Bayou was awarded a $27.6 million contract with ILVA S.p.A. for pipe coating, welding and logistical support services. ILVA is manufacturing and transporting pipe for installation on the Fayetteville Express Pipeline ("FEP"), a natural gas pipeline joint venture between Kinder Morgan Energy Partners, L.P. and Energy Transfer Partners, L.P.
Dr. Andrea Bellicini, ILVA's Commercial Director for Plate and Pipe said, "ILVA is pleased to be working with The Bayou Companies again on another major pipeline project. We are confident we will build on our successful relationship for the benefit of our client, Fayetteville Express Pipeline."
Bayou's work on the project will include the coating and double joint welding of approximately 185 miles of 42-inch pipe. Bayou will coat the pipe using internal flow efficiency and external fusion bonded epoxy processes. The internal flow efficiency process improves the flow of gas through the pipeline by creating a smooth, defect-free surface. The fusion bonded epoxy coating process is an environmentally safe cathodic protection technique used to inhibit corrosion of the pipeline. Bayou is a leading provider of these and other products and services to the onshore and offshore oil and gas industries, primarily in North America and the Gulf of Mexico.
Bayou will also provide logistical support to ILVA in connection with the shipping and transport of the finished pipe to certain project sites. The FEP will originate in Conway County, Arkansas and terminate at an interconnect with Trunkline Gas Company in Panola County, Mississippi. Bayou anticipates work on the project to begin this month and expects completion by March 2010.
The FEP is designed to contribute to energy independence and stability, stimulate economic growth and help to meet future energy needs in the United States. Importantly, the FEP will add new pipeline access and takeaway capacity for the Fayetteville Shale.
Bayou has partnered with ILVA on several projects over the past 15 years. Jerry Shea, Managing Director of Business Development for Bayou, stated, "We are very pleased that ILVA has awarded Bayou the Fayetteville Express Pipeline project. We are confident that we will manage this project in an efficient and expeditious manner. We look forward to working with ILVA on this project and many more in the future."
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