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  4. January 2012, Vol. 239 No. 1

Business Meetings & Events

Advertisers from the print edition of Pipeline & Gas Journal, January 2012, Vol. 239 No. 1.

Editor's Notebook

Let’s repeat that slowly so there’s no misunderstanding: "U.S. On Track To Be Oil Exporter." This was the headline of a report in the Dec. 19 issue of USA Today. According to the article, during the first quarters of 2011, we exported more oil than we imported. This means it’s highly likely that 2011 will be the first time in more than six decades that the United States will be a net exporter of petroleum products, the report said.

Features

P&GJ’s worldwide survey figures indicate that 118,623 miles of pipelines are planned and under construction. Of these, 88,976 represent projects in the planning and design phase; 29,647 miles reflect pipelines in various stages of construction.
When one looks on a huge oil and gas installation like a refinery spread across many acres and representing millions of dollars on equipment and infrastructure investment, one does not see the raw crude oil injected into the refinery for the refining process. This is because the crude oil is transported through an underground pipeline. The pump station which pumps oil into the pipeline is also located far away from the refinery.
The Eagle Ford Shale play in South Texas is not just hot, it’s sizzling these days. A number of oil companies last year discovered huge pools of oil and gas in the region, which stretches across 24 counties. Until the Bakken play in the upper Midwest takes hold, many experts are saying that not only was the Eagle Ford the hottest oil play in the U.S. for 2011, but it’s likely just getting started.
The natural gas "shale gale" that has dramatically transformed the outlook for U.S. energy supplies is also having profound economic impacts - creating jobs, reducing consumer costs of natural gas and electricity, stimulating economic growth and bolstering federal, state and local tax revenue, according to a new IHS Global Insight study.
On Aug. 26, 2011, the Supreme Court of Texas issued its opinion in Texas Rice Land Partners Ltd. v. Denbury Green Pipeline-Texas LLC (No. 09-0901), which provides landowners yet another avenue by which to frustrate and delay common carriers’ acquisition of pipeline easements. Simply put, this decision makes life a little more difficult for companies trying to exercise the power of eminent domain.

Government

In The News

Chevron Corp. expects to spend a record $32.7 billion on capital projects in 2012 as it continues to invest in massive oil and gas projects worldwide. The budget is 17% higher than the $28 billion spent last year, its highest level of spending ever.
As part of its ongoing strategy to create shareholder value, ConocoPhillips will sell its interests in two U.S. pipeline companies for $2 billion. ConocoPhillips has agreements with a subsidiary of Caisse de dépôt et placement du Québec for its 16.55% interest in Colonial Pipeline Co. and Colonial Ventures LLC. In addition, ConocoPhillips has entered into agreements with Enbridge Holdings (Seaway) L.L.C., a subsidiary of Enbridge (U.S.) Inc., for its ownership interest in the Seaway Crude Pipeline Co.
Houston-based Nuevo Midstream, LLC plans to significantly increase processing and treating capacity at its Ramsey plant site in the Delaware Basin near Orla, TX. Nuevo has bought a cryogenic processing plant with capacity of 100 MMcf/d and a second amine treating plant with a capacity of 475 gallons per minute (gpm).

Projects

ShawCor Ltd.’s pipecoating division, Bredero Shaw, has received a contract with a value in excess of US$45 million from Hyundai Heavy Industries to provide corrosion protection and concrete weight coating for the Barzan pipeline project in the Qatari sector of the Arabian Gulf.
Cardinal Gas Storage Partners’ wholly owned interstate natural gas storage subsidiary, Cadeville Gas Storage LLC, has executed a 10-year precedent agreement with Shell Energy North America (US), L.P. for Cadeville to construct a depleted reservoir storage facility in Ouachita Parish, LA near the Perryville/Delhi Hub in northeast Louisiana.
Crestwood Midstream Partners has signed an MOU with Mountaineer Keystone LLC, Pittsburgh, to construct a 42-mile, 16-inch natural gas gathering system to serve MK's Marcellus Shale development program in northeast West Virginia.
Enterprise Products Partners L.P. has received sufficient transportation commitments to support development of its 1,230-mile Appalachia to Texas pipeline (ATEX Express) that will deliver growing ethane production from the Marcellus/Utica Shale areas of Pennsylvania, West Virginia and Ohio to the Gulf Coast.
Enterprise Products Partners L.P. and Enbridge Inc. planned to hold concurrent open seasons from Jan. 4 through Feb. 10 to solicit capacity commitments from shippers for an expansion of the Seaway pipeline and an extension of the pipeline into the Port Arthur/Beaumont refining market.
Williams Partners’ Transco pipeline filed an application with the FERC to provide 250,000 Dth/d of incremental, year-round firm natural gas transportation capacity to serve growing markets in the Northeast by November 2013.
FMC Technologies, Inc. has signed an agreement with LLOG Exploration Company, LLC, for the design, manufacture and supply of subsea production systems to support its Who Dat project in the Gulf of Mexico.
Questar Pipeline Co. held an open season concluding Jan. 31 to solicit binding support for the installation of nine miles of pipe and ancillary facilities on its Jurisdictional Line (JL) 47 in Duchesne County, UT.
Spectra Energy Corp.'s Texas Eastern Transmission, American Electric Power and Chesapeake Energy Marketing, Inc. plan to develop the Ohio Pipeline Energy Network (OPEN) project, a proposed expansion of the Texas Eastern pipeline system that will connect Ohio's Utica and Marcellus shale gas supplies with the fast-growing markets attached to the Texas Eastern system, in particular natural gas-fired power generation.

What's New

New products from CECO, ProAct, IBM, Pegasystems, Above Ground Marker, Endress+Hauser, FF-Automation, Heath Consultants, Invensys Operations Management, Moyno, Inc., Radiodetection, McElroy, Engineered Concepts, LLC, Thomas & Betts Hazlux.