Electric Authority), the company’s first pipeline customer, that would provide for long-term transportation of natural gas to JEA’s planned Greenland Energy Center. SeaCoast Gas’ planned pipeline will be approximately 50 miles long and 20-24 inches in diameter. It will connect both the Florida Gas Transmission and Southern Natural gas transmission pipelines to JEA’s proposed power plant. The SeaCoast project is designed to provide improved and competitively priced access to natural gas supplies.

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20 Pipeline News • September 2008 • www.pipeline-news.com

Future JobsSEMINOLE ENERGY SERVICES – (4/07)Seminole Energy Services, L.L.C., through its Nebraska Resources Company, L.L.C. (NCR) affiliate, plans to file for regulatory approval to build a 150-mile natural gas pipeline to serve Central Nebraska. As planned, the new line will connect with Trailblazer Pipeline and will have firm long-term gas participation by Aquila. Additional capacity will be leased to a number of new and expanding ethanol facilities. NRC is targeting May 2009 as an in-service date.

SOUTHERN NATURAL GAS – (9/07) With the first phase of Southern Natural Gas’ Cypress Pipeline Expansion completed, SNG turns its atten-tion to phases two and three. Phase one involved the construction of 167-miles of new 24-inch pipe. Phase two construction is planned for a May 2008 completion. Work includes installation of 10,350 hp at compres-sor station 2 in Glynn County, GA. Although a firm completion date for Phase three has not been deter-mined, the tentative date is May 2010. Work includes building a 10-mile, 30-inch loop in Chatham and Effingham, Counties, GA. It also includes installing 10,350 hp at compressor station 1 in Liberty, County, GA., as well as 10,350 hp at compressor station 3 in Nassau County, FL.

(Rev. 11/07) El Paso’s subsidiary Southern Natural Gas has received FERC approval to build the Elba III Project, which involves laying a new interstate natural gas pipeline and expanding the Elba Island LNG receiving terminal near Savanna, GA. The pipeline will extend 190 miles with 36 and 42-inch pipe in a northwest direction, interconnecting with pipelines and customers along the route. Construction is expected to be completed in mid-2010, followed by construction of a new compressor station to increase capacity in 2012. The LNG terminal expansion will take place in two phases with the first phase including a new 4.2 Bcf storage tank and modifications to the docking facili-ties by mid-2010. The second phase includes building another 4.2 Bcf storage tank that will be in service by 2012. Capital for the project is expected to be as much as $930 million. in hand.

SOUTHERN STAR CENTRAL GAS PIPELINE – (REV. 3/08) Southern Star Central Gas Pipeline, Inc. is develop-ing a new interstate natural gas delivery project that will provide incremental deliveries of up to 100,000 Dth/d to Enogex, Inc., into their East Rate Zone near their Perry Compressor Station in Noble County, OK. Southern Star extended its Open Season at shippers’ request. The Binding Open Season ran from Jan. 14, 2008 to Feb. 25, 2008.

The Perry Delivery Project will provide an excel-lent source of mid-continent natural gas supply for Enogex’s existing customers and for their future cus-tomers,” said Jerry Morris, president and CEO for Southern Star.

(8/07) Southern Star Central Gas Pipeline Inc. held a non-binding open season from June 12 to July 20, 2007 to solicit expression of interest for firm transportation service on the proposed 345-mile, 36-inch diameter Highland Trails Pipeline natural gas pipeline that will connect the developing Fayetteville Shale production basin in central Arkansas to Kinder Morgan’s Rockies Express Pipeline, LLC (REX) in Audrain County, MO. For information, contact Tim Meyer at (270) 852-4554, or visit http://csi.sscgp.com/.

SPECTRA ENERGY – (7/08) Spectra Energy has executed an agreement with ConocoPhillips to deliver up to 395 MMcf/d of Rocky Mountain natural gas from the Clarington, OH supply point to the Northeast U.S. by November 2010.

To transport these substantial volumes of Rockies supply eastward, Spectra Energy will expand its Texas Eastern Transmission pipeline system at a cost of $500 million. The expansion, called the TEMAX Project, will create the infrastructure necessary to move ConocoPhillips’ supplies from Clarington to Station 195 on the Transcontinental Gas Pipeline Corporation (Transco) pipeline system near Delta, Pa., located in York County. The project will require 33 miles of new build from Texas Eastern mainline in Marietta, PA to Transco’s Station 195 in York County, PA. Also, it requires 12 miles of pipeline looping adjacent to the exiting corridor and 11 miles of 36-inch diameter pickup and relay of existing 20-inch diameter pipe.

(5/08) Spectra Energy has filed an application with FERC to expand its existing Texas Eastern Transmission System to transport new volumes of Rockies natural gas into major Northeast markets of the mid-Atlantic and New England states. The proposed $150 million project, according to Spectra, will be right-sized to meet demand. Known as Northern Bridge, the line will offer interconnections with transmission system along the route between Clarington, Ohio, and Oakford/Delmont, PA. The line diameter and related facilities have not been determined, and tentative plans call for the line to have a capacity of 200-500 MMcf/d and cost an estimated $100 to $150 million. Planned in-service date is November 1, 2009.TENNESSEE GAS PIPELINE CO. – (9/08)Tennessee Gas Pipeline Co., a wholly owned subsidiary of El Paso Corp., announced the results of a bind-ing open season for its 300 Line Expansion Project. Equitable Energy LLC, a subsidiary of Equitable Energy, executed a binding precedent agreement for a 15-year term and was awarded 300,000 Dth/d, which represents 100% of the project’s capacity. The project links Equitable’s Appalachian production to north-east markets. The expansion facilities will consist of approximately 125 miles of 30-inch pipe loop and approximately 46,000 horsepower of additional com-pression facilities to be constructed in Tennessee’s existing pipeline corridor in Pennsylvania and New Jersey. Tennessee has entered into a fixed price agree-ment to lock in its pipe costs.

Construction of the project is subject to regula-tory approval from the Federal Energy Regulatory Commission (“FERC”) and other agencies. Tennessee plans to file its certificate application with the FERC during the second quarter of 2009, with phased con-struction anticipated during 2010 and 2011, pending receipt of the necessary regulatory approvals for the project.

(Rev. 9/07) Tennessee Gas Pipeline, a subsidiary of El Paso Corporation, has completed survey work and filed an application with FERC to build the company’s Carthage Expansion Project, which will add 100,000 Dth/d of capacity from the Carthage production area in East Texas to a new interconnect with Entergy Corporation’s Perryville Generation Station in Ouachita Parish, LA. The expansion will include an additional 7,700 horsepower (hp) on the Carthage Lateral and an additional 3,550 hp at TGP’s West Monroe Compressor Station. Assuming timely FERC approval, the expansion is anticipated to be in service by May 2009.

(Rev. 9/07) Tennessee Gas Pipeline Company, a subsid-iary of El Paso Corp., has delayed plans on its planned Atlantic Supply Expansion project that is designed to meet the growing natural gas demand in the northeast region of the U.S. Although the decisions are not firm, the company more than likely will move the “expan-sion’ project into another proposed pipeline that will further respond to transporting natural gas supplies from LNG developments in eastern Canada and the Northeast. Final decisions have not been made on the route, diameter and capacity.

TEXAS EASTERN TRANSMISSION – (9/08)Texas Eastern Transmission, LP, a subsidiary of Spectra Energy, held a non-binding open season for its Texas Eastern Appalachia to Market (TEAM) expansion program, a proposal to transport emerging Appalachian natural gas production to premium mar-kets in the northeast U.S., including Mid-Atlantic and New England states. The TEAM expansion, located in Ohio, West Virginia and Pennsylvania, has a targeted capacity of approximately 300 MMcf/d), but will be scaleable and sized to meet customer needs. The expansion will utilize existing rights of way, wherever possible, which will minimize both project costs and effects on landowners and the environment. The first phase is planned to be in service as early as Nov. 2011.

(7/07) Spectra Energy’s Texas Eastern Transmission Pipeline has received final approval from the Federal Energy Regulatory Commission (FERC) to proceed with construction of the TIME II Project in Ohio and Pennsylvania. FERC authorized the construction, replacement and operation of approximately 27.8 miles of pipeline facilities in Pickaway and Monroe Counties, OH, and Somerset, Bedford, Franklin, Bucks and Fayette Counties, PA. In addition, FERC approved four miles of new pipeline looping in Monroe County, OH and a new 16,000 HP compressor station in Adams County, PA. The project will be completed in two phas-es. The facilities in Pennsylvania will be in service the second half of 2007 and the facilities in Ohio will be in service the second half of 2008. Once in service, TIME II will have a capacity to bring up to 150 MMcf/d) of natural gas into the New Jersey market area.

(7/08) Texas Eastern Transmission, LP, a subsidiary of Spectra Energy, has finalized the design of its TIME III Pipeline Expansion project that will connect the NE United States with new Rocky Mountain natural gas supplies by November of 2010. Texas Eastern’s TIME III Project will provide approximately 120 MMcf/d of additional natural gas transportation capacity along the path from Oakford, PA., to Station 195 on the Transcontinental Gas Pipe Line (Transco) pipeline sys-tem in York County, PA. The TIME III Project’s new facilities will involve the replacement of segments of the existing pipeline and construction of new pipeline along the existing Texas Eastern corridor. Utilizing existing facilities will minimize potential impacts to landowners, communities and the environment.

Texas Eastern held an open season for the project that ran through May 30, 2008.

(Rev. 7/08) Texas Eastern Transmission has filed an application with the FERC to increase capacity of its existing pipeline system in Pennsylvania and New Jersey. The Logan Lateral Project will involve the con-structing of 11 miles of 30-inch diameter gas pipeline that will connect to BP Energy Company’s Crown Landing LNG terminal in Gloucester County, NJ

Page 14: Planned Pipeline Construction Projects in the Feasibility Stage or Not

www.pipeline-news.com • September 2008 • Pipeline News 21

and to Texas Eastern’s system at its existing Chester Junction facility in the Borough of Brookhaven, PA. The project includes laying 5 miles of new pipe in Delaware County, PA and six miles in Glouster County. Estimated in-service is fourth quarter 2011. For information, call (800) 831-0043.

TIDELANDS OIL & GAS CORP. – (11/07)Tidelands Oil & Gas Corp. reports it has an agree-ment with Cheniere Energy to fund development of Tidelands’ Burgos Hub Export/Import Project. The project has the potential to connect the North American pipeline grid to natural gas supplies and markets in Northern Mexico. Basically, Cheniere has purchased 80% equity interest in the project in exchange for up to $9 million in current and future payments plus royalties to be paid to Tidelands. The Tidelands project will be built in three phases. Phase 1 involves a pipeline extending from the Valero Gilmore Plan, located in Hidalgo County, TX to Estacion Arguelles in Tamaulipas, Mexico, and on to Station 19 of Pemex Gas y Petroquimica Basica to Monterrey, Mexico. Phase 2 will include construction of a pipe-line extending from the Donna Station to the Brazil Storage facility at Station 19. Phase 3 will be construc-tion of the Brazil Storage Facility located in Rio Bravo, Mexico. A timetable for construction of each phase has not been determined.*Listed in U.S. & Mexico category.

TRANSCANADA CORP. - (REV. 9/08)Enterprise Products Partners and Quicksilver Gas Services have signed a Memorandum of Understanding (MOU) with TransCanada Corp. that commits the two

companies to ship 500 MMcf/d of natural gas on the proposed Pathfinder Pipeline over a 10-year period. Under terms of the MOU, Enterprise will acquire 40% ownership in the pipeline and Quicksilver will own 10% of the project. TransCanada plans to build the pipeline to move natural gas from the U.S. Rockies basins to markets in the U.S. Midwest. The proposed Pathfinder Pipeline will consist of three segments comprising approximately 625-miles of 30-inch and 42-inch diameter natural gas mainline pipeline as well as a supply lateral consisting of approximately 12 miles of 36-inch diameter lateral pipeline. These pipelines will move gas north-eastward from the Rockies basins connecting them to the Northern Border Pipeline Company (NBPL) system for delivery into the Ventura and Chicago area markets. The initial capacity for the pipeline is 1.2 Bcf/d, with an ultimate capacity of 2.0 Bcf/d. The scheduled in-service date is November 2010.

To meet further growth in Rockies gas supply, a future phase is proposed to extend the proposed Pathfinder pipeline project approximately 275 miles (440 kilometres) from the Northern Border Pipeline to Noyes, Minnesota, and Emerson, Manitoba, where gas can be shipped to Eastern markets or storage facilities using the Great Lakes Gas Transmission system and TransCanada’s Canadian Mainline system. This future extension could be in service as early as 2011.

A segment of the proposed project follows the same route as the recently announced Bison Pipeline project. TransCanada is a partial owner in the pro-posed Bison Pipeline project through its interest in TC PipeLines, LP.

TRANSCONTINENTAL GAS PIPELINE – (9/08)Transcontinental Gas Pipeline (Transco), a unit of Williams, is planning an expansion project to provide increased capacity on its Transco natural gas pipeline system to serve markets in the southeastern United States. The proposed 85 North Expansion project will offer shippers the opportunity to subscribe to incremental year-round firm transportation service from Transco’s Station 85 pool in Choctaw County, AL, to delivery points upstream of the North Carolina and Virginia border. The project is expected to provide up to 250,000 Dth/d of new capacity. The final project size, location of facilities and cost will be determined by the results of the open season. The new capacity is anticipated to be available in May 2011, subject to approval by the Federal Energy Regulatory Commission.

6/08) Williams and Williams’ Transco are combining two planned projects – the Rockies Connector and Northeast Connector – to expand the existing Transco pipeline system. The combined projects will be known as the Northeast Supply Project. As proposed, the 250-mile extension will connect the Rockies Express Pipeline near Clarington, OH to Transco’s mainline in southeastern Pennsylvania. It will also give shippers a seamless path from Clarington to Transco’s Zone 6. Firm transportation service is expected to be available by November 2011.

VECTOR PIPELINE L.P. – (REV. 9/08) Vector Pipeline L.P. will request permission from the FERC to expand its mainline natural gas transmis-

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Page 15: Planned Pipeline Construction Projects in the Feasibility Stage or Not

Future Jobs

22 Pipeline News • September 2008 • www.pipeline-news.com

sion pipeline for the second time in two years. Plans call for building one more compressor station and expanding the Vector Pipeline by approximately 100 MMcf/d, with a proposed in-service date of Nov. 1, 2009. The Vector Pipeline -- constructed in 2000 and currently expanding with two new compressor sta-tions -- includes 348 miles of mainline transmission between the Chicago Hub and the storage complex at Dawn, Ontario. Vector Pipeline L.P.’s system begins in Joliet, IL, and terminates at the international border at St. Clair, MI, where it interconnects with the Vector Pipeline Limited Partnership system, which provides service to the Dawn, Ontario, storage facilities.

