CALGARY, Alta. - The Government of Alberta will invest $US1 million into Enbridge Inc.'s CO2 Slurry Pipeline Project being developed in the United States to lessen the impact of the pipeline industry on the environment.
Where conventional slurry pipelines rely on liquids such as water to carry entrained solids, the Enbridge project proposes using carbon dioxide. Enbridge says that carbon dioxide is a more efficient carrier fluid than water because it is less abrasive, is able to carry a greater volume of material, and delivers solids that are dry rather than wet.
Under the program, carbon dioxide will be compressed into a liquid, then pumped through a pipeline to transport materials. Afterwards, the carbon dioxide will be stored underground in a manner similar to carbon capture and storage projects.
The government funding will be used for Phase 1 of the project, which will cost $1-$2 million and take approximately two years to complete. This phase, the CO2 Slurry Pipeline Research Initiative, will determine the viability of building a long-distance carbon dioxide slurry pipeline, which would transport sulphur, petroleum coke and limestone from the Fort McMurray area to local and international markets.
Phase 2 will involve building a carbon dioxide flow loop to prove slurry and de-slurry capability, while Phase 3 will involve commercial operation and market integration.
Monday, April 12, 2010
Friday, April 9, 2010
Denali estimates Alaska gas pipeline will cost $35 billion
JUNEAU, Alaska - Details of the Denali project, a joint effort of ConocoPhillips and BP PLC, were released on April 6 in a filing with the Federal Energy Regulatory Commission. The pipeline to move natural gas from Alaska's North Slope to North American markets will cost an estimated $35 billion, according to its planners.
Denali proposes a pipeline stretching more than 1,700 miles, with delivery points along the way to help meet gas needs in Alaska and Canada. It bills the project as "one of the largest private investments in the history of North America."
Denali is competing with a proposal being advanced by Calgary, Alberta-based TransCanada Corp. and Exxon Mobil Corp., of Irving, Texas. That project, which has been promised up to $500 million from the state for eligible costs, has estimated its cost at $20 billion to $41 billion, depending on the route, with an option crossing Alaska and into Canada estimated at $32 billion to $41 billion.
Denali proposes a pipeline stretching more than 1,700 miles, with delivery points along the way to help meet gas needs in Alaska and Canada. It bills the project as "one of the largest private investments in the history of North America."
Denali is competing with a proposal being advanced by Calgary, Alberta-based TransCanada Corp. and Exxon Mobil Corp., of Irving, Texas. That project, which has been promised up to $500 million from the state for eligible costs, has estimated its cost at $20 billion to $41 billion, depending on the route, with an option crossing Alaska and into Canada estimated at $32 billion to $41 billion.
Thursday, April 8, 2010
ExxonMobil to pay $32.2 million in back-royalties to U.S.
WASHINGTON - Exxon Mobil Corp will pay $32.2 million to the United States to resolve claims that some of its units knowingly underpaid royalties owed on natural gas, the Justice Department said on April 5.
The government alleged that Mobil Natural Gas Inc., Mobil Exploration & Producing U.S. Inc. and affiliates underreported the value of natural gas taken from federal and American Indian leases between March 1, 1988 and Nov. 30, 1999.
As a result, the Mobil entities paid lower royalties than they owed to the United States and to American Indian tribes, the government said. The Mobil entities became part of Exxon Mobil through a 1999 merger.
The case arose out of a lawsuit filed by a private citizen on behalf of the United States under the whistleblower provisions of the federal False Claims Act.
Various other energy companies have agreed to pay more than $200 million to settle their portions of the lawsuit.
The government alleged that Mobil Natural Gas Inc., Mobil Exploration & Producing U.S. Inc. and affiliates underreported the value of natural gas taken from federal and American Indian leases between March 1, 1988 and Nov. 30, 1999.
As a result, the Mobil entities paid lower royalties than they owed to the United States and to American Indian tribes, the government said. The Mobil entities became part of Exxon Mobil through a 1999 merger.
