May 2019, Vol. 246, No. 5
Features
INGAA Foundation Chair Victor Gaglio Shares Positive Industry Outlook
A senior vice president and chief operating officer for Piedmont Natural Gas, Duke Energy’s natural gas business unit, INGAA Foundation Chairman Victor Gaglio is responsible for leading gas utility operations. Gaglio joined Piedmont Natural Gas in 2012 and was responsible for Utility Operations prior to its merger with Duke Energy.
A native of Richmond, Va., Gaglio has more than 35 years of experience in the natural gas industry, holding a variety of positions with Columbia Gas Transmission and NiSource Gas Transmission and Storage. Prior to joining Piedmont, he served as senior vice president of Operations for NiSource Gas Transmission and Storage.
Gaglio received a Bachelor of Science in Engineering Science and Mechanics from Virginia Polytechnic Institute and State University. He has attended executive development programs at the University of Virginia’s Darden School of Business, the University of Pennsylvania’s Wharton School of Business and the University of Michigan’s Ross School of Business.
Gaglio is a member of the INGAA Foundation Board of Directors, the American Gas Association, the Southern Gas Association and the Gas Technology Institute’s OTD Board of Directors. He also serves as a member of the North Carolina Oil & Gas Commission.
P&GJ: What led to your involvement in INGAA?
Gaglio: I attended an INGAA meeting many years ago and volunteered to participate on a committee. It became really easy to stay engaged after that assignment ended. The INGAA teams work on the most challenging issues facing the industry, and you get an opportunity to work alongside some of the greatest minds in the industry as well.
P&GJ: How has your participation contributed toward your career success?
Gaglio: Participation in INGAA offers many opportunities for learning about leadership and how to work effectively with a variety of stakeholders who may not share the same opinions. You work on current issues that have national and even global impacts. It broadened my perspective and the important role each of us plays in shaping the industry.
P&GJ: What are your goals for the INGAA Foundation as Chairman this year?
Gaglio: I, and the INGAA Foundation generally, continue to put an emphasis on safety and quality in how we design, build, operate and maintain this critical national infrastructure as we work toward our ultimate goal of zero incidents of any kind.
Simultaneously, we recognize the importance of being thoughtful and respectful to all those we interact with. For example, in collaboration with the Foundation Board, I continue to encourage more meaningful partnership between our membership and end-users.
P&GJ: What are the most important items on the INGAA Foundation’s agenda? Are there any new programs that represent a change from previous years?
Gaglio: The INGAA Foundation recently approved changes to the way we identify industry-specific research opportunities, through a new committee structure working in partnership with member companies’ subject matter experts.
Staffed by both members from our pipeline operators and industry service providers, these committees are charged with identifying timely and impactful research that will aid the industry in the safe and responsible development, operation and maintenance of natural gas transmission systems in North America.
P&GJ: Has the INGAA Foundation focused on methane reductions?
Gaglio: INGAA’s board of directors adopted a number of commitments around methane in June of 2018. These are focused on continuously improving existing practices and finding new and innovative ways to minimize methane emissions.
The core principles of the commitments are to 1) minimize emissions from interstate natural gas pipelines and pneumatic controllers; 2) minimize emissions from natural gas storage and compressor stations; and 3) develop effective practices and information-sharing protocols related to detecting and reducing methane emissions.
Of course, it’s important to note that natural gas is a clean-burning and reliable energy source. For example, between 2005 and 2017, U.S. energy-related CO2 emissions declined by 14%, largely because of the adoption of natural gas for power generation.
P&GJ: How do the continuing efforts of environmental activists affect your long-term outlook for the natural gas industry?
Gaglio: I remain very optimistic in our industry’s ability to continue to demonstrate safe, efficient and environmentally responsible project development, operations and maintenance. Our member companies work closely with regulators, key stakeholders and the public to ensure that new projects are designed and built safely.
Our view is that much of the opposition to natural gas infrastructure is political in nature. The challenges raised are typically an opportunistic vehicle to pursue a much wider ideological position, and rarely have anything to do with real-world, practical issues.
It’s concerning when projects that will benefit the majority are held hostage to the political dogma of the few. For example, activists opposing energy infrastructure projects have prevented $91.9 billion in GDP, 728,079 jobs, $20.3 billion in tax revenues and $57.9 billion in project costs due to the delay and/or cancellation of 15 proposed projects and one statewide ban on hydraulic fracturing.
P&GJ: When you talk to members, what do they express as their greatest concerns?
Gaglio: Foundation members have expressed concern related to project permitting predictability. Our members represent the full supply chain in the natural gas transmission industry, and uncertainty on permitting has a significant economic impact on companies of all sizes – but especially smaller service providers.
The process for reviewing and approving new or expanded interstate natural gas pipelines is robust and transparent, but complications with multi-agency coordination can cause delays. It at times has also been hijacked by activists promoting a political agenda.
The INGAA Foundation supports the Administration’s regulatory reform and infrastructure initiatives to establish process improvements.
P&GJ: How is the industry doing in attracting younger people to the workforce?
Gaglio: The INGAA Foundation has commissioned a number of studies and workshops for our members focused on workforce development in recent years, including attracting young people to work in the industry. This information is available to our members as they focus on executing their specific hiring and development goals.
We are also proud to work with the Young Pipeline Professionals USA (YPP), to support future generations of young professionals in the pipeline industry. Over the past several years, the INGAA Foundation has offered YPP a seat on the board to actively engage with our association.
P&GJ: What is your outlook for pipeline construction over the next two years?
Gaglio: I am optimistic that demand for natural gas transmission will remain strong as energy producers continue to set production records in North America.
Demand will continue to be strong in the residential, commercial and industrial sectors, as well as the power generation sector, as we see continued retirement of other generating sources.
We also see continued global demand for both piped natural gas and liquefied natural gas, which will offer further environmental benefits to the rest of the world.
P&GJ: Is there any new or pending legislation of significant concern?
Gaglio: The INGAA Foundation is supportive of the Pipeline Safety Reauthorization requirements being proposed by the Department of Transportation’s Pipeline and Hazardous Material Safety Administration.
Our members are committed to engaging with Congress on this topic, and we are investigating putting together a Pipeline Technology Day on Capitol Hill. Foundation member companies that provide in-line-inspection (ILI) services would set up a working ILI tool and data workstation to help inform and educate elected officials and staff.
We are still working to schedule this event, along with our colleagues at INGAA. Initial feedback from Capitol Hill has been positive. P&GJ
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