WILLIAMS/FLORIDA GAS TRANSMISSION – (REV. 1/08) A unit of Williams has completed a successful bind-ing open season for an expansion project that will connect Williams’ Transco natural gas pipeline to the recently authorized Gulf LNG Clean Energy import terminal near Pascagoula, MS. The 15-mile Pascagoula Expansion Project, which Transco is developing with Florida gas Transmission, will provide transportation service from the LNG terminal to Transco’s Station 85 located in Butler County, AL. Capacity offered in the open season will be made available through the expan-sion line and Transco’s Mobile Bay Lateral. Pending FERC approval, the in-service date is mid-2011.

(Rev. 9/08) Williams has filed an application with FERC to expand its Transco natural gas pipeline system to serve markets in the northeastern United States. The Sentinel Expansion Project is anticipated to be in service by Nov. 2008, subject to FERC approval. The project, in Pennsylvania and New Jersey, will move some 140,000 Dth/d of natural gas from Pleasant Valley, the Leidy Hub, or any other receipt point down-stream of the Leidy Hub and Pleasant Valley intercon-nects to points on Transco’s system. Current plans include building 22 miles of 42-inch pipe, some looping, and minor compressor modifications to increase capac-ity. The project will be built in two phases with phase one adding 40,000 Dth/d and phase two adding 102,000 Dth/d. Target in service date is November 2009.

(9/06) Williams is holding an open season to construct a new pipeline lateral on its Northwest Pipeline system for long-term transportation service from Greasewood, CO. The Greasewood Lateral project would consist of a 33-mile, 16 to 24-inch diameter pipeline from the Greasewood Hub to it’s mainline near Sand Springs, CO. Pending regulatory approvals, it is anticipated that service would be available in November 2008.

WILLIAMS/ONEOK – (6/07) Williams and Oneok plan a 150-mile, 14-inch diameter NGL lateral originating from an existing processing facility and the proposed Willow Creek Processing facility to be located in Rio Blanco County, within the Piceance Basin to interconnect at Echo Spring, WY, to the proposed Overland Pass NGL pipeline that begins in Opal, WY. The $120 million lateral, designed to transport 100,000 bpd, is scheduled to begin service in 2009-2010.

WILLIAMS/PG&E/FORT CHICAGO ENERGY – (REV. 7/07)Subsidiaries of Williams, PG&E Corp., and Fort Chicago Energy Partners LP have agreed to jointly pursue construction of a new gas transmission pipeline that will increase the natural gas supply for the U.S. West Coast. The companies filed a FERC applica-tion this summer. As proposed, the Pacific Coast Gas

Pipeline will extend 231 miles from the Jordan Cove LNG terminal in Coos Bay, OR, to an interconnect with Williams’ Northwest Pipeline near Myrtle Creek, OR. From there, the line continues to additional interconnects near Malin, OR. Plans call for the line to transport 1 Bcf/d of gas to Pacific Northwest, California and Nevada. The project timeline includes a construction start on the Jordan Cove LNG facility in Coos Bay during the first and second quarter of 2008. Pipeline construction is scheduled for second quarter 2010.

WILLIAMS/PUGET SOUND ENERGY – (6/08)Williams and PSE are seeking shipper commitments for the proposed Blue Bridge Pipeline project to provide up to 500,000 Dth/d. The planned pipeline will require up to 172 miles of 30- and 36-inch diameter pipe and the installation of added compression horsepower at Williams Northwest’s existing Plymouth, Washougal and Chehalis, WA compressor stations. The major-ity of the planned route will follow Williams’ existing pipeline corridor. Blue Bridge would provide natural gas transportation capacity of up to 500,000 deka-therms per day. Final project design and cost will be determined once binding commitments are received. In-service is expected in November 2011. WILLIAMS/TRANSCANADA – (4/08)Williams and TransCanada Corp. are studying a proposed joint development of a new natural gas pipeline, Sunstone Pipeline, to transport natural gas supplies from the Rockies to markets in the west-ern United States. The proposed Sunstone Pipeline extends 618-mile with 42-inch pipe with a capac-ity of up to 1.2 Bcf/d. As planned, the new line will run substantially parallel to the existing Williams Northwest Pipeline system between the Opal Hub in Wyoming and Stanfield, Ore. Williams’ Northwest sys-tem interconnects at Stanfield with TransCanada’s Gas Transmission Northwest (GTN) pipeline system. The project provides the option to deliver gas to markets served by the Northwest and GTN pipeline systems. Pending the results of an open season and regulatory approvals, the line is scheduled to be built for an in service date in 2011.

WILLISTON BASIN INTERSTATE – (9/08)Williston Basin Interstate Pipeline Company is plan-ning the Sheyenne Expansion Project to increase natural gas delivery volumes on the company’s system to locations east of Bismark, ND. Total project cost is $7.5 million and includes modifying and adding horsepower to an existing compressor station, building a new station approximately one mile north of Steele, ND, valve modifications and construction of a one-mile pipeline to connect the company’s existing pipeline to serve the Tharaldson Ethanol Plant being built near Casselton, ND. The company expects completion by November 2008.

(Rev. 7/08) WBI Holdings, Inc.’s subsidiary, Williston Basin Interstate Pipeline Company, plans to devel-op the Bakken Pipeline, a new natural gas pipeline designed to transport natural gas Bakken Play in NW North Dakota and NE Montana to a new pipeline interconnect with Alliance Pipeline. The proposed project will consist of approximately 100 miles of 16-inch diameter pipeline, compression and associ-ated facilities. It will originate at an interconnect with Williston Basin’s existing pipeline system in Mountrail County, ND, and will run northeasterly to a new pipe-

line interconnect with Alliance Pipeline in Bottineau County, ND. The Bakken Pipeline is anticipated to have an initial capacity of approximately 100 MMcf/d, with the flexibility to expand capacity to 200 MMcf/d. It is projected to be in service in mid-2010, subject to shipper commitment and regulatory approvals.

CanadaALLIANCE PIPELINE – (11/07)The National Energy Board has approved plans by Alliance Pipeline Ltd. for the BC Expansion Project (BCX) that calls for the addition of approximately $30 million of compression and ancillary facilities to increase capacity to receive gas supplies on its Taylor-Aitken Creek lateral system.

ALTON NATURAL GAS STORAGE L.P. – (3/08) Alton Natural Gas Storage L.P. plans to build the Atlantic Connector Gas Pipeline, a high-pressure natu-ral gas transmission system that, when integrated with Alton’s natural gas storage system to be located near Alton, Nova Scotia, will provide movement of Atlantic natural gas production, regasified LNG, compressed natural gas and other potential gas supply sources to markets in eastern Canada and the northeastern U.S.

The proposed pipeline, with an initial capacity of approximately 1.2 Bcf/d, is expected to originate at a receipt points in Nova Scotia and proceed across Nova Scotia and New Brunswick to a market interconnect point with Canada’s natural gas transmission grid, pro-viding access to natural gas markets in Canada and the U.S. An in-service date of 2012 is anticipated, subject to shipper commitments and timely regulatory approvals.

ENBRIDGE PIPELINES INC. – (9/07)Enbridge Pipelines plans to construct and operate the Alida to Cromer Capacity Expansion project. It will consist of a 37-mile pipeline to transport NGL from Alida, Saskatchewan to Manitoba. After the pipeline is commissioned, the existing 12-inch diameter Enbridge Westpur pipeline from Alida to Cromer will be con-verted to transport crude rather than NGL.

MACKENZIE VALLEY – (REV. 11/07) Developers of the Mackenzie Valley natural gas pipe-line say the project is moving forward following meet-ings with federal, provincial and Indian regulatory agencies. The project could be submitted to Canada’s NEB for action by mid-to-late 2008. A new schedule indicates the 746-mile, $6-billion Mackenzie Valley Gas Pipeline Project won’t be in service until at least 2014. The price tag for the project is expected to increase substantially by the time construction gets underway. Provincial leaders in the area have called for a joint U.S. and Canadian task force to find solutions to over-come regulatory and other obstacles. Further reports say that increased natural gas demands in Canada could take a bite out of exports to the U.S.

A final decision on whether to proceed with con-struction is expected as soon as the regulatory deci-sions are made, in the summer or early fall of 2007 or in time to use the first available arctic work season. The new plan calls for a start in Jan. of 2008 on pipeline right-of-way clearing, site preparations and pipeline construction is scheduled for the winters of 2009-10 and 2010-11. Changes have also been made by drop-ping one of four proposed compressor stations and by route adjustments resulting in a savings of $151 million. The pipeline’s length is shortened by 16 miles to a new total of 746 miles.

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www.pipeline-news.com • September 2008 • Pipeline News 23

NOVA GAS TRANSMISSION – (1/08)TransCanada’s wholly owned subsidiary, Nova Gas Transmission, plans to build a 185-mile natural gas pipeline in northern Alberta. The company is seeking approvals for the North Central Corridor Pipeline project. It plans to build the 42-inch diameter pipeline at a cost of $993 million. The first segment of the pipeline is expected to be completed in April 2009, the second in 2010.

SPECTRA ENERGY – (4/08)Spectra Energy is proposing to expand its natural gas gathering system to accommodate growing produc-tion in the Grizzly Valley area of northeastern British Columbia. The proposed project is part of a third phase of expansion related to its Pine River facility, and would allow for the transport of incremental raw gas to its Pine River Processing Plant near Chetwynd, BC. The project will involve approximately 10.5 miles of pipeline, running parallel to existing lines and will add gathering capacity in excess of 40 MMcf/d. Spectra Energy has been performance-testing its Pine River plant and making operating adjustments to accommo-date the increased delivery of gas.

Spectra officials expect the new line and associated facilities modifications within the Grizzly Valley oper-ating area to be operational by November 2008.

(3/08) Spectra Energy is proposing to develop the South Peace Pipeline to connect producers in north-east British Columbia with its existing transportation and processing infrastructure. Located in the South Peace area of BC, the 54-mile pipeline will consist of 20-inch raw gas facilities, including pipeline segments

south and north of an existing 12-inch pipeline owned by Storm Exploration Inc., which crosses the Peace River approximately ½ mile downstream of Taylor, BC. The $100 million pipeline has an in-service date of third quarter 2009.

TRANS QUEBEC & MARITIMES PIPELINE – (REV. 11/07) Canada’s NEB is seeking public input on the scope of the environmental assessment of Trans Quebec & Maritimes Pipeline Inc. (TQM) EasternAccess natural gas pipeline project. TQM is seeking approval to build its proposed 155-mile, 30-inch pipeline to link the planned Cacouna Energy LNG facility in Cacouna, near Riviere-du-Loup, to a connection point with its existing transport network near St. Nicolas. A notice of application was submitted to the applicable federal and provincial regulatory bodies May 8, 2007. Pending approvals, construction could start in 2009 with a pipe-line startup date of 2010.

MexicoCFE/PEMEX – (1/07)Mexico’s state-owned electricity company, CFE, and state oil company Pemex are involved in a project to build a $430 million LNG regasification project in Manzanillo, Colima state. In its first stage the project will process about 500 MMcf/d of LNG and supply gas to thermoelectric plants in Colima state and plants in both Guanajuato state and Queretaro state. The project will also supply gas to the new Guadalajara I and II combined cycle projects in Jalisco state. As part of the project, a 100-mile Manzanillo-Guadalajara gas

pipeline will be built to transport 1 Bcf/d to connect the LNG regasification project to demand centers in western Mexico. The project is scheduled to be in service by 2008.

MEXICANA DE GAS NATURAL/GULF UNITED ENERGY – (9/07)Mexicana de Gas Natural (MGN) and U.S.-based Gulf United Energy are to seek asset-based debt financing for their 50%-owned US$140 million Valladolid-Cancu-Punta Venado Gas Pipeline project on the Yucatan Peninsula in Mexico. Gulf United has purchased a 24% stake in the JV - which will deliver the first gas to Cancun and surrounding areas.

The 16 inch, 135-mile pipeline is being designed to be bidirectional, with a capacity of 183 MMcf/d. It will supply the gas demands of the productive sectors in the region, plus the power generation plants in Cancun and Nizuc. Construction should begin during the second quarter of 2008, with completion slated for the third quarter of 2009.

TIDELANDS OIL & GAS CORP. – (11/07)Tidelands Oil & Gas Corp. reports it has an agree-ment with Cheniere Energy to fund development of Tidelands’ Burgos Hub Export/Import Project. The project has the potential to connect the North American pipeline grid to natural gas supplies and markets in Northern Mexico. Basically, Cheniere has purchased 80% equity interest in the project in exchange for up to $9 million in current and future payments plus royalties to be paid to Tidelands. The Tidelands project will be built in three phases. Phase 1 involves a pipeline extending from the Valero Gilmore

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Page 17: Planned Pipeline Construction Projects in the Feasibility Stage or Not

24 Pipeline News • September 2008 • www.pipeline-news.com

Future JobsPlan, located in Hidalgo County, TX to Estacion Arguelles in Tamaulipas, Mexico, and on to Station 19 of Pemex Gas y Petroquimica Basica to Monterrey, Mexico. Phase 2 will include construction of a pipe-line extending from the Donna Station to the Brazil Storage facility at Station 19. Phase 3 will be construc-tion of the Brazil Storage Facility located in Rio Bravo, Mexico. A timetable for construction of each phase has not been determined.

Caribbean/South & Central AmericaARGENTINA/BOLIVIA - (REV. 9/07)The Bolivia and Argentina governments are quick stepping plans to build a 932-mile natural gas pipeline to move Bolivian gas to Argentine markets. The long-discussed Gasoducto del Noresta Argentina (GNA) gas line will extend from southern Bolivia to Argentine provinces of Salta, Formosa, and Chaco, terminating in the province of Santa Fe. Today, the estimated cost is more than $2 billion, up from the projected $1 billion in November 2003. Tenders, valued at $750 million, for the pipe are expected to be released within the month. This will be followed by releasing construction bids. The projected construction start is March 2008 and the projected completion date is early 2009. Argentina has agreed to finance construction of a gas separation plant in the Bolivian border town of Yacuiba.

BOLIVIA/URUGUAY/PARAGUAY – (REV. 3/08)Paraguay’s President Nicanor Duarte agreed with his Uruguayan and Bolivian counterparts Tabare Vazquez and Evo Morales to build a gas pipeline connecting the three countries. The pipeline will run 504 miles from Tarija, Bolivia to Puerto Casado on the coast of the Paraguay River. From there the pipeline will continue south to Ciudad del Este, from which point it will cross the international bridge shared with Brazil toward Río Grande do Sul state and onward to Uruguay. A commission has begun drafting the agreement for the project. No timeline for construction has been set.