The case arose out of a lawsuit filed by a private citizen on behalf of the United States under the whistleblower provisions of the federal False Claims Act.
Various other energy companies have agreed to pay more than $200 million to settle their portions of the lawsuit.
Wednesday, April 7, 2010
FERC backs higher tariffs for Enbridge Alberta Clipper in dispute
CALGARY, Alta. - Pipeline tariffs are set to surge for Canada's oil producers after Enbridge Inc. won a key battle against oil sands companies that have criticized the company for building what they called an unnecessary pipeline to the United States.
The U.S. Federal Energy Regulatory Commission (FERC) ruled against Suncor Energy Inc., which wanted to avoid paying additional tolls for the new $3.7-billion line. Suncor argued that Enbridge should not have built the pipeline, and its argument was supported by a number of other producers.
FERC sided with Enbridge, which wants to raise the tolls on its network of crude pipelines on April 1 in order to pay back the costs of building and operating the line, which runs 1,607 kilometers from Hardisty, Alta., to Superior, Wis.
The ruling means Enbridge tolls will increase by 97 cents, a 33-per-cent hike, over 2009 levels, Enbridge said. About three-quarters of that increase is because of Clipper costs.
That's not enough to significantly impact oil producers' profits, since it's a small percentage of the price of crude. But had Enbridge lost against Suncor, "it would have been a negative for Enbridge earnings," said UBS Securities analyst Chad Friess.
The U.S. Federal Energy Regulatory Commission (FERC) ruled against Suncor Energy Inc., which wanted to avoid paying additional tolls for the new $3.7-billion line. Suncor argued that Enbridge should not have built the pipeline, and its argument was supported by a number of other producers.
FERC sided with Enbridge, which wants to raise the tolls on its network of crude pipelines on April 1 in order to pay back the costs of building and operating the line, which runs 1,607 kilometers from Hardisty, Alta., to Superior, Wis.
The ruling means Enbridge tolls will increase by 97 cents, a 33-per-cent hike, over 2009 levels, Enbridge said. About three-quarters of that increase is because of Clipper costs.
That's not enough to significantly impact oil producers' profits, since it's a small percentage of the price of crude. But had Enbridge lost against Suncor, "it would have been a negative for Enbridge earnings," said UBS Securities analyst Chad Friess.
Tuesday, April 6, 2010
Enterprise buying gas gathering lines from M2 for $1.2 billion
Enterprise Products Partners L.P. said on April 1 that it has agreed to purchase two natural gas gathering and treating systems from M2 Midstream for about $1.2 billion.
The transaction for the State Line system and the Fairplay system is expected to close in early May 2010 and be accretive to Enterprise's distributable cash flow in the second half of 2010.
The systems are located in Northwest Louisiana and East Texas, and gather natural gas produced from the Haynesville/Bossier Shales and the Cotton Valley and Taylor Sands formations. The company noted that both systems are supported by long-term acreage dedications and volumetric commitments from producers.
In late February, Enterprise Products announced the completion of its $3.3 billion merger with TEPPCO partners, L.P., an energy logistics partnership. With an enterprise value of about $30 billion, 48,000 miles of pipelines and market capitalization of $18 billion, the combined entity has become the nation's largest publicly traded partnership.
According to Enterprise, the two natural gas systems that it has agreed to acquire complement its downstream assets and provide multiple opportunities for synergies, including a long-term gathering conduit for the company's Haynesville Extension pipeline and Enterprise Texas pipeline, as well as natural gas liquid or NGL volumes for the company's Panola pipeline and downstream Mont Belviue fractionation, storage and distribution complex.
The State Line system, which began operations in February 2009, is located in Desoto and Caddo Parishes, La., and Panola County, Texas. The system includes 138 miles of natural gas pipelines with a capacity of approximately 400 million cubic feet per day or Mmcfd, and two treating facilities. The system, currently gathering about 260 Mmcfd, will almost triple its capacity to 700 MMcfd after a 50-mile expansion of the system that is expected to be completed in June 2010.
