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Pennaco outlines capital spending plan
Filtration Industry Analyst
O!1. AND (;AS
MOBIL CUTS 1999 INVESTMENT PROGRAMME Mobil Corporation expects 1999 capital and exploration expenditures, including cash investments in equity companies, to be US$4.8 billion, down about 11 per cent on last year. The company will revise the 1999 spending budget if crude oil prices fail to improve from current depressed levels or if additional attractive investment opportunities develop during the year. Mobil chairman Lucio A Noto said that the 1999 investment programme had been prudently scaled back in view of depressed industry conditions and Mobil's commitment to a disciplined level of spending. While projects have been prioritised, few exploration or producing opportunities have actually been eliminated. Of the total 1999 spending budget, US$3.6 billion is attributable to exploration and producing, US$0.8 billion to marketing and refining, US$0.3 billion to chemical and US$0.1 billion to corporate activities.
FOSTER WHEELER REFURBISHES REFINERY Under a US$30 million contract, Foster Wheeler France SA will renovate Elf Antar's hydrodesulfurisation plant and build a new sour water stripper unit, at the Donges Refinery in France. Foster Wheeler is responsible for engineering, purchasing assistance and construction supervision of the project. The work will enable Elf Antar to comply with the new and more stringent fuel
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March 1999
and gasoline sulfur content regulations required by the European Community. Capacity at the existing treatment plant will increase by 20 per cent when the maximum sulfur content in fuel and gasoline is reduced to 50 ppm and 150 ppm. Work has already started on the project and the plant should be completed by November 1999.
PENNACO OUTLINES CAPITAL SPENDING PLAN All of Pennaco Energy Inc's 1999 capital expenditure budget of US$18.4 million will be directed towards the company's Powder River Basin Coal Bed Methane Project. Pennaco plans to spend US$9.4 million to drill 330 net wells during 1999. The budget also earmarks approximately US$9.0 million for additional lease acquisitions. The capital spending plan will be reviewed quarterly by Pennaco Energy's board and may be revised in response to drilling results, pipeline and gathering system construction progress, natural gas prices and other factors.
MOBIL EXITS AUSTRALIAN REFINING JV Mobil Oil Australia (MOA) is withdrawing from negotiations on a proposed refining joint venture with Shell. Based on a series of discussions with the Australian Consumer and Competition Commission, Mobil says it became apparent that the approval process for the joint venture would be protracted and uncertain. MOA chairman and managing director PC Tan says that as a result, the approval processes for both the Australian joint venture with Shell and the Mobil-Exxon
global merger would overlap, and therefore Mobil will not proceed with its proposed joint venture with Shell. "We do continue to believe that capturing efficiencies is critical to the viability of the Australian refining industry. So, while we will not be pursuing a joint venture with Shell, we are stepping up the self-help programme within our own Australian refining operations."
I'OWER GI'~NEI{ATION
BIOFUEL CFB BOILER FOR SWEDEN Foster Wheeler Corporation is to supply a biofueled 157 MWth circulating fluidisedbed (CFB) reheat boiler for Vasteras Energi & Vatten's combined heat and power plant in Vasteras, Sweden. The contract is valued at approximately US$50 million. Work on the project has started and is expected to be completed at the beginning of 2001. The Foster Wheeler CFB design will permit the VE&V facility to meet Sweden's stringent emissions limits by replacing the coal-fired boiler currently in use, which bums about 120 000 tons of coal a year, with a highly efficient biofueled CFB. Biofuel is favoured in Sweden because of the tax incentives for its use.
DUKE/FLUOR DANIEL TO BUILD TEXAS POWER PLANT Work has started on the Hidalgo Energy power plant in Edinburg, Texas. Duke/Fluor Daniel, a partnership between Duke Energy and Fluor Daniel, will provide engineering, procurement and construction services
for the 500 MW, natural gasfired merchant power plant. This is Duke Energy Power Services' first major wholesale merchant power plant in Texas. The US$175 million power plant comes on line in the gummer of 2000. Hidalgo Energy will be cooled with treated wastewater from McAllen's water treatment plant, under an agreement with the city of McAllen.
ETG UNDERTAKES TURKISH FEASIBILITY STUDY Energy Transportation Group Inc (ETG) has entered into an equity investment agreement with a consortium of Turkish companies to create a 60 MW combined cycle power plant in Izmit, Turkey. ETG also announced the approval of a US Trade and Development Agency grant for a feasibility study on the proposed Izmit Cogeneration Plant. The study will analyse a potential expansion of the plant design to a final level of up to 300 MW. The plant will use the exhaust from a gas turbine to power a steam turbine generator, and potentially to provide Izmit district heating.