BRAZIL/VENEZUELA/ARGENTINA – (REV. 8/08)Russia’s Gazprom will take an active role in building the Venezuela-Brazil section of the natural gas pipe-line Brazil, Venezuela and Argentina have proposed. The Argentina, Brazil and Venezuela governments previously approved $9.2 million in funding for the design engineering and environmental studies for the Gran Gasoducto del Sur, a natural gas pipeline from Venezuela to Buenos Aires. The 6,300-mile pipeline would link the three countries. Depending on length, route and capacity, costs could reach as much as $20 billion.

KUNTUR TRANSPORTADORA DE GAS SAC – (6/08)High-level government officials are signaling that Peru will select a proposal to place a natural gas pipeline through the Andes Mountains. That plan, proposed by Kuntur Transportadora de Gas SAC, is in competition with a proposal made by a unit of Suez Energy that would run a pipeline down the Pacific coast.

The two companies have lobbied in support of their plans, but experts say demand for the gas so far is limited and barely enough for one pipeline to southern Peru.

Kuntur Transportadora de Gas SAC proposes a $1.2 billion 675-mile pipeline from the Camisea gas fields in the department of Cuzco to the southern departments of Moquegua and Puno.

PETROBRAS – (1/08)Brazil’s Petrobras has closed a funding deal worth R$2.49 billion, granted by the National Economic and Social Development Bank (BNDES), for the Transportadora Urucu-Manaus S.A. special purpose company (SPC). The SPC is in charge of building the 239-mile, 20-inch in diameter natural gas transporta-tion pipeline to connect Coari to Manaus, Brazil. In addition, it will build distribution branches to supply seven municipalities located along the gas pipeline route. The funds will also be used to build the 2,173-mile-long, 10-inch nominal diameter LPG pipe-line that will connect the Arara Pole, in Urucu, to the Solimoes Terminal, in Coari, State of Amazonas.

The natural gas will be used initially for thermoelec-tric power generation in the city of Manaus, substitut-ing for the fuel oil generators that are currently used for this purpose. Later, it will also supply the region’s industrial, vehicle, commercial, and residential sectors.

The gas pipeline will have two delivery points in Manaus, seven distribution branches totaling 78 miles in length, to deliver gas to municipalities located near the gas pipeline, and two intermediary gas-compression stations. The project also foresees the re-adaptation of an existing 18-inch nominal diameter pipeline between Urucu and Coari, which will be interconnected to the 20-inch one, allowing for natural gas production outflow.

(Rev. 6/08) Petrobras has an aggressive pipeline con-struction program underway that includes 5,592 miles of new liquid and natural gas pipelines to be built over a five year period. Currently, Petrobras is planning to build 1,116 miles of new gas lines between the start of 2008 and December 2009. Natural gas projects that are planned including the projected in-service date are:� Japeri-Reduc, 25 miles of 28-inch pipe, November 2008� Paulina-Jacuinga, 50 miles of 14-inch, August 2008� Expansao do Gasbel, 191 miles of 22-inch, October 2008� Gasduc III, 114 miles of 38-inch, May 2009� Gaspal II, 33 miles of 22-inch, December 2009� Gastau-Caraguatatuba-Taubate, 63 miles of 28-inch, July 2009� Gasan II, 24 miles of 22-inch, December 2009� Fafen/Se (Ramal), 14 miles of 8-inch, October 2008� Pilar-Ipojuca, 112 miles of 24-inch, November 2009

By the end of 2007, the company had added some 1,505 miles of new natural gas pipelines.

PETROPERU/SUEZ ENERGY – (8/07) A feasibility study is being conducted by state oil company Petroperu S.A. and a unit of Suez Energy International, to build an $830 million pipeline to supply gas to a planned petrochemical complex in southern Peru. The pipeline is key to the development of a petrochemical complex and to provide natural gas for thermal electric plants and mining companies as well as domestic users in southern Peru. Completion is slated in 2011.

PERU LNG – (REV. 10/07)Peru LNG, a joint venture between Hunt Oil and SK Corporation, and Spain’s Repsol YPF continues with its plans to construct a pipeline to transport gas from Chinquintirca in the Ayacucho Mountains to a planned LNG plant at Pampa Melchorita. The project is designed to convert Camisea reserves to LNG for export to markets in Central and North America. Plans call for a 257-mile, 34-inch diameter pipeline to be completed in the 2008-2009 timeframe.The line, as planned, has as estimated construction cost of $3.8 billion.

SUEZ ENERGY PERU – (REV. 9/08)Suez Energy Peru, a unit of Suez, aims to build the $850 million Gassur Pipeline down the Pacific coast to the southern city of Ilo. The pipeline will have a 15 MMcf/d capacity and range from 22 to 28 inches in diameter. Plans call for operations in the first half of 2011.

The project conflicts with a proposal by Kuntur Transportadora de Gas SAC to build a $1.2 billion 675 mile pipeline that would run the Camisea gas fields in the department of Cuzco to the southern departments of Moquegua and Puno.

Industry executives see both of these projects being built only if there is sufficient demand for gas in southern Peru.

VENEZUELA-BRAZIL – (11/07)Venezuelan President Hugo Chavez recently discussed plans for construction of his Southern Gas Pipeline proposal with Brazilian counterpart Luiz Inacio da Silva. The project, backed by Venezuela, is to build a 4,971-mile pipeline to carry gas from northern Venezuela to Argentina, with branches in Bolivia, Uruguay and Paraguay. The project cost is estimated at $210 billion.

GAS – InternationalAfricaGOVERNMENT OF MOROCCO – (7/07)Morocco is expected to invite international investors to finance a planned 500 MMcf/d LNG terminal and gas pipeline with estimate costs of around $1 billion. After finishing the initial feasibility study, Tractebel will likely move on to conduct a full FEED study and then help with the selection of an EPC contractor.

GOVERNMENT OF NIGERIA – (4/08)Nigeria plans to build three natural gas processing plants in the oil-rich Niger Delta and a grid of pipe-lines linking them to the rest of the country. The new plants will be built at Warri/Forcados, Akwa Ibom/Calabar and Obiafu areas of the delta. The new gas infrastructure will cost between $15 billion and $20 bil-lion and should be put in place between 2012 and 2015. Nigeria’s reforms are aimed at enabling the country to satisfy domestic demand for gas and to reduce flar-ing. None of the deadlines, the most recent of which was January 2008, set for companies to stop flaring in Nigeria has so far been respected.

NNPC/SONATRACH – (REV. 1/08)Nigeria has approved the construction of the Trans-Sahara Gas Pipeline (TSGP) planned by the Nigerian National Petroleum Company and Algeria’s Sonatrach. As proposed, the 2,565-mile project will take gas from fields in the Niger Delta north through Nigeria to Algeria and then to the coast. It could be on line in 2015 if all goes according to plan. Estimated cost of the project is in the $10 billion range, with $3 billion for upstream gas development.

Asia Pacific BPH-MIGAS – (11/07)BPH-Migas plans to build a 137-mile natural gas trans-mission pipeline project in Java. The pipeline will link the towns of Cirebon to Urara Bekasi, Indonesia. The project is awaiting energy minister approval. Bidders currently eligible to operate the project include state-run oil and gas company PT Pertamina and state gas distributor PT Perusahaan Gas Negara (PGN).

Page 18: Planned Pipeline Construction Projects in the Feasibility Stage or Not

CNPC – (REV. 7/08) China National Petroleum Corp. (CNPC) reports Reuuia’s OAO TMK will supply line pipe for the Central Asia-China Natural Gas Pipeline. CNPC is investing $2.6 billion to build the 6,214-mile Sino-Turkmenistan natural gas pipeline project. In July 2007, CNPC signed an agreement to import 30 Bcm of natu-ral gas a year over the next 30 years from Turkmenistan through the Central Asia Gas Pipeline. The plan is for the line to start at the Amu Daryu River and extend through Uzbekistan and Kazakhstan to Central, East and South China. The two parties also signed a pro-duction sharing agreement for the development of the Bagtyiarlyk gas field in northwest Turkmenistan. Further, Kyrgyzstan says it is prepared to invest in the Turkmenistan-China gas line. The Russian pipe manufacturer will supply 60-foot joints for the 116-mile section between Malay and Bagtiyarlik.

(Rev. 10/07) China National Petroleum Corp. (CNPC) is expected to start construction by September 2008 on a second East-West pipeline, this time the line would start at Horgas in Xinjiang and end at Guangzhou in the south and Shanghai in the east. The project is linked to developments with the Sino-Russian energy cooperation. CNPC says construction on the projected $10 billion, 3,400-mile line will move toward a 2010 completion. In addition, plans call for two branch lines totaling more than 1,240 miles to connect the two West-East lines to additional gas fields, including the Puguang gas field in Sichuan Province.

(7/07) CNPC has announced plans to invest $US1.04 billion in the development of the Myanmar – China

gas pipeline. The gas pipeline, which will stretch 1,479 miles will link Myanmar’s western port of Sittwe to the city of Chongqing, in southwestern China. The pipeline will transport 170 Bcm of gas from the Middle East to southwest China over the next 30 years. It is unclear which field in Myanmar would supply the pipeline. Daewoo said it expected gas production to start within three years of the contract signing.

GAS AUTHORITY OF INDIA LTD. – (4/08) Gas Authority of India Limited (GAIL) has fast-tracked US$1 billion construction of a gas pipeline in northern India. The pipeline, which will connect Vijapur to Bawana, is expected to be completed within 24 months.

Late last year, GAIL signed a gas sales agreement with Pragati Power Corporation for the supply of 2 MMcm/d of regasified LNG for the company’s 1,500 MW combined cycle gas turbine power project at Bawana, in Delhi. The proposed pipeline would have throughput capacity of 14.1 MMcm/d of gas. GAIL is also planning to install compressors at Vijaipur and Jhabua by 2010. Plans call for the pipeline to be com-pleted by January 2010, with commissioning at the end of March 2010.

(8/08) Gas Authority of India Limited’s (GAIL) long proposed natural gas pipeline in the southern Indian state of Tamil Nadu received new life when the com-pany signed an agreement to provide additional gas to the state. The 360-mile pipeline between the coastal cit-ies of Chennai and Tuticorin has the support of state’s Chamber of Commerce and Industry. According to the Chamber, the line represents a crucial component of

the state’s industrial and economic growth, forming the first phase in a broader plan to provide natural gas in the state. GAIL currently supplies more than 3 MMcm/d to 31 industrial customers using a pipeline network totaling 186 miles.

(3/08) The Gas Authority of India Ltd. (GAIL) reports its board has issued approval to build the Dabhol-Bangalore natural gas pipeline. The proposed route will extend from the R-LNG Terminal at Dabhol in Maharashtra to Bangalore. Designed capacity for the pipeline is 16 million standard cubic meters per day Gail also has the approval to build three other pipe-lines—Dahej-Vijaipur, Vijaiput-Dadri, and Vijaipur-Auraiya Jagdishpur.

(8/07) Indian Petroleum and Natural Gas Ministry approved the development of the Haldia – Jagdishpur pipeline in the northern province of Uttar Pradesh by the Gas Authority of India (GAIL). Completion of the 520-mile pipeline that will add 12 MMcm/d of capacity to the existing network will be taken up in the second phase of GAIL’s expansion plan and completed by 2011. The $841 million Haldia – Jagdishpur pipeline is also set to be part of an integrated pipeline network transporting natural gas from Reliance Industries’ gas fields in the Krishna-Godavari Basin., GAIL and the Indian Oil Corporation finalized a joint venture agreement to develop a gas distribution networks. Gas distribution will only be possible after completion of the pipeline in 2011.

www.pipeline-news.com • September 2008 • Pipeline News 25

Page 19: Planned Pipeline Construction Projects in the Feasibility Stage or Not

GAS AUTHORITY OF INDIA/ONGC - (4/07)Gas Authority of India Limited and the Oil and Natural Gas Corporation (ONGC) have signed a pre-liminary deal for the $US682 million development of the Kakinada – Haldia gas pipeline. The two companies will form a special purpose vehicle for the develop-ment of the 620-mile pipeline, which will transport gas discovered by ONGC in the Bay of Bengal to Haldia in West Bengal. GAIL already has plans to construct a 530-mile pipeline from Haldia to Jagdishpur, where the Hazira – Vijaipur – Jagdishpur pipeline terminates. The pipeline is expected to be completed by 2012.

GUANGDONG DAPENG LNG COMPANY – (3/08)Guangdong Dapeng LNG Company reports it will extend the mainline of it Shenzhen Dapeng LNG proj-ect in China’s southern province of Guangdong. The extension project involves laying a line from Dapeng of Shenzhen to Hulzhou City in the southeast, as well as southwest to Nansha of Guangzhou City. The mainline extension will connect the China National Offshore Oil Corp.’s Zhuhai LNG and Zhongshan LNG projects. The extension is scheduled for completion in 2009.

GUJARAT STATE PETRONET LTD. – (7/07) Gujarat State Petronet Ltd. (GSPL) plans to extend its Indian gas pipeline network by an additional 385 miles in the next two years. The expansion will enable the company to double its transmission volumes from the current 180 MMcm/d to 360 MMcm/d by 2009. Plans call for the development of the 125-mile Darod-

Pipavav Pipeline, 68-mile Rajkot-Jamnagar Pipeline, 112-mile Morbi-Mundara Pipeline, 37 mile Vadodara-Godhra Pipeline and 43-mile Mehsana-Palanpur Pipeline.

OIL AND NATURAL GAS CORPORATION (ONGC) - (2/08) India’s Oil and Natural Gas Corporation (ONGC) has received approval from the Maharashtra Coastal Regulation Zone Authority for the construction of a gas pipeline from Uran to Trombay. The proposed pipeline would replace the existing 18- inch diameter pipeline in the region, which has already reached its design life of 25 years. The existing pipeline transports 3.5 MMcm/d of gas to consumers in Trombay. The project is expected to require an investment of $62.5 million and is scheduled for completion by May 2008. The project involves construction of a 20-inch diameter pipeline with a total length of 15 miles from Uran to Trombay.

PETROCHINA - (4/08) PetroChina reports it is in the early planning stage for a third West-To-East natural gas pipeline. At this date, the line would extend from the China-Russia shared border at Altai to Bohai Bay on China’s eastern coast. The line would reach 3,782 miles with 48-inch pipe. With laterals, the total length of the project could reach 4,971 miles. Although there is not a specific timetable for line construction, it is anticipated that construc-tion could get underway shortly after completion of the second west-to-east pipeline now scheduled for early 2010.

