July 2013, Vol. 240 No. 7

ABB was awarded the engineering, procurement and construction (EPC) contract for liquefied petroleum gas (LPG) pumping station at Haoud El Hamra to increase the capacity of LR1 pipeline in Algeria. The $100 million contract was awarded by Sonatrach.

Advertisers from the print edition of Pipeline & Gas Journal, July 2013, Vol. 240, No. 7.

MasTec Inc. has acquired Big Country Energy Services Inc., and its affiliated operating companies, a North American oil and gas pipeline and facility construction services company headquartered in Calgary. The company also has construction offices in the provinces of Alberta, British Columbia and Saskatchewan as well as in Wyoming and North Dakota.

NDT Systems & Services, a supplier of ultrasonic pipeline inspection and integrity services, has opened a tool factory at its Stutensee location in Germany. The new tool construction facility was set up to assemble inline inspection tool components and to turn them into full-fledged intelligent pigging tools for both onshore and offshore inspection projects.

WGL Holdings Inc., through its subsidiary, Capitol Energy Ventures (CEV) Corp., announced an equity investment of $68 million in Constitution Pipeline Co. LLC.

I love to tell stories that combine two of my passions: baseball and pipelines. I happened to turn on a Phillies game against Milwaukee just as the Brewers were honoring Johnny Logan, the standout shortstop on the 1957 World Series champion Milwaukee Braves. I had an abiding interest in Mr. Logan because he was a native of Endicott, NY where I was a reporter for several years.

Cellular telephone networking has emerged as a strong contender for oil and gas SCADA system communications. 3G cellular networks are widely installed even in remote areas. Data plans for SCADA applications are competitive.

If oil and gas represent the lifeblood of North America’s energy, transportation and manufacturing sectors, then the oil and gas pipeline system can be considered the blood vessels. This vast and complex network, comprising thousands of lines criss-crossing the continent and spanning more than 2.6 million miles in the U.S. alone, delivers fossil fuel feedstocks to refineries, gas processors and petrochemical manufacturers, and finished fuels to end users.

In 2004, the Gas Research Institute (GRI) natural gas measurement research program funding mechanism based on transmission pipeline throughput expired. That program provided substantial support, on the order of $40 million over 20 years, for advancing transmission measurement practice. However, the end of this funding mechanism did not spell the end of the industry’s investment progress in gas measurement research.

The world of energy is changing at an unprecedented pace. As we look ahead, that change appears to be both fundamental and inexorable. Many governments in Europe have stepped back from previous commitments to nuclear energy and realized that immediate prospects for renewables appear less encouraging.

“I think there is lots of opportunity. It is whether or not the economics can line up with the technology to get it out of the ground.” – oil executive in Bakersfield Between federal numbers crunchers, and a university and think tank-based report that surfaced earlier this year, California’s venerable Monterey Shale is stirring renewed dreams of California gold – black gold in the form of heavy crude.

This article describes a system that not only monitors all ultrasonic meter (USM) diagnostics from most common brands, but also monitors data from the flow computer, and by using separate pressure and temperature (P&T) transmitters, computes flow for comparison to the customer’s fiscal flow computer. In addition, the system monitors the gas chromatograph (GC) diagnostics to ensure proper operation and validation of the gas quality data used in the flow calculations.

Securing pipeline and gas companies’ critical infrastructure is an evolving process. Embracing that fact is a key element in the development of a logical program that will ensure safety, security and effectiveness. There are four logical phases in this process with defined actions that can be measured and coordinated.

For many, the thought of a favorite company moving into expansion mode conjures images of a huge central office, employees who become increasingly narrow in focus and the all-to-common problem of trying to deal with customer service personnel located so far from the problem that they can’t provide much assistance.

Calibration is based on the comparison of a measuring instrument and a standard. Calibration may include adjustment of the instrument to match the standard. Every measuring instrument requires calibration prior to use because a manufacturer cannot produce an instrument that measures a parameter, with reasonable uncertainty, without direct calibration.

Tropical storms and hurricanes are among the largest and most destructive weather phenomena on earth. In the continental United States alone, it’s estimated that tropical cyclones have caused an average annual damage of $10 billion since 1900, according to a study in the Natural Hazards Review. And lying in the paths of these monsters are thousands of offshore drilling platforms and thousands of miles of oil and gas pipelines.

