Pipeline

Southern Star Holds Open Season for Sooner Trails Pipeline Project

Southern Star Central Corp. and NextEra US Gas Assets is holding a binding open season that will close Nov. 21 for the Sooner Trails Pipeline. As proposed, the 250-mile pipeline would connect new receipt points in Kingfisher, Canadian, Grady, Stephens, Garvin, Carter, and Bryan counties in Oklahoma to interstate and intrastate pipeline markets in Bryan County, OK and Lamar County, TX. If a decision is made to move forward, service could begin April 1, 2017.

Howard Midstream Begins Work on 200-Mile Texas-Mexico Pipeline

Howard Midstream Energy Partners, LLC held a successful open season and plans to move forward with construction of the Nueva Era Pipeline, a 50-50 joint venture between HEP and Mexico-based energy and services firm Grupo Clisa. As proposed, the pipeline will connect HEP’s existing Webb County Hub in South Texas directly to Escobedo, Nuevo León, Mexico, and to the Mexican National Pipeline System (Sistema de Transporte Nacional Integrado) in Monterrey, Mexico.

Iran Prepares Oil Sector for Life after Sanctions

Iran says it is ready to offer more than 50 projects for energy exploration and production to investors so that it can return quickly to the global oil market as soon as it is free from Western sanctions. Seyed Mehdi Hosseini, the chief negotiator for Iran’s Oil Contracts Restructuring Committee, said Iran will introduce the contracts in Tehran in November and at an energy conference in London next February. He made the announcement on Oct. 6 at the Oil and Money conference in Britain’s capital.

Veresen Gains Approval of $860 Million Sunrise Gas Plant

Veresen has begun construction of the $860 million Sunrise gas plant, located in the Montney region near Dawson Creek, B.C. The announcement came on the heels of Cutbank Ridge Partnership — a venture between producers Encana and Cutbank Dawson Gas Resources — approved the plant.

Far More than Money at Stake

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.

Mastering Inspection of Challenging Pipelines

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.

Where do Oil Majors Really Stand on Climate Change?

Oil majors have been present in the renewable energy space for years. But with momentum building around the Paris COP21 climate talks at the end of the year, their focus has changed. Traditional energy players are positioning themselves in the debate on carbon pricing and emissions reductions, rather than wind and solar. Greater engagement by oil companies should be welcomed as cooperation between the public and private sectors will be critical to moving the conversation forward both in Paris and beyond.

Egypt Gas Find Sparks Panic in Israel about Israeli Reserves

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.

House OKs Lifting 40-year-old US Ban on Oil Exports

WASHINGTON (AP) — Defying a White House veto threat, the Republican-controlled House on Friday approved a bill to lift a 40-year-old U.S. ban on crude oil exports. The House approved the bill on a 261-159 vote. Supporters said an ongoing boom in oil and gas drilling has made the 1970s-era restrictions obsolete. Lifting the export ban would lower prices at the pump, create jobs and boost the economy, said House Speaker John Boehner.

Judge Gives Final Approval for $338 Million Oil Train Settlement

PORTLAND, Maine (AP) — A U.S. bankruptcy judge Friday approved a $338 million settlement fund for victims of the fiery 2013 oil train derailment that claimed 47 lives in Quebec, clearing the way for payments to victims by year's end. Judge Peter Cary announced his approval after Canadian Pacific dropped its objection to the settlement plan and after a Canadian judge gave conditional approval Thursday. He praised attorneys for working together to get a substantial settlement in place as quickly as possible.

Officials: Gas Facility Explosion Leaves 3 Workers Dead

GIBSON, La. (AP) — An explosion at a Louisiana natural gas facility Thursday left three workers dead and two seriously injured, police said. The explosion happened about 11 a.m. at a facility owned by the Transcontinental Gas Pipeline Co., a subsidiary of major natural gas supplier Williams Partners, authorities said. The facility is located on a small highway near the oil and gas city of Houma.

Gas pipeline from Romania to Moldova to be built in 2016

CHISINAU, Moldova (AP) — A Moldovan government official says work on a pipeline that will transport natural gas from Romania to the Moldovan capital will begin next year. The pipeline, which is expected to become operational in May 2018, will help lessen the former Soviet republic's dependency on Russia. It is an extension of one running from the northern Romanian city of Iasi to Ungheni, a Moldovan town near the Romanian border.

Risk-Based Design of Pipelines, Risers

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.

Mastering Inspection of Challenging Pipelines (1)

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.

Keystone XL Developer Seeks Different Approval for Route

LINCOLN, Neb. (AP) — TransCanada is taking steps to circumvent one of the major roadblocks in Nebraska to the building of the Keystone XL pipeline. But in seeking approval Monday for the same contentious route through the state, the company could create another round of lengthy delays in an already drawn-out process.

