remediation system to actively remove sulfolane from the onsite
aquifer, Brose said.
Regarding petroleum-product supply to the local market,
FHRA said it will continue marketing fuels from other suppliers through its terminals in Anchorage and Fairbanks, including the North Pole Terminal and associated tank farm, which
has 720,000 bbl, or about 30 million gal, of product storage.
Products from other sources will be able to come into the
terminal by truck or rail for distribution to regional markets,
according to the company. But “FHRA will entertain offers for
the assets associated with the refinery as an ongoing enterprise
or as a terminal/marketing operation,” Brose said.
FHRA acquired the North Pole refinery and its associated
terminals in Fairbanks and Anchorage in 2004 (OGJ Online,
Dec. 20, 2004).
BP ramps up heavy crude throughputs at Whiting
BP PLC is in the process of boosting heavy crude oil runs at
its 413,000-b/d refinery at Whiting, Ind., following the yearend 2013 completion of a modernization project designed to
increase the plant’s ability to process heavy, sour crude (OGJ
Online, Dec. 18, 2013; July 1, 2013).
“At Whiting right now, all of the units are commissioned,
and we’re ramping up,” BP Chief Financial Officer Brian Gilvary
said during a quarterly earnings call on Feb. 4.
While the company was running some heavy crude during
late-2013, BP Chief Executive Officer Bob Dudley declined to
specify the amount of heavy crude throughputs at the refinery,
citing it as “trading-sensitive information.”
Dudley said, “But we were running some heavy crude at the
end of the year there, minimal amounts as we were commis-
sioning [units]. Now we’re working through that sort of post-
startup testing set of activities.”
But a timeframe for when Whiting would reach its full heavy
crude processing capacity remained unclear. “We’re going to
progressively ramp it up,” Dudley said. “We can’t be specific on
the pace because we are going to fine tune it as we go.”
The Whiting refinery currently can run up to 380,000 b/d of
heavy crude, Gilvary said during the call.
Both Dudley and Gilvary reiterated that the reconfigured
Whiting refinery remains on track to deliver an estimated incremental $1 billion of operating cash flow/year, depending on
market conditions (OGJ Online, Dec. 18, 2013).
TRANSPORTATION QUICK TAKES
Southcross starts construction on Webb pipeline
Southcross Energy Partners LP has begun construction on the
$125 million, 300-MMcfd Webb pipeline in the rich gas area of
the Eagle Ford shale in South Texas.
The 24-in., 94-mile pipeline will extend from Webb County
near Encinal, Tex., to McMullen County near Tilden, Tex. At
Tilden, the Webb line will connect to the extension of South-
cross’ existing McMullen pipeline, on which construction of a
5-mile extension has also begun.
The project’s objective is to move rich gas to Southcross’ pro-
cessing and fractionation complex near Corpus Christi, Tex.
Pipeline engineering, procurement, and right-of-way pur-
chasing is under way and the pipeline is expected to be in ser-
vice in this year’s fourth quarter.
Southcross said construction of the pipeline is anchored by
a commitment of rich gas volumes onto the Southcross system.
Advanced discussions are under way with other producers regarding additional rich gas volumes.
WBI launches Dakota gas pipeline open season
WBI Energy Inc., a subsidiary of MDU Resources Group Inc.,
has launched an open season for its planned 375-mile Dakota
natural gas pipeline running from western North Dakota to
The pipeline’s proposed route will allow interconnection
with pipelines operated by Great Lakes Gas Transmission LP,
Viking Gas Transmission Co., and potentially TransCanada
Pipelines Ltd. The interconnections would occur in northwestern Minnesota.
The Dakota Pipeline would use two compressor stations to
transport an initial 400 MMcfd of Bakken shale gas through
mostly 24-in. OD pipe. It could be expanded to more than 500
MMcfd if demand warrants. Pending sufficient market demand
and regulatory approvals, WBI plans to begin building the
pipeline in 2016 for a 2017 in-service date.
Dakota will cost roughly $650 million.
MDU last year announced construction of a 20,000 b/d
North Dakota diesel refinery to process Bakken Crude (OGJ
Online, Feb. 7, 2013). Construction began in March, with MDU
expecting the refinery to come online late this year.
MDU says the state’s diesel consumption has increased over
the past 4 years to more than 53,000 b/d and is expected to
reach 75,000 b/d by 2025. North Dakota’s sole current refinery
produces 22,000 b/d, according to MDU.
Pipe supply contracts signed for offshore section
OAO Gazprom said contracts have been signed to supply
75,000 12-m pipes for the first gas pipeline of South Stream
Transport’s offshore section.
German Europipe GMBH will supply half of the volume.
The other supplies will come from two Russian sources: United
Metallurgical Co., 35%, and Severstal, 15%. Contracts were
signed in Amsterdam Jan. 29. Total value is €1 billion.
South Stream’s offshore section will extend under the Black
Sea between Bulgaria and Russia. It will have four 931-km
lines, with a diameter of 813 mm and wall thickness of 39 mm.
Pipe will be stockpiled at temporary bases on the coast of
Bulgaria and construction will start this fall. The first offshore
line is scheduled to start operations in December 2015 (OGJ
Online, Oct. 21, 2013).
Gazprom said the bidding procedure for pipe suppliers was
based on “extremely stringent” requirements.