July 2011, Vol. 238 No. 7

Advertisers from the print edition of <em>Pipeline & Gas Journal</em>, July 2011, Vol. 238 No. 7.

Ritchie Bros. Auctioneers Inc. announced the launch of new valued-added services for its customers in the U.S., Canada and around the world. New services include detailed equipment information, real-time auction results through rbauction.com, equipment financing, powertrain service warranties and property and cargo insurance.

JAG flocomponents USA, Inc. announced June 30 that Pipeline Products Specialty Company will serve as its new Houston, Dallas, San Antonio and Corpus Christi area representative.

As a nation as well as an industry we should be grateful for the apparent wealth of natural gas we are finding throughout the United States. It means a reliable, relatively inexpensive energy source for years to come in addition to badly needed jobs, tax revenues for governmental entities, and increased energy independence.

Over the past two years, the U.S. has been fortunate with regards to land falling tropical systems. In 2009, only two tropical systems made landfall along the Gulf Coast. Claudette made landfall as a weak tropical storm and Hurricane Ida weakened to tropical storm status as it approached the Mississippi Delta in early November.

Inspection and assessment capabilities in the pipeline industry are constantly improving, thanks to competitive technology developments. More advanced inline inspection (ILI) tools yield better data on pipeline condition, which in turn drives the need for advanced assessment capabilities to leverage the improved data quality and accuracy. Damage mechanisms like dents, cracks and internal and external corrosion can now be accurately quantified.

New areas of hydrocarbon production in the U.S. and Canada are supplying more and more natural gas, crude oil and natural gas liquids (NGLs) as production comes from shale deposits and other unconventional resources.

Until recently, flow measurements in pipeline sizes above 12-inch diameter were usually done with conventional measurement principles, mostly following Bernoulli's pressure difference principle or mechanical devices that were moved by the media and the number of movements being counted.

To date, limited testing has been done to determine the effects pulsation in the gas stream may have on the ultrasonic meter’s accuracy and performance. Some previous testing does show that there may be an impact on accuracy when the frequency of the pulsation is the same as -- or a multiple of -- the sampling frequency of the ultrasonic meter.

On April 15, 2010 at approximately 4 p.m., the quiet neighborhood of Calhoun, GA, 65 miles north of Atlanta, was rocked by an explosion. The force of the blast blew out windows within a quarter-mile radius and could be felt up to two miles away.

<p>After TransCanada's Bison pipeline experienced an as-yet-unexplained rupture in Wyoming July 20, an investigation is under way but has not yet uncovered the cause of the accident. The rupture occurred in remote country and did not result in any injuries or property damage aside from the pipeline itself.</p>

Chart recorders, deadweight testers and analog pressure gauges have been stock tools of the gas pipeline trade for decades. Each device brought several advantages technicians needed, so all three became common, despite the drawbacks they came with. Now reference recorders are available to replace all three with a single instrument.

The seventh annual Pipeline Opportunities Conference, presented by Pipeline & Gas Journal and the Interstate Natural Gas Association of America (INGAA), was held April 19 at the Intercontinental Hotel in Houston. The event drew more than 400 attendees who came to hear 16 key industry executives discuss activities and issues related to today’s challenges for U.S. oil and gas pipelines. Pipeline safety was also a considerable focus of this year’s program along with an Alaskan Natural Gas Pipeline update and a session on new pipeline construction opportunities.

Widespread exploitation of horizontal drilling and hydraulic fracturing techniques has made it possible to extract vast amounts of natural gas previously locked in shale formations throughout the United States. This relatively recent development has likely changed the domestic energy landscape for decades to come.

Gas chromatographs (GCs) are installed all over natural gas pipeline networks, providing an analysis of the flowing gas and calculating the physical properties used for the flow calculations and for custody transfer. However, a clear understanding of just how the GC works and the considerations that need to be made for the installation and operation of the GC are often lacking in the industry. This article discusses the major components of the GC and provides an understanding of the theory and practice of gas chromatography in the pipeline industry.