PETROVIETNAM – (7/08) PetroVietnam has announced plans to accelerate development of ten oil and gas projects, including the $780 million pipeline that will connect Block B, which is located about 140-km southwest of Ca Mau province, to Can Tho City, which is about 200-km west of Ho Chi Minh City. PetroVietnam is building a 2,800 MW gas-fired power complex in Can Tho City which is scheduled to begin operations in 2010.

PT PERUSAHAAN GAS NEGARA (PGN) – (5/08)Indonesian state gas transportation company PT Perusahaan Gas Negara (PGN) will lead a consortium to build a 412-mile gas transmission pipeline linking Sumatra’s towns of Duri, Dumai and Medan. The pipe-line will be designed for a capacity to move 250-300 MMcfd of natural gas supplied from ConocoPhillips’ gas fields in North Sumatra. Project construction will begin in 2009 with a scheduled completion date of 2011. PGN also has been appointed by the government as project leader to build an LNG receiving terminal in West Java. Other consortium members are state-electricity company PT Perusahaan Listrik Negara and state-run oil and gas company PT Pertamina.

PTT - (3/07)Thailand’s PTT says it will expand its network of gas pipelines to cope with the projected doubling of gas demand by 2011. In the east, the pipeline from Map Ta Phut in Rayong will be extended some 186 miles, while in the west, a 217-mile extension will be built from Ratchaburi to Chumphon, one of the country’s south-ern provinces, at the shore of the Gulf of Thailand. Pipeline completion is slated in 2011.

26 Pipeline News • September 2008 • www.pipeline-news.com

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Page 20: Planned Pipeline Construction Projects in the Feasibility Stage or Not

PTT/PNOC – (12/07)Thailand’s PTT has signed a deal with the Philippine National Oil Corporation (PNOC) for a feasibility study for the construction of two natural gas pipelines and three terminals. The company is reportedly look-ing at financial proposals for a 186-mile pipeline that would connect the Bantangas province south of Manila and the western Bataan province to the Malampaya natural gas field in Palawan province, southwest of Manila. PTT is also looking at developing three LNG terminals in Batangas and Bataan as part of the proj-ect. The feasibility study is expected to be completed by March 2008. The PNOC and PTT are both reportedly willing to share half the costs of the pipelines and the gas terminals, which are estimated at up to $US700 million.

QUEENSLAND HUNTER GAS PIPELINE – (7/08)Queensland Hunter Gas Pipeline (QHGP) plans to build a pipeline to transport 50 Bcf of gas a year for the 400-600 MW power station, proposed by Queensland Gas Company, ANZ Infrastructure Services Ltd. and Toyota Tsusho Corporation. The privately-funded QHGP will transport coal seam gas collected in the southern central Queensland fields to Newcastle, NSW, through an 510-mile underground natural gas pipeline. It will be the third major gas supply into the greater Sydney region. The $850 million pipeline will provide greater security of gas supply to NSW and deliver gas to some areas where it has not been available. It will also limit the possibility of gas curtailment during weather extremes in NSW or when systems fail in the existing supply routes.

Construction of the pipeline is anticipated to start late next year. Gas flow is expected to commence in the first quarter of 2011.

RELIANT INDUSTRIES – (8/07) Reliant Industries plans to construct a 6,200-mile gas pipeline grid that includes large diameter gas transmis-sion lines as well as spur lines that will extend across four major states. (6/07) India’s Reliant Industries plans to invest over $US12 billion towards developing and transporting gas from its fields in the Krishna – Godavari basin, with some $US7 billion being set aside for construction of three pipelines. Some $US5.2 billion is earmarked for gas production, while some $US7 million will be used to develop pipelines from Kakinada in Andhra Pradesh to Bharuch in Gujarat, and two coastal pipelines to Haldia in West Bengal and Chennai. The 862-mile Kakinada – Ahmedabad Pipeline will be completed by 2008. The pipelines from Kakinada to Chennai and Bangalore will be completed by the end of 2009.

SANTOS ENERGY – (7/08)Malaysia’s Petronas has signed a deal to acquire a 40 % stake in Santos Energy’s proposed LNG project in Gladstone, Queensland. Under the terms of the agree-ment, a new joint venture company will be formed to develop and operate an LNG facility at Gladstone with an initial one-train capacity of 3 MMt/a. The new entity will also build and operate a 280-mile pipeline from jointly-owned upstream coal seam gas (CSG) assets to the project site, as well as undertake all marketing activities for the project’s LNG output. The partners

will also cooperate in the exploration and production of selected upstream CSG assets in Queensland.

The final investment decision is expected by the end of 2009, while the project’s first LNG cargoes are planned for 2014.

SINOPEC – (REV. 10/06)Sinopec has finalized the route for its proposed Puguang Gas Pipeline. The company will invest $4.7 billion to develop the Puguang gas field and pipe-line. The field, located in the northeast region of the Sichuan Province, is estimated at 252 Bcm. Plans call for a 1,055-mile pipeline from the field in the northeast region of the Sichuan Province to capitalize on strong market demand in China’s largest city. Construction is likely to start in June 2008 and last for two years. The company plans to invest $1.23 billion to build the pipeline, which will have a capacity of 12 Bcm/a. A final decision on the Shanghai route is expected soon.

FSU-Eastern EuropeFSI ENERGY – (REV. 4/06)FSI Energy, the lead developer of the KoRus Sakhalin Pipeline, continues to seek interested partners to participate in the project. South Korean development partners have agreed to participate in the construction and operation of the 1,575-mile pipeline to connect Far East Russian gas at Sakhalin with the Korean penin-sula and Japan. The project cost will be about $3 billion and will begin operation in 2008 or 2009.

GAZPROM – (3/08)Gazprom plan to develop the fields in the Yamal

www.pipeline-news.com • September 2008 • Pipeline News 27

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Peninsular, located in the Yamal-Nenets auton-omous district of Siberia. In the initial phase the Bovanenkovskoye field will be developed by the third quarter of 2011. Plans call for an annual production capacity of no less than 15 Bcm of annual production and the construction of a 685-mile pipeline system from Bovanenkovo to Ukhta. Plans call for pipeline construction to begin in 2008, while work is under way for provisional housing and installations, along with townships for the stockpiling of related materials.

The Yamal Peninsula is a strategic natural gas resource for Gazprom -- and one of the most promising gas-bearing regions in West Siberia capable of maintaining long-term production rates. Yamal is rich not only in gas. Today the region is the second in oil extraction. Estimates indicate production in the region can be increased to 90-100 million tons a year.

Thus far, 26 fields have emerged containing proven reserves totaling 10.4 Tcm of natural gas, 250.5 million tons of extractable gas condensate and 291.8 million tons of recoverable oil.

KAZAKHSTAN/TURKMENISTAN/RUSSIA – (REV. 11/07) Russian President Vladimir Putin and Kazakan President Nursultan Nazarbayev recently held dis-cussions on how to speed construction of a 930-mile pipeline to transport gas from Kazakhstan and Turkmenistan along the Caspian Sea coast to Russia. The talks focused on the prospects for creating a Caspian Sea transportation corridor to support work on the pipeline. In addition to the new line, the plan considers the reconstruction of the Soviet-era pipe-lines going to Russia via Uzbekistan and Kazakhstan to make it possible to boost gas transit by at least 12

Bcm/a by 2012. The pipeline is expected to strengthen the position Russia has over Central Asian energy exports at a time when China is making in-roads in the region and other Western-backed projects are emerging.

NABUCCO GAS PIPELINE INT’L – (REV. 7/08)Estimated cost of building the Nabucco Natural Gas Pipeline has reached $7.9 billion, based on higher steel and crude oil prices. Previously, the projected cost was $6.2 billion. The consortium making up Nabucco Gas Pipeline International Ltd., consist of Bulgaria’s Bulgargaz, BOTAS of Turkey, TransGaz of Romania, Hungary’s MOL, Germany’s RWE AG and Austria’s OMV. The European Commission reported recently it had met with members of the consortium to check on the progress and offer its support to the exemption process in all the countries involved.

The EU considers the Nabucco Pipeline a priority. As planned, 2,142- mile pipeline will transport natural gas from Turkey to Austria. The mileage includes 968, Turkey; 244, Bulgaria; 284, Romania; 241, Hungary and 29 miles in Austria. Feeder lines in Turkey include 140 miles from Gurcistan siniri to Horasan and 133 miles from the Georgian border to Horasan. A feasibility study is currently being conducted to examine several technical options. Construction on the project has been delayed a year from the original start 2009 to 2010. Rescheduling the construction start allows develop-ers to synchronize with output from the gas field in Azerbaijan, as well as complete environmental and social impact studies. The five partners have accepted RWE AG as the sixth partner.

The project has a planned maximum capacity of 31 Bcm/y. Work is expected to begin in 2009 and should be completed in 2012.

RUSSIA/SERBIA - (4/08)Russia and Serbia have signed an agreement to form a joint venture company to build and operate the Serbian section of the South Stream natural gas pipe-line. As agreed, the new company will devote three months to forming the company, followed by develop-ing detail design and engineering a conduction feasibil-ity studies. Construction is scheduled to start on the 248-mile section within 24 months after the feasibility studies are completed.

TURKMENINSTAN-AFGHANISTAN-PAKISTAN – (REV. 9/08)Ministers and high-ranking officials have started seri-ous talks on the proposed U.S. backed 1,040-mile Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project to import natural gas from the Central Asian nation to meet growing energy needs. The talks, which took place in Islamabad, discussed the project to deliver 3.2 Bcf to Pakistan from Turkmenistan and shared with India. Sources say the pipeline will be built by a consortium of national oil companies from the four nations by 2011-2012.

Middle EastDANA GAS & EMIRATE GENERAL PETROLEUM CORP. – (6/07)Dana Gas and Emirate General Petroleum Corp. (EMARAT) plan to build a common–user gas pipeline

28 Pipeline News • September 2008 • www.pipeline-news.com

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www.pipeline-news.com • September 2008 • Pipeline News 29

in the UAE. The 20-mile pipeline will be built from the Sharjah hub at Sajaa to the Hamriyah Free Zone (HFZ). It will have a 1 Bcf/d capacity to serve power plants of FEWS and SEWA, plus HFZ industrial customers. No timeline for completion has been announced.

IRAN/TURKEY - (1/08)A new pipeline to transport natural gas from Iran’s South Pars on the southern Iranian coast to eastern Turkey is projected to cost $5 billion. Iran and Turkey reached agreement earlier this year that calls for Turkey to import some 110 mil-lion cubic meters of gas from Iran. In addition to meeting gas needs in Turkey, the plan is to deliver gas to European markets through a connection with the proposed Nabucco pipeline project. The line, which will be built under a build-own-operate plan, is expected to reach 1,200 miles with 48-inch pipe. Companies from both com-panies with form a joint venture to build the line

NATIONAL GAS COMPANY OF IRAN – (3/08)National Gas Company of Iran plans to build a ninth cross-country gas pipeline to increase exports to Turkey and Europe from the western regions of the country. Current plans call for the construction of a $5 million 1,118-mile, 17-inch diameter pipeline to transfer up to 100 MMcm/d of sweet gas produced by Phases 9 and 10 of the South Pars field. Contractors have submitted bids and an award is scheduled by mid-2008.

NATIONAL IRANIAN OIL CO. – (REV. 6/08)Iran and Pakistan have finalized an agreement on building the pipeline that will transport gas to Pakistan and on to India. Reportedly, India and Pakistan energy ministers have resolved India’s participation on the 1,298-mile Iran-Pakistan-India Gas Pipeline Project. The two countries have committed to start construction next year to meet a September 2012 completion date for the section known as the Peace Pipeline. Pakistan is targeting April 2009 to secure financing for its section. Further, Russia’s Gazprom has stressed it is interested in taking on part in the construction and operation of the $7.4 billion pipeline to deliver 5.3 Bcf/d of gas from southern Iran to Pakistan and India.

As originally proposed, the country sections will be built separately to avoid the effects of U.S. sanctions aimed against Iran and any companies that participate in Iranian projects. The projected length and cost of each section is 678 miles at $4 billion in Iran, 407 miles at $2.6 billion in Pakistan and 213 miles at $600 million in India. However, Pakistan says two routes are now under consideration. One would connect Quetta with Rahim Yar Khan and the other would connect Sukkar and Karachi. Based on those considerations, the mileage in Pakistan would range from 435 miles to 932 miles. Also, the projected cost is between $2.7 and $3 billion. Over the entire length, the line’s diameter remains 56-inch. Pakistan’s section likely will be built on a build, own, operate, and transfer basis. Currently, the projected sched-ule for the Iran-Pakistan-India line calls for completion in the second half of 2014.

IRAQ/TURKEY - (4/08)The Iraq-Turkey Natural Gas Pipeline Project is being proposed to transport Iraqi gas to Turkey. The project studies date back to agreements that were signed by the Ministry of Energy and Natural Resources of Turkey and the Iraqi Petroleum Minister in 1996, following studies by a working group formed by TPAO, TEKFEN and BOTA . This project includes field development, production and processing, and pipeline transportation of gas from northeastern Iraq. The proposed line would move 10 Bcm/y of gas from five gas fields to Turkey with the ultimate objective of moving the gas to European markets. After several years of delays, a MOU was signed August 2007 by Turkey’s Ministry of Energy and Natural Resources and Iraqi’s Oil Minister that declares the intention to build the pipeline. The MOU calls for starting feasibility studies for a new pipeline that would parallel the existing Kirkuk-Yumurtalik oil line. Botas will build the segment that crosses Turkey. The feasibility study includes the possibility of building an LNG terminal in Turkey’s southeastern province of Adana.

UZBEKNEFTGAS/CNPC - (6/08)Uzbekistan energy firm, Uzbekneftgas, has formed a joint venture with China National Petroleum Corp (CNPC) to build a pipeline that would transport natural gas from Turkmenistan to China. The plans by energy-hungry China and the Central Asian states would break Russia’s virtual monopoly on transit of Turkmen gas. Under the plan, the Uzbek-Chinese venture, named Asia Trans Gas, would build a 330 mile pipeline section from the Turkmen border across Uzbek territory to the Kazakh border, from where it would go on to western China. An initial pipeline, including one compressor station, is to be built by the end of 2009 and a second by the end of 2011. Uzbekistan signed an agreement last year with China to build a pipeline with a 30 Bcm capacity for shipping Turkmen gas.

