Pipeline
In the News: Duke Energy to Acquire Piedmont Natural Gas for $6.7 Billion
Duke Energy Corp. announced Oct. 26 it will acquire Piedmont Natural Gas Co. Inc. for $4.9 billion in cash. Duke will also assume $1.8 billion in Piedmont existing net debt. Piedmont began operations in 1951 in Charlotte, NC and is primarily engaged in distributing natural gas to over 1 million residential, commercial, industrial and power generation customers in portions of North Carolina, South Carolina and Tennessee. Duke and Piedmont are key partners in the $5 billion Atlantic Coast Pipeline that will be the first major natural gas pipeline serving eastern North Carolina.
Michels Sets North American HDD Record on Northern Courier Pipeline
Michels used horizontal directional drilling (HDD) beneath the Athabasca River on Nov. 21 to complete a company record 1.36-mile installation – the longest in North America for a 42-inch pipe. The 7,200-foot crossing is located near Fort MacKay, Alberta, about one hour north of Fort McMurray. The crossing, part of the TCPL Northern Courier Pipeline Project, involved installing a 42-inch casing pipe with six HDDs and one Direct Pipe™.
Oil and Gas Research Eyeing Future, Bridging Gaps
In the gridlock of first-quarter 2015 earnings conference calls last spring, Doug Suttles, CEO at Alberta-based Encana Corp., talked bullishly about the Canadian energy company’s production growth prospects. This while in the midst of reporting a $1.7 billion loss for the quarter tied to a $1.2 billion impairment charge brought on by last year’s global oil price crash and another $500 million of red ink coming from a foreign exchange loss. Regardless, Suttles couldn’t have been more upbeat when he talked to analysts in mid-May.
South Dakota Regulators Grant Dakota Access Pipeline Permit
PIERRE, S.D. (AP) — South Dakota regulators approved a construction permit Monday for a pipeline that will cross through the state as it carries North Dakota oil to Illinois. The South Dakota Public Utilities Commission voted 2-1 to approve the permit for the Dakota Access Pipeline, and construction on the roughly 270-mile leg could begin early next year.
EPA Boosts Amount of Ethanol in Gasoline Supply
WASHINGTON (AP) — The Obama administration is boosting the amount of corn-based ethanol and other renewable fuels in the U.S. gasoline supply despite sustained opposition by an unusual alliance of oil companies, environmentalists and some GOP presidential candidates. The Environmental Protection Agency (EPA) Monday issued a final rule designed to increase production of ethanol to be blended with gasoline through 2016, a decision that could reverberate in Iowa's crucial presidential caucuses.
Kinder Morgan, Brookfield Buying Majority Interest in NGPL
Kinder Morgan and Brookfield Infrastructure Partners agreed to jointly acquire, from Myria Holdings, the 53% equity interest in Natural Gas Pipeline Company of America (NGPL) not already owned by them for $242 million. KMI will pay $136 million and increase its ownership interest from 20% to 50%, while Brookfield will pay $106 million, increasing its ownership from 27% to 50%. The transaction values NGPL at a total enterprise value of $3.4 billion, including existing debt.
Willbros Closes Sale of Its Professional Services Segment
Willbros Group, Inc. announced it has closed on the sale of its Professional Services segment to TRC Companies in a cash deal valued at $130 million, subject to normal working capital and other adjustments. “The close of this transaction is a milestone in the transformation of Willbros to a lean organization focused on energy infrastructure construction and maintenance,” said Willbros outgoing Chairman and CEO John T. McNabb II. “I am confident that we are taking the right actions to return Willbros to prominence in its markets.”
Algonquin Plans Pipeline Expansion of LNG Storage Facility
Algonquin Gas Transmission, LLC has filed a request with the Federal Energy Regulatory Commission (FERC) for a pre-file review process for the proposed Access Northeast Project. Upon completion of the review, Algonquin will file an application with FERC to start construction.
Steel Factory Gas Leak Kills 10, Injures 7 in Eastern China
BEIJING (AP) — A gas leak at a steel parts factory in eastern China killed 10 people and left seven others hospitalized with carbon monoxide poisoning in the latest deadly industrial accident to hit China, officials said Monday. The leak occurred late Saturday and poisoned 17 people, five of whom died immediately, the Zouping County government said on its official microblog. It said five more died early Sunday, and the cause of the leak was under investigation.
Prince Rupert Project Receives Construction/Operation Permits
TransCanada has final permits from the BC Oil and Gas Commission (BCOGC), giving regulatory approval for construction and operation of the Prince Rupert Gas Transmission pipeline project (PRGT). “Receiving the full complement of 11 pipeline and facility permits is a major milestone for the project, and concludes an exhaustive regulatory process that we embarked on more than two years ago,” said Tony Palmer, PRGT president.
