April 2009 Vol. 236 No. 4

This month I’m marking my 25th anniversary in the Energy Capital of the world. Of course, the first thought I had was that if I can last another 25 years I might actually live (and work) to see that Alaskan natural gas pipeline built.

Projected growth in North American natural gas supplies and market growth in the U.S. and Canada will require billions of dollars of additional investment in pipeline, storage and other midstream infrastructure through 2030, according to a new study released by the Interstate Natural Gas Association of America (INGAA) Foundation Inc.

El Paso Corporation, operator of the nation’s largest interstate natural gas pipeline system, has been awarded the U.S. Department of Interior, Bureau of Land Management (BLM) 2008 Hardrock Mineral Environmental Award for environmental excellence in reclamation work on the Comstock Mill Site project in Storey County, NV.

The external corrosion protective coating of critical buried flowlines experienced premature coating failure in specific applications at Uthmaniyah Gas Plant in Saudi Arabia.

“Why don’t you pipeline companies address controller fatigue?” That question was asked by a member of the National Transportation Safety Board (NTSB) in 2000 while discussing a pipeline accident with one of the authors. The authors can attest that reducing accidents caused by human fatigue is a task on the “NTSB Most Wanted List.”

New York City’s KeySpan Corporation is the largest gas company in the Northeast, with some 3.5 million customers. Corning Natural Gas Corporation has 14,500 customers in western New York state.

It stands to reason that Thomas E. Skains literally needs to be two people this year: First, he is chairman, president and CEO of Piedmont Natural Gas; this year, he’s taken on the added role of chairman of the American Gas Association.

Late last fall, Pivotal Energy Development began construction of Golden Triangle Storage, a 12-Bcf natural gas storage center that is located in and on top of the historic Spindletop salt dome near Beaumont in Southeast Texas.

The distribution of natural gas in an urban utility has inherent risks. Distribution networks are located underground, out of sight and typically under pavement in close proximity to buildings, residences and subsurface structures.

In February 2009, Russia and Japan opened the liquefied natural gas (LNG) plant at Sakhalin II, thereby inaugurating Russia’s first LNG producing plant. This important Russian achievement has significant consequences for Moscow’s energy policy in the Far East and potentially beyond that to include Europe and possibly North America.

Cybersecurity analysts at energy companies are facing Big Malware – often more than 100,000 unknown and potentially malicious files crossing their network thresholds daily. Only a small subset of these poses significant danger, but which ones? An increasing number of companies are coming to the conclusion that an automated malware analysis solution is the answer, but how do you get started?

A toast, blessing or curse that is purported by some to be a Chinese proverb, states, “May you live in interesting times.” With an unparalleled world economic slowdown, a crisis of confidence in banking, the stock market collapse, high unemployment, dependence on foreign oil, record deficits and shooting wars on two fronts, our times are about as interesting as we can stand.

No matter where a natural gas company is located, weather undoubtedly affects its energy demand and pricing year-round. But for smaller or rural utilities,weather situations can oftentimes be even more difficult as they face tighter financial or staffing restrictions.

Economic calamities have taken center stage in the administration’s agenda. However, that hasn't taken anything from the other important programs actively pursued by President Obama’s administration.

Utility companies across the EU registered all-time peak electric and gas usage during the winter of 2008/2009. But a forthcoming Cambridge Energy Research Associates (CERA) study concludes that the EU goal of reducing energy usage through energy efficiency could result in significant reduction in the near future.

Despite all the talk about Marcellus Shale gas’s potential for improving East Coast natural gas supply, there have been no big deals between producers and interstate pipelines to move the gas.

<a href="http://pipelineandgasjournal.com/april-newsreel-news-alaskan-pipeline-independent-gas-alliance-probe-fatal-explosion-and-more#Two">Two Alaskan Lawmakers Want Review Of Pipeline License</a> <a href="http://pipelineandgasjournal.com/april-newsreel-news-alaskan-pipeline-independent-gas-alliance-probe-fatal-explosion-and-more#Independent">Independent Gas Producers Form Alliance </a> <a href="http://pipelineandgasjournal.com/april-newsreel-news-alaskan-pipeline-independent-gas-alliance-probe-fatal-explosion-and-more?page=0,1#probe">Probe Continues Into Fatal Montana Gas Explosion</a> <a href="http://pipelineandgasjournal.com/april-newsreel-news-alaskan-pipeline-independent-gas-alliance-probe-fatal-explosion-and-more?page=0,1#Regency">Regency, GE Energy Financial Services, Alinda Bolster Haynesville Pipeline Project</a>

<em>Cidade de Niteroi MV18</em>, a MODEC owned and operated FPSO, leased to Petrobras, recently achieved first oil. The spread-moored FPSO is located on the Marlin East Field in Campos Basin in approximately 1,400 meters of water.

