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April Newsline: Development Through Sewer Upgrades; Obama Proposes Infrastructure Bank and More
If new pipeline construction contract awards are an indication, the North American pipeline construction outlook appears healthy. Three separate contracts have been awarded calling for more than 1,100 miles of new mainline construction. The contracts include an award by El Paso Corporation to U.S. Pipeline Inc., Houston, Rockford Corp., Hillsboro, OR, and Precision Pipeline, LLC, Eau Claire, WI, to build the $3 bullion 680-mile Ruby Pipeline. As planned, the 42-inch pipeline will originate at the Opal Hub in Wyoming and terminate at the Malin, OR, interconnect, near California’s northern border. El Paso officials say the project will begin service in March 2011.
Denbury Resources also awarded contracts for the construction of the company’s Green Pipeline project to Houston-based U.S. Pipeline, Troy Construction, and Wilco Pipelines Contractors of Rayne, LA.
The 314-mile, 24-inch diameter pipeline will extend from Donaldsonville, LA, to the Hasting Field, south of Houston. Once completed, owners say the pipeline will be one of the first pipelines designed to transport man-made CO2 so that it can be injected or sequestered into the ground, keeping it out of the earth’s atmosphere and utilizing it to recover oil that would not otherwise be produced.
Price Gregory Services of Houston was the recipient of a Regency Energy Partners contract to expand the company’s pipeline system in North Louisiana to transport natural gas from the Haynesville Shale plays. Estimated to cost $1.1 billion, the expansion will provide 1.45 Bcf/d of new capacity to handle increases in production from the region.
The expansion, which includes looping the existing pipeline, extending the system and adding new compression, will add 204 miles of new pipe with diameters ranging from 24- to 42-inch to the Regency system. Compression additions will total 49,000 horsepower. As planned, project construction will be divided into two phases. Phase one is expected to be completed during the first half of 2009, adding 300 MMcf/d of capacity, at a cost of $375 million. Phase two is designed to add an incremental 1.15 Bcf/d and is scheduled to be in-service late 2009 with full operations set for March 2010.