U.S. Oil, Natural Gas Reserves Both Increase in 2014
U.S. crude oil and lease condensate proved reserves increased by 9% to 39.9 billion barrels, and natural gas proved reserves increased by 10% to 389 Tcf in 2014, according to Energy Information Administration's (EIA) U.S. Crude Oil and Natural Gas Proved Reserves report. U.S. crude oil and lease condensate proved reserves reached the highest level since 1972, and natural gas proved reserves surpassed last year's record level.
Passenger Travel Accounts for Most of World Transportation Energy Use
The transportation of people and goods accounts for about 25% of all energy consumption in the world. Passenger transportation, in particular light-duty vehicles, accounts for most transportation energy consumption – light-duty vehicles alone consume more than all freight modes of transportation, such as heavy trucks, marine, and rail.
Joint Venture to Build NGL Processing Plant, Pipelines
Two Houston-based oil and gas companies have formed a $240 million joint venture to build a NGL processing plant and pipelines in La Salle County, TX on the western edge of the Eagle Ford Shale.
US to Cancel Lease on Land Sacred to Blackfoot Indian Tribes
BILLINGS, Mont. (AP) — The Interior Department plans to cancel a long-suspended oil and gas drilling lease near Glacier National Park that's on land considered sacred to the Blackfoot tribes of the U.S. and Canada, according to court documents filed Monday. Tribal leaders said such a move would make up for a wrong done to them in 1982, when the government issued the lease without consulting the tribes.
Numbers Show Oil Price Rebound Not Imminent, but Underway
Oil markets will remain depressed through the fourth quarter of this year as oil storage levels continue to rise around the world. The closely watched Energy Information Administration (EIA) figures detailing weekly gains in inventory levels in the United States are just one piece of the puzzle.
Despite Economy, Texas Prepares More Students for Oil Jobs
HOUSTON (AP) — The oil industry is mired in its latest bust, with thousands of jobs evaporating like flares flaming out over natural gas wells. But in Texas, education officials are preparing more young people for the oil patch, showing the state's unshakeable commitment to the energy sector despite the employment uncertainties.
Cyprus: Energy Deal Boosts Plans to Export Gas to Egypt
NICOSIA, Cyprus (AP) — A move by British oil and gas company BG International to buy a stake in Cyprus' offshore mineral deposits is an important step forward for the country's plans to supply Egypt with natural gas, the east Mediterranean island's energy minister said Monday. Yiorgos Lakkotrypis said U.S. company Noble Energy has cut a deal with BG International for a 35% stake in an area, or block, where a field estimated to contain more than 4 Tcf of gas has been found.
Tennessee Gas Pipeline Files Certificate Application for NED Project
Tennessee Gas Pipeline Company (TGP), a Kinder Morgan company (KMI), made it official, filing a certificate application with the Federal Energy Regulatory Commission (FERC) for its proposed Northeast Energy Direct Project (NED). The $5 billion effort will expand TGP’s existing, extensive pipeline system in Pennsylvania, New York and New England, connecting low-cost natural gas supplies from northern Pennsylvania to New York and New England markets.
What Paris Attacks Mean for Commodities Prices
The Paris tragedy clearly showed the world that the war on terror has gone global. If that had not already been made clear by terror bombings in Baghdad, Beirut, and the Russian airliner in recent weeks, it was hammered home by Paris. Israeli media reports that no western intelligence picked up any signs of the attack plan. The grim message to the world: It could happen anywhere. For any that still needed to be convinced, the attack also revealed that the greatest threat to the west comes from radical Islam, not from Iran, Russia or China.
Quanta Services Wins Contract for REX Zone 3 Project
Rockies Express Pipeline selected Quanta Services to provide turnkey engineering, procurement and construction services for the REX Zone Three Capacity Enhancement Project. Quanta subsidiaries QPS Engineering and Price Gregory International will play key roles in the project, which includes installing three new compressor stations and upgrading of two existing stations.
Manslaughter Charges Filed in 2012 Black Elk Platform Blast
NEW ORLEANS (AP) — A federal grand jury indicted two companies on involuntary manslaughter charges and three people face charges in a deadly 2012 explosion on an oil production platform in the Gulf of Mexico, the Justice Department said Thursday. The explosion and fire started during welding work on a platform owned by Black Elk Energy Offshore Operations LLC, killing three workers and injuring several others. In lawsuits and a federal report, the company and its contractors have been accused of failing to follow proper safety practices and rushing work.
