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World Pipelines
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MARCH 2020
CONTRACT NEWS
NextDecade and Enbridge sign definitive
agreement regarding Rio Bravo Pipeline
NextDecade Corporation and Enbridge Inc. have announced that
they have entered into a definitive agreement whereby Enbridge
will acquire Rio Bravo Pipeline Company, LLC (RBPL) from
NextDecade for a cash purchase price not to exceed
US$25 million, with US$15 million paid at closing and the balance
paid upon NextDecade’s reaching a positive final investment
decision on its Rio Grande LNG export facility in the Port of
Brownsville, Texas (US).
Upon closing of the transaction, Enbridge will own 100% of
RBPL and assume all responsibility for the development, financing,
construction, and operations of the Rio Bravo Pipeline.
NextDecade will continue to be responsible for the development,
financing, construction, and operations of its Rio Grande LNG
export facility. In addition, Enbridge and NextDecade have
negotiated a precedent agreement, to be executed at closing,
whereby NextDecade will retain its rights to the natural gas firm
transportation capacity on the Rio Bravo Pipeline for a term of at
least 20 years to supply NextDecade’s Rio Grande LNG export
facility.
“This agreement with Enbridge further enhances our
commitment to our global LNG customers, natural gas suppliers
and other stakeholders to deliver our Rio Grande LNG project on
time and on budget,” said Matt Schatzman, NextDecade’s
Chairman and Chief Executive Officer. “As one of North America’s
leading energy infrastructure companies, Enbridge brings extensive
natural gas pipeline experience to execute the Rio Bravo Pipeline,
and we are delighted to have them involved in supporting the
delivery of our Rio Grande LNG project.”
“We are excited to move forward with this transaction,” said
Bill Yardley, Enbridge’s Executive Vice President and President of
Gas Transmission and Midstream. “Enbridge’s commitment to the
development of the Rio Bravo Pipeline in support of NextDecade’s
Rio Grande LNG project further strengthens our ability to serve
the expanding LNG export market and fits squarely within our
low-risk business model.”
McDermott awarded offshore contract by BHP
McDermott International, Inc., announced it has been awarded a
large contract by BHP to provide subsea umbilicals, risers and
flowlines (SURF), transportation and installation (T&I), pre-
commissioning of one jacket and topsides for the Ruby Project,
offshore Trinidad and Tobago.
The Ruby Field resides in the Block 3(a) development area of
Trinidad and Tobago, approximately 28 miles (45 km) off the
northeastern coast of Trinidad.
“We are pleased to support BHP in this new contract that
continues to build on our successful track record in Trinidad,” said
Mark Coscio, Senior Vice President, North, Central and South
America. “The combination of heavy lift and pipelay capabilities
of McDermott’s
Derrick Lay Vessel 2000
are best suited for this
project as it can efficiently transport and install both the
flowlines and platform.”
Saipem awarded several EPCI contracts
Saipem has been awarded several EPCI contracts in various
countries around the world worth over US$500 million. The first
EPCI contract has been awarded by Saudi Aramco in the
Kingdom of Saudi Arabia as part of the long-term agreement in
force until 2021. The scope of the offshore work encompasses
the design, engineering, procurement, construction and
installation of a 36 in. carbon steel pipeline onto the existing
network around the Ju’aymah area, and brownfield services at
the associated offshore platform.
Furthermore, in West Africa, Saipem has been assigned a
contract by Eni Angola S.p.A. related to the Cabaça and Agogo
Early Phase 1 developments. The scope of work includes the
EPCI of risers, production flowlines, jumpers and the installation
of a subsea production system in water depths ranging between
400 m - 600 m to be carried out by Saipem vessels
FDS
and
Saipem 3000
. In the same region, specifically in Equatorial
Guinea, Saipem has also signed a contract with Noble Energy for
the offshore installation of a 70 km gas pipeline connecting the
Alen Platform to Punta Europa on the coast.
Additional minor contracts awarded are related to the
decommissioning of existing infrastructures located in the
Thistle Field of the North Sea, to be executed by the
Saipem
7000
and two other offshore transportation and installation
contracts in the Middle East and the Gulf of Mexico.
Tata Steel wins three contracts with TechnipFMC
Tata Steel, one of Europe’s leading steel producers, has secured
three separate contracts with TechnipFMC for work in the UK
North Sea, further building on the relationship between the two
companies.
The scope of work includes the provision of high frequency
induction (HFI) line pipe for carrier application and for both
spool and pipe-in-pipe systems. The HFI line pipe will be
manufactured in Tata Steel’s Hartlepool, UK, 20 in. pipe mill, and
will be installed by TechnipFMC.
The three different projects span from the Northern
North Sea to the Central North Sea. Two of the three projects
will see Tata Steel provide more than 16 km of 10 in. carrier
pipes, with three-layer polypropylene coating for anti-corrosion
and mechanical protection, including weld-on pads to allow
fitting of sacrificial bracelet anodes. The third project requires
several kilometres of 14 in. carrier pipes and 10 in. spool pipes.
Barry Rust, Marketing Manager, Energy & Sustainability, said:
“The contract awards are testament to Tata Steel’s reputation
and experience, both in the North Sea and with TechnipFMC.
“We look forward to working with TechnipFMC on the
coming projects, further developing our valued relationship and
providing the highest quality pipeline to our clients.”
Tata Steel has supplied more than one million t of pipeline
for oil and gas projects in the North Sea for more than
20 years – including in excess of 500 000 m of reel installed
pipe and more than £250 million invested in subcontracts for
North Sea projects.