A segment of the Auger oil pipeline in the U.S. Gulf of Mexico that was damaged by Hurricane Ike has been repaired and was restarted on Feb. 28.

ONEOK Partners, L.P. has completed the Guardian Pipeline expansion and extension project.

State oil company Saudi Aramco plans to spend $60 billion on oil and gas projects through 2014.

ARB Inc., a wholly-owned subsidiary of Primoris, has been awarded two Short Notice Alliance Contract Extensions from a large southern California utility that is performing an internal survey of its natural gas pipeline network.

(14 April 2009, Pipeline Asia)A gas swap arrangement in Indonesia has been made for delivery of gas from Badak NGL’s Bontang LNG/LPG facility to a Chinese customer of BP’s Tangguh LNG plant.

Bredero Shaw, a subsidiary of ShawCor Limited, was awarded the contract to produce 40 km of coated insulated pipeline for Sabah Shell Petroleum's Gumusut-Kakap Deepwater Project.

(14 April 2009, Pipeline Asia) Cal Dive International has been awarded a contract by a large Chinese oil and gas company for pipe lay work in Bohai Bay.

(14 April 2009, Pipeline Asia) Gazprom Management Committee Chairman Alexey Miller has met with Kazakhstan President Nursultan Nazarbaev to discuss expanding the capacity of the 1,700 km Central Asia–Russia gas pipeline.

(20 April 2009, Pipeline Asia) China National Petroleum Corporation (CNPC) has extended up to $US5 billion in loans to KazMunaiGas to help fund the construction of the Beineu – Bozoi – Akbulak gas pipeline, which will serve southern Kazakhstan, according to local news sources.

China National Petroleum Corporation (CNPC) will invest more than $US14.6 billion in a third West-East natural gas pipeline, China Petroleum Pipeline Bureau chief consultant Shifeng Su said.

Economic conditions that have negatively affected consumer demand caused Colonial Pipeline to delay its proposed 460-mile Project ExCEL pipeline expansion.

Work on Columbia Gas Transmission LLC’s Eastern Market Expansion project in Ohio, West Virginia and Virginia is complete.

El Paso Corp. reported that its Egyptian subsidiary, El Paso Egypt Exploration & Production Company, and RWE Dea AG (RWE Dea) executed an agreement to exchange interests in adjoining onshore concessions in Egypt.

Eni has signed an energy sector cooperation protocol with Pakistan and unveiled plans to double its production in the country.

The European Investment Bank's dedicated arm for the Mediterranean region has just announced a major pipeline-related financing transaction.

Northern Natural Gas has tapped Flow-Cal’s Enterprise Application Suite to simplify measurement operations on its natural gas pipeline that extends from the Permian Basin in Texas to the upper Midwest.

Total is interested in a stake in the Trans-Sahara Gas Pipeline (TSGP) should the project go ahead, joining interest from Gazprom and the national oil companies of Nigeria and Algeria.

GE Oil & Gas' PII Pipeline Solutions group has helped National Grid USA complete a challenging inspection of a decades-old natural gas pipeline below New York City.

HOUSTON, April 24, 2009 – Midcontinent Express Pipeline LLC today announced that Phase 1 began interim service on 266 miles of 42-inch pipeline from the interconnects with Houston Pipe Line Company and Natural Gas Pipeline Company of America (NGPL) located near Paris, Texas, to an interconnect with the Columbia Gulf Pipeline near Delhi, La.

(4/9/2009, Pipeline Asia) The Pakistani Cabinet has approved the construction of Iran – Pakistan – India (IPI) Pipeline and given the go-ahead for purchase of 21.2 MMcm of gas from Iran to fulfil growing local demand.

Movement on the LNG front is certainly not abating with agreements concerning LNG projects taking the spotlight in Iran, China, Japan and Indonesia.

Based on binding capacity bids from prospective shippers during the open season, Medallion Midstream’s subsidiary, Medallion Pipeline Company, LLC, has executed long-term Transportation Service Agreements to provide capacity commitments sufficient for construction of the Midkiff Lateral and the Wolfcamp Connector Expansion projects on a schedule that is expected to place both in service by spring.