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Future JobsWestern Europe & EU CountriesENAGAS – (7/07) Enagas, the Spanish National Gas Company is plan-ning to construct a 130-mile, 40-inch diameter gas pipe-line from Tivissa to Paterna, Spain. Project completion is slated in 2008.

EXCELERATE ENERGY/RWE – (4/08) Excelerate Energy and German Utility RWE, in con-junction with Nord-West Oelleitung (NWO), are work-ing jointly to develop a German GasPort facility at the Port of Wilhelmshaven in Lower Saxony on the North Sea. Excelerate Energy is currently evaluating the design and permitting requirements that will allow the modification of the existing NWO jetty to incorporate the GasPort facilities. RWE will permit and construct a pipeline interconnect into the existing German nation-al grid infrastructure. Once complete, the facility will provide a minimum throughput of 400 MMcfd into the German market utilizing Excelerate Energy’s Energy Bridge Regasification Vessels (EBRV’s). Currently, the facility is planned to commence operations in the 2010/2011 time frame.

GASUNIE – (7/07) Gasunie reports it plans to expand its natural gas net-work over the next few years to meet customer needs and add capacity for future LNG imports into The Netherlands. Current plans call for 295 miles of new pipe and new compressor stations. Estimated cost of the expansion is $1.8 billion.

PGNIG/ENERGINET – (6/07) Polish state-owned PGNig and Danish utility Energinet.DK are exploring the prospect of construc-tion the Baltic Gas Pipeline to connect Poland to the Scandinavian gas system. As proposed, the pipeline would allow the danes access to Russian gas while allowing PGNiG to tie in to other western European supply routes. The project, with an overall length of 745 miles, will be owned by Poland. No construction timeline has been announced.

PLINACRO – (9/07)The European Investment Bank (EIB) of the EU has signed a Euro190 million loan agreement with Croatian state gas transport company Plinacro to build interconnections with neighboring EU member states and potential candidates. The loan will partly finance a Euro 450 million project to install 580 miles of new high pressure gas pipeline sections in the Croatian national network while continuing modernization of the existing network.

RWE/GASPROM – (4/08)The Czech branch of the German Energy Company RWE will build a gas pipeline that will connect the Czech Republic to the Baltic Sea. The pipeline, called Project Gazela, will connect northern Bohemia to Waldhaus near the Czech border. If the Nord Stream Pipeline is realized, Gazela would connect to the Opal branch of the line, west of the border. Gasprom reports it will build the 109-mile line. Construction is scheduled to commence in 2009. Estimated cost of the project is around $72.2 million.

TURKIYE PETROLLERI ANONIM ORTAKLIGI (TPAO) – (7/08)Turkiye Petrolleri Anonim Ortakligi (TPAO) has undertaken design and planning work for Phase 2 of the South Akcakoca Sub Basin development in the

Western Black Sea off Turkey. Plans call for a wellhead platform and an offshore pipeline to be installed in 60 feet of water to produce natural gas from six wells. Contract awards are expected before year-end 2008.

OIL - The AmericasU.S.ARIZONA CLEAN FUELS – (REV. 3/08) Arizona Clean Fuels Yuma has secured permission from Mexico’s Secretariat of Energy to build and oper-ate a $650 million oil pipeline that would stretch across the Sonoran Desert to the west coast. The company obtained a permit from the Arizona Department of Environmental Quality allowing the construction of a 150,000 bopd refinery in Tacna. The pipeline will transport oil from the refinery to a connection point in either Baja California or Sonora. Pipeline details have not been released. For information, contact [email protected] or (602) 444-8285.

Due to a suit filed March 30, 2007, all parties have voluntarily agreed to a “standstill” of any activity on the land in question.

BP PIPELINES – (REV. 3/08) BP Pipelines (North America) Inc. has withdrawn the Open Season offer to the industry for Viridian Pipeline. Although there was significant interest from potential shippers during the recent open season process, BP Pipelines did not receive sufficient com-mitments necessary to redeploy the pipeline in light crude service. BP Pipelines anticipates revising and expanding the scope of the project and presenting an enhanced offer for redeployment of the pipeline in the first quarter of 2008. Further updates for the proposed Viridian Pipeline Project will be posted online at www.bppipelines.com.

CENTURION PIPELINE – (8/08)Centurion Pipeline’s proposed reversal project has received the necessary long-term commitments through a binding open season to redeploy the pipeline into heavy crude oil service. The new direction for the Centurion pipeline flow will create new capacity to transport increasing production of Western Canadian heavy crude oil from Cushing, OK to Slaughter, TX and markets in West Texas’ Permian Basin. The Centurion Pipeline Reversal Project is being designed to transport as much as 60,000 bopd through an existing common carrier, 16-inch, 375-mile-long crude oil pipeline commonly referred to as the No. 1 Pipeline. The reversed pipeline could be in southwest-bound service as early as the fourth quarter of 2009.

CHEVRON – (6/08)Chevron won approval from the Fresno County Planning Commission to build a 57-mile pipeline for hot, heavy crude from San Ardo in the Salinas Valley to an existing pipeline near Coalinga, CA The pipeline will transport 4,000 to 32,000 bpd. Because of the oil’s thickness, it will be heated to 180 degrees at San Ardo, and again near the pipeline’s midpoint, so that itwill flow better. No completion date has been set.

ENBRIDGE ENERGY PARTNERS – (3/08)Enbridge Energy Partners, L.P. will proceed with another expansion of the Enbridge North Dakota Pipeline System adding up to 51,000 bpd of capacity. The expansion, with an estimated cost of approximately $150 million, will add 40,000 bpd of capacity from the western end of the system to Minot, ND and 51,000 bpd of capacity from Minot to Clearbrook, MN. This will increase total system capacity from 110,000 bpd to

161,000 bpd, with an in-service date of late 2009. The expansion is subject to federal and state approvals.

ENBRIDGE INC. – (REV. 8/08)Enbridge Inc. has delayed plans for a $3.6 billion pipeline to transport Alberta oil to refineries located on the U.S. Gulf Coast while the company considers an interim plan to move it by tanker from existing lines to the East Coast. The company’s shift in plans stems from the tempered outlook for production from Canadian oil sands projects, along with regula-tory delays and rising cost. The pipeline plan called for the system to transport 4000,000 Bpd of oil sands some 2,000 miles from the Edmonton to Texas. The line would run through refining hot spots like Billings, MT, Denver, CO, and Cushing OK, before terminating at the Gulf. If built, the proposed pipeline would be operational by 2011. *Listed in both U.S. and Canada

ENBRIDGE/EXXON MOBIL – (REV. 9/08) After Enbridge Inc. and ExxonMobil reported the $2.6 billion Texas Access Pipeline proposal to ship Canadian crude to the U.S. Gulf Coast will be delayed by about two years the developers now say the project can be built in time for a 2012 start up. As proposed, Texas Access will consist of 768 miles of 30-inch diam-eter pipeline to transport 400,000 bpd of crude from Patoka, IL to Nederland, TX. Also proposed is an 88-mile, 24-inch diameter pipeline to transport crude onward from Nederland to the Houston area. Instead of the recently announced completion date of 2013 or 2014, the two companies say the 2012 date can be met despite insufficient support from oil sands producers.

Enbridge also is opting to move the crude by tanker because of a poorer outlook for oilsands production from northern Alberta. The company said it plans to move about 200,000 bopd to the U.S. Gulf by mid-2010 through the $350-million tanker project, titled Trailbreaker, at a shipping cost of $8 per barrel of oil.

Later, when the volumes of Canadian heavy crude seeking access to the U.S. Gulf Coast exceed the capac-ity of Trailbreaker, the company will be ready to meet that requirement with its Texas Access joint venture at a lower toll. The Trailbreaker system would then be redeployed to provide access to East Coast markets for synthetic barrels.

GENESIS ENERGY, L.P. – (10/07) Genesis Energy, L.P. reports it plans to build an exten-sion from its existing Florida crude oil pipeline to transport crude for producers in southern Alabama. The new lateral will extend 33 miles for 19-inch pipe from the Little Cedar Creek Field in Conecuh County, AL to the company’s Florida pipeline in Escambia County, FL. As proposed, the project will include gathering lines to connect some 30 wells and additional storage in the field. Work is expected to start in time for a March 2008 completion.

ROCKY MOUNTAIN PIPELINE SYSTEM LLC (RMPS) – (REV. 8/08)Rocky Mountain Pipeline System LLC (RMPS), an indirect subsidiary of Plains All American Pipeline, L.P., is evaluating its open season for committed capac-ity on a proposed crude oil transportation route from Fort Laramie, WY to Cushing, OK.

The planned route would originate at RMPS’ Fort Laramie station in Wyoming, which currently receives crude oil from several sources, including the Big Horn, Platte and Butte pipelines. From the Fort Laramie station, oil movements would progress as follows: Fort Laramie to Cheyenne, WY on RMPS’ exist-ing 16-inch Cheyenne Pipeline System; Cheyenne to

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www.pipeline-news.com • September 2008 • Pipeline News 31

Platteville, CO on a newly constructed 12-inch pipe-line; and Platteville to Cushing, OK on the planned 12-inch White Cliffs Pipeline to be constructed the SemGroup.

The open season ended June 12, 2008.

SEMCRUDE L.P. – (REV. 9/08) SemCrude L.P. plans to build the White Cliffs Pipeline from Platteville, CO to Cushing, OK to transport 72,000 bopd. A contract for engineering of the proj-ect has been awarded to ENGlobal Engineering is charged with finalizing the pipeline route and devel-oping the route survey for the 500+ mile pipeline that will include work on four pump stations, storage facilities, metering and support systems installations. ENGlobal began work on the project in late February and will prepare the majority of the deliverables from its Tulsa and Denver, Colorado offices.

In July 2008, the SemGroup filed for Chapter 11, which is expected to delay the planned January 2008 completion.

SUNOCO PIPELINE L.P. – 11/07) Sunoco Logistics Partners’ wholly-owned subsidiary, Sunoco Pipeline L.P., recently began an open season to determine long-term volume commitments for a new crude oil pipeline from the company’s receiving terminal at Nederland, TX to refining centers in Lake Charles, LA. The company is looking for a base capac-ity for the line of 213,000 bpd, with additional stand-by capacity utilizing stand-by pumps for another 182,600 bpd. Sizing details will be determined after the open season that concluded in October 2007. The pipeline is expected to be online in the first quarter of 2010.

MexicoSONORA TERMINAL AND PIPELINE/EL PASO/DRKW ENERGY - (3/07) The Sonora Terminal and Pipeline Company, El Paso and DRKW Energy joint venture has received envi-ronmental permits for the construction of an LNG terminal and pipelines from the Mexican government. Plans call for the construction of an LNG receipt, storage and regasification facility and 470 miles of gas pipeline in the state of Sonora. The pipeline will start at the LNG facility in Puerto Libertad, Sonora, and will go north to the Mexico-U.S. border (at a point to match the future development and location on the U.S. pipeline. As the market evolves in Sonora, the pipeline will go south to the city of Guaymas and up to Obregon. The pipeline system will consist of various diameters along the route. Operations are scheduled during 2011. WESPAC PIPELINES LTD. – (REV. 9/08)WesPac Pipelines Ltd., a unit of Buckeye Pipeline LP, received permission from Mexico to finance, construct and operate a $650 million oil pipeline. The 275-mile pipeline would supply Mexican crude oil to the pro-posed Arizona Clean Fuels refinery in Yuma, Arizona.

Operations are scheduled in late 2009 or early 2010.

CanadaENBRIDGE INC./FORT HILLS ENERGY – (12/07) Enbridge Inc. and Fort Hills Energy plan to begin

development of the Fort Hills project, an integrated oil sands development that includes a mine and bitumen extraction plant 90 km north of Fort McMurray, Alberta, along with an upgrader in Sturgeon County northeast of Edmonton, Alberta.

The preliminary facilities plan for the Fort Hills Pipeline System includes a dedicated pipeline from the mine site north of Fort McMurray to the upgrader site in Sturgeon County, with an initial capacity of 250,000 bpd of diluted bitumen. The system will also include a diluent pipeline with an initial capacity of 70,000 bpd of diluent, terminal facilities at the mine site and Sturgeon County up-grader, and interconnect-ing pipelines linking the upgrader to the Edmonton pipeline hub.

The estimated cost of the pipelines and related facil-ities is approximately $2 billion with planned in-service dates in mid-2011, subject to finalization of scope and detailed engineering, and regulatory approvals.

ENBRIDGE INC. – (REV. 8/08)Enbridge Inc. has delayed plans for a $3.6 billion pipeline to transport Alberta oil to refineries located on the U.S. Gulf Coast while the company considers an interim plan to move it by tanker from existing lines to the East Coast. The company’s shift in plans stems from the tempered outlook for production from Canadian oil sands projects, along with regula-tory delays and rising cost. The pipeline plan called for the system to transport 4000,000 Bpd of oil sands some 2,000 miles from the Edmonton to Texas. The line would run through refining hot spots like Billings, MT, Denver, CO, and Cushing OK, before terminating

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32 Pipeline News • September 2008 • www.pipeline-news.com

Future Jobsat the Gulf. If built, the proposed pipeline would be operational by 2011. *Listed in both U.S. and Canada

(Rev. 9/08) The National Energy Board has approved the $2 billion Alberta Clipper oil pipeline proposed by Enbridge inc., but with certain conditions. The 994-mile pipeline will stretch form Alberta to Wisconsin and will have an an initial capacity of 450,000 bopd. The Canadian portion is 670 miles between Enbrdige’s ter-minal near Hardisty, Alta., and the Canada-U.S. border near Gretna, Man.

Project completion is scheduled in 2010. *Listed in both U.S. and Canada

(Rev. 6/08) Enbridge Inc. has completed a successful open season for the proposed Gateway Pipeline. Based on results from the open season, the company plans to increase the diameter size of the 720-mile pipeline from 30-inch to 36-inch in diameter. The pipeline will trans-port 400,000 bpd of Alberta oilsands production from Edmonton, AB to a port on the west coast at Kitmat, B.C. where it would be shipped by tanker to China, other Asia-Pacific markets, and California. The project also includes a 720-mile, 20-inch diameter condensate line from Kitmat to Edmonton. Preliminary design work, engineering and environmental assessments have already been completed for the $2.5 billion project. The current plan is to have the two lines in service between 2012 and 2014. Enbridge Gateway Pipelines is initiat-ing significant environmental, engineering and land field work to support the proposed development of two new pipelines as part of the Enbridge Gateway Project.

