Phoenix Park Beats All Targets in Doubling Gas Plant Capacity in Trinidad;
National Gas Company of Trinidad, Conoco and Pan West Bring Expansion Online
POINT LISAS, Trinidad, April 7 /PRNewswire/ -- The natural gas processing
facility of Phoenix Park Gas Processors Limited (Phoenix Park) at Point Lisas
is now one of the Western Hemisphere's largest gas plants.
(http://www.newscom.com/cgi-bin/prnh/19990407/DAW001 or NewsCom,
213-237-5431 )
The final stage of a $155 million expansion has been placed in operation
-- four months ahead of schedule -- completing the doubling of the plant's
capacities for processing gas and producing, storing and exporting natural gas
liquids (NGLs).
Phoenix Park is owned by The National Gas Company of Trinidad and Tobago
(NGC), 51 percent; Conoco (NYSE: COC), 39 percent; and Pan West Engineers and
Constructors, 10 percent.
The sole processor of natural gas consumed in Trinidad, Phoenix Park also
produces and markets NGLs (propane, butane and natural gasoline) for export.
The expansion has more than doubled the plant's original daily capacities for
natural gas processing and NGL production to 1.35 billion cubic feet and
33,500 barrels, respectively. NGL storage capacity has been virtually doubled
to 750,000 barrels, and a second port for NGL exports -- a deepwater terminal
-- has been added.
"This expansion project was completed with world-class speed and capital
efficiency," said Finbar Gangar, Trinidad's Energy Minister. "We couldn't
have asked for a stronger team effort to help Trinidad advance its industrial
sector."
Most of the natural gas processed by Phoenix Park is used as feedstock at
Trinidad's industrial base at Point Lisas, which is home to some of the
world's largest ammonia and methanol producers. Other uses include fuel for
electric power generation.
Phoenix Park holds the rights to market its NGLs, as well as those from a
new liquefied natural gas plant built and owned by Atlantic LNG, in which NGC
is a shareholder. In January, the Phoenix Park expansion also achieved a
major goal in having new facilities ready to receive and process NGLs from the
new Atlantic LNG plant.
Phoenix Park sells propane and butane to the Eastern Caribbean, Central
American and South American markets, where they are mainly used as fuels for
cooking. Natural gasoline is exported to petrochemical customers on the East
Coast and Gulf Coast of the United States and in Canada.
The gas plant expansion was managed by a 40-member integrated project team
led by Conoco. A 1,300-strong contractor workforce from more than a dozen
companies -- including Black & Veatch, Tarmac Caribbean Construction Limited
and Lee Young & Partners -- completed the expansion in 14 months, well ahead
of the original 18-month schedule. The team developed a number of ways to
save time and capital in the design and construction of the new state-of-the-
art processing and fractionation facilities, which allow for the future
recovery of ethane.
"Phoenix Park's expansion with its state-of-the-art facilities will ensure
continued reliable supplies of processed natural gas for Trinidad's growing
industrial base," said C.B. Ramberansingh, an NGC director and chairman of
Phoenix Park. "The extra NGLs will add to Trinidad's export earnings and help
our Eastern Caribbean and Central American neighbors by increasing their
supply of clean-burning fuels. Importantly, the expansion also fits well with
our near-term vision of developing an ethylene project to further advance
Trinidad's chemical commodities industry."
Michael L. Johnson, Conoco's vice president and general manager of natural
gas and gas products, called Phoenix Park a "model" cooperative project.
"This expansion is a great example of how international partnerships can
work effectively, despite the volatile energy market we are experiencing
today," said Johnson, who is also a member of Phoenix Park's board of
directors. "Phoenix Park was Conoco's first venture in the Caribbean, and the
plant's workforce has produced profits every year, safely and efficiently. We
are delighted that our project management here -- as with other projects
around the world -- has benefited our host government, the national energy
company and Conoco."
With its expansion, Phoenix Park plans to become even more competitive.
"Over the past two years, our Trinidadian work force -- which is composed
of 69 people from various cultures -- has done an exceptional job of reducing
operating costs by more than 50 percent," said Paul Warwick, Phoenix Park's
managing director and president of Conoco Trinidad. "Our goal is to further
reduce costs per barrel, and our expertise and new generation of processing
and fractionation equipment will help us get there."
Warwick also highlighted the expansion project's major achievements,
including:
-- More than 1.5 million hours worked over a year of construction activity
inside a fully operational plant, without disruption to normal
business;
-- The elimination of several lengthy plant shutdowns that were originally
planned to allow the interconnection of the new and existing
facilities;
-- Outstanding planning that resulted in only one 14-day shutdown, which
had minimal effect on end-use customers;
-- Zero lost workdays due to injury; and
-- A 20-percent reduction in the original estimated project cost.
"We have now extended our safety record to more than six and a half years
without a lost workday case," Warwick said. "This is an exceptional
accomplishment of which our people can be justifiably proud."
Phoenix Park was the first Trinidad project to directly tap U.S. capital
markets. A total of $110 million was secured in 1998 for financing the
expansion through a bond issue, which has an "investment grade" rating of BBB
by Standard & Poor's. The 15-year financing has the longest term for any
Caribbean project financed through U.S. capital markets. It was coordinated
by a team of financial specialists from Phoenix Park, Conoco and NGC.
Since Phoenix Park began operations in 1991, the efficiency of its
terminalling has allowed it to export NGLs onto more than 800 ships, without
incurring a single delay charge. An important plant goal is to extend this
service record for the benefit of clients. The first loading from the new
deepwater terminal was successfully accomplished in December, more than three
months ahead of schedule.
NGC is one of the largest corporations in Trinidad and Tobago,
contributing approximately 6 percent of the national gross domestic product in
1997. The country's sole aggregator of natural gas, NGC controls gas
distribution rights and sales.
Conoco is a major, integrated energy company based in Houston and active
in 40 countries.
Pan West Engineers and Constructors is a privately owned, Houston-based
corporation.
SOURCE Conoco Inc.
-0- 04/07/99
/CONTACT: Karen De Silva of Phoenix Park Gas Processors Limited,
868-636-1522; or Guy A. Cantwell of Conoco Inc., 281-293-3037/
/Photo: newscom.com or NewsCom,
213-237-5431/
/Photo: newscom.com or
NewsCom, 213-237-5431/
/Web site: conoco.com
(COC)
CO: Conoco Inc.; Phoenix Park Gas Processors Limited; National Gas Company
of Trinidad and Tobago; Pan West Engineers and Constructors
ST: Texas, Trinidad and Tobago
IN: OIL
SU: |