TransCanadas New Contracts Lead to $570 Million NGTL System Expansion
In the aftermath of the Keystone XL decision, TransCanada announced its subsidiary, NOVA Gas Transmission (NGTL) has signed contracts for 2.7 Bcf/d of new firm natural gas transportation service that will require a $570 million system expansion for 2018. Significant growth in unconventional natural gas supplies in northwestern Alberta and northeastern British Columbia are the primary driver for these new contracts, coupled with continued growth in market demand, the company said.
Pilgrim Pipeline Submits Use and Occupancy Permit Application in New York
Pilgrim Pipeline Holdings announced it has filed a use and occupancy permit application in New York to construct the Pilgrim Pipeline. The proposed 178-mile pipeline project consists of two separate, parallel underground lines running between supply and distribution terminals in Albany and Linden, New Jersey.
EPA Intends Tougher Downwind Air-Pollution Rule in 23 States
WASHINGTON (AP) — The Environmental Protection Agency proposed tougher new limits on Tuesday on smokestack emissions from nearly two dozen states that burden downwind areas with air pollution from power plants they can't control. At the same time, the EPA moved to remove two states — South Carolina and Florida — from the "good neighbor" rules, saying they don't contribute significant amounts of smog to other states. The EPA proposal came as Republicans in Congress moved to block President Barack Obama's plan to force steep cuts in greenhouse gas emissions from U.S. power plants.
Why French Military Action In Syria Doesnt Affect Oil Prices
The horrific attacks in Paris prompted a swift response from French President Francois Hollande, as he dispatched an aircraft carrier to the Eastern Mediterranean a day after airstrikes hit the key city ISIS stronghold of Raqqa. The United States responded with airstrikes on Monday, November 16, targeting hundreds of trucks that the U.S. military believes are used for smuggling oil. <em>The New York Times </em>reported that 116 trucks were destroyed in American airstrikes by A-10 planes and AC-130 gunships in eastern Syria.
New Jersey Mayor: No One Called to Report Gas Smell
ELIZABETH, N.J. (AP) — Tenants at a house that exploded, killing one person and injuring several others, noticed an "overwhelming" gas smell the day before but didn't call any emergency agencies, though it remains unclear whether that was because they thought the owner knew about it. More details about the Wednesday morning incident also emerged, including that the ground floor of the building was being used as an illegal apartment with its gas and electricity supply apparently off the books, Elizabeth Mayor Chris Bollwage said.
Iran to Boost Oil Exports after Sanctions Lifted
TEHRAN, Iran (AP) — Iran says it will export an additional 500,000 bpd in a bid to reclaim its market share after sanctions are lifted under a landmark nuclear deal. Oil Minister Bijan Zanganeh told reporters the increase is part of Iran's plan to double its crude oil exports as sanctions are lifted, which officials expect to happen in early 2016. OPEC member Iran currently exports 1.3 MMbpd and hopes to get back to its pre-sanctions level of 2.2 MMbpd, last reached in 2012.
Statoil Pulling Out of Alaska
Statoil is optimizing its exploration portfolio for long-term value and has decided to exit Alaska following recent exploration results in neighboring leases. The decision means the company will exit 16 Statoil-operated leases, and its stake in 50 leases operated by ConocoPhillips, all in the Chukchi Sea. The leases were awarded in the 2008 lease sale in Alaska and expire in 2020. The leases are seen by the company as no longercompetitive within the company’s global portfolio. The office in Anchorage will be closed as well.
Enlink Midstream Gains Full Ownership of Permian Basin Processing Plant
EnLink Midstream Partners announced its subsidiary has acquired full ownership in the Deadwood natural gas processing facility with the acquisition of an Apache Corporation subsidiary's 50% ownership interest. The facility is located in Glasscock County in the Texas Permian Basin and comes at an accretive cost of about $40 million. Pursuant to a 2011 agreement, EnLink and Apache jointly funded the development of a newly build processing facility in which each company held a 50% undivided ownership interest.
Mastering Inspection of Challenging Pipelines
Any inspection device used internally must be introduced into the pipeline to be investigated. This implies that the line is accessible. “Piggable” lines need suitable launchers and receivers and are generally inspected in a unidirectional mode. If tool traps are not available or suitable, access has to be achieved via other means. Accessibility can be achieved through technical and/or procedural means.
- Williams' $1 Billion Gas Pipeline Blocked by U.S. Appeals Court, Derailing Five-State Project
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Exxon Mobil to Start Gas Reserve Seismic Surveys in Greece
- LaPorte, Texas, Issues Shelter in Place After Altivia Plant Leaks Toxic Gas
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Mid-Year Global Forecast: Midstream Responding to Demand from LNG Projects
