Pipeline & Gas Journal
January issue 2000:

A Pipeline & Gas Journal Staff Report

Work From Alliance Moving Industry

Though the 1999 transmission pipeline construction season won’t go down as a record year in terms of manhours worked, the year will readily be remembered as a trendsetter. The mega-sized Alliance Pipeline was substantially completed and the two-year construction of Maritimes/Northeast Pipeline was wrapped up. In addition to its scope, particularly impressive about Alliance is that it marked the introduction of mechanized welding in the United States.

With only a small portion of Alliance remaining to be constructed in 2000, what lies ahead for this construction season? For the U.S., approximately 2,500 miles of gas transmission pipeline is planned and roughly 600 miles of oil pipeline is scheduled to kick off this spring. That represents a construction budget of over $4.7 billion.

The industry received some discouraging news when the Federal Energy Regulatory Commission (FERC) said it was holding off approval of construction for the Independence/MarketLink/Supply Link projects by asking the affected companies for more information. Earlier, the FERC had published a final environmental impact statement, saying the $677 million Independence project was “OK” with appropriate mitigating measures. Independence would be a 400-mile pipeline between Defiance, OH and Leidy, PA. It would be operated by a general partnership comprised of Transco, ANR and National Fuel Gas.

There are a substantial number of mid to large projects on the books to be built this year, such as the 344 miles for Vector Pipeline, Florida Gas Transmission’s Phase 4 139-mile project and 422 miles for Millennium Pipeline.

Internationally, the prospect for pipeline construction also is encouraging. Canada is the big question mark, as after record years with the Canadian construction portion of Maritimes/NE and Alliance, projects for the next five years are unclear. This year appears to be okay with about 1,000 miles of new construction planned.

5-Year Pending Pipeline Construction Plans
Editor’s Note: Pipeline News, a sister publication to P&GJ, supplied the following listings for our annual construction outlook. Published monthly with weekly Internet updates available, Pipeline News supplies the most comprehensive data available regarding the worldwide pipeline construction market. For subscription information, call toll-free at (888) 558-6930, ext. 10 .

GAS TRANSMISSION
United States
ANR PIPELINE
The FERC has issued a Public Notice of Application for the $1.6-billion, 744-mile Gulfstream natural gas pipeline. In Florida, 292 miles of main line and laterals will deliver natural gas throughout the state.

The FERC issued a favorable environmental assessment of the Wisconsin 2000 expansion project.

ANR SUPPLY LINK PROJECT
A 72-mile 30- and 42-inch pipeline loop for natural gas transmission at various locations in Illinois, Indiana, Michigan and Ohio.

ALGONQUIN GAS TRANSMISSION CO
The HUBLINE project will involve the construction of approximately 24 miles of 24-inch diameter pipeline from the Maritimes mainline extension.

ARCO ALASKA INC.
A memorandum of understanding is expected to be signed between the mayors of Valdez, the North Slope and North Star Boroughs and representatives of Yukon Pacific, Bechtel and Williams to further plan the proposed 800-mile ALASKA NORTH SLOPE GAS PIPELINE.

ASPEN PRODUCTS PIPELINE, LLC
Work is anticipated to begin in August on the ASPEN PIPELINE PROJECT, which involves about 760 miles of existing pipeline and 250 miles of new construction.

ATLANTA GAS LIGHT COMPANY
Installation of a 7.6-mile (40,000-foot) 24-inch pipeline in Cobb County, GA. AGL is actively engaged in the replacement of 143 miles of bare steel, cast iron pipeline in 2000 at a cost of approximately $45 million.

ATLANTIC ADVANTAGE PROJECT
Tennessee Gas Pipeline and CNG Transmission said the open season for the Atlantic Alliance Project closed Nov. 30, 1999. To avoid confusion with the Alliance Pipeline, which is not affiliated with this project, the name was changed to the Atlantic Advantage Project.

CMS ENERGY CORP.
An application for a certificate of public convenience was filed with the FERC to construct, own and operate the Guardian Pipeline. Three additional shippers have signed agreements for the proposed 150-mile, 16- and 36-inch pipeline.

