June 2014, Vol. 241, No. 6

Advertisers from the print edition of Pipeline & Gas Journal, June 2014, Vol. 241 No. 6.

A big sigh of disappointment echoed across the land May 8, for it had to come to pass that Johnny Football would no longer launch those beautiful spirals or befuddle opposing defenses with his dazzling footwork. Perhaps it was a sigh of relief, as Texans could now take a deep breath, grateful the circus was finally over, because Johnny Football would merely become Johnny Footnote, a legend, albeit a brief one, in Lone Star folklore.

Gov. Sean Parnell moved Alaska one step closer to a gas line by signing Senate Bill 138 on May 8. The bill advances a large-diameter natural gas pipeline project, allowing the state to become an owner in the Alaska LNG Project. It also provides for getting North Slope gas to Alaskans first, using local hire.

Just as onshore production methods change and evolve over time, so too do environmental regulations. On Aug. 16, 2012, the Environmental Protection Agency (EPA) published final regulatory updates specific to onshore oil and natural gas production that span from well completion to transmission. Deciphering and gaining a better understanding of these regulations will remove costly compliance pitfalls during normal operations.

The Southeast Supply Header (SESH) is a 42-inch and 36-inch natural gas pipeline originating at Carthage, TX and running 446 miles to a terminus at Coden, AL. SESH links the onshore natural gas supply basins of East Texas and northern Louisiana to markets predominantly served by offshore natural gas supplies from the Gulf of Mexico.

The majority of the United States is dependent upon the Interstate Natural Gas Pipeline system for supplies of natural gas. Intelligent distributed condition monitoring solutions are now available for the compressor stations that maintain pressure on the natural gas pipeline network and ensure continuous forward movement of supplies.

Pipeline transmission systems operate at high pressures which must be reduced (regulated) at off-takes and distribution points. Additionally, at compressor stations and power plants, the gas pressure to feed the fuel systems of gas turbines has to be reduced to a level acceptable to the fuel system controls.

PLS Inc., a leading Houston-based research, transaction and advisory firm, in conjunction with its international partner Derrick Petroleum Services, reports global upstream oil and gas M&A activity for Q1 2014 of $40.7 billion spread across 192 transactions (including 133 with deal value disclosed).

In case you hadn’t realized it, the construction business is no longer strictly a man’s domain. Thanks to inspired and inspiring executives such as Gretchen Gagel, president of Continuum Advisory Group, that image is undergoing a gradual change and will continue to do so as long as we build houses, factories and yes, pipelines.

Last summer the Pipeline and Hazardous Materials Safety Administration (PHMSA) previewed proposed additions to its integrity management program (IMP) which require operators to test pipe segments located in high-consequence areas (HCAs) and to “devote additional focus, efforts, and analysis … to ensure the integrity of [those] pipelines.”

North America’s energy revolution is alive and well! That was the message at Pipeline & Gas Journal’s 10th annual Pipeline Opportunities Conference March 25 at the George R. Brown Convention Center in Houston. Issues covered included quality control for gas pipeline construction, the Pipeline Safety Act, prospects for infrastructure expansions to support new supply sources, the outlook for labor and employment and the benefits of working in an energy state like Texas.

The demand for energy is high and projected to increase steadily by at least 2% per year, according to the International Energy Agency (IEA). As a result, oil and gas products are being shipped at a faster rate than ever before, increasingly making their way across international borders to meet demand.

Modern centrifugal compressors using double-end, variable-speed electric motors are high performance and reliable options for pipeline compression stations. Such a compressor train is equipped with two compressor casings coupled through two gear units on either side of a double-end variable speed drive (VSD) motor.

Editor’s note: This is the first in a series of articles concerning research developments in the oil and gas business. To hear Harvey Hack tell it, engineers like he, by their very nature, are not the best subjects for interviews.

Gov. Jack Dalrymple and other state officials joined North Dakota LNG in announcing a new liquefied natural gas (LNG) production facility will go online in Tioga this summer.

Faced with a study projecting that the pipeline industry will need an average of $30 billion per year worth of new infrastructure to satisfy oil, gas and liquids transportation needs between 2014 and 2035, pipeline operators foresee struggle and risk as well as opportunity.

Polyethylene (PE) has revolutionized low-pressure gas distribution pipeline design on a global basis. PE’s combination of flexibility, ease of joining, lack of corrosion, long-term durability and lower installation cost make it the gas transporter/operator’s preferred material.

In February, when Summit Natural Gas of Maine began providing natural gas to Gardiner businesses and residents who until then had relied on propane or heating oil, it was only part of a much bigger story.

Compressor stations are the unsung heroes of the pipeline and gas industry. Given the media hype lately, the public’s focus has been driven primarily to the extraction and refining components of the energy equation with little notice paid to the engines – literally – that transfer products from one end of the country to the other.

