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Production • Processing • Handling


Engineering and project management has already begun in the company’s Aberdeen office, with offshore operations due to commence in 2014. Te pipeline bundle will be taken to its offshore location using the controlled depth tow method, a technique pioneered and developed by Subsea 7. Te work involves the fabrication, assembly and testing of pipelines, control lines, umbilical tubing, carrier pipe and towhead structures before launching into Sinclair’s Bay. Te pipeline bundle is then placed between two tugs and towed to the offshore location at a controlled depth below the surface. On arrival at the field, the bundle is lowered to the seabed, manoeuvred into position and the carrier pipe and towheads are flooded to stabilise the bundle into its final position.


Te company has won a second contract, worth


US$135 million (€102 million), from Shell UK for work on the Shell operated Fram oil and gas development in the Central North Sea. Te contract scope encompasses the engineering,


procurement, fabrication and installation of a 4.5 km in-field pipeline bundle of approximately 44-inch diameter, with integrated manifolds and tie-in structures (Fig. 1). Project management and engineering work will commence immediately and will be managed from Subsea 7’s offices in Aberdeen, with bundle fabrication taking place at Subsea 7’s Wester site fabrication yard in Wick. Offshore activities utilising a variety of Subsea 7 vessels are scheduled to commence and be completed in 2014. In the USA, Enterprise Products Partners is to significantly expand its crude oil storage and


distribution infrastructure serving the southeast Texas refinery market.


Te expansion will be completed in phases with final completion expected in the fourth quarter of 2014. Upon completion, Enterprise will be positioned to provide refiners with access to an integrated system offering supply diversification, significant storage capacity and a high-capacity distribution system that will be pipeline-connected to south-east Texas refineries having an aggregate capacity of about 3.6 million barrels per day. In addition, Enterprise’s crude oil Houston (ECHO) storage facility, which will be expanded to over six million barrels of capacity, will have access to Enterprise’s marine terminal at Morgan’s Point on the Houston Ship Channel. Historically, these refineries have been primarily supplied by waterborne imports of crude oil. With the success of North American producers, crude oil from Eagle Ford, Permian, Midcontinent, Bakken and Canada is flowing into southeast Texas and displacing the waterborne crude oil imports. As production from these regions continues to grow, there will be a significant increase in crude oil bound for the Gulf Coast market, which currently lacks sufficient storage and has a fractured and constrained distribution system to handle these varying grades of crude oil.


Tis expansion includes an additional four million barrels of new crude oil storage capacity at Enterprise’s ECHO and Bertron facilities and approximately 55 miles of 24-inch and 36-inch pipeline to directly connect ECHO with the major refineries in the Southeast Texas market. ●


Magellan Midstream adds 800 miles of pipeline M


agellan Midstream Partners has agreed to acquire approximately


800 miles of refined petroleum products pipeline from Plains All American Pipeline for US$190 million (€143 million).


“Tis acquisition utilises Magellan’s


expertise in transporting and storing petroleum products,” said Michael Mears, chief executive officer. “Tese pipelines are a natural extension of our existing refined products distribution system and provide new markets for Magellan to serve.” Te acquisition includes


approximately 550 miles of common carrier pipeline that distributes refined


petroleum products in Colorado, South Dakota and Wyoming. Te system includes four terminals with nearly 1.7 million barrels of storage. Magellan also will acquire about 250 miles of common carrier pipeline that transports refined petroleum products north from El Paso, Texas, delivering products to Albuquerque, New Mexico, and transports products south to the Texas-Mexico border for delivery via a third-party pipeline within Mexico. In addition, Magellan has plans to


construct new pipeline and terminal infrastructure at the Galena Park, Texas, terminal to originate crude oil


to Magellan’s Gulf Coast crude oil distribution system for delivery to refineries in the Houston and Texas City area. “We are pleased to add crude oil


as a service offering at our Galena Park terminal, continuing to expand Magellan’s growing crude oil footprint. Our Galena Park facility is ideally situated to handle crude oil for delivery to the Gulf Coast refinery hub via Magellan’s own pipeline network,” noted Mears. Tis project, estimated to cost


approximately US$50 million (€38 million), is expected to be fully operational by mid-2014. ●


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