May 2009 Vol. 236 No. 5


Business Meetings & Events

Foshee Elected Chairman of El Paso

The board of directors of El Paso Corporation has elected Doug Foshee as chairman of the company following its annual meeting. Foshee has held the titles of president and CEO since joining the company in 2003.

Houston Pipeliners Hear Update On Rockies Express Project

Members and guests of the Pipeliners Association of Houston heard an update on the construction of the major 1,679-mile Rockies Express gas pipeline project that extends from Colorado to eastern Ohio.

May Association News

ExxonMobil Production Company's U.S. operations won the <strong>Gas Processors Association (GPA)</strong> 2009 Company Safety Award and the President's Award for Safety Improvement.

May Company News, Mergers and Acquisitions

<strong>Ledcor Projects Inc.</strong> and <strong>Suncor’s Oil Sands Extraction Group</strong> took top honors at Suncor Energy Inc.’s President’s Operational Excellence Award on March 17. The program's two top awards recognize world-class safety performance by Suncor employees and contractors. The employee award went to Suncor's Oil Sands Extraction Group, which further improved its safety performance by engaging and involving employees and increasing their commitment to safety.

May Personnel Changes

Texas Gov. Rick Perry appointed <strong>Barbara J. Mathis</strong> of Lufkin and <strong>Rodney J. Unruh</strong> of Spring Branch to the state One Call Board for terms to expire Aug. 31, 2011.

Editor's Notebook

Editor's Notebook: Ten Years On, Pipeline Safety Much Improved

For two days last month I sat through the API’s stellar pipeline conference in Fort Worth absorbing everything I possibly could on the issue of safety.


Carbon Capture And Sequestration (CCS): A Pipedream Or A Real Business Opportunity For Gas Pipeline Developers?

Currently, proposals to reduce greenhouse gas (GHG) emissions into the atmosphere are central to both federal and state legislative and policy initiatives. Many of these proposals cite CCS as a promising approach for substantially abating GHG emissions.

Challenging HDD Project Provides 10,000-Foot Record-Setting Crossing

A new global horizontal directional drill (HDD) undersea crossing record has been set in terms of pipe diameter, pipe weight and length of crossing in Saudi Arabia.

Contractor Completes 42-Inch Bore To Connect LNG Terminal, Pipelines

When Sempra Energy’s Pipelines and Storage business unit needed to install a new pipeline from Sempra LNG’s new Cameron LNG receipt terminal to existing interstate pipelines north of the facility, they were well aware the project presented special challenges.

Enhance Energy Planning World-Scale CO-2 Pipeline In Alberta

The first world-scale project for transporting and burying greenhouse gases looks likely to be built in Alberta, Canada, according to Enhance Energy Inc., sponsor of the project.

HDD Helps Producer Tap Gas Reserves Under DFW Airport

The Barnett Shale is among the nation’s fastest growing natural gas fields. The formation encompasses more than 5,000 square miles and stretches from Dallas to Fort Worth, TX. With estimated natural gas resources in excess of 30 Tcf, the potential contribution of this formation as an energy source is immense.

Managing Cleanliness Of Natural Gas Engines Cuts Costs

This article spotlights the factors that operation and maintenance managers should consider to maximize the return on their investment in a natural gas engine driving a compressor.

Natural Gas Storage Field Expansion Uses Static Pipe Bursting

While big trenchless pipeline installation projects often receive the majority of the attention in the natural gas industry, sometimes smaller trenchless projects play an important role in maintaining the flow and storage of natural gas and deserve their due.

On-Board Pipeline Installation And Fatigue Monitoring System

As subsea pipeline developments continue to move into deep and ultra-deep water locations, there is an increasing need for the accurate prediction of expected pipeline fatigue life. A significant factor that must be considered as part of this process is the accumulated fatigue damage experienced by a pipeline weld during installation, i.e. before commencement of operations.

Operational Excellence Delivers Higher Profit Margins To Midstream Companies

Midstream energy companies operate in a highly regulated environment and - regardless of marketplace conditions - face razor-thin profit margins from three revenue sources - transportation, trading and storage. A small mistake, oversight or bad judgment in any of these areas can cause significant revenue loss.

Ritchie Bros. Houston Grand Opening Auction Draws 4,440 Bidders And $66 Million In Sales

Ritchie Bros. Auctioneers recently celebrated the Grand Opening of its new permanent auction site in Houston (15500 Eastex Freeway) with a ribbon-cutting ceremony on March 25 during day-one of a three-day unreserved industrial equipment auction.

Software Model System Quantifies Corrosion In Dry Gas Pipelines

Current internal corrosion direct assessment (ICDA) methods for dry natural gas pipelines do not assess the extent of corrosion damage due to availability of water in the presence of CO2, H2S etc. That is because the assessment is a complex task beyond the scope of most present-day ICDA models. A new system aims to fill that need.

The Challenge Of Delivering Natural Gas To Southern Peru

In October 2008, the Peruvian government announced that Kuntur Transportadora de Gas had been awarded a contract to build and operate a 675-mile natural gas pipeline that will extend from the Camisea gas field in the Amazon jungle to the south Pacific coast of Peru.


