World Pipelines - May 2016 - page 7

MAY 2016
/
World Pipelines
5
W
o
rld News
SIGN UP TO RSS NEWS FEEDS AT
Alberta Energy Regulator awards Pembina pipeline approvals
Pembina Pipeline Corporation has received approval from the Alberta Energy
Regulator (AER) relating to the construction of two 270 km, 24 and 16 in. pipelines
between Fox Creek and Namao, Alberta (the Fox Creek to Namao pipelines), as part
of a series of projects that form the company’s Phase III expansions.
Once complete, Pembina will have four pipelines in the Fox Creek to Namao
corridor, with an initial total design capacity across the company’s Peace and Northern
systems of approximately 900 000 bpd that can be further expanded through the
addition of pump stations to reach an ultimate capacity of approximately
1.2 million boe/d. Each of the four pipelines will transport different products (crude oil,
condensate, propane-plus and ethane-plus) creating optimal flexibility for Pembina’s
customers. Construction of the pipelines represents a significant portion of the overall
Phase III expansion programme.
Paul Murphy, Pembina’s Senior Vice President, Pipeline and Crude Oil Facilities,
stated: “Our Phase III expansion programme is the largest capital project in Pembina’s
history and is poised to have a transformative impact on the future of our company.
“Receiving the approvals to complete the Fox Creek to Namao pipelines is a major
milestone for us and concludes the comprehensive and rigorous regulatory and
environmental review that we had initiated over two years ago. Our company has
devoted extensive time and effort working on this thorough review and I am pleased
by the positive outcome. Further, we believe the Fox Creek to Namao pipeline
approval is encouraging news for our customers, as additional capacity on our system
continues to be in demand post our recent NGL, crude oil and condensate Phase II
expansion that went into service in 2015.”
Overall, the project is on time and under budget and the company continues to
anticipate an in-service date of mid 2017 for the entire Phase III expansion
programme.
TAPI: construction before 2020?
On 7 April, an investment agreement was signed
by the shareholders of the TAPI Pipeline
Company Limited (TPCL). Petroleum Ministers
and senior officials of Turkmenistan, Afghanistan,
Pakistan and India, and senior Asian
Development Bank (ADB) officials were present
to witness the signing. It was agreed by the four
countries that an amount of over US$200 million
would be invested.
Yagshygeldi Kakayev, Deputy Chairman of the
Cabinet of Ministers of Turkmenistan stated: “The
financial support committed by the shareholders
of TAPI under this investment agreement is a true
testament of their intention to get this historic
project off the ground and running.
Turkmenistan’s vision is strongly aligned with that
of its TAPI neighbours to make this project a
reality and to deliver a truly regional project that
will address energy demands and support
economic prosperity and security in the region.”
Similarly, the ADB is confident in the ability
to overcome the challenges of construction of
the US$10 billion natural gas TAPI pipeline
through Afghanistan’s most fragile areas by 2020.
The recent ADB press release stated: “This
[the US$200 million investment] includes funding
for detailed engineering and route surveys,
environmental and social safeguard studies, and
procurement and financing activities, to enable a
final investment decision, after which
construction can begin. Construction is estimated
to take up to three years.
Sean O’Sullivan, the Central and West Asia
Director General of the ADB, explained: “TAPI
exemplifies ADB’s key role in promoting regional
co-operation and integration over the past 20
years. We’re going through some of the toughest
territory in Afghanistan. TAPI will unlock
economic opportunities, transform infrastructure,
diversify the energy market for Turkmenistan and
enhance energy security for the region. The
challenge is there. There’s no doubt about it, but I
am sure it’s doable. I think if it happens, it will be
quite an unprecedented example of regional
co-operation, particularly in a region that finds it
difficult to co-operate.”
The ADB has been providing TAPI with
administrative advice since 2003, and has been its
transaction advisor since 2013. The ADB has aided
TAPI in establishing the pipeline, contracting
Turkmengaz as its consortium leader, while also
finalising the shareholder and investment
agreements for the project.
Enbridge’s 1953 pipeline agreement allegedly violated
Enbridge has been accused of violating multiple terms of the 1953 agreement with
the state of Michigan that originally allowed the placement of oil pipelines on the
lake bottom in the Straits of Mackinac.
A group of 22 environmental and tribal groups have written a letter to Michigan
Governor Rick Snyder, Attorney General Bill Schuette and interim state Department of
Environmental Quality Director Keith Creagh, demanding that oil flow is halted
through Line 5. Line 5 comprises twin pipelines that carry nearly 23 million gal./d of
light crude oil and natural gas liquids such as propane through the Straits of Mackinac.
The groups referred to recently released data on Enbridge’s website from a 2013
inspection of Line 5, showing corrosion in nine locations on the eastern segment of
the underwater Straits pipelines, as well as two dents and 35 “circumferential” cracks at
the locations where the pipeline segments are welded together: one 7 in. long area of
corrosion has resulted in a 26% loss of wall thickness. The environmental groups argue
that it is a violation of the 1953 easement pact between the state of Michigan and
Enbridge’s predecessor, Lakehead Pipe Line Inc., to allow the pipes on the lake bottom.
Enbridge spokesperson Jason Manshum, stated: “They are taking good information
out of context. There’s no corrosion along the Straits crossing.” The allegations follow a
Republican state senate bill introduced recently that would require all existing
pipelines under Michigan’s Great Lakes waters undergo a risk review.
Manshum said the defects discovered in the 2013 inspection are not part of the
underwater portion of the pipeline, are not on state land, and “are well within federal
regulations and our own standards for repair ... no piece of pipe – even brand new – is
100% perfect. Since 1953, we have watched and recorded how these anomalies have
progressed over time. They haven’t changed. It’s not metal loss.”
1,2,3,4,5,6 8,9,10,11,12,13,14,15,16,17,...92
Powered by FlippingBook