In 1969, Jack Dangermond founded Esri with a vision that computer-based mapping and analysis could make significant contributions in the areas of geographic planning and environmental science. Now commonly referred to as GIS, geographic information systems have long played an important role in the pipeline industry for ensuring regulatory compliance and integrity management, and pipeline operators rely on Esri technology every day for data maintenance and operational management.

Oil, gas and energy companies generate huge volumes of data through sensitive equipment – volumes that roughly double every two years. Increasing amounts of data and an increased focus on data protection and reliability have resulted in a surge of interest regarding unstructured data management technologies.

The 49th annual NAPCA convention met in Indian Wells, CA from April 24-27, featuring the highest attendance level since 2008 and honoring an unprecedented two new entrants into its Hall of Fame.

Good practice in reducing risks to pipeline integrity, and taking quick and effective action when potential threats develop, have long been part of sound pipeline operation. However, new technology trends, including social media, are amplifying public concern around how pipeline operators manage environmental, social and economic impacts.

International energy consulting and testing & certification company DNV KEMA earlier this year officially opened a new Multiphase Flow Laboratory (MPFL) in Groningen, the Netherlands.

Every energy company CEO has safety and compliance (or the lack of it) in the back of his mind as he goes through the day.

The history of oil well drilling goes back to 1859 to a farm in northwestern Pennsylvania. The farm was located in Titusville, near Erie. Edwin Drake and George Bissell cooperated to drill the world’s first oil well. While Drake is usually the one credited with drilling the first well, he did not have a good head for business and spent much of his life in poverty. Bissell, by contrast, became quite wealthy and outlived Drake by four years.

The increasing rate of natural gas users and higher gas prices in Colombia has created the need of considering better, more accurate measurement alternatives to reduce the uncertainty of calculated volumes in customer natural gas stations where a fiscal custody transfer system is not available.

Increased natural gas utilization, and to a lesser extent oil development, is being hampered by a lack of market liquidity and spot pricing for the commodities both domestically and abroad. Roadblocks include insufficient pipeline connectivity in North America and into Europe, a dramatic lack of international energy infrastructure in Asia, and the regulatory and environmental delays that prevent the necessary investments from going forward.

The hot topic in energy circles is whether recently developed drilling and producing techniques that are raising oil and gas production will help solve the age-old problem of U.S. energy independence.

There probably will be neither tears nor jeers from the pipeline community over the departure of FERC Chairman Jon Wellinghoff. He announced his exit in late May and is staying on until President Obama nominates a successor.

British Columbia has made its final written submission to the Northern Gateway Pipeline Joint Review Panel, stating it cannot support the project as presented because Northern Gateway has been unable to address British Columbians' environmental concerns.

WBI Energy Inc. plans a natural gas pipeline from far western North Dakota to western Minnesota where it would connect with Viking Gas Transmission Co.’s pipeline system.

Cheniere Energy Partners LP has made a positive final investment decision for development and construction of trains 3 and 4 of the Sabine Pass Liquefaction Project adjacent to the Sabine Pass LNG terminal.

Devon Energy Corp.’s board approved a plan to form a publicly traded midstream master limited partnership (MLP).

MarkWest Utica EMG LLC, a joint venture between MarkWest Energy Partners LP and The Energy and Minerals Group, plans another expansion of its large-scale midstream system to support the drilling programs of Antero Resources, Gulfport Energy Corp. and other producers in the southern core of the Utica Shale. MarkWest Utica EMG will add a third 200 MMcf/d cryogenic gas processing plant at its Seneca processing complex in Noble County, OH.

Millennium Pipeline Co.’s Minisink Compressor Station is now moving natural gas across the Northeast. On May 15 the Federal Energy Regulatory Commission (FERC) granted Millennium's request for authorization to start service at the site which took eight months to construct.

Tennessee Gas Pipeline Co. LLC (TGP), a unit of Kinder Morgan Energy Partners LP, has signed a binding, 20-year firm transportation precedent agreement with Mitsubishi Corp. (MC) of Japan to ship 600,000 Dth/d of natural gas earmarked for the proposed Cameron LNG liquefaction facility in Hackberry, LA, which is slated to begin exports in 2017.