KINDER MORGAN – (REV. 7/08)Kinder Morgan Canada continues to hold discussion with potential shippers for the second stage of its West Coast expansion of the Trans Mountain Pipeline. The TMX-2 project, which involves 308 miles of looping the existing line, will add 100,000 bpd of incremental capacity to the system bringing the pipeline’s total capacity to approximately 400,000 bpd. The project will consist of two pipeline loops that will follow the exist-ing 24-inch Trans Mountain pipeline. The first loop will consist of a 157-mile, 36-inch loop in Alberta between Edmonton and Edson. The second loop involves one 32-miles section of 36-inch between Hargreaves to Albreda in British Columbia and a 119-mile section of 30-inch between Albreda and Darfield, BC. The project also includes one new pump station in Alberta and four new stations in British Columbia. Also, work includes upgrading two existing pump stations in Alberta and four existing stations in British Columbia. The project will be in service by late 2009. TRANSCANADA – (6/08)With Construction getting underway on the 2,148 mile Keystone Pipeline from Hardisty, Alberta to Cushing, OK, TransCanada is considering an expansion to Keystone to transport a growing supply of Canadian crude to the U.S. Gulf Coast refining market. As pro-posed, the project would involve a 36-inch diameter pipeline running from Alberta to Northern Nebraska and then south to the Gulf Coast just east of Houston. A detailed route has not yet been decided. Although construction dates are unknown at this time, the com-pany anticipates seeing the Keystone expansion being available sooner than 2015.

Caribbean/South & Central AmericaECOPETROL S.A./PETRO RUBIALES ENERGY CORP. - (2/08) Colombia’s ECOPETROL S.A. and Petro Rubiales

Energy Corp. plan to build a 143-mile, 24-inch diameter oil pipeline that will allow the transport of heavy crude from the Rubiales and Piriri fields. The pipeline will originate in Rubiales and connect with the Monterrey Station in Casanare, which is an integral part of Colombia’s oil transport systems and is connected with the Oleoducto Central S.A. (OCENSA).

Also, Petro Rubiales Energy Corp. will build an additional pipeline branch to the Cusiana Station.

Preliminary estimates indicate the pipeline project will cost more than $300 million and become opera-tional in the second half of 2009.

PETROLEOS DE VENEZUELA SA (PDVSA) – (3/07) PDVSA is planning to build a pipeline through Nicaragua to transport oil from the Caribbean to the Pacific, bypassing the Panama Canal. The proposed pipeline is expected to be used to boost the export of oil products made in Nicaragua from Venezuelan crude to China, Japan and the Pacific Coast of Central America. No timeline for construction has been announced.

OIL - InternationalAfricaMOZAMBIQUE-SOUTH AFRICA – (9/08)Construction of a $600-million crude oil pipeline connecting Mozambique to South Africa is expected to get underway by the end of 2008. The 311-mile pipeline will link Mozambique’s capital Maputo to the Quendal region in neighboring South Africa’s Gauteng province, an economic hub where Johannesburg and Pretoria are located. The line, which is designed to transport 6 billion liters of oil per year to Gauteng, is considered a boost to the region’s economic growth. Mozambique is not an oil producer, but its ports pro-vide easy access to Gauteng. The project will be built by $1.5-billion joint venture between Mozambican and South African companies. Petromoc, with 40%, has the biggest stake. Depending on interest, reports say the line could be extended beyond South Africa, particu-larly Botswana.

Asia PacificCHINA NATIONAL PETROLEUM CORP. – (REV. 4/08) Construction of China’s National Petroleum Corporation’s pipeline to transport crude oil from Myanmar to southwest China is still under discussion. Originally, construction was scheduled to get underway in 2007, but has been delayed due to technical concerns. The company says studies continue to determine how and when to build the line. Also, there is the question of if the line will be built. The 788-mile Sino-Myanmar Oil Pipeline will link Myanmar’s western port of Sittwe to the city of Kunming, the capital of Yunnan province in Southwest China. The pipeline will provide an alter-nate route for China’s crude imports from the Middle East and Africa and will help reduce traffic through the Straits of Malacca. Even though the project received the initial government approvals last year, further feasibility studies likely will require changes before the final approvals are issued. Except for the report that the line will require 30 months to build, timetable for the pipeline’s completion has not been determined.

INDIAN OIL CORPORATION – (4/08) The Indian Oil Corporation (IOC) plans to invest US$800 million to construct 1,292 miles of crude oil and petroleum product pipelines by 2011-12. The pipeline includes some 45 miles of crude lines and 845

miles of product pipelines. The company is currently constructing over 932 miles of pipelines, comprised of some 230 miles of oil pipelines and 702 miles of petro-leum products pipelines, which are estimated to cost in excess of US550 million.

The bulk of the expenditure, about US$288 million, has been directed towards the 11 MMt/a Paradip – Haldia crude oil pipeline. About$US$55 million has been invested in the 2 MMt/a Koyali – Ratlam product pipeline, while$US$2 million has gone towards an aviation turbine fuel pipeline connecting the Chennai refinery to Air Force Station in Chennai city. Finally, about US$7 million has been invested to extend the Guwahati – Siliguri pipeline to Bongaingaon.

Development of the pipeline to transport LPG from Panipat to Jalandhar is progressing well and the com-pany has plans to significantly expand its LPG pipeline network. Some 170 miles long, the US$40 million)Panipat – Jalandhar pipeline will connect the recently expanded Panipat refinery to bottling plants at Kohand, Nabha and Jalandhar, in the Punjab region.

NEPAL OIL CORPORATION – (6/07) Nepal has decided to build the Nepal – India pipeline on its own, rather than in a joint venture with Indian Oil Corporation. A memorandum of understanding has been signed between the Nepal Oil Corporation (NOC) and IOC stipulating that NOC would build the pipeline and IOC would provide technical assistance. The 25-mile pipeline is expected to cost between $US13-15 million depending on whether it has an 8- or 10-inch diameter.

PETROCHINA – (9/07) PetroChina Co Ltd., the country’s largest oil and gas producer, plans to build an oil pipeline linking its Qinzhou refinery to Nanning, in the Guangxi region in southwest China. Investment in the refinery will total 15.2 billion yen. It is expected to come on-stream in 2008.

(7/06) PetroChina has obtained the government’s approval to build two pipelines to move oil from north-eastern and northwestern areas to central China. The will cost $1.5 billion. The pipelines will pump oil from refineries in north-eastern and north-western regions, which will process crude oil imported from Russia and Kazakhstan. This will arrive in China through cross-border oil pipelines. The two pipelines will start from Lanzhou, in Northwest China’s Gansu Province and Jinzhou, in Northeast China’s Liaoning Province and converge in Zhengzhou in the central province of Henan. A further extension will reach Changsh in the Hunan Province. SKS DEVELOPMENT/TRANS-PENINSULA SDN BHD – (REV. 6/08)China has demonstrated an interest in investing in the crude oil pipeline across the Malaysia peninsula. The investment from China will help get the project off dead center. Construction on the pipeline was delayed earlier because land acquisitions hit a snag. SKS Development and Trans-Peninsula Sdn Bhd with the support of the Malaysian Government plan to build the 193-mile crude oil pipeline and two refineries at a cost of $14.2 billion to transport and process Middle Eastern oil. SKS will build the refineries and Trans-Peninsula will build the pipeline. The pipeline, which is expected to cost $7 billion, will extend from Yan on the west coast to Bachok on the east coast. This will allow Middle East oil shipments to reach the South China Sea without traveling through the Malacca Strait. Construction is scheduled to be accomplished in three phases over eight years and originally to start early in 2008 with the first phase costing $2.3 billion. Malaysia’s

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Ranhill Engineers & Constructors is engineering the project. The line could trans-port 6 million bpd after the third phase is completed. Investors are courting oil producers in the Middle East, including Iran, to participate with minority stakes in the refineries. The delay adds to the long running speculation over the economic feasibility of building the project.

FSU-Eastern EuropeAMBO LLC – (REV. 8/07) Economic ministers from Bulgaria, Macedonia and Albania have signed an agree-ment that will move forward the construction of the Burgas-Vlore oil pipeline. AMBO is the company selected to manage the project that will link Bulgaria’s port of Burgas and Albania’s port of Vlore, through Macedonia. Plans call for a 575-mile, 36-inch diameter pipeline to transport up to 35 million tons of oil per year. The proj-ect is estimated to cost $1.3 billion. The agreement signed by the economic ministers seeks a construction start in 2008 with the first oil to be transported through the line by early 2011. The project includes installation of two pump stations in Bulgaria and on each in Macedonia and Albania. BULGARIA/GREECE/RUSSIA – (REV. 7/08) Bulgaria, Greece and Russia have reached an agreement that will allow the con-struction to proceed on the long delayed Bourgas-Alexandropolis Oil Pipeline in 2009. Seven companies from the three countries formed a joint venture to build the 177-mile, 36-inch diameter pipeline that will connect the Black Sea port of Bourgas, Bulgaria, with Greece’s northern Aegean port of Alexandropolis. The $1.3 billion pipeline will transport Russian crude along a land route that bypasses the congested Bosphorus Strait in Turkey. The companies involved include four Russian companies - TNK-British Petroleum, Stroytransgas, Sovcomflot and Tatneft; and three Greek companies Hellenic Petrol, Latsis Group, and Prometheus Gas. With the agreement, the latest target completion date is 2011. Initially, the line will carry 700,000 bopd with the potential capacity of more than 1 million bopd. In the latest move, the Bulgaria Parliament has voted its approval of the agreement.

GE OIL AND GAS/CNOOC/CHEVRON/TEXACO/BP – (4/08) The Pan-European Oil Pipeline (PEOP) is a newer manifestation of a project formerly known as CPOT – Constanta-Pancevo-Omisalj-Trieste – and is designed to take Caspian and Russian oil from the Black Sea port of Constanta in Romania, through Serbia, Croatia and Slovenia to Trieste, Italy. From there it would join with the TAL (Trans-Alpine Line) and the Italian pipeline network, with any excess oil to be shipped from Genoa in Italy.

The PEOP is expected to be 805 miles long, and to cost US$2.4 billion. It would carry around 60 million tons of oil per year. The PEOP is expected to mainly supply Italy and central Europe, with around 9% of the oil to be supplied to Serbia and Croatia. The feasibility study for the project has estimated that the pipeline will commence operation in 2011.

The group proposing the pipeline include General Electric Oil and Gas, China National Offshore Oil Corp., Chevron, Texaco and BP.

GEORGIA/UKRAINE/AZERBAIJAN/POLAND/LITHUANIA – (11/07) Ministers from Georgia, the Ukraine, Azerbaijan, Poland and Lithuania recently signed on to build an oil pipeline linking the Black and Baltic seas. The agreement calls for a 300-mile extension to a pipeline in western Ukraine northward to the Polish port of Gdansk on the Baltic that will secure supplies of Azerbaijan’s crude from the Caspian. The estimated $700 million project is considered a victory for the five counties, which are increasingly wary of Russia’s nationalistic energy policy and are seeking alternative energy sources and supply routes.

GOVERNMENT OF KAZAKHSTAN – (REV. 1/08) The pipeline project to extend the Kazakhstan-China Pipeline to the Caspian in order to give China direct access to energy supplies is scheduled to be completed by October 2009. The first 598 miles of the pipeline from Atasu, Kazakhstan to Xinjiang, China was completed in 2005. It also is comprised of a 153-mile domestic section linking Alashankou to PetroChina’s Dushanzi terminal. A third 435-mile section will link it to the Caspian. In 2011, when it reaches full capacity, the pipeline is expected to transport oil from Western Siberia and may be expanded to supply up to 20 MMt/a.

GUEU-WHITE STREAM PIPELINE CO. LTD. – (3/08) UK-based GUEU-White Stream Pipeline Co. Ltd. is conducting engineering and marketing studies on the viability of constructing and operating a gas pipeline from Georgia across the Black Sea to Ukraine and Romania. As proposed, the White Stream Pipeline would extend 620 – 808 miles, depending on route selection,

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34 Pipeline News • September 2008 • www.pipeline-news.com

Future Jobsincluding just over 400 miles of pipeline in the Black Sea line. Current specifications call for 26-in. pipe to be laid in as much as 6,650 feet of water.

The pipeline initially would deliver gas from Azerbaijan, but could potentially be tied into other sources, according to GUEU-White Stream. ROSNEFT/CNPC – (7/08) Rosneft and China National Petroleum Corporation (CNPC) are finalizing the details on a deal to build a branch pipeline from the East Siberian Oil Pipeline now under construction. Specifics have not been released. (For information on the East Siberian Oil Pipeline, see Transneft listing in projects under con-struction.)

(Rev. 9/07) Russia’s state-owned Rosneft continues its work on developing the Vankor oil field in the eastern Krasnoyarsk region of Siberia. The company expects annual production of up to 2.5 million tons by 2007, rising to 6 million tons in 2008, which is needed to make building the necessary infrastructure economically viable. Initially, two pipeline routes were considered. One route involved a 435-mile pipeline to transport oil from Vankor to the Arctic port of Dixon. The second route extended 217-mile south to intersect with the Transneft pipeline system to transport the oil through the Eastern Siberia-Pacific Ocean pipeline. The decision was made to build the southern route to the Transneft system. The projected is to begin service by 2010.

TNK-BP – (10//07)Plans are moving forward to build and oil pipe-line from the Verkhnechonskoye oil and condensate field to a connection with the East Siberia-Pacific Ocean pipeline. Earlier, TNK-BP has reached an agreement with Rosneft to construct a line from the Verkhnechonskoye oil field in East Siberia to Surgutneftegaz’ Talakanskoye field. From there both fields will supply oil into the East Siberia – Pacific Ocean pipeline system. The line will extend 54-miles. Work includes construction of a 52-mile access road. Plans call for pipeline construction to be completed in the second half of 2008. TNK-BP and Rosneft are stakeholders in Verkhnechonskoye. The total invest-ment in the pilot stage of the project is estimated at $200 million.

Middle EastCALVALLEY PETROLEUM INC. - (10/07)Calgary-based Calvalley Petroleum Inc. and Yemen have revised plans that involve a 152-mile, 16-inch crude oil pipeline from Block 9 to Block 18 in the Republic of Yemen. The line will connect to an existing export line from Block 18 to the Ras Issa terminal on the Red Sea. Under the revised plan, Calvalley will finance and build a 90-mile section from Block 9 to a point within a block located adjacent to Block 18 and operated by a third-party operator. The third party operator will be responsible for financing the remain-ing 62 mile line to connect Block 18. At this point there is not a time line for a construction start.

