February 2011, Vol. 238 No. 2

Cheniere Energy Partners, has engaged SG Americas Securities, LLC, as financial advisor to Sabine Pass Liquefaction, LLC in connection with the development and financing of liquefaction facilities at the Sabine Pass LNG terminal.

Duncan Energy Partners L.P. has received a merger proposal from Enterprise Products Partners L.P.

Advertisers from the print edition of Pipeline & Gas Journal, February 2011, Vol 238 No. 2.

Pipeline developments and innovative technologies will be explored in depth at Gastech 2011 in Amsterdam March 21-24 with the new “Centres (Centers) of Technical Excellence” (COTE) show-floor workshops.

GE Intelligent Platforms has completed the acquisition of SmartSignal, a privately held analytics software company based in Lisle, IL.

Oil and gas proved a bright spot in the 2010 merger and acquisition landscape, according to Ernst & Young. Total industry transaction value topped $266 billion, up 33% from 2009. Total deal activity was up 13% from 2009, with deals reported having values that were up 2%. Midstream deals were up 71% to $25 billion. The total number of transactions in the segment was 57, up 4% from 2009.

STW Resources Holding Corp., a water reclamation services company, has signed an agreement with Aquatech International of Canonsburg, PA.

The one Energy Outlook I look forward to each January comes from our good friends at ExxonMobil. This year’s version is especially of interest to us because of its focus on natural gas and energy-efficiency issues.

For years pipelines have been constructed by manual welders using conventional arc welding processes and consumables. This approach is still used to construct small-diameter, low-pressure pipelines as well as tie-ins and repairs on larger diameter, high-pressure pipelines.

Recent developments in process automation, wireless and information technology - and real-time data management systems - have helped make oil and gas field operations more intelligent.

The use of Ethernet for industrial networking is growing rapidly in process control and SCADA systems such as oil and gas pipeline applications. The Open Device Net Vendor Association (ODVA) EtherNet/IP network standard is gaining popularity as a preferred industrial protocol. Engineers are recognizing the significant advantages that Ethernet-enabled devices provide such as ease of connectivity, high performance and cost savings.

Corporate data volume grew by about 50% last year and the budgets for that function grew by 0%, according to industry analysts. The explosion in data volume and diversity, including pipeline inspection documentation, is putting tremendous cost and control pressures on corporate information technology (IT) organizations.

The Gas Technology Institute (GTI) holds an unusual position in the natural gas industry: although it is a nonprofit, its business plan is based around an intense focus on the market. And although it advocates for natural gas, it’s looking for long-term innovation, not short-term politics.

Flow assurance is crucial for producing and transporting of oil and gas. The fluids – a combination of gas, crude/ condensate and water, together with solids - cause many potential threats like hydrate formation, wax/ paraffin, asphaltenes, scale deposition, sand erosion, emulsions and corrosion.

Bolivia has more than 4,700 miles of gas and liquid pipelines comprising a vital part of the nation’s infrastructure and critical to its economic wellbeing and security. One company manages more than 80% of Bolivia’s pipeline operations: YPFB Transporte.

Although malware has, for good reason, recently grabbed the attention when it comes to SCADA security, the other threats have not exactly gone away. Since the Stuxnet worm specifically targeted SCADA systems, that is all the better reason to ensure that vulnerability assessments and implementation measures encompass an even broader range of threats to one’s system.

As oil and gas companies work toward greater automation and e-business solutions, the challenges of getting real-time, reliable data from remote locations continues to be one of the greatest hurdles.

A National Transportation Safety Board (NTSB) hearing March 1-2 in Washington may push Congress to renew failed efforts from last fall to upgrade pipeline safety laws. The hearings will air the NTSB's preliminary findings from the Pacific Gas & Electric Co. (PG&E) pipeline explosion in California in September where seven people were killed.

A bill introduced Feb. 3 by Senators Frank Lautenberg (D-NJ) and Jay Rockefeller (D-WV) to reauthorize the Pipeline Safety Act is a “constructive starting point” for renewing the law that ensures the safety of the interstate natural gas pipeline system that delivers almost one quarter of the energy consumed by Americans, said INGAA President and CEO Don Santa.

