PANOLA COUNTY — The Bayou Companies Inc. of Chesterfield, Mo., has been awarded a $27.6-million contract with ILVA S.p.A. for pipe coating, welding and logistical support services. ILVA is manufacturing and transporting pipe for installation on the Fayetteville Express Pipeline (FE”), a natural gas pipeline joint venture between Kinder Morgan Energy Partners, L.P. and Energy Transfer Partners, L.P.
Bayou’s work on the project will include the coating and double joint welding of approximately 185 miles of 42-inch pipe. Bayou will coat the pipe using internal flow efficiency and external fusion bonded epoxy processes. The internal flow efficiency process improves the flow of gas through the pipeline by creating a smooth, defect-free surface. The fusion bonded epoxy coating process is an environmentally safe cathodic protection technique used to inhibit corrosion of the pipeline. Bayou is a leading provider of these and other products and services to the onshore and offshore oil and gas industries, primarily in North America and the Gulf of Mexico.
Bayou will also provide logistical support to ILVA in connection with the shipping and transport of the finished pipe to certain project sites. The FEP will originate in Conway County, Ark., and terminate at an interconnect with Trunkline Gas Company in Panola County in Northwest Mississippi. Bayou anticipates work on the project to begin this month and expects completion by March 2010.
The FEP is designed to contribute to energy independence and stability, stimulate economic growth and help to meet future energy needs in the United States. Importantly, the FEP will add new pipeline access and takeaway capacity for the Fayetteville Shale.