August 2013, Vol. 240 No. 8

Advertisers from the print edition of <em>Pipeline & Gas Journal</em>, August 2013, Vol. 240 no. 8.

Chevron U.S.A. has reached a joint development agreement with Cimarex Energy Co. for Delaware Basin acreage in Culberson County, TX that also provides Chevron access to infrastructure including a gathering system, roads and utilities.

Linde North America has broken ground for a state-of-the art air separation unit (ASU) plant in La Porte, TX.

The Midwest Energy Association (MEA) Utility Leadership Academy hosted webinars on talent management and workforce planning earlier this year highlighted by some stunning statistics from Energy Workforce Development on retiring energy workers. The data showed the average utility work is older than 48 – and nearly half are age-eligible for retirement within the next five years.

Tubular solutions company Vallourec dedicated a new pipe mill in Youngstown, OH, primarily designed to serve the North American shale market. The new $1.05 billion plant will have an initial annual production capacity of 350,000 tons of small-diameter seamless tubes of 223/8 to 7 inches.

This month I return to that driving passion in my life: baseball. Before I made the fateful decision to move to Houston in 1984, one factor had to be satisfied. That city not only had to have a major metropolitan newspaper, but it also had to have a Major League baseball team.

That Alaska would like to commercialize its 35 Tcf in known reserves of North Slope natural gas doesn’t exactly come under the heading of “new news” to anyone in the energy business.

It was hard not to do a double take when the story broke last November: By 2017, the headlines read, the United States would overtake Saudi Arabia as the world’s largest oil producer. And by 2025, the U.S. could be exporting more oil and gas than it imports.

Landlocked Bolivia is unique among nations for many reasons, not the least of which is its wide range of terrains, climates and biodiversity, which are in turn a consequence of precipitous altitude changes within the country. From Andean glaciers to Amazonian rain forests, the country is a patchwork of varying elevations, including dozens of active and extinct volcanoes and innumerable rivers.

A self-propelled inline inspection tool has been commercially used to inspect oil and gas lines. Surveyor, a robotic tool provided by GE’s Industrial Solutions, has been used to inspect more than 35 cased crossings or terminal tank lines. The benefit of using this tool has been its capability to quantify metal loss both internal and external and the relative ease to insert and retrieve the tool into the pipeline, thereby foregoing pipe modifications for traditional smart pigs or time required for hydrotesting.

According to a study released by BDO USA, LLP, 80% of the 100 biggest publicly traded exploration and production companies by revenue listed insufficient pipeline, storage or trucking capacity as among the potential risks to their business for 2013. The study was conducted on the companies’ SEC 10-K filings, which list possible threats to their financial performance.

A major issue in the pipeline industry is coating disbondment. A large percentage of external corrosion and stress corrosion cracking (SCC) has been and continues to be observed under disbonded coatings that shield cathodic protection (CP). This has been an ongoing issue with coated and cathodically protected pipelines since the beginning of using these two technologies.

The recent visit of Myanmar’s pro-democracy leader Aung San Suu Kyi and Bangladesh’s opposition leader Begum Khaleda Zia almost went unnoticed. Despite the Indian government’s red carpet welcome, the media and analysts seemed to miss the significance of this move toward a more energy secure future and geopolitically stable neighborhood.

By widely embracing natural gas as a primary fuel source, U.S. colleges and universities have joined the ever-growing movement for energy change. Spurred by organizations like the American College and University Presidents Climate Commitment (ACUPCC) - which was created to help institutions meet ambitious, long-term energy goals - higher education is demonstrating that natural gas is an effective “green” solution in more ways than one: it reduces one’s carbon footprint and saves money on long-term energy costs.

The existence of 34 Tcm of natural gas reservoirs in the Islamic Republic of Iran along with experience from more than a century in the region has made the National Iranian Gas Company (NIGC) one of the most reliable active companies in the arena.

In the field of wireless automation, Jim Gardner is well known as a leader and an innovator. His employer, OleumTech, founded in 2000 and based in Irvine, CA, provides wireless solutions for applications in a host of industries, such as pipelines, refining, petrochemicals, utilities and water/wastewater.

