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Shale Plays Remain Key To Nation’s Economy, Jobs And Energy Security
He also discussed the company’s New Jersey-New York expansion, Team 2014, AIM, Open and Nexus projects with in-service dates ranging from 2013 to 2016.
Also in the session, Joseph Ramsey, group vice president, Spectra Energy, overviewed project execution and obstacles the industry needs to overcome.
According to Ramsey, it is getting harder and harder to get regulatory approval for projects, especially interstate pipelines that go through the FERC process.
“Along with the permit delays is opposition from land owners that often results in having to resort to condemnation in order to obtain right-of-way,” he said. “Certainly we are also dealing with legal and public relations challenges because of public opposition to projects, especially where companies are trying to undertake new pipeline construction, an expansion or Greenfield project in an area where there has not been a lot activity in recent years.”
Giving Spectra’s New Jersey-New York project as an example, he said, “What we’ve found in the northeast is that these folks are very vocal, very opinionated and they know how to work the social media and to get the ear of politicians.”
Ramsey pointed out that the New Jersey-New York project is the first major, large diameter, high pressure gas pipeline to be constructed into Manhattan since the 1950s. “It involves only five miles of pickup and relay of 12 and 20-inch pipe with 42-inch pipe, primarily coming out of our Linden, NJ, compressor station. Plus 15 miles of Greenfield 30-inch pipeline from Staten Island through Bayonne and Jersey City and under the Hudson River to Manhattan. It also requires nine horizontal directional drills,” he said.
As to the cost, he said the capital expenditure for the project ran $1.2 billion. “When you work out the cost per mile, it is $60 million a mile,” he said.
Noting that project completion is scheduled Nov. 1, 2013, he said, “It may be finished early which is a tribute to the folks we’ve hired to handle this project. Our main contractor is Henkels & McCoy, and Michels Corporation is responsible for the drills. J.L. Allen Co. is doing the compressor station work and Gulf Interstate Engineering is responsible for a lot of the detail design work.”
Cathy Landry, director of communications for INGAA, provided a look at what could be expected in the near-term in Washington, with particular reference to the U.S. gas industry.
She opened by saying the situation in Washington is about the same as last year and could be summed up in one word, “stalemate.”