<em>“The map is not the territory.” – Alfred Korzibski </em> On Sept. 9, 2010, a gas transmission pipeline rupture in San Bruno, CA killed eight people and caused extensive property damage.

With domestic supplies of natural gas overwhelming domestic demand, LNG terminals – in a dramatic reversal from just a few years ago – are looking to build liquefaction facilities and export, not import.

<p>On July 28, the Environmental Protection Agency (EPA) issued a draft of new air quality rules for oil and natural gas applications, including processing plants and wells using hydraulic fracturing. The draft had not yet been entered into the federal record, but were available for review and announced upcoming public hearing meetings in Dallas, Pittsburgh and Denver.</p>

A critical report from a Federal Communications Commission advisory committee on June 30 was the latest hitch in the plans of a company called LightSquared to offer new 4G wireless service to broadband users.

Bishop Lifting Products, Inc. was the recipient of the Crane & Rigging Support – Silver award in Houston Business Roundtable’s Safety Excellence competition.

<p> <p>CB&I has been awarded a storage tank project, valued in excess of US$40 million, by Bahamas Oil Refining Company International Limited.

After a spill from an ExxonMobil Pipeline Company oil pipeline along the Yellowstone River on Friday, July 1, the company has released an update on cleanup efforts.

Major increases in U.S. shale gas production and the large number of new pipelines built over the last few years have led to lower U.S. natural gas prices, collapsing price spreads and major changes in pipeline capacity utilization on older, long-haul natural gas pipelines.

Marcus W. Sexton, P.E., of Alliance Engineering, was elected 2011-12 president of the Pipeliners Association of Houston at the group’s dinner meeting on June 8. The group also made its annual scholarship awards and recognized Ray Lewis of ROSEN with a Lifetime Achievement Award for 60 years of service in the industry.

Pennsylvania State Sen. John Blake is urging members of the state Public Utility Commission to grant utility status to Laser Northeast Gathering, a controversial move that would give the shale gas pipeline company the authority of eminent domain, or condemning private land for company use. Laser's request for a "certificate of public convenience" -- the document that would acknowledge the pipeline as a utility -- has been before the commission since last year.

<p> <p>Velocity Midstream Partners, LLC has secured long-term commitments from Shell Western E&P for transportation and terminal services for Shell's light oil and condensate production from the Harrison Ranch (also known as the Piloncillo Ranch) in Webb and Dimmit counties, Texas. </p>

Alliance Pipeline plans to develop a pipeline and associated facilities in North Dakota to transport liquids-rich natural gas.

Argentina's second LNG import facility, a joint development between YPF S.A., ENARSA, Excelerate Energy and GNL Escobar (GNLE), was officially opened for business on June 8.

Bluestone Gathering has signed a long-term agreement with Southwestern Energy Services Co. to build and operate a natural gas gathering system in Susquehanna County, PA and Broome County, NY.

Bluestone Gathering has signed a long-term agreement with Southwestern Energy Services Co. to build and operate a natural gas gathering system in Susquehanna County, PA and Broome County, NY.

Caterpillar Inc. plans to significantly increase its manufacturing capabilities and capacity for hydraulic excavators that will be produced at a facility under construction in Victoria, TX.

Colonial Pipeline has begun a series of system upgrades that by June 2012 will add 55,000 barrels of daily distillate capacity.

Converteam was awarded a new contract for nine Variable Speed Drives Systems with PetroChina for the emblematic West-East Gas Pipeline Project (WEPP), which is one of the biggest infrastructure projects in China.

El Paso and Spectra announced that their jointly developed project, Marcellus Ethane Pipeline System (MEPS), is holding a 30-day open season.

ENI has started production from the Appaloosa field in the U.S. Gulf of Mexico, 60 miles off the Louisiana coast.

