July 2024, Vol. 251, No. 7
Projects
Projects July 2024
Enbridge Picks Contractors for Great Lakes Tunnel Project
Enbridge has retained a joint venture partnership between Barnard Construction Company and Civil and Building North America (CBNA) to build the Great Lakes Tunnel in the Straits of Mackinac.
The primary purpose of the tunnel is to provide a secure pathway for Enbridge’s Line 5 pipeline. Line 5 is a major pipeline that transports crude oil and natural gas liquids from Superior, Wisconsin, through Michigan’s Upper and Lower Peninsulas, before reaching its final destination in Sarnia, Ontario, Canada.
The Canadian energy company’s decision is driven by concerns over the pipeline’s current underwater crossing in the Straits of Mackinac. The existing pipeline is laid on the lakebed, which has raised safety concerns over possible leaks or damage from ship anchors.
Montana-based Barnard and Florida-based CBNA will work with Enbridge to construct the tunnel for the state, a joint statement from the companies.
The contract, according to Reuters, was granted after Enbridge initiated a request for proposal (RFP) process in early 2022. The construction and operation of the Great Lakes Tunnel will be overseen by Mackinac Straits Corridor Authority (MSCA).
Enbridge will finance the project entirely, and upon its completion, ownership and operation will transfer to the MSCA. The company is preparing to begin construction following the receipt of environmental permits from the U.S. Army Corps of Engineers.
Barnard and CBNA will each retain a 50% partnership under the name Mackinac Straits Partners, according to the statement.
Paraguay Pursues Argentina-Brazil Gas Pipeline Link
Paraguay is moving forward with discussions between energy companies and high-ranking government officials from Argentina and Brazil, concerning the construction of a $1.5 billion gas pipeline connecting the three countries.
The plan being drawn up by Paraguay, reported in detail for the first time, aims to compete with a rival Bolivian bid to repurpose existing pipelines to transport Argentine gas to Brazil, officials for Paraguay and Brazil told Reuters.
If either project is realized it would mark a major potential shift in regional energy flows.
“We want to sign a memorandum of understanding at a presidential level (for the pipeline) in June,” Mauricio Bejarano, Paraguay’s deputy mining and energy minister said. “There is a general support for the project.”
Falling gas production in Bolivia forces Brazil to look for other suppliers, with Argentina’s Vaca Muerta region, via the Paraguayan Chaco, gaining support. It would involve $1.2 billion-$1.5 billion of investment, partly from the private sector, he said.
Governments and companies from Argentina and Brazil have also engaged in talks with Bolivia since last year over what they think could be the fastest and cheapest option to transport gas from Vaca Muerta to the north of the region, which would involve reversing the flow of Bolivia’s pipeline network.
Energy Transfer Joins Carbon Capture, Storage Initiative
CapturePoint and an affiliate of Energy Transfer have formalized agreements for the joint development of a carbon capture and permanent underground storage project in Louisiana.
The initiative would mitigate greenhouse gas emissions by storing CO2 from Energy Transfer’s Haynesville natural gas treating facilities at CapturePoint’s Central Louisiana Regional Carbon Storage Hub (CENLA Hub).
The hub, considered one of the largest onshore deep underground carbon storage centers in development in the United States, is poised to permanently secure millions of tons of CO2 annually, mitigating its release into the atmosphere. These agreements laid the groundwork for capturing and storing up to two million tons of CO2 annually at the CENLA Hub.
Recent data from test wells at the CENLA Hub indicate the region’s unique geology could potentially sequester several hundred million tons of CO2 permanently. CapturePoint’s permit applications for Class VI CO2 injection sites in Vernon and Rapides Parishes are currently under review by the Louisiana Department of Natural Resources.
– Mary Holcomb, P&GJ
New Jersey Natural Gas Installs State’s First Carbon Capture
New Jersey Natural Gas (NJNG), a subsidiary of New Jersey Resources, has recently installed two CarbinX carbon-capture systems at its headquarters in Wall, New Jersey, marking a significant step toward reducing greenhouse gas emissions in the state. These innovative units, developed by CleanO2 based in Canada, represent the first of their kind in New Jersey.
Each CarbinX unit, about the size of two residential refrigerators, is integrated into NJNG’s HVAC system. They function by capturing carbon emissions that would otherwise be released as flue exhaust from the building. Also, the units improve the efficiency of the facility’s water heater by converting waste heat into heated water, reducing water heater usage, emissions, and energy costs.
