February 2025, Vol. 252, No. 2
Projects
Projects February 2025
Work begins on Initial Section of Centauro del Norte
Nine months after signing the agreement with the Federal Electricity Commission (CFE), Grupo Carso began construction of the first section of the Centauro del Norte Gas Pipeline located in Baja, California.
The main purpose of this project is to supply natural gas to feed the thermoelectric plants currently under construction and owned by the state-owned company Comisión Federal de Electricidad (CFE).
The thermo-electric plants are the San Luis Río Colorado Combined Cycle Plants in Sonora and the González Ortega in Baja California, as well as the Altar Internal Combustion Plant, also in Sonora.
The gas pipeline will have a total length of 274 miles (441 km), with a diameter of 36 inches. It is divided into two sections: Section 1 runs from San Luis Río Colorado to Mexicali 47 miles (76 km), Baja California, while Section 2 at the municipality of Caborca and runs to San Luis 227 miles (365 km) in Sonora.
According to the work schedule, construction of the first section of the pipeline is Schedule to begin by the end of 2025 and the other section by 2027.
The gas will flow from west to east, where the gas will flow through the interconnection with the Rosarito Pipeline and subsequently, the pipeline will be connected to the Samalayuca-Sásabe transportation system, in order to ensure an efficient transportation network in the northern part of the Baja California and Sonora regions.
Section I of the GCN has a 36-inch pipeline, 400 MMcfd capacity of and a design pressure of 1,440 psig and includes a compression station, sectioning valves, a control and communications building, workshop/warehouse and a storage center for pipeline maintenance located in the town of Pitiquito, Caborca. – P&GJ
Diversified Energy Expands Midstream Assets in Appalachia
Diversified Energy Company announced a $45 million acquisition of natural gas properties and midstream facilities in Virginia, West Virginia and Alabama. The assets were purchased from Summit Natural Resources and are expected to close during the first quarter of 2025.
The acquisition includes 300 natural gas wells in the Appalachian Basin and 265 coal mine methane wells in Alabama. Diversified aims to integrate these assets into its existing operations.
“These assets are strategically located within our southern Appalachia operations and are uniquely positioned to benefit from our field teams’ expertise,” said CEO Rusty Hutson, Jr.
The newly acquired midstream pipelines are expected to strengthen Diversified’s capacity to move volumes to higher-value sales points. The company estimates the acquisition will generate $12 million in adjusted EBITDA in 2025, with reserves valued at $55 million PV-10.
The overlapping Appalachian assets align with Diversified’s existing footprint, creating operational efficiencies. The company plans to implement its established field practices to enhance cash margins and operational performance. – P&GJ
ONEOK Finalizes $1.2 Billion Sale of Pipelines to DT Midstream
ONEOK completed the sale of its three interstate natural gas pipeline systems to DT Midstream for $1.2 billion in cash. The deal, which closed at the end of 2024, includes the Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission systems.
“The closing of this transaction represents another milestone in the strategic optimization of our integrated asset portfolio and advances our capital allocation priorities,” said Pierce H. Norton II, ONEOK president and CEO.
Norton emphasized DT Midstream’s shared commitment to safety and reliability, adding that the transition would benefit all stakeholders.
“We appreciate the dedication of our employees transitioning to DT Midstream, where they will play a vital role in establishing the company’s new Tulsa office and continue to be instrumental in the success of these essential natural gas systems,” Norton said.
The transaction supports ONEOK’s goal of reaching a leverage target of 3.5 times by 2026, enhancing its financial flexibility.
DT Midstream, based in Detroit, Michigan, gains three key pipeline systems through this acquisition, further expanding its natural gas infrastructure and market reach. – P&GJ
Pipeline Upgrade Ends Czech Reliance on Russian Oil
Capacity upgrades for oil being shipped to the Czech Republic through the TAL pipeline have been finished, and according to Prime Minister Petr Fiala, bringing an end to the country’s need for Russian crude.
The Czech Republic has worked to wean itself off Russian oil and gas since Russia’s invasion of Ukraine in 2022.
Already the country had no direct contracts with Russian gas suppliers. Now the TAL pipeline has the capacity to meet all of its oil demand, it need no longer rely on the Druzhba pipeline from the east, which previously delivered half of its supplies.
“This is a crucial moment for the Czech Republic because Russia can no longer blackmail us with (energy supplies),” Fiala said.
The upgrades to the Trans Alpine (TAL) pipeline, running from Italy to Germany, then a connector, doubles the amount of crude available for the Czech Republic to 8 mtpa, projected to be sufficient for the nation’s annual needs.
Testing and certification must be completed, but Fiala said the country could already rely on TAL should there be any disruption of Russian flows through the Druzhba pipeline.
State pipeline company MERO has said it expects to start increasing oil shipments in the second quarter.
Possible Alaska LNG Project Includes 807-Mile Pipeline
The Alaska Gasline Development Corporation (AGDC) said it has entered into an exclusive agreement with developer Glenfarne to advance the Alaska LNG project.
Glenfarne will lead and fund the project development, including the Arctic Carbon Capture plant on the North Slope, the LNG export facility in Nikiski and the 807-mile (1,300-km) pipeline, which will transect the state.
The project is estimated to cost $44 billion and is scheduled begin natural gas delivery in 2031. LNG exports would follow shortly thereafter, an AGDC spokesperson said.
The pipeline will carry up to 3.3 Bcf/d of natural gas from the state’s North Slope to an export terminal south of Anchorage and residential communities.
The project, which was first approved under Donald Trump’s administration, received FERC authorization in 2020 and final legal approval in 2022.
Strohm Wins Pipe Contract for Saudi Fadhili Expansion
Strohm, a thermoplastic composite pipe (TCP) manufacturer, has secured a contract to supply 33 kilometers (20.5 miles) of its TCP flowline for Saudi Aramco’s Fadhili gas plant in Saudi Arabia.
This marks Strohm’s first commercial contract for an onshore application in the region and follows a successful pilot with Saudi Aramco.
The project also debuts Strohm’s electrofusion coupler (EFC), a non-metallic, corrosion-free, welded joint designed for buried applications. The EFC eliminates the need for seals, making it a cost-effective and faster alternative to steel connectors.
The six-inch glass fiber polyethylene composite pipes will transport rich mono ethylene glycol (MEG) and are scheduled for delivery in September 2025. Production will take place at Strohm’s manufacturing facility in the Netherlands, with final assembly carried out locally. The lightweight pipes resist corrosion and feature smooth liners to enhance flow efficiency.
Saudi Aramco and engineering partner KBR selected Strohm’s TCP after material studies highlighted its fluid compatibility, corrosion resistance, high qualification standards, and reduced carbon footprint. – P&GJ
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