GULF GOVERNMENTS – (REV. 8/07) Ministers from six Gulf Arab countries are considering construction of the Trans-Gulf Strategic Pipeline to bring 5 million bpd from various Persian Gulf termi-nals to a new export terminal that could be built in Oman. A study is under way on six possible routes for the pipeline, which could bring oil from as far north as Iraq, passing through Kuwait, Saudi Arabia and the

UAE to the Omani capital of Muscat on the Arabian Sea. Other possible routes could see the pipeline terminating in Yemen or Fujairah. As proposed, the pipeline could be 1.500 miles long and traverse at least one mountain range. Ministers from the six Gulf Arab countries are scheduled to discuss the pipeline dur-ing two summits scheduled in 2007. Also planned is a 225-mile line to transport crude from the UAE to the Emirate of Fujairah.

IRAQ/IRAN – (REV. 1/08)Iraq and Iran have signed an agreement to construct two liquid pipelines. The agreement calls for a line to carry Iraqi crude to a refinery at Abadan, along with a line to transport refined petroleum products to Iraq. Plans call an Iraqi company to building the lines which are estimated to measure between 31 and 47 miles. The crude line will original at Iraq’s oilfields in south-western Basra. Crude production in Iraq is 2.5 million bpd, including 1.5 million for exports. Construction of the two lines will be financed by a $1-billion loan Iran gave Iraq earlier this year. A completion date has not been set for the project.

PRODUCTS - The AmericasU.S.COLONIAL PIPELINE – (11/07)Colonial Pipeline Company has announced plans to build a 460-mile, $2-billion pipeline expansion that follows the route of the company’s two existing refined petroleum products lines that originate on the Texas Gulf Coast. With new refineries expected to come on line by in the next few years, the company says it will face bottlenecks without the expansion. The line will extend through 13 states from Jackson, LA, with 36-inch pipe to Austell, GA. Plans call for the expan-sion to be completed by 2012.

HOLLY CORPORATION/SINCLAIR TRANSPORTATION – (REV. 7/08)By early next year, industrial partners Holly Corp. and Sinclair Transportation Co. could begin building a 400-mile petroleum pipeline capable of carrying tens of thousands of gallons of gasoline, diesel and jet fuel each day into Utah and southern Nevada.

The reported price of the pipeline is $300 mil-lion. A Holly Corporation spokesman told PLN that although no construction contract had been issued for the pipeline, the pipe for the project has arrived and is strung along the staging route of the line. Work on the terminals is also under way in both Cedar City, UT and northern Las Vegas, NV.

Once pipeline construction gets under way, the com-pany anticipates it to require nine to months

KINDER MORGAN – (REV. 9/07)Kinder Morgan Energy Partners, L.P. continues devel-opment of a $400-million expansion of its Calnev Pipeline. The system transports gasoline, diesel and jet fuel from Los Angeles, CA, refineries and marine terminals through 14- and 8-inch pipelines that origi-nate in Colton and extend to terminals in Barstow and Las Vegas, NV. Plans call for construction of 250 miles of 16-inch diameter pipeline from Colton to Las Vegas. The line will parallel existing utility corridors to minimize environmental concerns. Capacity on the system would increase to approximately 200,000 bpd when completed. The expansion timeline calls for a 2010 in service date, pending environmental approvals and rate decisions.

LONGHORN PARTNERS PIPELINE – (5/07)Longhorn Partners Pipeline, L.P. says it will increase pumping capacity of its pipeline from Houston to El Paso. The increased capacity will be accomplished by adding four new pump stations along line, as well as equipment upgrade at existing stations. With the added horsepower, the line’s capacity will increase from 72,000 bpd to 125,000 bpd. The additions to the line, which transports multiple grades of unleaded gasoline and diesel, are scheduled for completion mid-2008.

MAGELLAN MIDSTREAM PARTNERS, L.P. (MMP) – (6/08) Magellan Midstream Partners plans to invest $240 million to build energy infrastructure in Texas, provid-ing the partnership a direct pipeline connection to the refinery hub of Port Arthur. As proposed, the 80-mile, 16-inch diameter refined products line will connect the refining region of Port Arthur, TX to the partnership’s existing terminal at East Houston, which serves as an origin point for Magellan’s 8,500-mile pipeline system. The new pipeline, which will be capable of transport-ing 150,000 bpd, is supported by a 15-year agreement with Motiva Enterprises LLC. Based on current proj-ect plans, the pipeline system is expected to be fully operational by 2011, consistent with the completion of Motiva’s Port Arthur refinery expansion. The pipeline system also will allow Magellan to provide transporta-tion services for other refiners in the Port Arthur area.

In addition, a pipeline connection will be added between the partnership’s East Houston terminal and Motiva’s existing Pasadena terminal. Currently, Magellan’s pipeline system delivers product to three Motiva terminals in the Texas market, including Hearne, Waco and Dallas.

(9/07) Magellan Midstream Partners, L.P. plans to invest approximately $65 million to expand its refined petroleum products assets in Texas. Plans include increasing its pipeline capabilities in the Texas market and expanding its Dallas area terminals. The partner-ship intends to loop its existing 12-inch diameter pipeline between its Galena Park origins and its East Houston terminal with a new 16-inch diameter line. The partnership also intends to construct 250,000 barrels of storage at its East Houston terminal and add a new pump station north of the Houston area. These projects will increase the partnership’s capabilities to handle petroleum products originating from the Houston area for delivery throughout the Texas market, adding 200,000 bpd of incremental pipeline capabilities to the East Houston terminal and 65,000 bpd of incremental pipeline capabilities to Dallas and other Texas markets. The new additions, which are currently expected to be operational in the latter half of 2008, also will provide flexibility for the partnership to increase its pipeline capacity further in the future.

MAGELLAN MIDSTREAM PARTNERS/BUCKEYE PARTNERS - (4/08)Magellan Midstream Partners, L.P. and Buckeye Partners, L.P. report the two companies have initiated a study to determine the feasibility of building and operating an ethanol pipeline. As currently planned, the line would have the capacity to transport more than 10 million gallons of ethanol per day gathered from production facilities in Iowa, Illinois, Minnesota and South Dakota. The ethanol would be supplied to ter-minals including Pittsburgh, Philadelphia and the New York harbor. Preliminary estimates place the cost at $3

Page 28: Planned Pipeline Construction Projects in the Feasibility Stage or Not

billion for a pipeline that would measure some 1,700 miles. The line would cross the western Pennsylvania counties of Beaver, Allegheny, Westmoreland, Cambria and Blair, using Byckeye rights-of-way for its existing products pipeline. A timetable for building the line will be determined by the study results.

PACIFIC TEXAS CORPORATION – (8/07) Pacific Texas Corporation has started an open season to determine long-term com-mitments for two proposed products pipelines. The lines, as planned extend from El Paso, TX to Phoenix, AZ and on to Las Vegas, NV. Products terminals will be located near Phoenix and south of Las Vegas. According to Pacific Texas, several Texas refin-ery groups have given letters of intent for shipment of gasoline, diesel and jet fuel through the Pac Tex El Paso terminal for shipment to Southwest markets. The open season ran through Aug. 15, 2007.

PRODUCTS – InternationalAfricaTRANSNET/PETRONET – (7/06)Transnet and Petronet recently approved the spending of $500 million for the design, construction and commissioning of the proposed Multi-Products Pipeline Project (NMPP). This project involves construction of a 504-mile pipeline that will transport petroleum products from Durban on the South African Indian Ocean coast west to Johannesburg. The pipeline will enhance Petronet’s capacity to service the transport needs of refined petroleum products doubling current pipeline capac-ity to accommodate future needs. Its completion is planned for 2010.

Asia PacificCHINA PETROCHEMCIAL CORP. – (9/07)China Petrochemcial Corp., the parent of Sinopec, plans to build an oil products pipeline linking Jinan in eastern Shandong province with Handan in northern Hebei province. The 298-mile pipeline will be designed to transport 5.9 million tons of gasoline and diesel per year.

PETROCHINA – (10/07)PetroChina is considering installing products pipelines from Qingzhou, a port city of Guangxi Zhuang Autonomous Region, to Nanning, the region’s capital city. Analysts say Quingzhou-Nanning pipeline may extend to other south Cihina cities, including Guangdong, Guangxi, Hainan, Yunan and Guizhou provinces. No timele has been announced.

OFFSHORE - The Americas(NOTE: Projects involving Offshore and On and Offshore Pipelines are included in this section.)

U.S. AES CORPORATION – (REV. 4/08)AES Corporation continues to wait on FERC and MMS approval for amended application that addressed route variations, as well as construction and design changes for its Ocean Express Pipeline. Under the current timetable, AES plans to start construction in 2008 with gas deliveries scheduled for 2010. Plans involve lay-ing a 94-mile, 26-inch pipeline from a proposed LNG terminal in the Bahamas to an interconnect with the Florida Gas Transmission System in Broward County. When completed the $93 million pipeline will transport 842 MMcf/d of natural gas. For information, go to www.aesoceanexpress.com.

COMPASS PASS PIPELINE – (4/07)Compass Pass Pipeline LLC is waiting on FERC approval to construct the 31-mile Compass Pass Offshore-Onshore Line to a proposed 1.5 BCFD LNG re-gasification terminal offshore Alabama. Plans call for a new 26-mile, 36-inch pipeline to trans-port gas from the LNG terminal offshore Alabama in the Gulf of Mexico to onshore pipelines. Another five miles will be built onshore in Mobil County. The projected pipeline cost is $22 million. Compass Pass Pipeline is a wholly owned subsidiary of ConocoPhillips.

EXCALIBUR ENERGY/CANADIAN SUPERIOR/GLOBAL LNG – (7/08)Excalibur Energy, a 50/50 joint venture company between Canadian Superior Energy Inc. and Global LNG Inc., a New York based privately held company, launched its $550 million Liberty Natural Gas Transmission Project as a new

www.pipeline-news.com • September 2008 • Pipeline News 35

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Page 29: Planned Pipeline Construction Projects in the Feasibility Stage or Not

36 Pipeline News • September 2008 • www.pipeline-news.com

source of natural gas to meet the growing energy demands of the Northeast region. The project will consist of an LNG regasification terminal located 15 miles off the New Jersey coast, 50 miles of offshore natural gas pipeline, and 11 miles of onshore pipeline terminating in Linden, NJ. Near-shore the pipeline will be directionally drilled so that no surface sediments are disturbed. Onshore the pipeline will be laid within an existing interstate pipeline corridor to Linden, NJ. The proposed project will begin delivery of up to 2.4 billion cubic feet per day of natural gas by late 2011.

The Liberty Natural Gas Project will receive natural gas from overseas, including the Republic of Trinidad & Tobago, a major supplier of LNG to the U.S. Also, the Government of Trinidad and Tobago has been invited to participate in the project.

PORT DOLPHIN ENERGY LLC - (8/08)Port Dolphin Energy LLC representatives report the gas pipeline for the company’s LNG deepwater port in the Gulf of Mexico, will be re-routed to avoid an aquatic preserve off Anna Maria Island. The new route, as re-drawn, remains the same 42-mile length and will connect the offshore terminal 28 miles south-west of Tampa Bay with Port Manatee, FL. From there, the proposed line links with pipelines feeding the Gulfstream Natural Gas System and the Tampa Electric Company. With permits in hand by late 2009, the company says construction would start in 2010 with a completion date early 2011.

SPECTRA ENERGY/KEYSPAN ENERGY – (REV. 3/08) The Islander East natural gas pipeline project, proposed by KeySpan Energy and Spectra Energy, was dealt another blow in late 2007 when the 2nd U.S. Circuit Court of Appeals decided to send the controversial gas pipeline issue back to federal officials for reconsidera-tion. However, Islander East officials say the decision means the next step will be either a reconsideration of the case by the U.S. Secretary of Commerce or addi-tional federal hearings on the project.

As proposed, the pipeline will extend 45 miles from North Haven, CT to Long Island, NY. The route includes 22 miles of pipeline that crosses the Long Island Sound, where it would cut through the Thimble Islands and offshore shellfish beds after entering the Sound of Branford.

SUEZ ENERGY – (REV. 8/07)Suez Energy North America received approval from the FERC and the State of Florida for the U.S. por-tion of the company’s $500 million Calypso Pipeline Project. Plans call for a 90-mile, 24-inch diameter pipeline, which will deliver 830 MMcf/d of natural gas, from the Bahamas to a site near Port Everglades, FL, to serve markets in the southern part of the state. The U.S. portion, which originates at the Exclusive Economic boundary between the U.S. and the Bahamas, consists of 42 miles of 24-inch subsea pipeline and a 5.8-mile, 24-inch onshore segment. It extends to a to a deepwa-ter LNG terminal 10 miles offshore and on to the coast. The original line has been modified to include a 3.2 mile landfall tunnel for the line. At that point, the line will increase to 30-inch diameter before returning to 24-inch, following the tunnel. In the Bahamas, the line starts at an LNG facility near Freeport. Both sections of the line will be built by two Suez Energy subsidiar-ies. Gas deliveries are scheduled to begin in 2009.

WILLIAMS – (9/07)Williams plans to spend $480 million on its Perdido Norte Project in the Gulf of Mexico to provide gather-ing and processing infrastructure to transport produc-tion from the Perdido Foldbelt for Shell, Chevron and

BP. The infrastructure includes 184 miles of pipeline, of which 77 miles will be a crude pipeline that will run from the producers floating production facil-ity to the Hoover Offshore Pipeline System HOOPS. They will also build a 107 mile natural gas gather-ing pipeline system to transport approximately 265 MMcf/d of production. The gas line will extend from the producers’ floating production facility to Williams existing Seahawk gathering system that connects with a Williams Transco-operated pipeline that transports natural gas to the company’s Markham, TX processing facility. Williams plans to begin pipeline construction in January 2008.

Caribbean/South & Central AmericaU.S. VIRGIN ISLANDS – (9/08)The U.S. Virgin Islands is considering laying a natural gas pipeline to replace diesel-generated power. with gas brought in from a pipeline network in Puerto Rico. Engineers are looking to recalibrate oil-dependent generators to burn cheaper natural gas. The shift to natural gas will save utility customers a significant amount in electricity cost. An undersea pipeline would transfer natural gas to St. Thomas from the outlying Puerto Rican island of Culebra. Virgin Islands and Puerto Rican representatives met in August to deter-mine the next phase in the discussions.

TRINIDAD & TOBAGO – (12/06)Trinidad & Tobago’s National Gas Company is plan-ning a $550 million natural gas pipeline project to be constructed in the Caribbean. Pending approval from the Barbados government, the project would be done in phases with the first phase involving a pipeline from Tobago to Barbados to be used for power generation. The second phase would continue from Barbados to supply neighboring islands including St Lucia, Dominica, Martinique and Guadeloupe. The entire pipeline would stretch 406 miles and will be designed to deliver about 100Mf3/d. Once approved the pipe-line’s final details will be completed.