CMS GAS TRANSMISSION AND
STORAGE CO.
A Draft Environmental Impact Statement has been issued by the FERC for the TRISTATE PIPELINE project, which includes construction of approximately 148 miles of 30-inch pipeline; approximately three miles of 30-inch interconnect pipeline; 66 miles of 36-inch pipeline looping; and 12.1 miles of 24-inch pipeline.

THE COASTAL CORP.
Coastal and Peoples Energy will build a $300-million 130-mile pipeline to transport natural gas from Indiana to Wisconsin.

COLORADO INTERSTATE GAS
Plans to build the proposed 440-mile, 20- and 24-inch diameter Ruby Pipeline for transporting natural gas from northeastern Utah to northern Nevada are on indefinite hold.

COLUMBIA GAS TRANSMISSION
Construction to begin in the spring on the proposed 422-mile, 36-inch MILLENNIUM PIPELINE.
COLUMBIA GULF TRANSMISSION
Shippers had a positive response to the open season held on the proposed 200-mile, 24-inch Volunteer Pipeline being developed with MCN Energy Group for natural gas transmission.

Work is scheduled to begin on a 2,500-foot, 36-inch pipeline for natural gas transmission in the Columbia Gulf mainline that will cross the Tennessee River near Corinth, MS, in Harding County, TN.

Sunstar is a proposed 56-mile, 30-inch diameter pipeline with 18 miles of 24-inch diameter lateral pipelines in the South Pass and West Delta of the Gulf of Mexico.

CUMBERLAND GAS PIPELINE CO
Plans are on indefinite hold for construction of the 141-mile, 12-inch Cumberland Pipeline.

DUKE ENERGY
Plans to build the approximately 600-mile SAWGRASS ENERGY TRANSMISSION SYSTEM, a $1.3 billion natural gas pipeline.

EMPIRE STATE PIPELINE
An application has been approved by the New York State Public Service Commission to build a 12-inch pipeline interconnect.
ENBRIDGE, INC.
Plans are continuing for the Vector Pipeline, a 344-mile, 36- and 42-inch pipeline.

Together with LOOP LLC, is still in the development stages to build the 275-mile, 36-inch $400 million ALLIGATOR PIPELINE.

ENTERPRISE PRODUCTS
PARTNERS L.P.
Pipe was ordered to build a 206-mile, 12-inch diameter expansion of the Lou-Tex propylene pipeline that Enterprise is acquiring from an affiliate of the Shell Oil.

FLORIDA GAS TRANSMISSION (FGT)
A draft environmental impact statement was issued by the FERC for the FGT Phase IV expansion, which will expand FGT’s 5,000-mile transmission system by 139.5 miles.

Phase V Expansion
A filing was made Dec. 1 with the FERC to add 231 miles to FGT’s main pipeline.

INDEPENDENCE PIPELINE COMPANY
Waiting on the FERC to issue a CPNC for the 400-mile, 36-inch INDEPENDENCE PIPELINE PROJECT.

KINDER MORGAN INC (KMI)
FERC approval has been received for the 109-mile FRONT RUNNER Project.

A FERC filing was to be made in December after requests for service were received for the 129-mile, 36-inch Horizon Pipeline.
The 150-mile, 24-inch PATHFINDER project is planned.

MIDCOAST ENERGY RESOURCES
In an agreement with Exxon, an eight-mile, 14-inch pipeline for natural gas will be built from the Chacahoula lateral of the Florida Gas Transmission pipeline to the Exxon natural gas plant in Baton Rouge, LA. A smaller seven-mile pipeline for natural gas will be built from Midcoast’s Creole system to the Chevron plant in Belle Chasse, LA.

MITCHELL GAS SERVICES L.P.
Will install 27 miles of 16- and 24-inch residue header from its Bridgeport Plant to a proposed power plant and from there to an interconnect with pipeline suppliers. Another 24.5 miles of 12- and 16-inch diameter gathering lines will be installed from the McAlister to the High C compressor stations and at the McAlister and the Jennings suction headers. In the fourth quarter of 2000, a 12-inch diameter, five-mile gathering line will be installed from the Allison to the B-119 compressor stations.

