Pipeline

New Ethane Blending Facility Provides Flexibility for Natural Gas vs. Ethane Spreads

Enterprise Product Partners’ recently opened Ethane Blending Facility in Natchitoches, LA provides an unprecedented option for U.S. Northeast ethane rejection by blending ethane moved on the company’s 125,000 bpd ATEX pipeline into the U.S. Gulf Coast natural gas stream.

ExxonMobil Expanding Crude Processing Capacity at Beaumont Refinery

ExxonMobil will add flexibility to process light crudes at its Beaumont refinery, increasing production capacity by about 20,000 bpd. This expansion will further strengthen ExxonMobil’s integrated downstream portfolio in Southeast Texas. The refinery can currently process 365,000 bpd and produce 2.8 billion gallons of gasoline each year. ExxonMobil said its decision to increase production at the Beaumont facility was based on the abundant supply and low cost of U.S. light crude produced from shale.

Polyamide Pipe Selected to Carry High-Volume Gas to Chemical Plant

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.

In the News: NiSource, Columbia Pipeline Group Now Separate Companies

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.

What's in Store for Halliburton-Baker Hughes Tie-Up?

Perhaps the biggest single change for the oil business since the start of the slump is Halliburton’s deal to buy Baker Hughes. The mega-merger would radically alter the oil field servicing industry leaving two giants competing and a couple of smaller firms vying to take BHI’s spot as the new number three.

NAPCA Convention Hears of Need for More Gathering Pipe

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.”

Oil Sands: Is Utah the New Alberta?

Think oil sands and Alberta comes to mind. Don’t tell that to Canadian oilmen in Utah, though, who expect to begin production at the first commercial oil sands mine in the United States by year’s end. On June 24, U.S. Oil Sands Inc., based in Calgary, got approval from the Utah Department of Natural Resources’ Division of Oil, Gas and Mining for changes to the PR Spring project being built about 200 miles southeast of Salt Lake City. The company has agreed to submit a plan by Nov. 1 for monitoring the quality of air and water at the project.

Extended Slump in Oil Taking Toll on Industry, Economy

NEW YORK — As drivers, shippers and airlines continue to enjoy lower fuel prices, the oil industry is responding to much lower profits with sharp cuts in spending and employment that are hurting economic growth. Low oil and gas prices are good for the overall economy because they reduce costs for consumers and business. U.S. economic growth was higher in the second quarter, and economists say that was partly fueled by consumers spending some of their savings on gasoline at stores and restaurants.

Scientist: Oil Slick Likely from Natural Seafloor Seepage

LOS ANGELES (AP) — Coast Guard officials were still trying to determine the source of a mysterious miles-long oil slick off California's Santa Barbara County shoreline, but a scientist said Thursday that it's likely the result of naturally occurring seepage from the sea floor. Authorities said the 3-mile sheen was harmless to people and beaches remained open — in contrast to the mass closure that occurred in May when a broken pipeline spilled 100,000 gallons of crude oil, fouling sands, seabirds and fishing areas in the same general area.

Extension for Proposed CO-OK Pipeline Announced

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.

Wood Group Awarded FEED Contract for Australia FLNG Development

Wood Group secured a contract to carry out front-end engineering and design (FEED) for the Woodside-operated Browse Floating Liquefied Natural Gas (FLNG) Development, offshore Western Australia. Wood Group Kenny (WGK) will perform all design engineering for the insulated production flowline system required for the asset’s offshore gas-condensate fields - Brecknock, Calliance and Torosa – located 300 km from the Kimberly coast. The 12-month contract, which is valued at US$6 million and effective immediately, will be delivered from WGK’s Perth office.

Opposing Sides Face Off at Keystone XL Pipeline Hearing

PIERRE, S.D. (AP) — Opposing sides in the debate over the Keystone XL oil pipeline faced off Monday in front of the state regulatory panel that is considering for the second time in just over five years whether to approve the construction of the South Dakota portion of the long-delayed project.