Ernst & Young Creates Analytical Tool To Examine Effects Of Federal O&G Tax Law Changes

An analytical tool has been crafted by Ernst & Young LLP to help clients quantify the effects of changes to oil and gas tax law that have been proposed by the Obama administration in the draft budget for fiscal year 2010 and in draft legislation, the “Oil Industry Tax Break Repeal Act of 2009,” filed in April 2009 by Sen. Charles Schumer (D-NY).

PHMSA Worries About Pipeline Safety

Six months after giving pipelines the green light to use high-stress pipelines more widely, the Pipeline and Hazardous Materials Safety Administration (PHMSA) is now highlighting safety concerns with new pipelines operating at 80% of specified minimum yield strength (SMYS).

Senate Bill Worries Pipeline Industry

The pipeline industry is worried about a new Senate bill which gives FERC wider latitude to award rebates to customers who the agency finds have been subject to unfair rates.

In The News

CITGO Corpus Christi Wins Second Prevention Award

Officials with CITGO and the Texas General Land Office (TGLO) are shown during the presentation of the 2008 Oil Spill Prevention Response Award won by the CITGO Corpus Christi Texas Refinery for the second consecutive year.


850-Mile Segment Of East West Gas Pipeline Commissioned

BJ Services Company has completed pipeline pre-commissioning and commissioning operation for Reliance Gas Transportation Infrastructure Limited (RGTIL) on the East West Gas Pipeline (EWPL), which is designed for a capacity of 80 MMscm/d.

Bechtel Wins Denali Engineering Contract

In recent weeks, the Alaska Gas Pipeline LLC (Denali) has awarded an engineering contract for the gas mainline project to Bechtel.

BHP Billiton Begins Production From Deepwater TLP In Gulf

BHP Billiton Petroleum’s tension leg platform (TLP) began first oil and natural gas production from the Shenzi development in the deepwater Gulf of Mexico.

Construction Begins On Iran To Armenia Pipeline

Construction has begun on the 300-km Iran-Armenia oil pipeline.

Deep Down Awarded Patent For Subsea J-Plate Design

Deep Down Inc. has been awarded a U.S. patent on an apparatus for installing a subsea umbilical.

EB Delivers Deepwater Pipeline Plows

Two next-generation deepwater pipeline plows designed and built by UK-based IHC Engineering Business (EB) recently left EB’s Hadrian Riverside workshops on Tyneside for extensive offshore commissioning and installation on the owner’s vessels.

Enbridge Sells Interest In Colombian Pipeline

Enbridge Inc. plans to sell its indirect 24.7% interest in the OCENSA pipeline to Ecopetrol, the Colombian national oil company, for US$400 million.

First Russian LNG Cargo Enroute To Japan

The first Russian LNG cargo for delivery to Japan has been loaded from the Sakhalin II LNG plant into the Energy Frontier LNG carrier.

GE Nets Contract For Chinas Second West to East Pipeline

China National Petroleum Corporation awarded a supply contract to GE Oil & Gas for its Second West East Gas pipeline project that will connect Xinjiang in the northwest to the southern province of Guangdong.

KM/NGPL Plan 1,100+-Mile Chicago Express Pipeline

Kinder Morgan Energy Partners and Natural Gas Pipeline Company of America (NGPL) plan to build a 1,108–mile pipeline from Arlington, WY to the Joliet hub in Illinois.

Korea Gas Seeks Participation In Russian Pipeline

South Korea's Korea Gas Corp. may participate in construction of the Sakhalin-Khabarovsk-Vladivostok natural gas transportation system in Russia.

NiSource Unit Accepting Bids For Capacity To FGT

To serve growing demand for natural gas from diverse supply areas to robust southeastern markets, NiSource Gas Transmission & Storage’s unit, Columbia Gulf Transmission, held an open season on capacity available to Florida Gas Transmission (FGT).

Nord Stream Submits Environmental Study To Finland

The management team behind the Nord Stream pipeline project have submitted its environmental impact report to Finnish officials. The first pipeline will be ready in 2011 if Nord Stream gets the needed permits from all national authorities to go ahead with construction.

Pacific Trail Project Wins Environmental Approval

Pacific Trail Pipelines Limited Partnership has announced a decision for its proposed Kitimat to Summit Lake Pipeline Looping Project (KSL Project) under the Canadian Environmental Assessment Act.

PEMEX Awards Pipeline Maintenance Contract To DMGP

Mexico’s Pemex Exploration and Production has awarded a $1.3 billion 10-year contract to DMGP Servicios de Integridad.

Persian Alternative To Russian Gas Under Review

Negotiations have begun for a pipeline project to transport gas from Iran to Europe and would involve Iran, Syria, Iraq and European partners.

Regasification Plant In Canada On Schedule

The Canaport LNG terminal in Saint John, New Brunswick is nearing completion after the three cryogenic LNG tanks were found to be in accordance with Canadian standards.

SemCAMS Wins NEB Approval For Redwillow Pipeline

Canada’s National Energy Board (NEB) approved an application by SemCAMS Redwillow ULC to construct and operate the Redwillow Pipeline project.

