Troy Construction Takes On More than $1 Billion in Natural Gas Pipeline Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--As demand for U.S.-based natural gas grows at home and abroad, calls for pipelines are growing louder. Troy Construction LLC (Houston, Texas) is among the construction and service providers that is at work on numerous lines to transport natural gas to domestic power plants and terminals for export. Industrial Info is tracking $1.46 billion in active projects involving Troy, the majority of which are found in Texas.

Click on the image at right for a graph detailing Troy's active projects, by industry sector.

One of Troy's highest-profile projects is the largest segment of the planned, $1.7 billion Gulf Coast Express natural gas pipeline in Texas, a joint venture from Targa Resources Corporation (NYSE:TGRP) (Houston), Kinder Morgan Incorporated (NYSE:KMI) (Houston) and DCP Midstream LP (NYSE:DCP) (Denver, Colorado). The estimated $650 million Spread 2 is designed to run 180 miles from Rankin to Del Rio; like the other three spreads, it would carry 1.98 billion cubic feet per day of natural gas. Troy also is attached to an estimated $250 million lateral that would run 50 miles from Midland to Rankin, Texas. For more information, see Industrial Info's project reports on Spread 2 and the lateral.

Depending on the outcome of ongoing trade policy disputes, the Gulf Coast Express owners could be facing higher costs. The three companies are seeking an exemption from steel tariffs related to the pipeline, as 47% of the specialized pipe needed for the project was ordered from Turkish steelmaker Borusan Mannesmann, according to Reuters. Kinder Morgan said the only U.S.-based steel producer that could meet the project's material specifications could not meet the volume required within the necessary timeline.

Earlier this year, construction began on another major project involving Troy: Williams Companies Incorporated's (NYSE:WMB) (Tulsa, Oklahoma) $170 million Gulf Connector expansion in Texas, which is part of its Transcontinental Gas Pipeline system. Troy is serving as general contractor for two new compressor stations--Station 23 near Victoria and Station 32 near Wharton--as well as modifications to Station 30 in El Campo.

The new, expanded and upgraded facilities are expected to increase capacity on the Transcontinental system to about 475 million standard cubic feet per day of natural gas, in order to service planned liquefied natural gas (LNG) production facilities in Freeport and Corpus Christi, Texas. The three projects are expected to wrap up in first-quarter 2019. For more information, see Industrial Info's project reports on Station 23, Station 32 and Station 30.

Other compressor station projects involving Troy are under construction in Texas and across the country. Kinder Morgan's Gulf Coast Southbound Expansion Project in Texas includes the new Compressor Station 394 near Linden, which will connect with Cheniere Energy Incorporated's (NYSE:LNG) (Houston) Corpus Christi Pipeline, and modifications to Station 301 in Wharton. The projects are expected to strengthen capacity to 460 million standard cubic feet per day and to be completed in the fourth quarter. For more information, see Industrial Info's project reports on Station 394 and Station 301.

Troy also is at work on Kinder Morgan's compressor stations in Fairborn, Georgia, and Clay City, Kentucky. The Fairburn pipeline is expected to transport up to 343 million standard cubic feet per day of natural gas from Fulton County to Fayette County, Georgia, while the Clay City station will support the Broad Run Expansion Project, which will transport up to 200 million standard cubic feet per day from the Utica and Marcellus shale plays to areas in the U.S. Southeast. For more information, see Industrial Info's reports on the Fairburn and Clay City projects.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.