OFFSHORE – International(NOTE: Projects involving Offshore and On and Offshore Pipelines are included in this section.)

Asia PacificCLP HOLDINGS – (10/06)CLP Holdings is planning to spend $1 billion to develop an LNG terminal in Hong Kong along with a 25-mile submarine pipeline which will link the terminal with a power station. The company has submitted a financial plan to the government to build the terminal on South Soko Island in a bid to replace the existing gas supply from Yacheng field near Hainan. The termi-nal is scheduled to be completed in 2010.

GAS AUTHORITY OF INDIA LTD. – (3/07)The Gas Authority of India Ltd. (GAIL) and Oil & Natural Gas Corporation (ONGC) are forming a joint venture to develop the US$882 million, 621-mile Kakinada to Haldia gas pipeline to transport gas dis-covered by ONGC in the Bay of Bengal to Haldia in West Bengal.

GOVERNMENT OF BANGLADESH – (8/07) The Bangladesh energy ministry is planning to build two subsea pipelines to transport imported petroleum across the country. Plans call for a 37-mile pipeline to

be built from a deepwater port to Chittagong while another will be installed from Chittagong to either Chandpur or Fatullah in Narayanganj. Project cost is estimated at $175 million and the state-owned Bangladesh Petroleum Corporation will build and operate the project.

HUSKY ENERGY/CNOOC – (6/08) Canada’s Husky Energy plan to construct a 200-mile pipeline as part of a major development in the South China Sea. Husky estimates development of the Liwan gas field may reach $5 billion. The field is estimated to contain 4-6 Tcf of gas, making it potentially one of China’s largest offshore gas fields. China National Offshore Oil Corporation (CNOOC) is Husky’s part-ner in the development.

ORIGIN ENERGY – (REV. 8/07)Origin Energy is proceeding with final preparation plans for the Kupe Gas Project. The project includes the installation of new gas production wells and a 19-mile pipeline to a new production station west of Hawera, New Zealand. Some pre-construction activity has taken place for the field and pipeline development. The field is expected to provide New Zealand with 230 petajoules of natural gas and 16 million barrels of light crude over its 15 to 20 year production life. The project has a mid-2009 in-service date.

PETRONAS/PTT - (REV. 8/07)The TransThailand Malaysia Pipeline project (TTM) remains stalled as the governments involved with the project work out the final agreements. The project, which was originally planned for completion in 2002, is considered a major link in the Trans-Asean pipe-line. Environmental lobbyists in Thailand delayed the construction start. The government has decided to go ahead with the project but the line will be rerouted about three miles from the Chana district in the prov-ince of Songkha to avoid adverse environmental and community consequences. The rerouting will shorten the shoreline from 54 miles to approximately 51 miles of 36-inch diameter pipe and the subsea pipeline length will increase from 172 miles to approximately 174 miles of 34-inch diameter pipe. The project is expected to cost about $1 billion dollars and will move natural gas from Malaysia and Indonesia to Southeast Asia.

PETROVIETNAM – (8/07)PetroVietnam plans to build a US$780 million pipeline to transport gas from an offshore field in the Mekong Delta to Can Thos City. The pipeline will run from block B, located about 85 miles southwest of Ca Mau province to Can Tho City, which is about 125 miles west of Ho Minh City. PetroVietnam is building a 2,800 MW gas-fired power complex in Can Tho City which is expected to begin operations in 2010.

WOODSIDE PETROLEUM LTD. – (9/07)Woodside Petroleum Ltd. has received approval from its board to develop the Pluto LNG project. Development is based on Woodside’s Pluto and Xena gas fields located about 118 miles northwest of Karratha in permit WA-350-P. The initial phase will include a single LNG production train with forecast production of 4.3 million tons per annum connected by a 112-mile, 36-inch offshore pipeline to a platform in 85 meters of water. The platform will be connected to five subsea wells on the Pluto field, with first gas to be produced in late 2010.

Future Jobs

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www.pipeline-news.com • September 2008 • Pipeline News 37

Western Europe & EU CountriesIGI POSEIDON S.A./BOTAS, D.E.P.A. & EDISON GAS – (REV. 7/08) D.E.P.A. and Edison Gas have formed a 50-50 joint venture company, IGI Poseidon, to build a natural gas pipeline between Greece and Italy. The European Commission has conditionally approved the Poseidon Pipeline project between Greece and Italy proposed by the Turkish natural gas company Botas, the Greek Natural Gas Corporation, (D.E.P.A.) and the Italian gas company Edison-Gas. As proposed, plans call for a 504-mile pipeline to be built of which 126 miles will run under the sea between Greece and Apulia, Italy. Some 378 miles will be built in Greece. It will also be connect-ed to Turkey, giving the EU access to Caspian Sea and Middle East natural gas. Construction is now slated to begin in late 2008 or early 2009 with completion in 2012. Under a new agreement, Edison and DEPA will build the section between Greece and Italy. The initial 8 Bcm of transmission capacity will be 80% reserved to Edison SpA and 20% to DEPA for 25 years.

ENAGAS - (7/07) Construction is slated to begin soon on Enagas’ Balearic Submarine Gas Pipeline to connect eastern Spain with the Balearic Islands. The 168-mile 20-inch diameter pipeline will ultimately carry gas from the Denia compressor station, near Valencia, to Ibiza and Majorca, in a water depth of up to 3,280 feet.

GASUM OY – (4/08)Gasum Oy is assessing the feasibility of linking its

natural-gas grid to the Baltic States to boost gas sup-plies. The Balticconnector will create a new natural gas transmission system that will link the Finnish, Estonian and Latvian natural gas grids and allows utilization of gas storage potential in Latvia to effectively meet the needs of all three countries.

Plans involve building a gas pipeline under the Baltic Sea from Helsinki to Tallinn. This would give Gasum access, via Estonia, to Latvia’s gas infrastruc-ture - and a major gas reservoir, the Incukalns under-ground storage facility. Preliminary studies call for the construction of an onshore pipeline from 50 to 76 miles between Finland and Estonia and the integration of existing transmission pipelines in Latvia and Estonia. The offshore portion of the pipeline is estimated to be around 139 miles. Feasibility studies and environmen-tal impact assessments are expected to be completed by the end of 2009. Initial studies have determined that the offshore section could be installed using conven-tional pipe-lay technology.

ROYAL DUTCH SHELL – (REV. 6/08)A modified route for the onshore section of Royal Dutch Shell PLC’s Corrib Gas Pipeline has been pro-posed by RPS consultants, the company contracted to identify a reroute for the project. The alternative route is located twice as far away from occupied housing compared to the originally approved route. The pipe-line has been delayed for more than two years due to protesters. With the new route, the concerns have been alleviated. Plans call for 52 miles of subsea pipeline from the Corrib gas field off the northwest coast of Ireland to shore where it will connect to the onshore pipeline to transport gas to the planned refinery at Bellanaboy. Completion is now scheduled for 2009.

STATOILHYDRO ASA/SWISS EGL GROUP – (3/08)StatoilHydro ASA (STO) and Swiss EGL Group plan to establish an equally owned joint venture to develop, build, and operate the proposed Trans Adriatic Pipeline (TAP) to transport natural gas from the Shah Deniz Azerbaijan. The 323-mile pipeline will transport gas through Greece and Albania and across the Adriatic Sea to Italy’s southern Puglia region and further into Western Europe. The project also includes the option to develop natural gas storage facilities and an LNG terminal in Albania. Capacity is expected to be in the range of 10 Bcm a year with the capability to expanded to 20 Bcm a year. The projected in service date is late 2011 at the earliest.

SYDKRAFT GAS AB -- (4/07)The Swedish government has approved plans to build a natural gas pipeline to connect the German natural gas network with the Danish and Swedish networks. Denmark and Sweden have issued an approval. However, the authorization process is still ongoing in Germany for the Baltic Gas Interconnector Pipeline. Feasibility studies are complete and the pipeline will have an initial capacity of 3 Bcm/y with the capabil-ity of increasing 10 bcm/y. Plans call for a 139-mile, 28-inch subsea pipeline from Germany across the Baltic Sea where it will split and go onshore in Copenhagen, Denmark and Trelleborg, Sweden. In Sweden, a 13-mile onshore pipeline will be built to connect it to the existing grid.

Seven companies from the three countries are behind the project including ENERGI E2 and Hovedstadsregionens Naturgas (HNG) from Denmark; Verbundsnetz Gas AG (VNG) from Germany; and

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38 Pipeline News • September 2008 • www.pipeline-news.com

from Sweden, Sydkraft AB, Göteborgs Energi, Lunds Energi and Öresundskraft. Sydkraft Gas AB has been formed by the developers to build the line. A 2009 completion date is scheduled.

OTHER - The AmericasU.S.BENGAL PIPELINE COMPANY – (9/08)Bengal Pipeline Company LLC plans to expand its capacity by 55,000 bpd with the addition of a new booster station near Garyville, LA. Bengal transports refined petroleum products, such as gasoline and diesel fuel. Approval for the expansion came from Shell Pipeline and Colonial Pipeline, which have owned Bengal in a joint-venture arrangement since 2006. The expansion is expected to be in service by early 2010 and will bring Bengal’s overall capacity to approximately 305,000 bpd. The Bengal Pipeline system connects a number of southern Louisiana refiner-ies with the Plantation and Colonial pipeline systems.

CAPLINE PIPELINE/CHICAP PIPELINE - (6/08)Capline and Chicap plan to expand the range of transport capabilities on both of their existing pipeline systems to include light liquid hydrocarbons. The change will create a transportation route for light hydrocarbons from the U.S. Gulf Coast to Alberta Canada, as well as to other Midwest destinations. No in-service date has been announced.

ENBRIDGE ENERGY – (10/06)Enbridge Energy Partners, L.P. has awarded AMEC Paragon a contract for program and project management, engineering and procurement services for its Southern Lights Pipeline. The project is designed to bring up to 180 Bpd of diluent from the U.S. Midwest to northern Alberta. Plans call for constructing 674 miles of 16 or 20-inch pipe from the Chicago area to Clearbrook, MN and utiliz-ing 442 miles of the same right-of-way as its Southern Access expansion between Flanagan, IL and Superior, WI. The project will also require approval of the Board of Directors for an exchange of the 156-mile section of its Line 13. The preliminary estimated cost of the project is $920 million and it is anticipated to be in service in early 2009, coinciding with the completion of the Southern Access project.

Future JobsENHANCED OIL RESOURCES – (5/08)Texas-based Enhanced Oil Resources has signed a memorandum of understanding to develop a 350-mile, $499 million CO² pipeline with SunCoast Energy. The proposed pipeline will run from Enhanced Oil’s St John Helium-CO² field located on the Arizona and New Mexico border to the Permian Basin of New Mexico and West Texas. Initial feasibility studies are underway, but plans include an in service date of late 2010. As projected, the pipeline will initially transport 350 MMcfd of CO² with the capability of expanding to 500 MMcf/d. The CO2 will be used in depleted oil fields the Permian Basin.

KINDER MORGAN – (6/07) Kinder Morgan plans to build a nine-mile pipeline to carry up to 1.26 MMgp/d of jet fuel from the Port of Tampa to Tampa International Airport. A route hasn’t been final-ized but the $25 million project is slated for completion by year-end 2008.

WEST TEXAS LPG – (REV. 2/08)West Texas LPG Pipeline L.P. says it has received final investment approvals to expand its common carrier NGL Pipeline, operated by Chevron Pipeline and Buckeye Partners. Plans call for the addition of a 39-mile, 12-inch diameter pipeline and three booster stations. A minimum capacity of 25,000 bpd is expected to be operational in the third quarter of 2008.

WILLISTON BASIN INTERSTATE PIPELINE CO. – (8/08)Williston Basin Interstate Pipeline Co., the wholly owned natural gas transmission pipeline subsidiary of MDU Resources Group, Inc., plans to expand its existing Grasslands Pipeline by installing additional compressor facilities. Grasslands Pipeline was placed into service December 2003 to transport natural gas from the Powder River Basin in northeastern Wyoming to western North Dakota, where it connects with the Northern Border Pipeline. The expansion would add up to 40 MMcf/d to existing vol-umes on Grasslands. Target in service date for the $15-million to $20-million expansion is scheduled for August 2009.

CanadaENHANCE ENERGY INC. – (8/08)Enhance Energy Inc., a private Alberta-based energy company specializing in enhanced oil recovery (EOR), reports it will build a new CO2 transmission system through central Alberta. The pipeline will be designed to gathering CO2 from several sources in Alberta’s industrial heartland and transport it to existing mature oil fields throughout South-Central Alberta. Contracts for design and project management have been awarded to Sunstone Projects Ltd. Other technical and support contracts have been awarded to Synergas Technologies Inc. for facilities engineering, Scott Land and Lease as land agent and Worley Parsons for environmental services.

The system will have a design capacity of 25,000 tons per day with the initial throughput planned at 5,000 tonper day. The pipeline system will consist of drying and compression facilities at the north end in the Heartland and a pump station east of Fort Saskatchewan in the Heartland Industrial Region, to be called the Elk Island Pump Station. Pipeline operations and control center will be located at the Elk Island.

Enhance Energy anticipates regulatory applications for the proposed project to be completed by spring of 2009, and depending on the timing of regulatory approval, construction is expected to start by the end of 2009, with operational startup in 2011.

Caribbean/South & Central AmericaPETROBRAS – (REV. 8/08)Cosan, Brazil’s largest sugar and ethanol group says its ethanol pipeline will be in service within four years. Earlier, Petrobras signed an aggrement with the Goias state government to build the ethanol pipeline. The 614-mile pipeline will run from Goias to a refinery in Paulinia, near Sao Paulo to Senador Canendo. Laterals will extend to the cities of Conchas and Ribeirao Preto in Sao Paulo state. Petrobras also has agreed to a company composed of private partners, Mitsui & Co., L.T.D. and Carmargo Correa S/A, to develop the conceptual and basic phases of the $996 million pipeline. This will be Brazil’s first ethanol pipeline and will transport 4 billion 1/y of ethanol.

PETROBRAS – (5/08) State-run oil firm Petroleo Brasileiro SA (PBR), (Petrobras), has signed a cooperation agreement with two Brazilian states to study the possibility of building an ethanol-only pipeline. Petrobras, and the states of Mato Grosso do Sul and Parana, plan to develop viability studies for an ethanol pipeline linking Campo Grande in western Brazil to the port of Paranagua in southern Brazil. The pipeline, which is projected to cost $1.2 billion, is expected to transport ethanol from both states for export, probably to Japan.

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