October 2015, Vol. 242, No. 10

How do you measure the cost of a pipeline spill? The answer: you can’t. That’s what the upper management of Plains All-American Pipeline is learning these days. It’s been a bad year for the Houston-based outfit that, through a series of acquisitions, has quickly become one of the nation’s largest independent midstream operators with over 18,000 miles of oil products pipelines.

On July 8, 2015, the American Petroleum Institute (API) released the first edition of ANSI/API Recommended Practice (RP) 1173 Pipeline Safety Management Systems. As an ANSI designated standards document, the RP became the national standard for pipeline safety management systems (PSMSs) in the U.S.

In December 2014, the industrial control system (ICS) security community learned of the latest serious attack against a control system. The attack targeted a German steel mill, which reported massive damage to a blast furnace as a result. The attack was a classic persistent targeted attack (PTA): a spear-phishing attack gained a foothold on the corporate network, which enabled the attackers to work their way into the control system network by remote control.

Italian major Eni, on Aug. 30, announced the discovery of a supergiant gas field in the Mediterranean Sea off the coast of Egypt. The Zohr field is estimated to hold 30 Tcf of natural gas (5.5 Bbbls oil equivalent), though Eni believes more could be found. As it stands, the potential reserves represent the largest discovery in Egypt and the Mediterranean, topping Israel’s 16-Tcf Leviathan field.

The Interstate Natural Gas Association of America (INGAA) contends that the methane and volatile organic chemical (VOC) emission limits for transmission pipelines proposed by the EPA will in many instances be difficult to comply with. Don Santa, president and CEO of INGAA, said, "While we haven’t had a chance to review fully the 500-plus page proposal, INGAA is concerned that some aspects of the EPA’s methane proposal would be impossible to implement cost-effectively, and that the regulations, if implemented, could adversely affect the reliability of interstate natural gas pipelines."

Phillips 66 and Spectra Energy, 50/50 joint venture owners in DCP Midstream, LLC, have entered into a nonbinding letter of intent for contributing assets to strengthen DCP Midstream. This transaction is expected to provide DCP Midstream with a stronger balance sheet and increased financial flexibility, and positions DCP to grow through commodity price cycles.

What’s in your storage cavern? It’s that time of the year when the natural gas industry takes stock of its supplies that it attempts to match with consumption and demand. Thanks to burgeoning production from the Marcellus Shale, consumers have had little problem accessing natural gas despite two colder than normal winters.

Pipelines are a valuable asset and need protection. In order to achieve this, a modern pipeline integrity management program usually includes regular inspections followed by integrity assessment, and if required, repair and rehabilitation measures.

Pipelines are a valuable asset and need protection. In order to achieve this, a modern pipeline integrity management program usually includes regular inspections followed by integrity assessment, and if required, repair and rehabilitation measures.

It’s becoming more common for pipelines ? even cathodically protected ones ? to experience external corrosion due to induced alternating current. This induced AC corrosion can be difficult to detect, let alone control, without an understanding of what it is and how it occurs. This article covers the fundamental concepts behind this unique type of corrosion, along with strategies for controlling it and protecting pipeline personnel from AC-related safety hazards. <strong>Key Facts About Induced AC Corrosion</strong>

Jon Ecker would seem to have it all: an expert researcher, a successful entrepreneur, and a passion for the energy industry. Put it all together and you have an important piece of Genscape Inc., an analytical intelligence firm that has emerged as one of the leading information providers in the oil and natural gas businesses.

The protection of oil, gas and refined product pipelines against natural events such as earthquakes, hurricanes and tsunamis, not to mention human actions including construction excavations, illegal tapping and terrorist sabotage, is an ongoing concern for operators around the world. However, in the United States, the top three causes of pipeline failure reported by the Pipeline and Hazardous Materials Safety Administration (PHMSA) are construction excavations, corrosion and equipment failure (Figure1).

<strong>Company News </strong> Two Pipeline & Gas Journal editors were recently named winners of the Houston Press Club’s 2015 Lone Star Awards. Editor Jeff Share won second place in the magazine column category for “The Cost of Bad PR” and Managing Editor Michael Reed won third place in magazine features for his investigation of issues involving cast-iron pipe. <strong>Personnel Changes</strong>

The production and transportation of hydrocarbon products involves complex process systems with components that are exposed to extreme operational and environmental conditions. To ensure safe and continuous operation, it is important to identify probable risk sources and assess the integrity of the pipeline to avoid accidental or catastrophic failures.

Snelson Companies opened its doors in 1946 as a small family-owned plumbing and heating business in Sedro-Woolley, WA. Frank Snelson, Sr. opened and ran the business with his three sons, Frank Jr., Jack and Bill. Bill, the youngest of the three, took over for his father in 1957. By 1966, Snelson was among the top hundred mechanical contracting firms in the U.S.

In the current phase of the pipeline safety enhancement plan (PSEP), SoCalGas and San Diego Gas & Electric will test and replace about 1,000 miles of pipe throughout the system. While much of the construction work takes place in fairly remote locations, a significant portion is found in busy populated areas. Whether the work is in cities or unincorporated counties, in urban or rural space, customers and the local community are affected. Long before we received approval for PSEP, we knew community and customer outreach would be a critical factor for success.

Work has begun on the Polarled project – the first pipeline crossing the Arctic Circle – for a consortium of Statoil-led companies. The 482-km, 36-inch pipeline will run from Nyhamna in western Norway to the Aasta Hansteen field, creating a new "gas highway" from the Norwegian Sea to Europe. The world’s largest pipelaying vessel, Solitaire from Allseas, is carrying out the job, In July, Pipelines International reported work was advancing with crews working around the clock.

Natural Gas Pipeline Company of America (NGPL) has an agreement with Corpus Christi Liquefaction, a subsidiary of Cheniere Energy, Inc., to provide the Corpus Christi Liquefaction Project with 385,000 dekatherms per day of southbound natural gas transportation capacity on NGPL’s expanded Gulf Coast mainline system for a 20-year term.

Tall Oak Midstream has secured a long-term, fee-based natural gas gathering and processing agreement with one of the largest acreage holders and natural gas producers in the Midcontinent’s Stack play. The company has dedicated production from all existing and future wells drilled on 40,000 net acres located in Oklahoma’s Kingfisher and Blaine counties. The associated production will be gathered and processed at Tall Oak’s Chisholm Processing Complex now being constructed in Kingfisher County.

BISMARCK, N.D. (AP) — North Dakota's taxable sales and purchases dropped more than 16% during April, May and June compared to the same quarter a year ago because of a decline in activity in the western oil patch. It is only the second such quarterly decline since 2009, but officials say they're not surprised nor too concerned given the tremendous growth in taxable sales and purchases the state has experienced in recent years.

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