The State Line system will interconnect with the 42-inch Haynesville Extension of Enterprise's Acadian natural gas pipeline system. The Haynesville Extension, currently under construction, is expected to be completed in the third quarter of 2011. Enterprise noted that the State Line system, once connected to the Haynesville Extension, can be further expanded to 1.2 billion cubic feet per day for a nominal cost.
In late 2008, M2 Midstream initiated the State Line Gathering System, a greenfield project, to serve the Haynesville Shale play in DeSoto Parish, La. During 2009, the company added over 90 miles of pipeline to the system and three processing plants.
The Fairplay system, located in Rusk, Panola, Gregg and Nacogdoches counties in Texas, includes 249 miles of natural gas pipelines. This includes about 62 miles leased from third parties, with a capacity of approximately 285 MMcfd, and is currently gathering approximately 180 MMcfd. This system is expected to be connected to the Enterprise Texas Pipeline system by the first quarter of 2011.
The Fairplay system was acquired by M2 Midstream in December 2007 and began a significant capital improvement and expansion during 2008.
The transaction for the State Line system and the Fairplay system is expected to close in early May 2010 and be accretive to Enterprise's distributable cash flow in the second half of 2010.
The systems are located in Northwest Louisiana and East Texas, and gather natural gas produced from the Haynesville/Bossier Shales and the Cotton Valley and Taylor Sands formations. The company noted that both systems are supported by long-term acreage dedications and volumetric commitments from producers.
In late February, Enterprise Products announced the completion of its $3.3 billion merger with TEPPCO partners, L.P., an energy logistics partnership. With an enterprise value of about $30 billion, 48,000 miles of pipelines and market capitalization of $18 billion, the combined entity has become the nation's largest publicly traded partnership.
According to Enterprise, the two natural gas systems that it has agreed to acquire complement its downstream assets and provide multiple opportunities for synergies, including a long-term gathering conduit for the company's Haynesville Extension pipeline and Enterprise Texas pipeline, as well as natural gas liquid or NGL volumes for the company's Panola pipeline and downstream Mont Belviue fractionation, storage and distribution complex.
The State Line system, which began operations in February 2009, is located in Desoto and Caddo Parishes, La., and Panola County, Texas. The system includes 138 miles of natural gas pipelines with a capacity of approximately 400 million cubic feet per day or Mmcfd, and two treating facilities. The system, currently gathering about 260 Mmcfd, will almost triple its capacity to 700 MMcfd after a 50-mile expansion of the system that is expected to be completed in June 2010.
The State Line system will interconnect with the 42-inch Haynesville Extension of Enterprise's Acadian natural gas pipeline system. The Haynesville Extension, currently under construction, is expected to be completed in the third quarter of 2011. Enterprise noted that the State Line system, once connected to the Haynesville Extension, can be further expanded to 1.2 billion cubic feet per day for a nominal cost.
In late 2008, M2 Midstream initiated the State Line Gathering System, a greenfield project, to serve the Haynesville Shale play in DeSoto Parish, La. During 2009, the company added over 90 miles of pipeline to the system and three processing plants.
The Fairplay system, located in Rusk, Panola, Gregg and Nacogdoches counties in Texas, includes 249 miles of natural gas pipelines. This includes about 62 miles leased from third parties, with a capacity of approximately 285 MMcfd, and is currently gathering approximately 180 MMcfd. This system is expected to be connected to the Enterprise Texas Pipeline system by the first quarter of 2011.
The Fairplay system was acquired by M2 Midstream in December 2007 and began a significant capital improvement and expansion during 2008.
Monday, April 5, 2010
India snubs U.S. warning over gas pipeline from Iran
WASHINGTON and NEW DELHI - Denying any U.S. pressure on its ties with Iran, India has decided to nominate its ambassador to participate in a meeting on nuclear disarmament in Tehran, and further stressed that it has not shut its door on the proposed Iran-Pakistan-India gas pipeline project.
Four days after a Nuclear Security Summit in the U.S., Iran, under escalating international pressure over its nuclear program, will be hosting a two-day conference beginning April 17 on nuclear disarmament and is seeking India’s support for the initiative.