Citing the harsh conditions, complex systems and potentially catastrophic consequences of missteps within the modern oil and gas industry, the National Aeronautic and Space Administration has entered into a contract with Deloitte LLP to offer consulting services through Deloitte to the oil and gas industry, focusing on safety and risk mitigation efforts for “black swan” events, incidents of “low probability and high consequence.”

<em>P&GJ</em>’s 2013 international pipeline survey indicates 77,318 miles of pipelines are in various stages of construction and planned. Of these, 33,205 represent projects in the planning and engineering phase and 44,113 are in various stages of construction.

The 2013 Pipe Line Contractors Association of Canada (PLCAC) had its 59th annual convention in Montreal, Quebec from May 12-16. The morning sessions included a host of guest speakers who offered the audience expert insight on recent and ongoing pipeline construction activities.

Transpetro, a company 100% owned by Petrobras, is the largest logistics and transportation company in Latin America for the oil and liquid byproducts segment, and the national leader of natural gas transportation and processing. It is present in more than 200 cities and every Brazilian region.

Damage to subsea pipelines can cost operators millions of dollars in downtime, lost production and repairs. Common damage events such as dropped objects, anchor drag and trawler impacts can result in dents, cracks, pitting and gouges of pipeline material. Damage events compromise the integrity of pipelines and can have significant operational and financial consequences.

As baby boomers begin to make their exodus into retirement, many companies have found themselves seeking top talent in a competitive market. But, what kind of engineers are in demand and what are companies doing to win and retain top talent in this environment?

The pipeline approval "speed up" bill hit some speed bumps on July 9. At hearings in a House subcommittee, the unofficial "pipeline" commissioner at the Federal Energy Regulatory Commission (FERC) noted some potential unintended consequences that might occur if the Natural Gas Pipeline Permitting Reform Act (H.R. 1900) as initially written becomes law. The bill was proposed by Rep. Mike Pompeo (R-KS). It essentially requires FERC to approve or deny a pipeline application 12 months after a certificate has been submitted.

Crestwood Midstream Partners LP reports its subsidiary, Crestwood Niobrara LLC, will acquire a 50% interest in Jackalope Gas Gathering Service LLC from RKI Exploration & Production LLC for $108 million.

TPF II East Texas Gathering LLC (ETG) has secured commitments to build a gas processing plant (Fairway Gas Plant) in San Augustine County, which will process gas produced from the rich James Lime formation in East Texas.

The revival of the U.S. industrial sector will be “the most significant driver” to higher long-term natural gas prices, lifted by new ethylene crackers, ammonia plants and natural gas-to-liquids facilities fed by unconventional natural gas, according to an analysis by Raymond James & Associates Inc.

Magellan Midstream Partners LP has closed on an acquisition of pipeline assets in Texas and New Mexico from Plains All American Pipeline LP.

Sen. Edward J. Markey of Massachusetts released a report on Aug. 1 on the state of gas distribution pipeline leaks in that state, using it as a case study for the country as a whole. The report, prepared by congressional staff, found that $1.5 billion worth of natural gas was lost in Massachusetts between 2000-2011 and blamed leaky distribution pipelines for most of the loss.

Mexico’s Yucatan Peninsula is poised to receive more natural gas for cleaner electric power generation from an extension of the Mayakan Pipeline, according to GDF SUEZ Mexico and GE Energy Financial Services.

The Association of Oil Pipe Lines (AOPL) welcomed confirmation from the National Academy of Sciences (NAS) that oil sands-derived crude is safe to transport through the nation's pipelines.

The latest Energy Information Administration report on North Dakota indicates that in recent years the state has seen significant gains in real gross domestic product (GDP) per capita, coinciding with development of the Bakken shale play.

ONEOK Inc. will end its energy services segment through an accelerated wind down process, releasing non-affiliated, third-party natural gas transportation and storage contracts to interested parties. The energy services segment is expected to be classified as discontinued operations, effective April 1.

An independent report conducted by Hurst Metallurgical Research Laboratory Inc. faults manufacturing defects on the Pegasus Pipeline that ruptured and spewed 150,000 gallons of crude oil in Mayflower, AR, Exxon Mobil Corp. said.

