North America

P&GJs Midyear International Pipeline Report

<em>P&GJ’s</em> 2015 international pipeline survey indicates 70,308 miles of pipeline are in various stages of construction or planned. Of these, 32,013 miles account for projects in the planning and engineering phase, while 38,295 miles are in various stages of construction.

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.

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.

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.

Canadian-Malaysian LNG Terminal Project to Begin this Year

A group formed by Malaysian energy company Petronas is all but certain to begin building a $36 billion LNG export terminal on Canada’s Pacific coast by year’s end, according to British Columbia’s finance minister, Michael de Jong. “The construction will begin soon ... this fall, de Jong said July 27 at a news briefing in Putrajaya, Malaysia, after meeting with the country’s prime minister, Datuk Seri Najib Tun Razak. “All other prerequisites have been dealt with.”

Marcellus, Utica Provide 85% of U.S. shale Gas Growth Since 2012

The productivity of natural gas wells in the Marcellus Shale and the neighboring Utica Shale is steadily increasing because of ongoing improvements in precision and efficiency of horizontal drilling and hydraulic fracturing occurring in those regions. Since January 2012, natural gas production in the Marcellus and Utica regions has accounted for 85% of the increase in natural gas production reported in EIA's Drilling Productivity Report (DPR) and has driven recent growth in total U.S. natural gas production.

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.

Nexen Pipeline Spills 1.3 Million Gallons of Emulsion in Alberta

CALGARY, Alberta (AP) — A pipeline at Nexen's Long Lake oil sands project in northeastern Alberta has leaked, spilling about 1.3 million gallons of a mixture of bitumen, water and sand. The company, which was taken over by China's CNOOC Ltd. in 2013, said the affected area is about 172,000 square feet, along the pipeline's route. Nexen says the spill was discovered Wednesday afternoon and it's since been contained. Alberta Energy Regulator and the company say it's too soon to say what might have caused the leak.

Northern Canada Proposes Potential Arctic Oil Pipeline

CALGARY, Alberta (AP) — Canada's provincial Northwest Territories government has been talking to pipeline companies about shipping crude oil through the Arctic, according to the territory's minister in charge of resource development. David Ramsay, the territory's minister of industry, and NWT Premier Bob McLeod, have been touting the concept of an "Arctic Gateway" pipeline, which could see Alberta crude moved north for shipment from a port on the Beaufort Sea coast.

Effectively Using New Data Technologies for Pipeline Routing

Oil and gas companies are using information technologies and resources now accessible on desktops for planning new pipeline routes. Technologies and resources include geographic information systems (GIS), mobile information technology, satellite imagery, topographic maps, environmental data and tax data.

Next Fracking Boom May Be Closer Than You Think

Even as the fallout from the Greek debacle continues to hammer oil prices, investors need to be on the lookout for future opportunities in the industry. One country that has generated a lot of interest among energy companies and investors is Mexico. Now, as America’s southern neighbor moves to reinvigorate its energy industry, U.S technological advances seem to be moving south.

Declining Rig Count in U.S. Tight Formations

The count for both horizontal and vertical rigs in U.S tight formations has declining drastically from October 2014. This article discuss the declining rig count in the seven major Energy Information Administration (EIA) U.S. oil and natural gas regions.

Fate of Canadas Export Pipelines Dependent on LNG Permits

With reserves of 1,093 Tcf, Canada is the world’s fifth-largest producer of dry natural gas, ranking behind the United States, Russia, Iran and Qatar. About two-thirds of Canada’s 156 Bcm of gas output comes from the Western Canadian Sedimentary Basin (WCSB) that straddles the eastern slopes of the Rocky Mountains in British Columbia and the plains of the Yukon, southwestern Manitoba, southern Saskatchewan and Alberta.

Summer Gas Prices in the Northeast: Why So Low? Why So Unpredictable?

As summer approaches, there are two things to know about natural gas prices in the New York/New England area. First, it is a difficult time to predict gas price movements in the Northeast. But in general, prices are down – and are likely to stay that way for this summer. It’s hard to predict prices because there are a lot of new and unpredictable supply-and-demand dynamics across the country that are particularly pronounced in the Northeast. For instance, the explosion of shale gas production in the Marcellus and Utica shale regions.

South Dakota Regulators Renew Hearing on Keystone XL Pipeline

PIERRE, S.D. (AP) — South Dakota residents were split Monday over the merits of allowing the Keystone XL oil pipeline through the state, with some telling regulators the project would be an economic engine but others calling it a grave threat to the environment. More than 50 people offered their opinions on the state's portion of the pipeline during the three-hour South Dakota Public Utilities Commission session. The commission will make its decision after holding a final evidentiary hearing starting in late July.

First Construction Permits Awarded for Prince Rupert Gas Transmission Project

TransCanada has received the first two permits from the British Columbia Oil & Gas Commission (OGC), approving construction for two sections of the 560-mile Prince Rupert Gas Transmission (PRGT) project in northern British Columbia. The approvals are for sections that extend from 12.4 miles NW of Hudson's Hope to 30 miles north of Fort St. James and total about 155 miles.

Canadas Carbon Emissions Rules Spark Hope for Keystone

TransCanada Corp. has written to U.S. Secretary of State John Kerry arguing that new Canadian rules on emissions should persuade him to approve the construction of the much-delayed Keystone XL pipeline. The proposed $6.4 billion project would carry an estimated 830,000 bpd of Canadian crude oil per from Hardisty, Alberta, to Steele City, NE, then link up with Keystone’s existing line, which would take the oil on the final leg to the Texas coast of the Gulf of Mexico.

