August 2015, Vol. 242, No. 8

Advertisers from the print edition of Pipeline & Gas Journal, July 2015,Vol. 242, No. 8.

I remember the last time I saw my late father-in-law, Rex Brassfield, who lived the quiet life with his lovely wife Verna in the southwestern Colorado town of Montrose. Rex was in his 80s, wracked by the painful arthritis that crippled his hands and left him in constant discomfort.

<strong>Company & Association News </strong> David C. Carroll, GTI president and CEO, was named president of the International Gas Union (IGU) for a three-year term at the closing ceremony of the June World Gas Conference (WGC) in Paris. With members from 91 countries representing 97% of the world's natural gas industry, IGU’s mission is to advocate for gas as an integral part of a sustainable global energy system, and to promote the political, technical and economic progress of the gas industry. The organization's home office, or Secretariat, is in Oslo, Norway.

Few trends have been bigger or more exciting to watch in the last decade than the rise of drones. From serious applications like warfare to more quirky ones like pizza delivery, the world is still clearly just starting to figure out how drones can profitably be used. That background makes the recent chatter about the opportunity for drone use in commercial oil and gas applications an extremely interesting trend to watch.

Pipeline contractors now have an alternative source for reliable pipeline coating. Darby Equipment Company has teamed with Dennis Roberson, an established leader in the field-coating industry, to form Pipeline Coating Services (PCS). The new company will be a division of Darby with its own branding and will provide pipeline contractors with newly engineered coating equipment designed for optimum ease of use and consistent results when applying high-quality fusion bonded epoxy (FBE) to all sizes of steel pipe joints.

On June 17, the Federal Energy Regulatory Commission’s (FERC) Division of Audits and Accounting, Office of Enforcement (DAA), issued two audit reports involving oil pipelines, the Colonial Pipeline Company Docket No. FA14-4 and Enterprise Products Partners, L.P., Docket No. FA14-1. The Enterprise audit focused on Mid-American Pipeline Company, LLC (MAPL), a subsidiary of Enterprise. These reports are significant because they demonstrate that the FERC audit staff is taking a comprehensive look at oil pipeline accounting and rate issues along with enhanced scrutiny of affiliate issues.

Iran is a major energy-producing and exporting country with natural gas accounting for about 68% of its domestic energy consumption. Iran ranks second worldwide in terms of natural gas reserves. This is indicative of the importance of Iran’s gas in present as well as future national and international marketing.

Republicans in Congress are working to pass legislation setting aside a new EPA and Army Corps of Engineers joint rule which makes it more expensive to build pipelines in areas containing streams and other small bodies of water. The rule would require pipelines - or anyone wanting to build in these tributaries and ponds - to first do site analysis and then, potentially, obtain a Clean Water Act permit. That is time-consuming and can be expensive. The EPA published the new so-called Waters of the U.S. – (WOTUS) rule in May which goes into effect Aug. 28.

NiSource Inc. and Columbia Pipeline Group announced July 2 separation of the two companies was completed through a distribution of all the common stock of CPG held by NiSource to its shareholders. NiSource, based in Merrillville, IN, is one of the largest natural gas utility companies in the United States with over 3.5 million customers in seven states under the Columbia Gas and NIPSCO brands. The company also provides electric distribution, generation and transmission services for 500,000 NIPSCO customers in northern Indiana.

Pipeline & Gas Journal’s 11th annual Pipeline Opportunities Conference brought in 400 attendees from throughout North America, all focused on getting the most up-to-date information regarding the oil and natural gas industry. In addition to a full day’s worth of conference presentations and roundtables, guests had ample time to network during the even held March 24 at the Royal Sonesta Hotel in Houston’s Galleria district.

Raised in Pittsburgh, Jim Feather, NACE International’s 2015 president, says he grew up “not only with the steel metallurgy industry in my blood but also in my nostrils.” And while Feather did work directly in the steel industry as a sophomore through a co-op program at Carnegie-Mellon University, even then he could see “the writing on the wall” concerning steel’s long-term future in the United States.

The 51st annual convention of the National Association of Pipe Coating Applicators (NAPCA) was held April 15-18 at The Hyatt Regency Scottsdale, AZ Gainey Ranch, with over 200 attendees. The convention’s business sessions heard updates from several speakers, including Rich Hoffman, executive director of the INGAA Foundation, who stressed to the group that “even in a downturned economy, safety has got to be the most important thing that we do.”

<em>P&GJ’s</em> 2015 international pipeline survey indicates 70,308 miles of pipeline are in various stages of construction or planned. Of these, 32,013 miles account for projects in the planning and engineering phase, while 38,295 miles are in various stages of construction.

At the American Petroleum Institute’s spring pipeline conference in Savannah, GA one bit of news in particular grabbed attendees’ attention when it was announced that Pipeline Director Peter T. Lidiak was leaving his post after serving as API’s go-to pipeline executive since 2005. Lidiak, who joined API in 2000, is one of the nation’s leading experts on crude oil pipelines, testifying before countless congressional and agency hearings in Washington, D.C. and having a hand in practically any issue involving pipelines.