According to a study by BDO USA, LLP, an accounting and consulting organization, capital is flowing back into the oil and gas exploration and processing industry – more than half (56%) of CFOs report their ability to access capital and credit is either the same or better than last year.

ExxonMobil has asked Alaskan regulators to increase the rate it charges to ship oil on the trans-Alaska oil pipeline to in-state destinations by about 22%.

Leaders of the Natural Gas Supply Association and the Interstate Natural Gas Association of America have announced support for a new state-based registry for companies to voluntarily disclose the contents of fluids used during the hydraulic fracturing (“fracing”) process common in the completion of shale gas wells.

Koch Pipeline Company, L.P. reported that its employees worked all of 2010 with no minor or significant injuries.  “No award or accolade can fully highlight the dedication to safety and the focus on ensuring that every Koch Pipeline employee goes home safely each and every day,” said Kim Penner, company president.

ICF International’s latest Energy Outlook reports that new regulations being developed by the Environmental Protection Agency will affect U.S. energy markets over the next 20 years and projects that nearly 20% of the coal fleet could retire in response to new air, waste, and water regulations over the next 10 years.

Federal safety officials probing the San Bruno natural gas blast issued several "urgent" recommendations Jan. 3 designed to improve gas pipeline safety. The September blast in the San Francisco suburb killed eight people and destroyed dozens of homes. The National Transportation Safety Board, which issued the recommendations, has not determined the cause of the blast.

Pipeline Research Council International, Inc. (PRCI), said its 2011 program will address a spectrum of research needs and opportunities covering nearly every aspect of pipeline operations. Specific initiatives include:

Santos announced that the Gladstone LNG (GLNB) partners approved development of the US$16 billion, 7.8 million ton per annum (mtpa) project in Queensland, Australia.

Willbros Group Inc. announced that a unit of its upstream oil and gas segment has been awarded the construction contract for a portion of the Acadian Haynesville Extension Project, a natural gas pipeline being developed by Acadian Gas LLC.

Kinder Morgan Energy Partners LLC and Copano Energy, L.L.C. plan to expand the scope of their Eagle Ford Gathering LLC joint venture.

Bear Tracker Energy, LLC has signed an agreement to build, own, operate and expand a natural gas gathering system in the Bakken area of North Dakota.

Copano Energy, L.L.C. has executed agreements increasing the company’s capability to handle natural gas liquids (NGLs) associated with growing natural gas volumes from the Eagle Ford Shale.

GDF Suez Bonaparte, operator of the Bonaparte LNG project, has awarded the contracts for pre?front end engineering and design to Granherne, a wholly owned subsidiary of KBR, (upstream) and DORIS Engineering (midstream).

Dominion has reached an agreement with PPG Industries on an option for Dominion to purchase land at PPG's Natrium, WV site for the construction of a natural gas processing and fractionation facility.

On Dec. 30 Canada’s Mackenzie Valley natural gas pipeline project received the stamp of approval from an independent panel charged with considering the environmental, social and economic impacts of the proposed 1,200-km line on the Northwest Territories.

Inergy Midstream LLC recently held a non-binding open season for an expansion of its Tres Palacios gas storage facility pipeline header system.

The Bayou Companies LLC, subsidiary of Insituform Technologies, has been awarded a contract with Air Products and Chemicals, Inc., the world’s largest hydrogen producer.

On February 8, 2011, the second phase of TransCanada’s US$12 billion Keystone Pipeline system began delivering crude to Cushing, OK.

The Linde Corporation is constructing Laser Northeast Gathering Company LLC’s Susquehanna Gathering System in New Milford, PA.

MarkWest Energy Partners, L.P. is acquiring EQT Corporation’s natural gas processing complex in Langley, KY and an associated natural gas liquids (NGL) pipeline for $230 million.

Canada’s National Energy Board (NEB) has approved an application from NOVA Gas Transmission Ltd. (NGTL) a wholly owned subsidiary of TransCanada, to extend its Alberta System to transport sweet natural gas from the Horn River area in B.C. to a tie in point on the existing Northwest Mainline of the Alberta System.