Sunoco Logistics Plans Pipeline to Marcus Hook

Sunoco Logistics Partners announced June 4 plans to build an additional pipeline to deliver Marcellus Shale products to Marcus Hook, reflecting a growing market for liquid fuels derived from the region's shale drilling. <em>The Philadelphia Inquirer reported</em> Sunoco Logistics said it intends to build two pipelines simultaneously as part of its Mariner East 2 project. The project, announced in November, is the second phase of a plan to move materials including propane, butane, and ethane from Appalachian shale-gas fields to the Marcus Hook Industrial Complex southwest of Philadelphia.

Mexico Plans Underwater Gas Pipeline to Texas

MEXICO CITY (AP) — The Mexican government has announced plans for nearly $10 billion worth of electricity and natural gas infrastructure projects, including a gas pipeline under the Gulf of Mexico from Texas to the port of Veracruz. The Federal Electricity Commission said Monday the costliest project would be the 500-mile underwater pipeline for carrying natural gas from South Texas. The pipeline is intended to go into operation in June 2018.

TransCanada Ready To Begin Work on B.C. Gas Pipeline

TransCanada made a positive final investment decisionfrom LNG for the proposed Pacific NorthWest (PNW) LNG liquefaction and export facility in the Port Edward district of British Colombia. “This development is a significant step forward,” said Russ Girling, TransCanada's president and chief executive officer. The move advances the company’s $46 billion capital growth plan, which includes more than $13 billion in proposed natural gas pipeline projects in support of the emerging LNG industry on the B.C. coast.

Energy Transfer Partners Building 100 Miles of Rich Gas Pipeline

Energy Transfer Partners has entered into long-term gas gathering, processing, and fractionation agreements with EdgeMarc Energy. To facilitate these agreements, ETP has purchased 20 miles of high-pressure pipeline from EdgeMarc and will build a new cryogenic gas processing plant, a new fractionator and additional gas gathering pipelines.

Pemex Says It Found up to 350 MMbbs of Oil Reserves in Gulf

MEXICO CITY (AP) — Mexico's state-owned oil company says it found four shallow-water offshore oil and gas fields in the Gulf of Mexico with total possible reserves of 350 MMbbls of crude equivalent. The Pemex company did not say how much of that total were proven or probable reserves. Pemex said Wednesday the fields should be brought into production in about 16 months and supply about 200,000 bpd and 170 MMcf of gas. The fields are in areas off the coast of the states of Campeche and Tabasco. They are among the three most important discoveries in the last five years.

Erickson Wins Mexico Pipeline Construction Contract

Erickson Inc. has contracted with Group Desarrollo Infaestructura (GDI) to transport pipe via helicopter for a project by TransCanada’s Mexican subsidiary, Transportadora de Gas del Noreste in Mexico. They will use an S-64 E Aircrane to transport over 1,000 natural gas pipeline segments that will complete the 329-mile Topolobampo project. TransCanada expects to invest $1 billion in the project which is supported by a 25-year contract with Mexico’s national electric company, CFE. The 30-inch pipeline will be 329 miles long and have contracted capacity of 670 MMcf/d.

Transco Seeks Regulatory Approval for Dalton Expansion Project

Williams announced that Transco has filed an application with FERC for its Dalton Expansion project, which would support providing Marcellus gas to the Southeast for electricity generation and local natural gas distribution.

Pemex/First Reserve to Develop Energy Infrastructure Projects in Mexico

Petroleos Mexicanos (Pemex) and First Reserve announced a US$1 billion agreement to mutually invest in energy infrastructure for Mexico. The first of the investments includes the 744-km natural gas Los Ramones pipeline that is comprised of three sections and is being implemented in two phases. Construction of the projects has already begun with full commercial operations expected in mid-2016. The companies are also planning large-scale infrastructure opportunities.

Notebook: Hey, Gov. Cuomo, Fracking Ban Not Working For Rest of State

Gov. Andrew Cuomo: Get your butt out of Albany and go see how the rest of your state lives. Or you might not have much of a state left. One memory that stands out from my 1970s tenure as a reporter in New York’s Southern Tier is that of an economy stuck in reverse. Broome County centers around Binghamton, a city of 47,000 that has lost nearly half its population since the 1950s.

Mexico, First Reserve Strike $1 Billion Energy Investment Deal

MEXICO CITY (AP) — Mexico's state-run oil company and U.S.-based First Reserve are announcing a $1 billion deal to invest in the energy sector. Petroleos Mexicanos says in a statement that the agreement covers potential projects including infrastructure, sea transport, cogeneration and processing. First Reserve is a global private equity and energy infrastructure investment firm headquartered in Greenwich, Connecticut. It said in a statement Tuesday that the two companies will invest in infrastructure projects throughout Mexico.

TransCanada Delays Energy East, Reviews Terminal Siting

TransCanada postponed the building of its Energy East pipeline project and decided against building a marine and associated tank terminal in Cacouna, Québec. The company said alternative terminal options are under review, and that Québec and New Brunswick refineries would continue to be connected directly to Energy East.

Pembina To Expand Vantage Pipeline System

Pembina Pipeline Corp. plans to expand the Vantage pipeline system for an estimated $85 million. The expansion entails increasing Vantage's mainline capacity from 40,000 bpd to 68,000 bpd through the addition of mainline pump stations and the construction of a 80-km, 8-inch gathering lateral. The mainline expansion is supported by a long-term, fee-for-service agreement, with a substantial take-or-pay component. The gathering lateral is underpinned by a fixed return on invested capital agreement. The expansion is expected to be in-service in early 2016.