Kinder Morgan Plans Open Season for Mier-Monterrey Pipeline Expansion

A Kinder Morgan subsidiary scheduled a binding open season for incremental firm natural gas transportation service on its Mier-Monterrey pipeline, which would expand capacity to 1.34 Bcfd. The project, planned for completion by the fourth quarter of 2017, will loop the existing Mier-Monterrey pipeline system from the Mexico-United States border to Huinalá, Nuevo León, Mexico, adding a lateral from Pesquería, Nuevo León, to Escobedo, Nuevo León.

Florida Fuel Connection to Invest in Petroleum Terminal

BATON ROUGE, La. (AP) — State officials say Florida Fuel Connection will make a $75 million capital investment to build a petroleum terminal and rail transportation facility in East Feliciana Parish, near the Mississippi River. Gov. Bobby Jindal and Florida Fuel Connection CEO John H. Armbrust announced the plans Tuesday. Jindal, in a news release, said the complex will provide a starting point for the shipment of fuel via rail to Florida, which lacks pipeline connections to regional oil refineries. The project will create 50 new direct jobs at an average annual salary of $70,000.

Revolution Pipeline Expansion Planned in Western PA

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.

Constitution Pipeline Re-Routed to Avoid Fragile NY Forest

ALBANY, N.Y. (AP) — A section of the 124-mile route of the planned Constitution Pipeline has been redrawn to avoid a 1,000-acre private forest with fragile wetlands. Christopher Stockton, spokesman for the pipeline that will bring natural gas from Pennsylvania to New York City and New England, confirmed the route change Tuesday. Stockton says the change adds almost three miles to the route and affects 11 landowners who have signed right-of-way agreements.

ONEOK Enters Permian-to-Mexico Pipeline Venture

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.

Begin Again: Keystone XL pipeline back before South Dakota regulators

PIERRE, S.D. (AP) — The Public Utilities Commission is considering whether to approve for the second time in just over five years construction of the South Dakota portion of the long-delayed Keystone XL oil pipeline. The hearing process started Monday. The state authorized TransCanada Corp.'s project in 2010, but permits must be revisited if construction doesn't start within four years. The commission is now considering the company's guarantee that it can complete the project while meeting the conditions of the 2010 approval. It's unlikely the panel will make a decision immediately.

ExxonMobil Could Turn Guyana into Major Oil Producer

Not typically thought of when considering major oil exporters, one small country holds significant potential to join the ranks of some of South America’s much larger oil producing powers. Guyana, located along the northern coast of South America, is not an oil producer of any significance. But that could change if the large reserves of oil and gas located offshore are successfully produced.

Russia Says Shale Will Affect Oil Prices More Than Irans Return

While many observers believe the deal Iran struck with six world powers over its nuclear program may depress oil prices even further, Russia’s energy minister says the cost of producing shale oil is likely to have an even bigger impact on the world market. Iran’s deputy oil minister, Mansour Moazami, said his country’s crude exports would nearly double eventually from 1.2 MMbpd to 2.3 MMbpd once the sanctions are lifted, and Tehran has urged fellow OPEC members to adjust their output accordingly in order to keep prices stable.

Alpha Crude Connector Begins Building Delaware Basin Pipeline

Alpha Crude Connector started construction of its 400-mile Alpha Crude Connector The crude oil pipeline would serve Lea and Eddy counties, NM and Culberson, Loving, Reeves and Winkler counties, TX. The system will have 100,000 bpd capacity for oil from over 250 lease tank batteries, other local pipeline systems, and truck terminals in the Northern Delaware Basin. Construction is scheduled to be completed in November.

Utility Board Approves Changes to NJ Pipeline Authorization

TRENTON, N.J. (AP) — The state's Board of Public Utilities has approved two amendments to an earlier order authorizing a natural gas pipeline in southern New Jersey. The board greenlighted Wednesday the amendments concerning the proposed nearly 22-mile pipeline from Maurice River Township to Upper Township. It's the latest in South Jersey Gas' efforts to move forward with the project that has been on hold amid environmental concerns because the pipeline runs through part of the state's Pinelands preserve.