NEMO GATHERING CO., LLC
Tejas Energy LLC and Leviathan Gas Pipeline Partners are planning to build a 24-mile, 20-inch gas gathering line.

NW NATURAL
Planning to build a 52-mile, 24-inch natural gas line in Oregon.

PAIUTE PIPELINE CO
The FERC has issued a notice of intent to prepare an environmental assessment for the Carson Lateral project, which involves laying approximately 10 miles of 20-inch pipe beginning in Carson, NV.

PUGET SOUND ENERGY
This project has been delayed due to permitting issues. Construction is now expected to begin in June for two 1-mile, 12-inch natural gas distribution pipelines to be laid in 175 feet underwater.

QUESTAR PIPELINE CO
Questar announced a joint-ownership agreement with Colorado Interstate Gas, for a 75-mile interstate natural gas pipeline from the Price area of eastern Utah to a proposed interconnect.

SOUTH CAROLINA PIPELINE CORP
Engineering contracts have been awarded to Fluor Daniel and Foster Wheeler Environmental Corp. for the $178 million SOUTH CAROLINA EXPANSION PROJECT.

SOUTHEAST ALABAMA GAS DISTRICT
A 61-mile 20-inch transmission line is being built.

SOUTHERN NATURAL GAS CO
Site work has stopped on the PALMETTO INTERSTATE PIPELINE, a joint venture project with Carolina Power & Light. The companies are now in discussions with South Carolina Pipeline. Depending on what happens with the discussions, this project, which involves constructing a 177-mile, 30-inch natural gas pipeline from Aiken, SC, to an interconnect with the North Carolina Natural Gas System in Robeson County, NC, could be scratched in the near future.

SOUTHERN VERMONT NATURAL GAS
Planning to build 63 miles of intrastate gas pipeline.

SOUTHWEST GAS CORPORATION
In 2002, a two-mile steel pipeline will be installed along Jones Boulevard from Tropicana to Sunset in the Las Vegas. In 2000, a metering facility using 12- to 16-inch pipe will be installed south of Bullhead in Mohave County, AZ.

TENNESSEE GAS PIPELINE CO
The FERC has issued a Notice of Intent to Prepare an Environmental Assessment on the proposed EASTERN EXPRESS PROJECT 2000.

TEXAS EASTERN
TRANSMISSION CORP.
The FERC is preparing an environmental assessment on the Ironwood lateral proposed by Texas Eastern. The project includes 3.6 miles of 16-inch diameter gas pipeline, one meter station and two hot taps.

TRANSWESTERN PIPELINE COMPANY
The FERC issued an environmental assessment on the natural gas pipeline facilities proposed by Transwestern for the Gallup expansion project.
VIRGINIA GAS COMPANY
In December, Virginia Gas Company received a Final Order from the Virginia State Corporation Commission authorizing expansion of the Company’s P-25 intrastate pipeline. The expansion is 43 miles.

WILLIAMS GAS PIPELINE
Together with BC Hydro, Westcoast Energy and its subsidiary, Centra Gas, are planning to build an 85-mile, 16-inch natural gas pipeline (GEORGIA STRAIT CROSSING).

WILLIAMS GAS PIPELINE TRANSCO
A contract has been awarded to Gulf Interstate Engineering Company for project management, engineering, design and procurement services on the $528-million Marketlink Pipeline.

Buccaneer
Certification process is under way for the proposed 558-mile BUCCANEER PIPELINE project.

Plans to install about 37 miles of pipeline looping as part of the Empire District Electric Company State Line.

WISCONSIN GAS
An application was filed by this WICOR subsidiary with the Public Service Commission of Wisconsin (PSCW) for a certificate of public convenience to construct, own and operate a 35-mile lateral pipeline.

