The FERC has issued a positive draft environmental impact statement (DEIS) for the proposed Ruby Pipeline, ruling that the project would have limited adverse environmental impact. It is a significant step forward for the project, because the proposed route spans large “greenfield” areas that do not have linear infrastructure such as roads, power lines or other pipelines.

As proposed, Ruby calls for the construction of 675 miles of 42-in. natural gas transmission pipeline, beginning at the Opal hub in Wyoming and terminating at interconnects near Malin, Oregon. Contracts for the pipe have been signed and pipeline construction companies have been selected.

The project will have an initial design capacity of
up to 1.5 Bcfd and will traverse portions of four states: Wyoming, Utah, Nevada, and Oregon. Four compressor stations are proposed for the project: one near the Opal hub in southwestern Wyoming; one south of Curlew Junction, Utah; one at the mid-point of the project, north of Elko, Nevada; and one in northwestern Nevada.

Once the project is thoroughly reviewed by the FERC in cooperation with state and federal agencies, including the Bureau of Land Management and the U.S. Forest Service, a certificate of public convenience and necessity may be granted and construction could begin in early 2010. The estimated in-service date is March 2011.

Enbridge to develop Kearl project pipeline

Enbridge Inc. says it has entered into an agreement with Imperial Oil Resources Ventures Limited and ExxonMobil Canada Properties to provide for the transportation of blended bitumen from the Kearl project in the Athabasca Oil Sands region of northern Alberta to the Edmonton, Alberta area. “Enbridge is pleased to have been selected
by Imperial and ExxonMobil,” said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. “The location of the project is an excellent fit with Enbridge’s new and existing pipeline and terminaling facilities, and is expected to contribute continued earnings growth in 2012 and beyond.” Daniel noted that the estimated cost of the pipelines and related facilities is subject to finalization of scope and detailed engineering, and regulatory approvals.

Tiger pipeline project gets local approval

Residents of Panola County, Texas, have told federal energy officials that they do not mind part of a 175-mi pipeline crossing their property as long as it is properly constructed. But, fewer than a dozen county residents were on hand to voice their opinions about the proposed $1-billion pipeline project, according to a report in the Longview News-Journal.

The meeting was part of a pre-application process with the FERC for Dallas-based Energy Transfer Partners to acquire a permit for the Tiger Pipeline project. The company, which operates natural gas transportation and storage businesses, wants to build a natural gas pipeline connecting wells in the Haynesville Shale. The pipeline would extend from Carthage to Delhi, Louisiana, where it would connect to other interstate pipelines. Energy Transfer officials said they hope to start construction on the project within about a year.

Officials expect the Tiger Pipeline to have an initial capacity of at least 1.25 Bcfd, with the potential of increasing to 2 Bcfd. Joey Mahmoud, Energy Transfer’s vice president of regulated projects, said 80% of the pipeline capacity has been sold to gas producers who want to use the line. He added that the remaining 400,000 cfd could be sold any time; and, once approved by the commission, could create between 1,200 and 1,500 jobs during construction. Once Energy Transfer submits its application, it could take about a year for federal approval.

Bayou wins Fayetteville Express contract

The Bayou Companies, Inc., report that they have been awarded a $27.6-million contract with ILVA S.p.A. for pipe coating, welding and logistical support services. ILVA is manufacturing and transporting pipe for installation on the Fayetteville Express Pipeline (FEP), a natural gas pipeline joint venture between Kinder Morgan Energy Partners, L.P. and Energy Transfer Partners, L.P.

Bayou’s work on the project will include the coating and double joint welding of approximately 185 mi of 42-in. pipe. Bayou will coat the pipe using internal flow efficiency and external fusion bonded epoxy processes. The company will also provide logistical support to ILVA in connection with the shipping and transport of the finished pipe to certain project sites.

The FEP will originate in Conway County, Arkansas, and terminate at an interconnect with Trunkline Gas Company in Panola County, Mississippi. Bayou anticipates work on the project to begin this month and expects completion by March 2010.