Study: No Fracking Bonanza for California's Monterey Shale

SAN FRANCISCO (AP) — A U.S. Geological Survey report out Tuesday downgrades the fracking potential of California's vast Monterey Shale oil deposits. The study is the latest to lower a 2011 federal energy estimate that billed the Monterey Shale as a game-changer for U.S. oil, with what was then estimated at 13.7 Bbbls of recoverable oil overall. Instead, the U.S. Geological Survey's (USGS) new study said, the most oil-rich portion of the giant shale formation holds just 21 MMbbls of oil that can be recovered by intensive methods, such as hydraulic fracturing, better-known as fracking.

Oil Traders Finally Get some Bullish News

Crude prices are off to a good start this week, jumping by more than 2% on Oct. 5 following several pieces of bullish news. First, Baker Hughes reported a sharp contraction in the rig count last Friday, with oil rigs falling by 26, the largest decline in months. Oil and gas rigs are now down by more than 1,100 since October 2014.

Is Gas Storage Up for the Challenge?

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.

NGPL, Cheniere Agree on Gas Transportation to Corpus Christi Liquefaction Project

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.

North Dakota Taxable Sales Plummet as Rig Count Faulters

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.

Tall Oak Expands Processing Capacity in Oklahomas Stack Play

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.

US, States Finalize $20 Billion Settlement with BP over Gulf Oil Spill

WASHINGTON (AP) — The Justice Department and five states have finalized a settlement worth more than $20 billion arising from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, federal officials announced Monday. The deal resolves all civil claims against BP and ends five years of legal fighting over the nearly 134 million-gallon spill. It requires the company to commit to a widespread cleanup project in the Gulf Coast area aimed at restoring wildlife, habitat, water quality and recreation.

New York City Explosion Kills 1, Hurts 3; Gas Leak Suspected

NEW YORK (AP) — Debris is being removed from a Brooklyn building where an apparent gas explosion killed a woman and injured three others. Authorities say they're conducting a thorough search Sunday of the three-story house in the Borough Park neighborhood. Brooklyn Borough President Eric Adams is proposing new gas safety measures that would tighten regulations affecting pipes and utility installations.

World News: Polarled to Take Norwegian Gas Infrastructure Across the Arctic Circle

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.

In the News: Phillips 66, Spectra Energy Bail Out Troubled DCP Midstream

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.

Court Upholds $236 Million Verdict in Exxon Mobil Pollution Case

CONCORD, N.H. (AP) — New Hampshire's highest court upheld a record $236 million judgment Friday against Exxon Mobil for its use of a gasoline additive that contaminated groundwater in the state. A jury reached the verdict in April 2013 after finding the company liable in a long-running lawsuit over contamination by the chemical MTBE. Lasting nearly four months, the trial was the longest and resulted in the largest jury award in New Hampshire history.

Feds: Proposed Pipeline Rules could Have Prevented Accidents

BILLINGS, Mont. (AP) — New federal rules proposed for pipelines that carry oil and other hazardous liquids could have prevented more than 200 accidents since 2010, including a Michigan rupture that ranks as the costliest onshore spill in U.S. history, federal officials said. The U.S. Transportation Department proposal announced Thursday covers more than 200,000 miles of hazardous liquids pipelines that crisscross the nation — a network that expanded rapidly over the past decade as domestic oil production increased.

Phillips 66, partners begin open season on Bayou Bridge Pipeline

Bayou Bridge Pipeline (BBP) launched a binding expansion open season to assess additional interest in service from Nederland, TX to refining markets in Louisiana. Bayou Bridge is jointly owned by subsidiaries of Phillips 66, Energy Transfer Partners, and Sunoco Logistics Partners.

New Pipeline Safety Rule Pending after Increase in Accidents

BILLINGS, Mont. (AP) — A long-delayed rule to strengthen safety requirements for pipelines that move oil and other hazardous liquids will be unveiled this month following a recent surge in accidents, the U.S. government's pipeline safety administrator said. More than five years in the making, the rule will determine if extra safety measures that are required in environmentally sensitive and populated areas should be expanded to new locations.

EIA Finds U.S. Propane Inventories Reach All-Time High

U.S. inventories of propane and propylene reached 97.7 million barrels as of September 11, the highest level in the 22 years that EIA has collected weekly propane inventory statistics. In the first six months of 2015, U.S. propane and propylene inventories were 24.3 million barrels higher on average compared to the same period in 2014. In the past year, nearly all of the increase in inventories occurred in the Gulf Coast region (PADD3).