Hannibal Pipes S.A. announced that technical partner Byard Spiral Mill has finalized plant commissioning and production start-up.

INPEX has announced plans to build a 63-mile, 20-inch diameter natural gas trunkline extending from Itoigawa city, Niigata Prefecture, to Toyama Prefecture, Japan.

Insituform Technologies, Inc.’s subsidiary, CRTS, Inc., has won a $48.4 million contract from Snamprogetti Saudi Arabia Ltd..

Eagle Ford Gathering LLC announced agreements to provide transportation, processing and fractionation services to Petrohawk Energy Corporation and Rosetta Resources Operating LP in the Eagle Ford Shale play in South Texas.

Koch Pipeline Company, L.P. received final shareholder approval to build a 20-inch crude oil pipeline between Pettus and Corpus Christi, TX to move Eagle Ford production.

Lone Star NGL LLC, a Energy Transfer Partners, L.P. and Regency Energy Partners LP joint venture, will construct a 530-mile NGL pipeline from Winkler County in west Texas to the Jackson County processing plant in Jackson County, TX.

LyondellBasell has signed an agreement to purchase 200 miles of pipeline near Houston from BP by its Equistar Chemicals LP subsidiary.

QNGS Holdings, LLC, a portfolio company of Quantum Energy Partners, LLC and Dr. Larry Bickle, announced that the company is combining its two natural gas storage development entities, Merchant Energy Partners, LLC of Denver, Colorado and Icon NGS, LLC of Houston, Texas.

Southern Union Company announced July 18 that its Trunkline Gas Company subsidiary has completed the initial phase of construction to isolate its South Texas system to provide bi-directional flow for liquids-rich gas service.

NuStar Logistics and Velocity Midstream Partners plan to build a 70-mile pipeline to transport Eagle Ford shale oil products to NuStar’s terminal near Corpus Christi.

The 2005 oil-sharing agreement which had been one of the highly contested issues between North and South Sudan may now be resolved.

<p>El Paso’s Ruby Pipeline received final authorization to begin service July 27, and is scheduled to receive a combined 64 MMcf/d of gas supply from its Colorado Interstate Gas (CIG) and Opal processing plant receipt points July 28. The pipeline will deliver 16 MMcf/d to its Malin interconnects with Pacific Gas & Electric’s (PG&E) Redwood Path and Gas Transmission Northwest pipeline (GTN).</p>

Southcross Energy announced July 5 that the company has acquired approximately 58 miles of natural gas pipelines in South Texas from Tauber Pipeline, LLC, a subsidiary of Tauber Oil Company, Houston.

Southcross Energy acquired 58 miles of natural gas pipelines in South Texas from Tauber Pipeline, LLC.

Wood Group won a multimillion-dollar, three-year contract from Chevron U.S.A. Inc. to commission the Big Foot extended tension leg platform (E-TLP) in the deepwater Gulf of Mexico.

Each year gas utilities issue thousands of orders to shut off service for a variety of reasons. And, if an employee is unable to access the meter on the first visit, additional trips are required. This drives up operational costs, decreases productivity – and potentially increases exposure to liabilities.

Bug-O Systems has announced Weld.com, describing it as a new resource for the welding and cutting industry. The firm says the industry has been without an online resource that addresses all aspects of the industry until now. The site is currently active on a temporary basis and scheduled for a full launch Oct. 1.

Denso’s SeaShield SplashZone UW Epoxy is a solvent-free patching compound used for repairing pits, cracks and voids in steel, concrete, wood and other surfaces with minimal experience or tools required.

Dialight says its new SafeSite® Series LED Linear Fixture has achieved certification to the Class I, Div 2 standard for use in hazardous locations.

Monitoring systems specialist Permasense has delivered a breakthrough integrity monitoring system that signals a step change in data availability, enabling better decision-making for oil and gas facilities. The system, based on an innovative fixed-sensor technology, delivers high integrity data reliably, securely and continuously.