Officials: Oil Train Didn't Speed Before Montana Derailment

BILLINGS, Mont. (AP) — A train that derailed and spilled 35,000 gallons of oil in northeastern Montana was traveling within authorized speed limits, federal officials said Monday as they continued to probe the accident's cause. The Burlington Northern Santa Fe Railway train loaded with crude from North Dakota was traveling 44 mph before Thursday's wreck, U.S. Federal Railroad Administration spokesman Matthew Lehner said. Officials have said the maximum authorized speed in the area is 45 mph.

Shell Gets Permits for Limited Oil Drilling in Arctic Waters

ANCHORAGE, Alaska (AP) — The Obama administration has given Royal Dutch Shell PLC approval to begin limited exploratory oil drilling off Alaska's northwest coast. The two permits issued Wednesday clear the way for drilling in Chukchi Sea, but with conditions. Shell can only drill the top sections of wells because the company doesn't have critical emergency response equipment on site to cap a well in case of a leak. That equipment is aboard a ship headed to Portland, Oregon, for repairs.

Report: Columbia Gas Followed Rules Prior to Hotel Explosion

LEXINGTON, Ky. (AP) — Investigators say Columbia Gas of Kentucky did not violate any safety rules at a Lexington hotel that exploded last year after a natural gas leak. The Kentucky Public Service Commission announced Wednesday that an investigation revealed that the gas company followed safety regulations regarding protection of meters from accidental damage.

Cuadrilla to Appeal UK Council's Anti-Fracking Decision

LONDON (AP) — Cuadrilla Resources Ltd. said it will appeal a local authority decision to block the oil and gas exploration company's bid to frack shale gas in northwest England — a setback for plans to establish a fracking industry in Britain. Lancashire County Councilors last month rejected plans for exploratory drilling at two sites about 240 miles northwest of London, citing effects on traffic and the landscape. Britain's government hopes fracking will reduce the country's reliance on gas imports.

Forget Media Hype: Oil Set To Rebound

Despite oil prices being somewhat depressed by the hype surrounding the Iran deal – which has repeatedly been debunked as not affecting supply until, at the earliest, the first quarter of next year – expect another large oil inventory draw to come. It starts with the API inventory figures published Tuesday followed by Wednesday’s EIA report, which I expect to not only show an inventory draw of over 4 MMbbls again but continued declines in production. This is, in part, tied to growing demand in the U.S., but there are several other reasons we should discuss.

North Dakota Regulators Signal Comfort on Energy Transfer Pipeline Issues

BISMARCK, N.D. (AP) — North Dakota's Public Service Commission says some big environmental concerns have been addressed by the company proposing a $3.8 billion pipeline from western North Dakota to Illinois. The three-member regulatory panel says Energy Transfer Partners appears to have a good plan in place to address worries about land reclamation and river crossings. The PSC held an informal work session on the project Monday but took no action. The panel expects to meet again late next month to talk about the company's permit application.

Barges Collide Near Entrance to Houston Ship Channel

GALVESTON, Texas (AP) — Emergency personnel have extinguished a fire aboard a barge carrying petroleum after the vessel collided with another barge near the entrance to the Houston Ship Channel. U.S. Coast Guard Petty Officer Andrew Kendrick says some nearby ship traffic was suspended but traffic along the Houston Ship Channel was not affected. He says two tugboats were pushing the barges early Monday morning near the Bolivar Peninsula when one of the tugboats lost power. The barge it was pushing then collided with the second barge.

Iran Looking to Bring 500,000 bpd Online Soon After Sanctions Lifted Probably 'Too Optimistic'

Oil Minister Bijan Namdar Zanganeh thinks Iran can manage to bring an additional 500,000 barrels online right after sanctions are removed. That is probably a bit too optimistic After months of speculation and anticipation, Iran and the P5+1 nationsreached a historic agreement on its nuclear program. The deal puts limits on Iran’s ability to develop nuclear weapons in exchange for sanctions relief. Here are a few of the key points: • Iran commits to reduce its uranium stockpile and number of centrifuges. • Enrichment is banned at certain nuclear facilities.