COMBINED CYCLE FACILITY FOR FLORIDA Siemens Westinghouse Power Corporation and Black & Veatch have won a US$200 million contract from Seminole Electric Cooperative Inc to build a combined cycle turnkey power plant in Hardee County, Florida, near Tampa. The plant will be built in consortium with Overland Contracting Inc, a wholly owned subsidiary of Black &
O!1. AND (;AS
MOBIL CUTS 1999 INVESTMENT PROGRAMME Mobil Corporation expects 1999 capital and exploration expenditures, including cash investments in equity companies, to be US$4.8 billion, down about 11 per cent on last year. The company will revise the 1999 spending budget if crude oil prices fail to improve from current depressed levels or if additional attractive investment opportunities develop during the year. Mobil chairman Lucio A Noto said that the 1999 investment programme had been prudently scaled back in view of depressed industry conditions and Mobil's commitment to a disciplined level of spending. While projects have been prioritised, few exploration or producing opportunities have actually been eliminated. Of the total 1999 spending budget, US$3.6 billion is attributable to exploration and producing, US$0.8 billion to marketing and refining, US$0.3 billion to chemical and US$0.1 billion to corporate activities.
FOSTER WHEELER REFURBISHES REFINERY Under a US$30 million contract, Foster Wheeler France SA will renovate Elf Antar's hydrodesulfurisation plant and build a new sour water stripper unit, at the Donges Refinery in France. Foster Wheeler is responsible for engineering, purchasing assistance and construction supervision of the project. The work will enable Elf Antar to comply with the new and more stringent fuel
II
March 1999
and gasoline sulfur content regulations required by the European Community. Capacity at the existing treatment plant will increase by 20 per cent when the maximum sulfur content in fuel and gasoline is reduced to 50 ppm and 150 ppm. Work has already started on the project and the plant should be completed by November 1999.
PENNACO OUTLINES CAPITAL SPENDING PLAN All of Pennaco Energy Inc's 1999 capital expenditure budget of US$18.4 million will be directed towards the company's Powder River Basin Coal Bed Methane Project. Pennaco plans to spend US$9.4 million to drill 330 net wells during 1999. The budget also earmarks approximately US$9.0 million for additional lease acquisitions. The capital spending plan will be reviewed quarterly by Pennaco Energy's board and may be revised in response to drilling results, pipeline and gathering system construction progress, natural gas prices and other factors.
MOBIL EXITS AUSTRALIAN REFINING JV Mobil Oil Australia (MOA) is withdrawing from negotiations on a proposed refining joint venture with Shell. Based on a series of discussions with the Australian Consumer and Competition Commission, Mobil says it became apparent that the approval process for the joint venture would be protracted and uncertain. MOA chairman and managing director PC Tan says that as a result, the approval processes for both the Australian joint venture with Shell and the Mobil-Exxon
global merger would overlap, and therefore Mobil will not proceed with its proposed joint venture with Shell. "We do continue to believe that capturing efficiencies is critical to the viability of the Australian refining industry. So, while we will not be pursuing a joint venture with Shell, we are stepping up the self-help programme within our own Australian refining operations."
I'OWER GI'~NEI{ATION
BIOFUEL CFB BOILER FOR SWEDEN Foster Wheeler Corporation is to supply a biofueled 157 MWth circulating fluidisedbed (CFB) reheat boiler for Vasteras Energi & Vatten's combined heat and power plant in Vasteras, Sweden. The contract is valued at approximately US$50 million. Work on the project has started and is expected to be completed at the beginning of 2001. The Foster Wheeler CFB design will permit the VE&V facility to meet Sweden's stringent emissions limits by replacing the coal-fired boiler currently in use, which bums about 120 000 tons of coal a year, with a highly efficient biofueled CFB. Biofuel is favoured in Sweden because of the tax incentives for its use.
DUKE/FLUOR DANIEL TO BUILD TEXAS POWER PLANT Work has started on the Hidalgo Energy power plant in Edinburg, Texas. Duke/Fluor Daniel, a partnership between Duke Energy and Fluor Daniel, will provide engineering, procurement and construction services
for the 500 MW, natural gasfired merchant power plant. This is Duke Energy Power Services' first major wholesale merchant power plant in Texas. The US$175 million power plant comes on line in the gummer of 2000. Hidalgo Energy will be cooled with treated wastewater from McAllen's water treatment plant, under an agreement with the city of McAllen.
ETG UNDERTAKES TURKISH FEASIBILITY STUDY Energy Transportation Group Inc (ETG) has entered into an equity investment agreement with a consortium of Turkish companies to create a 60 MW combined cycle power plant in Izmit, Turkey. ETG also announced the approval of a US Trade and Development Agency grant for a feasibility study on the proposed Izmit Cogeneration Plant. The study will analyse a potential expansion of the plant design to a final level of up to 300 MW. The plant will use the exhaust from a gas turbine to power a steam turbine generator, and potentially to provide Izmit district heating.
COMBINED CYCLE FACILITY FOR FLORIDA Siemens Westinghouse Power Corporation and Black & Veatch have won a US$200 million contract from Seminole Electric Cooperative Inc to build a combined cycle turnkey power plant in Hardee County, Florida, near Tampa. The plant will be built in consortium with Overland Contracting Inc, a wholly owned subsidiary of Black &