Tulsa-based Willbros Engineers, Inc. (WEI) has executed an engineering, procurement and construction contract with Guardian Pipeline, L.L.C. to provide services for the Guardian Expansion and Extension Project. Guardian Pipeline is wholly owned by subsidiaries of ONEOK Partners, L.P., an affiliate of ONEOK, Inc.
The Guardian project will involve constructing 106 miles of 30-inch and 20-inch natural gas pipeline from the terminus of the existing Guardian Pipeline near Ixonia, Wis., to the Green Bay area. Eight associated meter stations and two 39,000-horsepower compressor stations, one located in Dekalb County, Ill., and the other in Walworth County, Wis., will also be constructed. WEI's scope of work currently includes the pipeline and the meter stations.
Engineering and permitting are currently underway. The application to the Federal Energy Regulatory Commission is scheduled to be submitted in October 2006. Construction activities are planned to commence May 2008, with project completion scheduled for November 2008. The expansion will bring an additional 537,200 dekatherms per day of capacity to the eastern part of Wisconsin.
WEI is also providing engineering and construction services for Overland Pass Pipeline Co.--a 750-mile NGL pipeline from Opal, Wyo., to Conway, Kan. WEI services will also include routing, environmental studies and regulatory filing activities over the course of the project, which is expected to be in service in 2008. Tulsa-based ONEOK Partners, L.P. is 99- percent owner in the Overland Pass project.
WEI was also awarded an EPC contract by Cheniere Sabine Pass Pipeline Co., a wholly-owned subsidiary of Cheniere Energy, Inc. Under the EPC Agreement, which is effective as of February 1, 2006, Willbros will provide Cheniere with services for the management, engineering, material procurement, construction, and construction management of the 16-mile, 42-inch pipeline and related facilities to be constructed from the Cheniere's liquefied natural gas terminal being constructed at Sabine Pass to a pipeline interconnect at Johnson's Bayou, all located in Cameron Parish, La. WEI and Cheniere are entering into the EPC agreement sufficiently in advance of commencement of physical construction of the pipeline in order to perform detailed engineering and procure materials. Construction is scheduled to commence in April 2007 and be completed in September 2007.
Houston-based Willbros RPI, Inc. has received a letter of intent for the installation of 71 miles of 42-inch natural gas pipeline in North Louisiana from CenterPoint Energy. This work consists of the eastern two loops of CenterPoint's planned 172-mile, 42-inch pipeline from Carthage, Texas to its Perryville Hub in Northeast Louisiana. The project is expected to commence in October 2006 and completion is scheduled for a February 1, 2007 in service date.
Willbros RPI also won a project to construct the 10-inch Dixie pipeline project near Erwinville, La. for Dow Chemical Co. Construction began in May 2006 and is scheduled for completion in the third quarter of 2006.
Occidental of Oman, Inc. has selected The Oman Construction Co. (TOCO), a Muscat, Oman-based Willbros subsidiary, to perform additional maintenance activities and small capital projects. The duration of the assignment is expected to span the next 3 to 5 years, with an option to renew for an additional 1 to 2 years. TOCO currently is performing a multi-year maintenance contract for Oman LNG and constructing pipelines and facilities in the Kauther area of Oman for Petroleum Development Oman. TOCO has operated continuously in Oman for over forty years.
"Since the beginning of 2006, we have booked approximately $475 million in new work," said Mike Curran, Willbros' chairman and CEO. "In addition, we have another $650 million of work in North America which we are highly confident will be under contract within 90 to 180 days. This is solid evidence that the business environment for Willbros is increasingly robust."
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