Feb 2012 Financial News

NGC to invest $1.7b in 2012 projects

Feb 23, 2012

The National Gas Company (NGC) is seeking to invest a total of $1.74 billion on local major projects for the year 2012. Most of the projects, Danford Mapp, acting vice president technical services, outlined are geared towards pipeline and infrastructure projects to improve the oil and gas industry.
Mapp was speaking on February 7 at the Energy Chamber’s annual conference at the Hyatt Regency Trinidad hotel, Port-of-Spain. In a presentation titled, Update on Pipeline and Infrastructure Projects, Mapp said NGC began some of the projects last year, but encountered challenges which resulted in delays. Among the challenges Mapp identified were the state of emergency and low levels of performance from local contractors.

He identified projects which were completed. The NorthEast Offshore (NEO) transmission pipeline project, construction of 36-inch offshore pipeline from the BHP Billiton field to the 36-inch Bud Offshore pipeline, has been completed since May 2011. The project would open access to new gas fields and new sources of gas from BHP for the domestic market. Another completed project is the natural gas pipeline to Tobago, construction of a 12-inch diameter line from BHP Billiton field to Tobago’s Cove Estate. This would provide gas supply to Power Generation Plant at Cove, gas supply to the light industry at Cove Park, transportation of gas for Eastern Caribbean Gas Pipeline Company and domestic supply to Tobago.

However, the arm to this project—Tobago gas processing facility—should be completed this year, Mapp said. The US$42 million distribution pipeline for Union and Labidco industrial estates is also completed. Mapp said this is a construction of 11 kilometre, 24-inch diameter spur pipeline and an inlet receiving station, metering and regulation to deliver 250 million metric of standard cubic feet per day. It also facilitates a construction of two kilometre low pressure HDPE distribution pipeline for tenants in the Labidco estate.

Ongoing projects

NGC has a number of ongoing projects. The Phoenix Park Valve Station, a $448 million project, is 93 per cent complete, Mapp said. He explained that it is a new 3000 bbl Slug Catcher with associated facilities to meet the increase demand on the Point Lisas industrial estate to handle more than three billion cubic feet per day. The US$115 million liquid fuels pipeline project is scheduled for completion by the third quarter 2012. Mapp said it’s a construction of an eight steel multi-product pipeline from Pointe-a-Pierre to Caroni (35 kilometres long) to transport two grades of gasoline (95 octane: 92 octane) diesel fuel and jet fuel. This is part of a new state-of-the-at road tank wagon loading facility at e-TecK’s industrial estate in Caroni, which includes a dedicated jet fuel pipeline (11 kilometres long) from Caroni to Piarco airport.

He said this project would bring several benefits.
• It would replace the existing loading facilities at Sea Lots and Pointe-a-Pierre with state-of-the-art facilities.
• Increase security of supply from either of two loadingClockwise from below:
1. Phoenix Park valve station upgrade
2. Inlet receiving station at Union
3. Distribution pipeline to Union and Labidco Industrial Estate.facilities at Caroni and Sea Lots
• Reduce road tank wagon traffic on the highways
• Eleiminate emissions from loading facilities and reduce carbon footprint
• Phased out expensive marine and jet fuel handling from Pointe-a-Pierre
Mapp said the $29 million pipeline to Diamond Vale industrial estate would be completed by the third quarter of this year. Progress on this project, construction of a six-inch in diameter, six kilometre pipeline from Westmoorings to Diamond Vale.

Other projects include:
• A $20 million Longdenville pipeline replacement works to be completed by the third quarter of 2012
• A $50 million BG to Beachfield interconnection to be completed by year’s end
• A $40 million Beachfield valve station to cross island pipeline interconnection
• $78 million new Beachfield condensate storage tanks
• A $77.5 million Charlieville diversion project to be completed by March 2013


Source:
Trinidad Guardian
Thursday February 23, 2012

http://www.guardian.co.tt/business-guardian/2012-02-20/ngc-invest-17b-2012-projects