Pipeline projects are booming, with a new $220 million system planned for the Southeastern US and new coatings contracts announced for projects in Malaysia and Australia.
New US Pipeline Planned
Kinder Morgan and Valero Energy have formed a joint venture to build and operate a new 136-mile, 16-inch-diameter pipeline to transport gasoline, jet fuel and diesel across the Southeastern United States.
The new, $220 million Parkway Pipeline will extend from refineries in Norco, LA, to an existing petroleum transportation hub in Collins, MS. This hub is owned by Plantation Pipe Line Co., which is 51 percent owned and operated by Houston-based Kinder Morgan, one of the largest pipeline transportation and energy storage companies in North America.
|The proposed Parkway Pipeline will extend from Norco, LA, to Collins, MS.|
From this hub, the refined petroleum products will be transported by pipeline systems— including the approximately 3,100-mile Plantation system—that serve major markets in the Southeast.
Enhancing Southeastern Supply
The pipeline will have an initial capacity of 110,000 barrels per day (bbl/d) with the ability to expand to more than 200,000 bbl/d. Pending approvals, the pipeline is expected to be in service by mid-2013.
“This project will enhance fuel supply and optionality for sourcing refined products into Southeastern markets currently served by pipeline systems such as Plantation Pipe Line Co.,” said Kinder Morgan Products Pipelines President Tom Bannigan.
Construction of the Parkway Pipeline will follow existing utility rights-of-way wherever possible to minimize environmental impacts, Kinder Morgan said.
Australian Pipeline: $40M in Coatings
Meanwhile, the Australian Pacific LNG (APLNG) Project has reaped a $39.6 million contract for Wasco Energy’s Pipe Coating Division.
The contract involves coating more than 435 miles of line pipe, including about 280 miles of 42-inch-diameter pipeline to transport dehydrated and compressed coal seam gas from the Surat Basin and Bowen Basin to a proposed LNG processing site at Laird Point on Curtis Island, Gladstone.
The work will be performed at Wasco’s primary coating plant in Kuantan, Malaysia, and is expected to begin by the end of the year, with completion set for 2012.
The APLNG Project is a joint venture between Origin Energy Limited and ConocoPhillips.
Malaysian Pipeline: $2M in Coatings
Wasco has also signed a $2 million line pipe coating contract for the Sabah Oil and Gas Terminal (SOGT) project in East Malaysia. That contract, from Samsung Engineering Co. Ltd., involves the coating of about 7.5 miles of 28-inch and about 6.2 miles of 36-inch pipeline with asphalt enamel and concrete weight coating system.
|Wasco Energy’s Pipe Coating Division will install concrete weight coating on pipelines in Malaysia.|
Wasco Corrosion Services Sdn Bhd, a subsidiary of Wasco Energy, will supply sacrificial aluminum anodes associated with the project.
The 250-acre Sabah Terminal will receive, store and export crude oil as well as receive, process, compress and transport the gas produced from offshore fields. The terminal will have the capacity to handle up to 300,000 barrels of oil per day and 1.0 billion cubic meters of gas per day. The crude oil and condensate received and stored at the terminal will be loaded into vessels for export through single-point moorings about 6.2 miles offshore Kimanis.
Wasco’s Pipe Coating Division, located along a major shipping route in the South China Sea, supplies coated pipe all over the world. The division offers a comprehensive range of anti-corrosion coatings, flow assurance coatings, concrete weight coatings, and cathodic protection anodes.