NJNG’s decision to adopt these carbon capture units aligns with its broader decarbonization strategy, aiming to lower emissions from its operations and support New Jersey’s climate objectives. Patrick Migliaccio, NJNG’s senior vice president and chief operating officer, emphasized the importance of innovation in achieving climate goals affordably and reliably.
The CarbinX technology transforms captured carbon emissions into a non-toxic solid known as pearl ash, which can be repurposed for various applications, including commercial products and durable building materials.
NJNG is collaborating with a third-party to monitor and evaluate the real-world benefits of these systems comprehensively. This data will not only inform customers about the technology’s potential but also aid policymakers in understanding its role in increasing efficiency and reducing emissions.
– Mary Holcomb, P&GJ
YPF Advances $2.5 Billion Pipeline Project to Spur Vaca Muerta
YPF SA, Argentina’s foremost oil and gas producer, is advancing plans for a $2.5-billion cross-country pipeline project, aimed at tapping into the rich potential of the Vaca Muerta shale region, Buenos Aires Times reported.
The recently approved Vaca Muerta Sur pipeline signifies a notable step forward for YPF in its efforts to support crude oil exports from the expansive shale reserves in Patagonia.
The proposed Vaca Muerta Sur pipeline, spanning from Neuquén province to Punta Colorada, is projected to play a pivotal role in evacuating crude from the heart of the shale region to loading terminals. With an anticipated capacity of 180,000 bpd by 2026, the pipeline holds the promise of unlocking substantial value from Vaca Muerta’s crude resources.
Under the leadership of Max Westen, YPF’s head of strategy and business development, the company is soliciting bids from contractors for the pipeline’s construction. This venture underscores YPF’s commitment to not only spearhead drilling activities in Vaca Muerta, but also to facilitate essential infrastructure development, including pipelines and a liquefied natural gas (LNG) plant, in collaboration with industry partners.
The approval of the environmental permit signals a pivotal moment for YPF, opening avenues for collaboration within the oil industry, Westen told Buenos Aires Times. With burgeoning interest from potential partners, discussions are underway to propel the project forward.
The Vaca Muerta Sur pipeline is poised to address the primary bottleneck hindering the full exploitation of Vaca Muerta’s immense potential. Often likened to the Permian Basin in the United States, Vaca Muerta has long awaited the necessary infrastructure to unleash its full capacity.
Piñon Midstream Boosts Delaware Basin Sour Gas Capacity
Piñon Midstream has increased its sour gas treating capacity by 50% and expanded its infrastructure in the Delaware Basin, the company said.
Piñon’s Grande sweet gas pipeline system, spanning about 22 miles of high-pressure steel pipe, connects the Dark Horse Treating Facility with multiple downstream processors. This provides customers with processing options for treated natural gas.
Recently, Piñon secured a sixth interconnect agreement with a new downstream processor, boosting downstream takeaway and processing capacity to over 500 MMcf/d. Piñon has also enhanced its gas redelivery capabilities, offering reliable and cost-effective treated natural gas for gas lift and power generation operations.
Mexican Developer Seeks Permit to Export U.S. Gas for LNG
A Mexican energy developer is seeking U.S. permission to export gas to Mexico, turn it into LNG and send it to countries with U.S. free-trade agreements, its filing with the U.S. Department of Energy showed.
Gato Negro Permitium Uno and partners, including Houston-based Big River Energy, plan to construct four processing plants in Manzanillo on the Pacific Coast, which would produce up to 4 mtpa of LNG, the company said told Reuters.
Gato Negro began the Mexican permitting process in June 2022, it said in the May 10 filing. Big River was granted authority by the DOE in late 2022 to export gas to Mexico for two years via pipeline.
Nine other onshore and floating LNG production facilities are planned in Mexico, mostly to process U.S. gas, The first, an offshore project by New Fortress Energy NFE.O, is already producing LNG.
Gato Negro is asking for authority to supply 647 MMcf/d of feed gas through TC Energy’s Guadalajara-Manzanillo pipeline for 20 years. Operations would begin in Sept. 2027, with LNG exports reaching 556 MMcf/d.
Gato Negro has not yet entered into agreements to receive the U.S. gas nor sell the resulting LNG to final customers, the company's application showed.
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