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Global gas pipeline projects roundup: part 4

Published by
World Pipelines,

Oil and gas prices have fallen drastically in 2015. Due to an abundance of supply and reduced consumption, global energy markets have had to find more economical ways of transporting oil and gas and put an abundance of pipeline projects on hold. Dr. Hooman Peimani seeks to summarise the major global pipeline projects and how they have been affected.



TransCanada is working on the proposed Eastern Mainline Pipeline (4600 km) to increase mainly oilsands-based exports to the USA by converting an existing gas pipeline.

The US$12 billion project would transport 1.1 million bpd of oil from Alberta and Saskatchewan to refineries and port terminals in Eastern Canada by converting an existing west-east gas pipeline and adding an extension to connect it to Canada’s Atlantic ports, from where oil could be shipped to the US by tankers. The extension would link Canada’s Ontario-Quebec border to the port of Saint John, New Brunswick.

TransCanada expects to amend its application for the Eastern Mainline project by adding a new natural gas pipeline in the Toronto-Montreal corridor (250 - 300 km) to reflect its agreement with three Canadian gas distributors opposing the project as it is affecting their operation.


Permian-Mexico Pipeline

American ONEOK Partners and Mexican Fermaca Infrastructure have entered into a 50/50 joint venture to construct a pipeline for transporting gas from the Permian Basin in West Texas to Mexico.

The US$450 million project connects ONEOK Partners’ ONEOK WesTex Transmission gas pipeline system at Coyanosa, Texas, to a new international border-crossing connection at the US-Mexico border near San Elizario, Texas, to be connected with Fermaca’s Tarahumara gas pipeline. The project includes approximately 320 km of 30 in. pipeline for transporting up to 640 million ft3/d of gas with no less than 570 million ft3/d being transported to Mexico. ONEOK Partners will manage its construction and operate the pipeline.

The project’s first phase will provide 170 million ft3/d of capacity, which is scheduled for completion in 1Q16. The second phase is to increase the pipeline’s available capacity to 570 million ft3/d in 1Q17. The final phase is to realise the projected capacity of 640 million ft3/d, which is set for completion in 2019.



Galsi Gas Pipeline

Algeria and Italy agreed in February to work on the Galsi Gas Pipeline, whose construction has been delayed for over a decade due to uncertainty about Italy’s gas demand. Algeria’s Sonatrach leads the Galsi project consortium with a 41.6% equity interest in partnership with Edison (20.8%), Enel (15.6%), Hera Trading (10.4%) and the Sardinia Autonomous Region’s Sfirs (11.6%).

Worsening EU-Russian relations, and uncertainty about Russian gas in the future, have made Italy committed to the Galsi Gas Pipeline. With an estimated cost of US$2.5 - 3.96 billion, the project will enable Algeria to supply gas (8 billon m3/y) to Italy and the rest of Europe through an approximately 856 km pipeline, of which 565 km will be offshore.

A 285 km offshore line connects Algeria’s Kouduet Draouche on the Mediterranean coast to Porto Botte in Italy’s Sardinia. This will be connected to an onshore north-south Sardinian section (300 km) to link to a 280 km offshore section that will deliver gas to Piombino on the Italian mainland.

Ethiopia and Djibouti

The two neighbours have agreed to construct the Horn of Africa Pipeline (550 km; 20 in.; 240 000 bpd; US$1.4 - 1.55 billion) to connect the Djiboutian ports via Dire Dawa to a fuel depot in Awash, Ethiopia. Planned for completion in three years, Africa’s Black Rhino Group is expected to manage the pipeline for transporting refined oil products between the two countries. The project also includes an import storage facility (950 000 bpd) in Damerjog, Djibouti linked to a storage terminal in Awash, Ethiopia, near Addis Ababa. A final investment decision on the project is expected in 2016.

Written by Dr Hooman Peimani and edited by Elizabeth Corner. This article was published in full in the December issue of World Pipelines. To read the full article, click here.

Click here to read part 1, part 2 and part 3.

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