INTERNATIONAL
Oil Pipeline Across England Nears Reality Government green light to $22.5 million project makes a 1966 completion date likely LINK. Workers string out and weld pipe during the laying of a section of pipeline that links Esso's Fawley refinery in Southampton with London. The line will link with the new proposed pipeline
Britain is a step closer to having its first major cross-country oil pipeline extending from the Thames Estuary to the Mersey. The Minister of Power, Richard Wood, has allowed the application by United Kingdom Oil Pipelines, Ltd., to go forward under the terms of the Pipeline Act enacted early this year. The next stage in the proposed 317mile pipeline, obtaining the permission and assent of property owners along the route, will get under way immediately. Final decision whether to go ahead with the project should be made by the middle of next year. The project is expected to cost about $22.5 million and to be in operation by 1966. The pipeline will carry about 3 million tons of oil annually, but the volume is expected to rise to 6 million tons a year during the 1970's. It should cut present distribution costs in half. Two companies, U.K. Oil Pipelines —a consortium of five major oil companies-and Trunk Pipelines, Ltd.,, ap-, plied for permission to launch the project. Trunk Pipelines had proposed to follow canals and railroads. 136 C & E N AUG. 5, 1963
U.K. Pipelines plans to take a direct cross-country path. The direct course is expected to cost about $5.7 million less than the one proposed by Trunk Pipelines. This is one of the reasons why Mr. Wood favored U.K. Oil Pipelines' project. Years of Talk. A trans-England pipeline has been in the talking stage for a number of years. Trunk Pipelines started action toward its development about four years ago. With the cooperation of the Board of British Railways and the Board of British Waterways, Trunk Pipelines came up with an arrangement whereby the pipeline would use waterway and railroad easements. The company proposed laying the pipeline in canals from barges, a technique which hasn't yet been tried in England. Trunk Pipelines also developed a plan for laying the pipeline directly through metropolitan London. Meanwhile, oil companies in Britain were independently carrying out their own studies to build pipelines. ShellMex and B.P., Ltd., a company controlled by Royal Dutch Shell, proposed laying a pipeline connecting Shell's Shell Haven refinery on the
Thames Estuary with St. Albans in North London. Esso had already obtained permission from the British government to lay a pipeline between its refinery at Fawley, near Southampton, and West London. Esso's pipeline has since been completed. Until this year, a company that wanted to build a pipeline in Great Britain had to apply to the government for permission in the form of a private bill. The bill had to be approved by both houses of Parliament. It soon became evident, however, that the increased interest in the pipeline project could lead to confusion unless legislation governing the construction and operation of the pipelines was drawn up. In view of the proposed legislation, Trunk Pipelines withdrew its application for a bill which would allow it to build a pipelines network. The Pipelines Act finally became law on Jan. 1 of this year. Five-Member Project. In January, five major British oil companies—Esso Petroleum Co., Ltd., Mobil Oil Co., Ltd., Petrofina (Great Britain), Ltd., Regent Oil Co., Ltd. (jointly owned by Caltex and Texaco), and Shell-Mex and B.P., Ltd.—joined together in setting up U.K. Oil Pipelines, Ltd. The five-member company submitted its plans to the Ministry of Power for a Thames to Mersey oil pipeline (C&EN, Feb. 11, page 17). Trunk Pipelines also submitted its pipeline plans for consideration. U.K. Oil Pipelines' proposed pipe-
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line will skirt the center area of London but otherwise will follow a direct cross-country route connecting the English Midlands with the estuaries of the Thames and Mersey, where a number of oil refineries are located as well as principal storage terminals. On the outskirts of London, there will be two major depots, and there is also a proposed spur line linking the Birmingham and Nottingham areas. In addition, Esso's pipeline—between that company's refinery, near Southampton, and London—v/ill hook up with the main line. The proposed pipeline will carry light petroleum products such as gasoline, aviation and diesel fuels, and domestic gas supplies. The diameter of the pipeline will vary between 8 and 14 inches. Only about 20 miles of its total length will pass through congested areas. In substantiating his decision, Mr. Wood noted that the companies in the consortium already supply about 90% of the light oil products consumed in the areas to be served by the pipeline. "There is thus assured support for this scheme from all major users," he said.
E&O'S FAWLEY REFINERY
Trunk Pipelines, however, feels that its proposal would have had the same support. It argues that its proposed line would constitute a service that would be available to anyone who wanted to use it. Others opposed to the outcome of the decision argued that the Trunk Pipelines scheme would have resulted in some income for Britain's hard-pressed transport systems. The transport system would have gained some remuneration from Trunk Pipelines for the use of its property. Nevertheless, most potential users of the pipeline network appear to favor U.K. Oil Pipelines' plan. Five major oil suppliers including Amoco, Continental Oil, and Gulf Oil have already expressed an interest in the U.K. Oil Pipelines project. Mr. Wood says he is satisfied from statements by the consortium that there won't be any discrimination against other competing oil companies that want to use the pipeline. U.K. Pipelines has offered to submit to an independent technical check to ensure that there isn't discrimination. "In any event, I have power under the Act to prevent abuse," the Minister adds.
BRIEFS Air Liquide will build an oxygen and nitrogen plant for Belgium's L'Oxygene Metallurgique at Seraing, near Liege, Belgium. The plant, to be completed by the end of 1964, will be able to produce 440 tons a day of gaseous oxygen of 99.5% purity and 265 tons a day of high-purity gaseous nitrogen. The gases will be used in the steel operations of L'Oxygene Metallurgique's affiliated companies. Air Liquide has just about completed another 440 ton-a-day oxygen plant for the Belgian company, also at Seraing.
West African Explosives and Chemicals, Ltd. (Exchem), has started to build an explosives plant near Roberts Field, Liberia. The plant is to be completed early next year. Exchem was formed by Baird Chemical, New York City, and Canadian Industries, Ltd., last year. Eventually, the company hopes to make industrial, agricultural, and household chemicals at its Roberts Field site.
The United Kingdom Atomic Energy Authority has received a contract to supply Japan Atomic Power Co. with uranium fuel elements for Japan's 160megawatt nuclear power station nearing completion at Tokai Mura. The 10-year contract is worth more than $28 million. The initial delivery will be made early next year from U.K.A.E.A.'s plant at Springfields.
Dravo Corp.'s Canadian subsidiary will build a $30 million iron ore pelletizing plant at Pointe Noire, Que., for Pickands Mather & Co. The plant, scheduled for completion in 1965, will turn out pellets from concentrate produced by Wabush Mines at Wabush Lake, Labrador. Dravo Corp. recently completed three iron ore pelletizing plants, valued at more than $40 million, in Michigan, Ontario, and Labrador. The Labrador plant, near the Quebec-Newfoundland border, was built for Carol Pellet Co. Hanna Mining Co. owns the plant at Groveland, Mich. The Ontario unit, at Copper Cliff, is an addition to International Nickel Co. of Canada's existing pelletizing plant there. All the plants use the Dravo-Lurgi pelletizing process. AUG.
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