The price of Henry Hub will become significantly more volatile once U.S. LNG exports begin, and the more export capacity that is approved and built, the greater the volatility will be. This is the central theme of a new study released by PIRA Energy Group, a NYC-based energy market consulting firm.

Williams Partners L.P. announced that its Transco natural gas pipeline has filed an application with the Federal Energy Regulatory Commission (FERC) to expand a compressor station and provide additional firm natural gas transportation capacity to growing markets in the Southeast by the spring of 2015.

BG Group announced the start of commercial production from a third floating production, storage and offloading (FPSO) vessel on the Group’s discoveries offshore Brazil in the pre-salt Santos Basin.

The 3,000th tanker has been loaded at the marine terminal of the Caspian Pipeline Consortium in Novorossiysk, Russia, which started operations in October 2001. The tanker, CE- Niriis, with a deadweight of 106,504 tons and owned by Marine Trust LTD of Greece, completed loading on June 26.

Pembina Pipeline Corp. has entered into an Engineering Support Agreement (ESA) for diluent and blended bitumen transportation services associated with enhanced oil recovery developments in northeast Alberta owned by KKD Oil Sands Partnership. KOSP is a partnership between Statoil Canada Ltd. and PTTEP Canada Ltd.

Wood Group Mustang has been awarded a contract by Dow Chemical Co. to provide services for construction of 140 miles of ethane, ethylene, propane and propylene pipelines, associated interconnections, and station modifications between Dow Texas Operations in Freeport, TX and facilities at Mt. Belvieu.

The Crosstex Energy companies completed the Phase II expansion of its Riverside facility located on the Mississippi River in southern Louisiana. The Riverside facility’s capacity to transload crude oil from railcars to the partnership’s barge facility has increased to 15,000 bpd.

Gulf Interstate Engineering Co. is providing engineering and design services on Marathon Petroleum Company, L.P.’s Utica Condensate Gathering Pipeline project. Gulf is developing the conceptual engineering design for the 40-45 mile condensate trunkline system and the associated meter stations and pump stations in Ohio.

Gulfstream Services Inc. completed two decommissioning contracts with major oil and gas service companies, Helix Well Ops UK and Dof Subsea.

UOP LLC, a Honeywell company, has been contracted by PNBV, a subsidiary of Petrobras, to supply UOP Separex™ membrane systems to process natural gas aboard four Floating Production, Storage and Offloading (FPSO) vessels.

Koch Pipeline Company, L.P. conducted Phase I of an open season for the Dakota Express, a proposed pipeline to transport Bakken crude oil from western North Dakota to Hartford and Patoka, IL.

Mexico’s Yucatan Peninsula is poised to receive more natural gas for cleaner electric power generation from an extension of the Mayakan pipeline announced by GDF SUEZ Mexico and GE Energy Financial Services.

Onsite Occupational Health and Safety, Inc. (Onsite OHS) has been awarded a contract by MPG Pipeline Contractors Inc. to provide medical and safety services during construction of a 130-mile pipeline in Colorado.

Summit Midstream Partners, LLC announced an expansion of its Divide crude oil and water gathering system under construction in Williams and Divide counties, ND.

Enterprise Products Partners is developing two refined products export facilities to meet the growing demand for additional refined product export capability on the Gulf Coast.

Drilling activity and spending will significantly increase in global deepwater markets over the next decade, according to a study from Wood Mackenzie. The <em>Future of Global Deepwater Markets</em> study indicates well spend is expected to rise from US$43 billion in 2012 to US$114 billion in 2022, challenging the industry to keep up with this unprecedented growth.

WeldFit Energy Group completed a valve manifold assembly for a tank farm expansion at a terminal near Edmonton, Alberta. The valve matrix is comprised of eleven 30-inch main line spools with various sizes of extruded inbound and outbound headers.

Demand for hydrostatic testing of both new and existing pipelines is at an all-time high. At the same time, pipeline construction companies are squeezed to maintain profitability, doing more work with fewer employees or at least with fewer hours per job.

MECI has been chosen by Samsung Heavy Industries to supply a fiscal export gas-metering system that can withstand high operating pressure and high carbon content over the course of a 40-year field life.