India’s Ambassador to Iran Sanjay Singh will participate in the April 17-18 Tehran meeting on nuclear disarmament entitled “Nuclear Energy for All, Nuclear Weapons for None.”
Further, India said it has not withdrawn from the proposed $7.5 billion tri-nation IPI gas pipeline, well-placed sources said on April 3.
“We haven’t shut the door on dialogue. Besides pricing and security issues, the volatile situation in Pakistan also has a bearing on the project,” a source said.
In March, Iran and Pakistan signed a bilateral pact on the pipeline project, but left the door open for India to join in at a later stage.
Underlining India’s ties with Iran, the sources pointed out that Tehran is important for New Delhi not just for energy but also for strategic reasons in Afghanistan.
The source also denied any American pressure on India to scale down its ties with Iran, saying New Delhi’s ties with Tehran stand independently of its relations with other countries.
Four days after a Nuclear Security Summit in the U.S., Iran, under escalating international pressure over its nuclear program, will be hosting a two-day conference beginning April 17 on nuclear disarmament and is seeking India’s support for the initiative.
India’s Ambassador to Iran Sanjay Singh will participate in the April 17-18 Tehran meeting on nuclear disarmament entitled “Nuclear Energy for All, Nuclear Weapons for None.”
Further, India said it has not withdrawn from the proposed $7.5 billion tri-nation IPI gas pipeline, well-placed sources said on April 3.
“We haven’t shut the door on dialogue. Besides pricing and security issues, the volatile situation in Pakistan also has a bearing on the project,” a source said.
In March, Iran and Pakistan signed a bilateral pact on the pipeline project, but left the door open for India to join in at a later stage.
Underlining India’s ties with Iran, the sources pointed out that Tehran is important for New Delhi not just for energy but also for strategic reasons in Afghanistan.
The source also denied any American pressure on India to scale down its ties with Iran, saying New Delhi’s ties with Tehran stand independently of its relations with other countries.
Thursday, April 1, 2010
Mayeaux to receive ISHM Laurance S. Reid Award
OKLAHOMA CITY, Okla. - The International School of Hydrocarbon Measurement (ISHM) has announced that Donald P. Mayeaux is the recipient of the Laurance S. Reid Award, given annually to recognize individuals who have made significant contributions to the hydrocarbon measurement industry.
Mayeaux is the founder and CEO of A+ Corp., headquartered in Gonzales, La.
Mayeaux is an internationally recognized expert on natural sampling and analysis. He has been awarded 30 patents and has 10 more pending on various aspects of natural gas sampling and analysis, including gas blending, gas analyzers, membrane separators, sampling components, and moisture and corrosion control packets.
Mayeaux founded A+ Corporation in 1988. The company has grown into one of the preeminent gas sampling equipment manufacturers in the U.S. Mayeaux is also the founder of the Natural Gas Sampling Technology Conference (NGSTech), an international conference held biennially to help advance the state of the art of natural gas sampling and measurement, and an Instrument Society of America Fellow.
The award will be presented at the International School of Hydrocarbon Measurement to be held May 11-13 at the Cox Communications Center in Oklahoma City.
Mayeaux is the founder and CEO of A+ Corp., headquartered in Gonzales, La.
Mayeaux is an internationally recognized expert on natural sampling and analysis. He has been awarded 30 patents and has 10 more pending on various aspects of natural gas sampling and analysis, including gas blending, gas analyzers, membrane separators, sampling components, and moisture and corrosion control packets.
Mayeaux founded A+ Corporation in 1988. The company has grown into one of the preeminent gas sampling equipment manufacturers in the U.S. Mayeaux is also the founder of the Natural Gas Sampling Technology Conference (NGSTech), an international conference held biennially to help advance the state of the art of natural gas sampling and measurement, and an Instrument Society of America Fellow.
The award will be presented at the International School of Hydrocarbon Measurement to be held May 11-13 at the Cox Communications Center in Oklahoma City.
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