Texas Pipeline Expansion Contract Goes to Siemens

(As reported by RigZone)

(Houston, TX) Siemens Gas and Power GmbH & Co. KG reported recently that it has won a contract to supply compression equipment for Midcoast Energy, LLC’s CJ Express natural gas pipeline expansion project in East Texas.

“The beauty of this project is that the majority of the equipment will be manufactured by Siemens Gas and Power facilities in the U.S.,” remarked Patrice Laporte, Americas vice president of Siemens Energy Oil and Gas Division, in a written statement emailed to Rigzone.

The company noted that it will supply two SGT-400 gas turbine compression packages for pipeline expansion project. It added the project’s engineering, procurement and contracting (EPC) provider is WHC Energy Services, supported by Universal Pegasus International.

Siemens will build the compressors at its facility in Olean, N.Y., and package the SGT-400 gas turbine at its Telge Road facility in Houston. The company noted the mechanical-drive compression packages will be capable of producing a total of 39,000 horsepower for an expansion at an existing compressor station.

“This project marks a key milestone as the U.S. pipeline industry realizes the breadth of reliable, cost-effective solutions we can provide in this power range,” stated Laporte.

In late-February of this year, Midcoast – a unit of the private equity firm ArcLight Capital Partners – reported that it had made a positive final investment decision and entered into definitive, long-term anchor shipper agreements to support its CJ Express Expansion Project. The project will add compression and pipeline facilities along Midstream’s East Texas pipeline system, the ArcLight portfolio company stated. Moreover, it noted the expansion will boost gathering capabilities in the Shelby Trough area of the Haynesville Shale and raise its Clarity pipeline transmission capacity to the Gulf Coast to 1 billion cubic feet per day.

Siemens noted the first gas turbine compression trains will be shipped later this year. Midcoast has reported the CJ Express expansion should conclude in early 2021.