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Industry Briefs

Air Liquide Industrial US LP plans to build an air separation unit in northwestern North Dakota to supply nitrogen to industrial customers, specifically those involved in growing Bakken Shale operations. The unit is expected to be operational by the end of 2012. The French company supplies gases that include nitrogen and carbon dioxide to North American producers to support drilling operations and increase resource recovery. "We are positioning ourselves to better serve existing customers and to capture new business opportunities in North Dakota, especially in the Bakken oil reserves," said Air Liquide's Mark Lostak, president of the company's U.S. arm. "The potential throughout this region is significant, and we are prepared to meet the growing demand for nitrogen to develop these important domestic energy resources."

El Paso Corp.'s Tennessee Gas Pipeline Co. (TGP) has applied to the Federal Energy Regulatory Commission (FERC) for a certificate to begin construction of its MPP project, which is intended to improve takeaway capacity from the Marcellus Shale through expansion of TGP's 300 Line in Pennsylvania. The 240,000 Dth/d project includes about eight miles of 30-inch diameter pipeline looping and modifications to four compressor stations in Pennsylvania to provide transportation from the Marcellus to existing delivery points on the TGP system. All of the capacity is subscribed through agreements with Chesapeake Energy Marketing Inc. for 140,000 Dth/d and Southwestern Energy Services Co. for 100,000 Dth/d (see Shale Daily, Oct. 10). TGP asked FERC to issue a final order by Sept. 1, 2012 so it can place the MPP project facilities in service by Nov. 1, 2013.

Kinder Morgan Energy Partners LP (KMP) plans to build a petroleum condensate processing facility near its Galena Park terminal on the Houston Ship Channel. "...[W]hen combined with our recently announced $220 million crude/condensate pipeline, [it] will provide customers with unparalleled connectivity to crude oil and clean products markets...on the Texas Gulf Coast," said KMP Products Pipelines President Tom Bannigan. The pipeline, which will transport crude/condensate from the Eagle Ford Shale in South Texas to the Houston Ship Channel, will consist of almost 70 miles of new-build construction and 113 miles of converted natural gas pipeline. Construction on the pipeline began recently and Kinder Morgan expects it to be in service in the second quarter.

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