2013 Pipeline Construction Report

By Rita Tubb, Managing Editor | January 2013, Vol. 68, No. 1

Enterprise plans to loop 62 miles of gas pipeline with 24-inch and 30-inch loops. Construction on the expansion is should be ready for operation shortly.

The company has a 173-mile extension of the partnership’s NGL pipeline system under construction from Yoakum, TX to the western reaches of the Eagle Ford in LaSalle County. The pipeline will link to the company’s NGL pipeline system that delivers Eagle Ford production to Mont Belvieu where Enterprise is constructing three NGL fractionators. The extension is set to begin service in the second quarter.

Williams Partners gained approval to expand its Transco natural gas pipeline to provide an additional 250,000 Dth/d of incremental firm transportation capacity to the Northeast. The expansion will primarily consist of 12 miles of pipe at locations in Pennsylvania and New Jersey in addition to a 25,000-hp compressor facility in Essex County, NJ along with other facility modifications. The cost of the project is estimated to be $341 million. It is to be placed into service in November.

NA oil
Just as the shale boom has increased gas pipeline construction, shale plays are also increasing the nation’s crude oil pipeline construction.

Data from the U.S. Energy Information Administration indicates oil production (including lease condensate) averaged almost 6.5 MMbpd in September 2012, the highest volume in nearly 15 years. The states with the largest increases are Texas and North Dakota.

From September 2011 to September 2012, the EIA reported Texas production rose more than 500,000 bpd as North Dakota production increased by more than 250,000 bpd. Increased production from smaller-volume producing states, such as Oklahoma, New Mexico, Wyoming, Colorado, and Utah, is also contributing to the rise in domestic crude oil production and pipeline construction.

One example is TransCanada’s Gulf Coast project involving a 485-mile, 36-inch crude oil pipeline beginning in Cushing, OK and extending south to Nederland, TX to serve the Gulf Coast marketplace. The 47-mile Houston Lateral project is an additional project under development to transport oil to refineries around Houston.

Construction on the Gulf Coast pipeline commenced August 2012 with an anticipated in service date of mid-to-late 2013. The line will have initial capacity to transport 700,000 bopd and can expand to transport 830,000 bopd to refineries.