December 2010 Vol. 237 No. 12

The Gas Technology Institute (GTI) notes with deep sadness the loss of one of its legacy leaders, Dr. Bernard S. “Bernie” Lee, who passed away on November 7, 2010.

The Board of Managers of PipeLine Machinery International (PLM-Cat) announced Dec. 10 that President Mel Ternan will be retiring effective December 31, 2010. The Board offers their sincere thanks and congratulations to Ternan as he begins the next facet of his life.

David N. Parker is retiring at the end of 2010 after 13 years at the helm of the American Gas Association. He has been called a “player-coach” by people in the organization because of his transparent, encouraging management style. As supply challenges, climate concerns and operating issues have arisen, he has patiently achieved a great deal as president and CEO of the association. One achievement that is likely to be long appreciated by the natural gas utility industry is the increased influence the fuel enjoys today in the halls of government power.

Revisions have been approved to the Canadian standard dealing with the use of plastic pipe in oil and gas pipeline systems. The standard is CSA Z662-11 “Oil and Gas Pipeline Systems.” The revisions to be published next year include:

• Added rapid crack propagation (RCP) required value of a full-scale critical pressure greater than 1.5 times the maximum operating pressure for polyethylene (PE) materials...

Simulation of deepwater, cold heavy oil production (CHOP) using the captured carbon dioxide (CO-2-EOR) technique has been investigated as part of the Well Engineering Research Group’s unconventional oil reservoir management studies being undertaken at The Robert Gordon University (RGU) in Scotland. The modeling considered transportation of CO-2 from an onshore compression station using a 240-km subsea pipeline and injected into a heavy oil reservoir (2 km below the seabed) via a vertical injection well.

More pipelines are being built and going into service. Shale gas plays are expanding the possible upstream sources. Squeezed by a lackluster economy, LDCs, manufacturers, and other downstream users are understaffed and under stress. For a pipeline company, it’s a climate where high customer satisfaction can be the difference between profitability and disaster — and at the same time, harder than ever to achieve.

It is forecast that $193 billion will be spent on onshore pipeline projects worldwide through to 2015, according to data in energy business analysts Douglas-Westwood’s third edition of The World Onshore Pipelines Report 2011-2015. The report notes that in recent years, levels of activity in the onshore pipelines market have been affected by what can be considered, in relative terms, short-term macroeconomic factors.

Chevron will acquire Atlas Energy for cash of $3.2 billion and assumed pro forma net debt of $1.1 billion in a deal that will provide Chevron with an attractive natural gas resource position primarily located in southwestern Pennsylvania’s Marcellus Shale.

Copano Energy, L.L.C. signed a long-term, fee-based agreement to provide GeoSouthern Energy Corporation, one of the first producers to have success in the NGL-rich region of the northern Eagle Ford Shale.

El Paso Midstream Group Inc. has executed a Memorandum of Understanding (MOU) to jointly develop the proposed Marcellus Ethane Pipeline System (MEPS) project. Terms call for El Paso Midstream and Spectra Energy to each own a 50% interest and jointly operate MEPS.

Enterprise Products Partners L.P. has entered into 10-year agreements with the "Pioneer JV" to provide a full scope of midstream energy services to handle natural gas and crude oil production from the Eagle Ford Shale.

Energy Transfer Partners L.P. (ETP) announced last month that two major interstate pipelines, the 175-mile Tiger Pipeline and the 185-mile Fayetteville Express Pipeline, would begin service on Dec. 1, ahead of schedule and well under budget.

Michels Pipeline Construction, a division of Brownsville, WI-based Michels Corporation, has been awarded spreads 1-4 of TransCanada’s Keystone XL Gulf Coast Expansion Project.

Occidental Petroleum Corporation today announced it has executed an agreement with a subsidiary of China Petrochemical Corporation (Sinopec) to sell Occidental’s Argentine oil and gas operations for after-tax proceeds of approximately $2.5 billion.

Plains All American Pipeline, L.P. (PAA) is adding a new pipeline interconnect and 4 MMbbl storage capacity at its Cushing, OK terminal facility in three phases.

Southcross Energy is planning to build an 8-mile, 12-inch diameter natural gas pipeline in Jones County, MS. The pipeline will connect Southcross’ existing system with the Southeast Supply Header (SESH) pipeline system.

Southern Union Co.’s Trunkline Gas Company subsidiary has signed a precedent agreement with DCP Midstream, LLC to provide long-term, firm transportation service on a portion of Trunkline's pipeline system in South Texas.

Williams Partners L.P. has filed an application with the FERC to expand its Transco natural gas pipeline by 225,000 Dth/d to serve markets in the southeast United States.

ONEOK, Inc. and ONEOK Partners, L.P. were recently named to the Platts Top 250 Global Energy Companies List for 2010, a global survey that measures financial performance by examining each company’s assets, revenues, profits and return on invested capital. ONEOK ranked first among natural gas utilities in the Americas region, moving up one spot from 2009. ONEOK also ranked seventh worldwide among natural gas utilities and 64 in overall performance in the Americas region.