Florida Gov. Charlie Crist announced at a town hall meeting in Fort Lauderdale that he opposes the proposed Calypso pipeline off the Fort Lauderdale coast.

Gazprom has raised its gas supply to Turkey by 25 MMcm/d to 67.4 MMcm/d via Ukraine and the Blue Stream pipeline.

TransCanada plans to build two pipelines as integrated extensions of the Alberta System after receiving National Energy Board approval of its application to have the System federally regulated on Feb. 26.

(4/9/2009, Pipeline Asia)Saudi Aramco has awarded a contract to Nacap-Suedrohrbau to construct a 506 km, 30 inch diameter multi-product pipeline from refineries in Ras Tanura to Riyadh in central Saudi Arabia.

Transocean’s <em>Discoverer Clear Leader</em> left the Daewoo Shipbuilding & Marine Engineering Co. Ltd. (DSME) shipyard in South Korea on March 26 for Singapore.

Willbros Group, Inc.’s upstream and downstream segments have been awarded new projects valued at approximately $181 million.

A new survey of Latin American energy executives paints a vivid picture of the region’s energy future and its challenges. The study was conducted by Bracewell & Giuliani LLP and Business News America. A noteworthy finding is that 62% of the respondents believe oil output in Latin America will peak sometime in the next 10 years.

SubSurface Instruments Inc. has introduced the Inspector 07, a lightweight, handheld instrument for locating buried utilities and other objects.

A new program is being rolled out in Texas to promote the image of natural gas as environmentally friendly and healthy for U.S. national security, in hopes of boosting its popularity with consumers and policymakers.

The Canadian Energy Research Institute (www.ceri.ca) reports that in light of the uncertainty and pessimistic statements surrounding the future of Canadian oil sands, it has decided to release an Oil Sands Briefing for industry, government, and members of the public to download. The briefing can be <a href="http://www.ceri.ca/documents/CERIOilSandsBriefingFebruary2009.pdf">downloaded</a>(PDF) at CERI's website.

Two longtime employees of Compressor Engineering Corporation (CECO) celebrated 50 years of service to the compressor industry with a dinner and reception in Ruston, Louisiana on Saturday, April 4. Bill Arrant, Senior Engineering Consultant, and Art Black, retired Vice President of Manufacturing and Engineering for CECO, were honored by their customers and friends from CECO.

Eagle Energy Partners announced April 23 that its cofounder and former chairman, Chuck Watson, will be departing the company effective May 1.

HOUSTON, TX, Feb. 25, 2014…The INGAA Foundation will present an important new study on pipeline investment and the economic impact of that investment on March 25 at the Pipeline Opportunities Conference in Houston. The study will update investment projections for natural gas, natural gas liquid and oil midstream investment through 2035, and it provides data on the economic impacts, including jobs impacts, of that projected investment.

The upcoming <a href="http://www.ngosummit.com/" title="Go to the NGO Summit's site">Next Generation Oil and Gas Summit</a> has announced that Brian Rovelli, President and CEO of Total E&P Research and Technology USA, LLC, and Stephen Lipari, President and CEO AASLAP/EVP Aspect Energy, have confirmed attendance.

Alabama Laser provides both laser-cladding services and systems.

Baker Hughes Pipeline Management Group (PMG) has published a brochure devoted to its CPCM™ cathodic protection inspection services.

Dresser Masoneilan along with joint venture partner DS Control Technologies in Novgorod, Russia, say they have demonstrated a new benchmark in large-valve positioner accuracy.

Lincoln Electric has added three new electrodes – Excalibur® 7018-A1 MR, Excalibur® 8018-B2 MR and Excalibur® 9018-B3 MR – to its line of low-hydrogen stick electrodes.

The latest version of the Spatial Risk Analyst application from New Century Software has features designed to help gas distribution system operators meet the challenges of upcoming Distribution Integrity Management Program (DIMP) regulations.

PetroBeam, Inc. announces that it is the leading developer of electron beam processing techniques to upgrade heavy oil and bitumen for easier pipeline transportation and refining.

The new GSM/GPRS serial modem from Phoenix Contact provides global access to machines and systems via GSM connections.

Batelle, TerraGo Technologies, CTDUT-Pipeline Technology Center, CartoPac and more