At the American Petroleum Institute’s spring pipeline conference in Savannah, GA one bit of news in particular grabbed attendees’ attention when it was announced that Pipeline Director Peter T. Lidiak was leaving his post after serving as API’s go-to pipeline executive since 2005. Lidiak, who joined API in 2000, is one of the nation’s leading experts on crude oil pipelines, testifying before countless congressional and agency hearings in Washington, D.C. and having a hand in practically any issue involving pipelines.

PA12, a high-performance polyamide pipe, has found a niche in the oil and gas market, allowing it to enter a realm that has long been dominated by metallic pipe. VESTAMID® NRG PA12, developed by Germany-based Evonik Corp., can handle extreme stresses, but unlike other thermoplastic pipes, it can also handle high-pressure systems. This expanded capability changes the game when choosing a pipe material for oil and gas transport.

Research development organization Pipeline Research Council International (PRCI) officially opened its new Technology Development Center at a ribbon-cutting ceremony and tour Wednesday. “We want you to think of this place as yours,” PRCI President Cliff Johnson told attendees, many of whom represented pipeline and service companies. “How would you use this space?” The 30,000 square-foot facility broke ground July 7, 2014 on a 10-acre campus northwest of Houston with about half of the area earmarked for a state-of-the-art pull-test facility.

The ROSEN Group brought key industry stakeholders together for a roundtable on the topic of “Linear Threats in Pipelines” on May 28. The event attracted over 100 attendees from throughout North America and Europe who were hosted at the ROSEN facility in Gahanna, OH. The roundtable began with an official welcome by ROSEN Executive Vice President Chris F. Yoxall, who emphasized the importance of “why we are here.” He addressed the goal and set the tone for the day – bringing together all stakeholders to collectively work on common topics of interest.

Pipeline engineering specialist STATS Group was contracted by Apache North Sea Ltd. to isolate the Forties Pipeline System (FPS) so that subsea isolation valves (SSIV) and piping spools could be safely installed and leak tested, avoiding the need to depressurize the entire pipeline system. The 36-inch main crude oil line is a major pipeline network in the North Sea carrying 40% of the UK's oil, with over 50 offshore assets flowing into the 169-km FPS, which runs from Forties Charlie platform to Cruden Bay terminal, transporting 700,000 bpd.

A new survey of over 400 energy executives and IT professionals in the energy, oil, gas and utility industries found that most energy security professionals were extremely confident in their ability to detect a cyber-attack on critical systems, with 86% stating they could detect a breach in less than one week.

NET Midstream’s affiliate, NET Mexico Pipeline Partners, LLC., saw completion of its Net Mexico Pipeline ahead of schedule and placed into service in November 2014. NET Mexico will interconnect on the Mexican side of the border with Phase 1 of the Los Ramones Pipeline, which is being developed by an affiliate of Gasoductos de Chihuahua S. de R.L. de C.V. The pipeline is anchored by a long-term firm gas transportation agreement, for up to 2.1 Bcf/d, with MGI Supply Ltd., an indirect wholly owned subsidiary of Pemex Gas, Mexico’s state-owned gas company.

Russia’s Gazprom and China National Petroleum Corporation (CNPC) have confirmed that construction is underway on the 4,000-km Power of Serbia Pipeline that will deliver up to 38 Bcma of gas to China. The first joint of pipe for the Chinese sector of the project was recently welded near the city of Heibe in the northern Heilongjiang Province bordering Russia, according to CNPC. Russia started building its section of the 2,500-mile eastern route last year. The pipeline is due to become fully operational in late 2017.

Aegion Corporation’s Corrosion Protection unit was awarded three contracts with a combined value of about $32 million. The Aegion Coatings Services group received a contract in the Caspian Sea region to perform outer-diameter field coatings for a 300-mile onshore natural gas pipeline expansion. The project is expected to begin in fall 2015, finishing at the end of 2017.

The Saddlehorn Pipeline Company added a 50-mile extension to its planned 550-mile pipeline to transport various grades of crude oil from the DJ Basin, and potentially the broader Rocky Mountain and Bakken area resource plays, to storage facilities in Cushing, OK owned by Magellan Midstream Partners and Plains All American Pipeline, L.P.

ONEOK Partners has entered into a 50-50 joint venture with a subsidiary of Fermaca Infrastructure, a Mexico City-based natural gas infrastructure company, to construct a pipeline that would transport natural gas from the Permian Basin in West Texas to Mexico. The $450 million Roadrunner Gas Transmission pipeline project extends from ONEOK Partners’ ONEOK WesTex Transmission natural gas pipeline system at Coyanosa, TX, west to a new international border-crossing connection at the U.S.-Mexico border near San Elizario, TX, where it will connect with Fermaca’s Tarahumara Gas Pipeline.

Dallas-based Energy Transfer Partners plans a $1.5 billion expansion of natural gas pipeline operations in western Pennsylvania. The 440 MMcf/d capacity project will support long-term midstream agreements with EdgeMarc Energy. EdgeMarc has drilled over 20 wells and has over 25,000 acres under lease in Butler County. As part of the deal, Energy Transfer is acquiring EdgeMarc’s Constellation pipeline in Butler County.

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