Shell To Spend $32 Billion On Upstream/Downstream Capacity

Shell said it is continuing with plans to build new upstream and downstream capacity, while managing the near-term challenges of the global economic slowdown. In 2009, the company says it will invest $31-32 billion to create its portfolio.

Spectra Energy To Expand Capacity Of T-North Pipeline In BC

Spectra Energy Corp. has executed firm service agreements with customers related to the proposed expansion of its Transportation North (T-North) natural gas transmission facilities in northeastern BC.

Turkemenistan-China Pipeline Remains On Track

Turkmenistan will complete the construction of its 188-km segment of the Turkmenistan-China natural gas pipeline by year’s end.

Work Looms In Iraq For Pipeline Inspection

Iraq's South Oil Company, an affiliate of the Iraqi Oil Ministry, has issued tenders for foreign companies to examine a number of existing oil and gas pipelines in southern Iraq. Specialized companies have been given until May 15 to submit their offers.


Executive Sees GIS Evolving To Better Serve Pipeline Industry

Robert Brook is Pipeline and Gas Utility Industry Manager for ESRI, a private consulting firm that focuses on expanding GIS technology that pipelines and other utilities are finding increasingly useful as an operational tool.


Brazilian Company Offers Engineering Solutions

Liderroll is a 100% Brazilian private company, founded by engineer Paulo Roberto Gomes Fernandes, who works as CEO. Headquarters are in Rio de Janeiro with a plant in the municipality of Duque de Caxias and a sales office in Houston.

Mobile Assets Managed By Satellite

M&M Pipeline Services has implemented an all-satellite, GPS fleet-tracking system from Fleet Management Solutions to optimize the management of its mobile assets, improve the efficiency of field operations and track truck maintenance scheduling.

PetroBeam Aims To Unlock Value At The Bottom Of The Oil Barrel

The year 2008 was a bloodbath year in terms of oil prices. But the International Energy Agency is predicting a return to above $100 a barrel after 2010.

The TM (ten-minute) Tap Removal System

The process of removing old clamp-on gas service tees is long and tedious, taking a four man crew a minimum of three hours to complete; that’s three hours or more for each removal.

Web Exclusive

BrightSource and PG&E Set Record with Solar Power Deal

Pacific Gas and Electric Company (PG&E) has announced a series of contracts with BrightSource Energy, Inc. for a record total of 1,310 megawatts (MW) of solar thermal power.

Deepwater Granted Mexican Patent for CP Mat

Deepwater Corrosion Services reports that, on March 4, 2008, the company’s pending Mexican patent for the CP Mat ( Stabilizer With Cathodic Protection) was granted. With the receipt of patent number 130524.2002, the company says CP Mat is now patented in both the U.S. and Mexico.

Perfect Storm of Tough News: Wood Mackenzie Analyzes Power & Natural Gas Outlook

Unprecedented demand destruction and deferral, coupled with the economic downturn and record sales declines, are creating a challenging near- and mid-term operating environment for the electric power industry, according to research and consulting firm Wood Mackenzie.

What's New

American Augers DD-880

American Augers has expanded its HDD product line to include the DD-880, a large maxi-rig style horizontal directional drill.

Belzona 5831

Belzona is offering Belzona 5831 (ST Barrier) which it says is an innovative solution for the prevention of corrosion and future deterioration in splash zones.

Ditch Witch® JT3020

The Ditch Witch® JT3020 All Terrain features one of the organization’s many patented innovations designed to simplify the HDD process.

HammerHead Mole® Pneumatic-Piercing Tools

HammerHead Mole® offers a brochure in portable document format devoted to its line of pneumatic-piercing tools and introducing the Catamount™ tool.

Lincoln Electric Ranger® 225 GXT

Lincoln Electric says its Ranger® 225 GXT welder generator delivers a smooth AC/DC welding output and 10,500 watts peak generator power.

Oil Purification Systems OPS-1 and POLARIS Oil Testing

Oil Purification Systems (OPS), developer and manufacturer of the OPS-1™ on-board fluid cleaning system, has announced a partnership with POLARIS Laboratories™.

Phoenix Contact EC-E

Phoenix Contact says its new EC-E electronic circuit breakers selectively protect load circuits connected to a 24 V DC power supply.

R&M Energy Systems ERT

R&M Energy Systems says its ERT™ technology is available in a 2-7/8-inch power section.

Radiodetection RD8000 and RD7000 Locators

Radiodetection says its RD8000 and RD7000 locators are ergonomically designed to deliver a lightweight, energy-efficient and well-balanced tool.

RIDGID SeekTech® SR-60

RIDGID® is putting the spotlight on its SeekTech® SR-60 utility locator.

TT Technologies Grundoburst®

The self-contained, hydraulically operated Grundoburst® static pipe bursting system bursts and replaces ductile iron and steel mains, along with all fracturable pipe materials.


Vermeer has expanded its NAVIGATOR® line of horizontal directional drills to include three rigs for the large-diameter pipeline industry.