NGC, Technip Ink Pipeline Deal

Trinidad & Tobago's National Gas Company (NGC) has signed a contract with French engineering company Technip (NYSE: TKP) to perform the front-end engineering and design for two offshore pipelines.

The contract includes subsea and land surveying services, environmental and permitting services and project management, NGC said in a statement.

The north eastern offshore (NEO) pipeline is a large-diameter offshore pipeline that will begin at Anglo-Australian resources group BHP Billiton's (NYSE: BHP) facility in block 2(c) off Trinidad's northeast coast and connect with NGC's existing pipeline network to the south.

The NEO pipeline will provide transportation capacity for new gas supplies from BHP Billiton and US oil and gas company EOG Resources (NYSE: EOG) and will be sized to have additional capacity for other gas suppliers off the northeast coast.

There currently is no gas pipeline infrastructure in this area, the statement said. NGC expects the NEO pipeline to be completed by end-2009.

The other addition to NGC's network is a pipeline that also will begin at BHP Billiton's facility and finish at Cove Estate on Tobago's south coast.

Directional drilling technology will be used on the approach to the coast as it allows for installation under all near shore and shore structures, avoiding environmental damage to reefs, rock formations and beach landing, NGC said.

The gas to be supplied to Cove Estate will provide fuel for Trinidad & Tobago Electricity Commission's power generation plant under construction. The gas also will supply light industry in the area.

NGC expects this pipeline will provide transportation capacity for third parties such as the Eastern Caribbean Gas Pipeline Company for the supply of gas to Barbados via Tobago. However, NGC only will be responsible for the transportation of gas to Tobago.

Construction of the Cove Estate Tobago pipeline project is scheduled to wrap up by end-2009.

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