Canada
ATCO GAS PIPELINE CO.
Still awaiting NEB approval for the ALBERTA PIPELINE, a $330 million, 400-mile natural gas pipeline.
BC GAS
Land clearing has begun for the 193-mile, 24-inch SOUTHERN CROSSING PIPELINE project.

ENBRIDGE, INC.
Westcoast Energy has signed up as a 30 percent equity partner in the 344-mile, 36- and 42-inch VECTOR PIPELINE project.
IMPERIAL OIL CO
The WESTALTA PROJECT involves construction of a new straddle plant in west-central Alberta and construction about 7.5 miles of new pipeline.

MARITIMES & NORTHEAST PIPELINE
A public hearing was held Oct. 12 to discuss the proposed $93 million, 75-mile, 4- and 16-inch HALIFAX LATERAL PIPELINE PROJECT.

NORTH ATLANTIC PIPELINE
PARTNERS L.P.
NAPP is still conducting engineering and feasibility studies for the 1,500-mile underwater NORTH ATLANTIC NATURAL GAS PIPELINE.

SEMPRA ATLANTIC GAS
In November, the Utility Review Board of Nova Scotia recommended to the provincial government that Sempra Atlantic Gas be awarded a 25-year franchise to supply natural gas to 18 counties in the province. The board’s recommendation is being reviewed and a final decision is expected before January. If the franchise is approved, the project will require the installation of 5,000 miles of high-pressure steel and medium-pressure plastic pipeline.

TRANSCANADA PIPELINES
The NEB is seeking public comments on a draft environmental assessment for a 15-mile, 36-inch line from Courtright, Ontario to the Dawn sales meter near Sarnia, Ontario.

An application has been filed with the NEB to build a 60-mile, 36-inch natural gas pipeline across Lake Erie.

International
SHELL PHILLIPPINES EXPLORATION BV - Scope of work for the MALAMPAYA PROJECT involves installing a 314-mile, 24-inch gas export pipeline from the offshore production platform to the landfall location at Batangas on the island of Luzon, Philippines. Two 19-mile, 16-inch lines will also be installed from the deepwater subsea production manifold to the offshore production platform together with a two-mile, 24-inch export pipeline from the offshore production platform to a nearby CALM.

AUSTRALIAN GAS LIGHT CO.
AGL and Petronas are entering into the procurement process, detailed offshore and onshore route preparation and fine-tuning its construction program and final contracting strategy to install 178 miles of 6-inch gas transmission line in New South Wales and 35 miles of 16-inch looping from Roma to Brisbane in Queensland.

BP AMOCO OF LONDON
The partners expect to build a 1,864-mile pipeline from the field north into China, with a possible link into South Korea.

BECHTEL/GENERAL ELECTRIC
Three significant agreements have been signed to build the 750-mile TRANSCASPIAN GAS PIPELINE SYSTEM.

CENTRAL ASIA GAS PIPELINE LTD.
Things remain at a standstill for the $1.9 billion CENTGAS 1,165-mile, 48-inch gas pipeline from Turkmenistan to Pakistan. Another future 400-mile extension to a terminus near New Delhi, India is possible.

CONOCO/ELF AQUAITINE
Still in the engineering phase for the construction of a $430 million 155-mile pipeline and plant facilities to be built in Syria.

ENRON INTERNATIONAL
A consortium including Enron, Shell International Gas and a Bolivian state-owned oil company will construct the 391-mile, 18-inch CUIABA PIPELINE project.

Together with China National Petroleum Corp., Enron in planning to begin construction in late 1999 on a $400 million, 475-mile pipeline.

EXXON JAPAN PIPELINE, LTD.
Exxon Japan Pipeline, Ltd. has signed an agreement with Japan Sakhalin Pipeline FS Co., Ltd. (JSPFSC) to study the feasibility of building a natural gas pipeline from Russia to Japan.

GASUM OY
Planning a 25-kilometer DN900 trunk pipeline and a 20-kilometer DN500 trunk pipeline for natural gas transmission.

