BP in C2 pipe alliance with Murphy, Penspen

16 December 1998 17:52  [Source: ICIS news]

LONDON (CNI)--BP announced Wednesday it has signed a construction alliance with Murphy Pipelines and project manager Penspen to build its ethylene (C2) pipeline between Teesside and Hull in northeast England.

The project forms part of £500m ($841m) of new investment centred on BP's UK chemicals plants. Construction of the 151km long pipeline begins in the first quarter of 1999 and is scheduled to be completed in late 2000. The new pipeline will link into an existing pipe to enable BP to convey ethylene gas from its integrated refinery and petrochemical plant in Grangemouth, Scotland to its plant in Hull.

The construction alliance has a target-based contract for costs and programme milestones. Financial benefits from any savings in time or money will be shared between the three parties. BP declined to reveal the value of the pipeline project.

Peter Skelley, business venture manager for the pipeline project, said: "We believe this will be the first onshore pipeline project in the UK to adopt a full alliancing concept and successful completion of the project will set a UK benchmark for the onshore pipeline construction industry."

By: Patrick Reynolds
+44 208 652 3214

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