Targa Resources Partners LP has finalized an agreement with TexStar Midstream Services, LP and TEAK Midstream, LLC for development of a new y-grade natural gas liquids (NGL) pipeline in the Eagle Ford shale.

ONEOK Partners, L.P. plans to invest $180-240 million over the next 18 months for natural gas liquids (NGL) projects.

Wabash Gas Storage LLC says it had positive results from its recently completed non-binding open season.

MarkWest Liberty Midstream & Resources has executed a long-term agreement with affiliates of Chesapeake Energy Corporation to provide additional natural gas midstream services for Chesapeake’s substantial Marcellus acreage in northern West Virginia.

PII Pipeline Solutions, a GE Oil & Gas and Al Shaheen joint venture, has been selected to provide advanced inspection technology and engineering services to monitor the integrity of two of Australia’s major natural gas pipeline infrastructure networks.

Plains All American Pipeline, L.P. (PAA) has announced two planned expansion projects.

Questar Pipeline Company (QPC) recently held an open season to seek binding support for the reconfiguration of compression facilities and piping modifications at its Fidlar compressor station in Uintah County, UT.

Regency Energy Partners LP plans a series of expansion projects along its rich gas gathering system in south Texas to meet increasing producer demand in the Eagle Ford Shale.

Spectra Energy Corp.'s Algonquin Gas Transmission, LLC recently held a non-binding open season for the Algonquin Incremental Market (AIM) project.

Partners in the Snøhvit license, located in the Barents Sea, off Norway, will undertake studies of possible concepts for building a new LNG plant at Melkøya in Hammerfest.

Energy Transfer Partners has entered into multiple long-term agreements with shippers to provide transportation services from the prolific Eagle Ford Shale located in South Texas.

The state remains bullish about a pipeline for transporting gas from Alaska’s North Slope to the lower forty eight states. I am too. North Slope’s proven natural gas reserves currently stand at around 30 Tcf. Alaska governor Sean Parnell has said the state is working to settle a lease dispute seen as critical to building the natural gas pipeline (P&GJ, December 2010, p.4). I trust this happens soon.

Elster Perfection, manufacturer and supplier of systems for the natural gas, propane and water distribution industries, recently launched its Retrofit Program. The company says it its new program was guided by its customer relationships.

Reliable remote monitoring applications for cathodic protection and other assets are available today to feed a pipeline SCADA system and increase operational efficiency, according to Finland’s FF-Automation. The company is a manufacturer of remote terminal units (RTUs) and supplier of supervisory and control and data acquisition (SCADA) solutions.

T.D. Williamson, Inc. (TDW) recently announced the debut of its patent-pending spiral magnetic flux leakage (SMFL) inspection tool.

Many of the energy industry’s leading experts on safety issues will participate in the 7th Annual Pipeline Opportunities Conference on April 19 at the Intercontinental Hotel in Houston.

On Feb. 9, 2011, Enterprise Products Partners L.P. announced that the west storage facility at its Mont Belvieu, TX complex, located approximately 35 miles east of Houston, experienced a fire that broke out on Feb. 8, 2011. UPDATE: A worker originally reported missing during the blaze has been confirmed killed after the fire burned itself out the morning of Feb. 9.

In less than three years of development, the Eagle Ford Shale already accounts for over six percent of the Gross Regional Product for the 24-county South Texas area it encompasses, according to a study released today by the Center for Community and Business Research at the University of Texas at San Antonio Institute for Economic Development.

New products from Lincoln Electric, Polyguard, R&M Energy Systems , TechCorr, Automated Safety Hitch, Rhino Marking Systems, Ametek, Emerson Process Management, Alltec, Honeywell, HYTORC Clamp-Nut, STMicroelectronics and Omron, Stanley Proto, HSB Solomon Associates and PFERD.

The Schonstedt XTpc82 pipeline locator is lightweight, portable and extendable. Tracks transmitted frequencies as well as cathodic frequency created by a rectifier.

As a leading global provider of pipeline simulation technology and business solutions, our innovative tools offer accuracy, reliability, guidance, and support.

Gregg Engineering’s Control Room Management Trainer integrates SCADA and Virtual Pipeline Modeling to train and qualify controllers and operators using their own pipeline systems.