GHANA NATIONAL PETROLEUM CORPORATION
Chevron has been appointed as project manager of the 620-mile, $400 million WEST AFRICA GAS PIPELINE PROJECT.

PNG GAS
The PNG gas project includes a 50-mile pipeline from Hides to Kutubu, a 137-mile export gas line linking the Kutubu gas fields with a marine terminal in the Gulf of Papua, a 286-mile pipeline crossing the Torres Strait and making landfall on the tip of Cape York Peninsula, and a 1,491-mile pipeline from Cape York to Townsville, Gladstone and Brisbane.

CONOCO INDONESIA
Contract to build a 300-mile, 28-inch subsea gas line to transport natural gas from offshore Indonesian waters to Singapore.

PETROBRAS
Construction is expected to begin late this year on the 382-mile, 24-inch natural gas pipeline between Uruguay and Porto Alegre in southern Brazil.

TEJAS ENERGY, LLC
An application has been filed to construct a 110-mile, 24-inch line later this year.

TRANSCANADA INTERNATIONAL
Waiting for government authorizations before proceeding with the SONGO SONGO GAS-TO-ELECTRICITY PROJECT, which involves construction of a proposed 155-mile natural gas pipeline to Dar es Salaam.

TRANSPORTADORA de GAS NATURAL de BAJA CALIFORNIA
The Rosarito Pipeline, which is under construction and is about 30 percent complete. The 23-mile, 30-inch diameter pipeline.

OIL
United States
PACIFIC & TEXAS PIPELINE
AND TRANSPORT CO
Pacific & Texas Pipeline has entered into a joint venture agreement with Pan Kai Development USA, Inc. to jointly build, construct and operate a 1,075-mile, 42-inch crude oil pipeline and fiber optic system.

QUESTAR PIPELINE CO
THE FERC has issued a preliminary determination approving Questar’s plans to convert 700 miles of existing pipeline from crude oil to natural gas service. The SOUTHERN TRAILS project will also involve five new pipeline extensions and interconnects totaling 59.8 miles of 20- and 22-inch pipe.

Canada
ENBRIDGE, INC.
TERRACE PHASE EXPANSION PROJECT PHASE II - Still in the planning phase. Involves an extension of the 36-inch line.

TERRACE EXPANSION PHASE III
Still in the planning phase. Includes an extension of the 36-inch pipeline.

International
AZERBAIJAN INTERNATIONAL OPERATING CO
Planning to build a 1,240-mile pipeline from the Azeri capital, Baku, to the Turkish port of Ceyhan.

PETRO PERU S.A.
A bid for a feasibility study was made for 81 to 99 miles of 36-inch crude oil transmission pipeline originating at the southeastern Ecuadorian blocks and traveling to the Peruvian border.

PETROTRIN
Several pipelines for crude oil transmission will be installed by Petrotrin in the West Indies,

CAMEROON OIL TRANSPORT CO.
An environmental assessment has been filed with the World Bank for a proposed 650-mile, 24- to 30-inch CHAD-CAMEROON PIPELINE SYSTEM.

TRANSNEFT
Planning to build a 280-mile crude oil pipeline from the Komi Republic to the Baltic Sea coast.

PRODUCTS
United States
COLONIAL PIPELINE COMPANY
FERC approval is expected soon for a 171-mile, 20-inch pipeline extension being designed and engineered by Colonial.

MARATHON ASHLAND PETROLEUM, LLC
A contractor will be named early next year for a project involving construction of a 130-mile, 14-inch petroleum products pipeline.

OLYMPIC PIPELINE COMPANY
Construction to begin on the $105 million 230-mile, 12- to 14-inch CROSS CASCADES PIPELINE.

RAVEN RIDGE PIPELINE COMPANY
Installation of 128 miles of 16-inch carbon dioxide transmission line.

TEPPCO
TEPPCO Partners, LP has announced plans to build a 360-mile products line.

Canada
CORRIDOR PIPELINE
Alberta’s Energy and Utilities Board has approved the 283-mile CORRIDOR PIPELINE project.