Plains All American (PAA) Pipeline LP is building a 95-mile extension of its Oklahoma crude oil system to service production from the Granite Wash, Hogshooter and Cleveland Sands producing areas in western Oklahoma and the Texas panhandle.

Summit Midstream Partners LLC has begun operations of the Polar Crude Oil and Water Gathering System in the Bakken Shale in Williams County, ND.

TransCanada will sell a 45% interest in each of Gas Transmission Northwest LLC (GTN) and Bison Pipeline LLC to TC PipeLines LP for $1.05 billion.

Williams and Boardwalk Pipeline Partners LP have a joint venture agreement to continue the development process for Bluegrass Pipeline, a project to transport natural gas liquids (NGLs) from the Marcellus and Utica Shale plays to the petrochemical and export complex along the Gulf Coast as well as the developing petrochemical market in the Northeast.

Audubon Engineering was named Owner's Engineer for the proposed Dominion Cove Point LNG construction project, located in Lusby, MD on Chesapeake Bay.

At APPEA 2013, Wood Mackenzie's head of Australia Upstream Consulting, Andrew McManus, warned Australia faces a hiatus in LNG projects as the focus of buyers has turned to the U.S., where he said customers can find potentially lower-cost, more flexible LNG and the opportunity to diversify supply portfolios.

The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) held the 11th Bidding Round for oil and gas exploration blocks and auctioned 142 blocks (an exploration area of 100,300 sq-km), receiving a record US$1.4 billion in bids for exploration rights.

NGL Pipeline, L.P., an affiliate of Crosstex Energy companies, held a binding open season for volume commitments for interstate common carrier transportation service on the proposed Crosstex NGL Pipeline that will transport unfractionated NGLs produced in the Permian Basin, Barnett Shale, Eagle Ford Shale and other areas from the Mont Belvieu area to NGL fractionation facilities in Acadia and Ascension parishes, LA for one year and to NGL fractionation facilities in Acadia and Iberville parishes thereafter.

Technip officially named its latest pipelay vessel, Deep Energy, at the Westcon Shipyard in Florø, Norway.

The U.S. Department of Energy has conditionally authorized Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the United States from the Freeport LNG Terminal on Quintana Island, TX.

Enterprise Products Partners L.P. held a binding open season that ended on July 11 to determine support for transporting propane to Mont Belvieu, TX on the partnership’s Appalachia-to-Texas (ATEX) pipeline.

Enterprise TE plans to construct a 16-inch lateral pipeline from a point in Illinois on its existing Seymour Lateral to a location in Manhattan, IL that is adjacent to tankage of the Enbridge Pipelines’ Southern Lights Pipeline.

ExxonMobil and Statoil plan to develop the Julia Field in the Gulf of Mexico. The partners each own 50% percent of the field with ExxonMobil the operator. Julia will be a subsea tieback to the Jack and St. Malo floating production platform located 15 miles away which is operated by Chevron U.S.A. Inc.

Gulf Interstate Engineering Company is providing engineering, procurement and construction management services on Iroquois Gas Transmission System, L.P.’s Wright Interconnect Project.

Paradigm Midstream and Dakota Plains Holdings, Inc. and joint-venture partner, Petroleum Transport Solutions, LLC, an indirect wholly owned subsidiary of World Fuel Services Corp., have an agreement that could lead to an exclusive pipeline transportation agreement to export crude from McKenzie and Dunn counties, ND.

Kinder Morgan Energy Partners will invest $107 million to expand its Kinder Morgan Crude and Condensate (KMCC) pipeline system deeper into the Eagle Ford Shale play in Karnes County, TX.

Sappi Fine Paper North America and Huhtamaki have signed on with Summit Natural Gas of Maine in a two-fold project that will bring natural gas to the Kennebec Valley. Construction will begin shortly on an 88-mile transmission pipeline that will bring gas directly to the two paper mills.

The planned natural gas pipeline additions around the world can be attributed to the rapidly increasing demand for natural gas worldwide.

Kenya's state-run oil firm, the National Oil Corporation (NOCK), has linked up with Indian Oil Corporation Ltd. (IOCL) to express interest for the proposed 219-mile, 14-inch Kenya-Uganda Petroleum Products Pipeline Project that would run underground from Eldoret, Kenya to Kampala, Uganda, according to the Global Times.

A double pipeline that will channel oil to Jordan from Iraq is expected to play a key role in the kingdom’s efforts to diversify and strengthen its energy sources.

Plains All American Pipeline is constructing a 95-mile extension of its existing Oklahoma crude oil pipeline system to service increasing production from the Granite Wash, Hogshooter and Cleveland Sands producing areas in western Oklahoma and the Texas panhandle.

ONGC has contracted Punj Lloyd for construction of the B-127 cluster pipeline offshore western India.

Punj Lloyd has won a contract the B-127 Cluster Pipeline Project in Mumbai from Oil & Natural Gas Corporation Ltd.

Enbridge successfully completed an open season to solicit commitments from shippers for 50,000 bpd of capacity on the Southern Lights Pipeline.

Southern Star plans expansion of firm transportation capacity on its Straight Blackwell line segment in western Oklahoma.

According to the Statoil website, the company has accepted a fine of NOK 30 million following the well control incident on the Gullfaks C platform in 2010 Statoil was fined by the public prosecutor for Rogaland County following the well control incident that occurred on Gullfaks C platform on May 19, 2010 in the Norwegian sector of the North Sea.

Trelleborg, has teamed up with Saipem to develop a new LNG tandem offloading system. Derived from existing and proven technologies, the latest development in cryogenic LNG floating hoses is set to become a key component in offloading systems for future offshore FLNG projects.

UniversalPegasus International (UPI) was awarded a contract to supply the Front End Engineering Design (FEED) for Repsol Exploración Perú Sucursal del Perú’s first compressor station in Peru, announced CEO Philip Luna. This award was made within the bounds of a previous umbrella agreement that could imply further work for UPI.

WBI Energy, Inc., a subsidiary of MDU Resources Group, Inc., has proposed a natural gas pipeline stretching from far western North Dakota to western Minnesota where it would connect with Viking Gas Transmission Company’s pipeline system.

Wood Group Mustang was selected by Williams to provide survey, engineering, design and program management for its Purity Pipeline projects.

Williams and Boardwalk Pipeline Partners, LP have a joint venture agreement to continue development of the Bluegrass Pipeline, a project that would transport natural gas liquids (NGL) from the Marcellus and Utica Shale plays to the rapidly expanding petrochemical and export complex on the U.S. Gulf Coast, as well as the developing petrochemical market in the Northeast.

Abakan Inc. announced it entered into a memorandum of understanding with Cone S.A. for construction of a manufacturing plant to suit large-scale, clad pipe manufacturing within the new Suape Export Processing Zone (EPZ) in Pernambuco State, Brazil.

Emerson Process Management has opened its new $30 million Americas headquarters for valve automation technologies and a new, highly automated and sophisticated manufacturing facility in Houston to expand its services for the oil and gas and petrochemical industries.

Why is lightning so often overlooked when talking about protecting the oil and gas industry? Its effects on a refinery, storage tank or compressor station can be catastrophic.

Quantitech has launched an in-pipe, gas-flow monitoring technology that also offers the ability to measure gas composition or purity.

On Dec. 26 a gas pipeline blast followed by a mild earthquake struck Russia's Black Sea resort of Sochi, which will host the 2014 Winter Olympics. No one was hurt and there was no apparent damage to the city's infrastructure after a 5.2 magnitude earthquake was reported at 0242 local time. According to the U.S. Geological Survey, there are 14,000 earthquakes worldwide each year that have a magnitude of 4 or greater—700 of which occur in the U.S. and Alaska.

From lunar excursions to shopping at the local store, wireless radio communications have been popping up everywhere. For more than a quarter century, radio communications have been successfully replacing traditional hardwired communications in a variety of Supervisory Control and Data Acquisition (SCADA) applications.

New products and services for the pipeline industry, from Moyno, International Society of Automation, Cubility and more.