A federal court decision allowing the Environmental Protection Agency (EPA) to move forward with a rule limiting mercury emissions from power plants has heightened concerns in some quarters about interstate pipeline infrastructure inadequacy.

Air Products has entered into a long-term agreement with Enterprise Products Operating LLC that will increase hydrogen supply for refinery and petrochemical customers connected to Air Products’ Gulf Coast Connection Pipeline system.

Technip, in partnership with China HuanQiu Contracting & Engineering Corporation, was awarded a contract by Basra Gas Company for front-end engineering design (FEED) for the Ar Ratawi Natural Gas Liquids Train 1 project at North Rumaila in Basra Province, Iraq.

Chevron Corporation confirmed its subsidiaries have signed agreements with the Argentine oil company YPF S.A. to continue development of shale oil and gas resources from the Vaca Muerta formation located in the Neuquén province in Argentina.

The Shah Deniz and South Caucasus Pipeline consortia are going forward with key contracts for the development of the Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects in the Azerbaijan sector of the Caspian Sea. The contracts, covering both project management services and construction, follow the final investment decisions announced in December 2013.

Drilling and deal activity on the UK Continental Shelf (UKCS) will remain at a steady low for at least the next year, suggests a new report from business advisory firm Deloitte. Poor weather and high costs have affected the amount of exploration and appraisal (E&A) work conducted in the region during the first quarter.

Energy Transfer Partners’ two wholly owned subsidiaries, Houston Pipe Line Company LP and Oasis Pipeline, LP, have entered into 15- year agreements with Comisión Federal De Electricidad (CFE), the Mexican agency handling Mexico’s electric power needs, to provide transportation services for 930,000 MMBtu/d of natural gas.

Fluor Corp. reports its ICA Fluor joint venture with Empresas ICA, S.A.B. de C.V., signed a contract with TAG Pipelines Sur S. de R.L. de C.V. to build the 1.42 Bcf/d capacity Ramones II Sur gas pipeline through the states of San Luis Potosí, Querétaro and Guanajuato in Mexico.

Kinder Morgan Energy Partners, L.P. will invest $671 million to grow its CO-2 infrastructure in southwestern Colorado and New Mexico.

MarkWest Energy Partners, L.P. plans an expansion of its rich-gas processing capacity in the Marcellus Shale.

McDermott International, Inc. installed the P-61 Tension Leg Wellhead Platform (TLWP) off Brazil for the PPT BV joint venture, consisting of Petrobras and Chevron.

ONEOK Partners’ subsidiary, Midwestern Gas Transmission Company, has filed an application with the Federal Energy Regulatory Commission for a 15-mile natural gas pipeline lateral in Ohio and Muhlenberg counties in Kentucky.

Minnesota Pipe Line Company, LLC plans a project that will use available capacity on its newest pipeline – Line 4 – to ensure the overall reliability of its pipeline system.

T.D. Williamson (TDW) has completed a pipeline pressure isolation operation in the southern part of the Norwegian North Sea on behalf of a major operator.

Petrofac has been awarded an engineering and procurement contract by Petroleum Development Oman (PDO) to provide services for its Rabab Harweel Integrated Project (RHIP) in the Harweel Cluster of fields in the south of Oman.

Piedmont Natural is working at the Marine Corps Base Camp Lejeune, home to the U.S. Marine Corps' II Marine Expeditionary Force, to expand its natural gas facilities in Jacksonville, NC.

Regency Energy Partners will build a processing plant and NGL pipeline at Regency’s Dubberly facility in north Louisiana.

Rex Energy Corp. has executed two separate binding Precedent Agreements with Dominion Transmission, Inc. and Texas Gas Transmission, LLC, respectively, to transport natural gas volumes from Rex's Butler Operated Area in Butler County, PA to the Midwest and Gulf Coast.

Sempra Energy’s subsidiary, Cameron LNG LLC, moved a step closer to building its Cameron liquefied natural gas plant in Louisiana. According to Reuters, the Federal Energy Regulatory Commission (FERC) completed an environmental impact statement for the project on April 30.

Spectra Energy Corp. has submitted an Environmental Assessment Certificate Application for its Westcoast Connector Gas Transmission project to the BC Environmental Assessment Office.

Kinder Morgan Energy Partners, L.P. announced that KMP’s Tennessee Gas Pipeline Company (TGP) has awarded Antero Resources 100% of the capacity offered in TGP’s binding open season for its proposed Broad Run Flexibility and Broad Run expansion projects.

TransCanada Corp. filed a project description with the National Energy Board for the Eastern Mainline Project.

Williams has suspended capital investments in the Bluegrass Pipeline, a proposed NGL project, primarily in response to an insufficient number of firm customer commitments.

While the energy industry’s share of the economy is on the upswing, the business is in many ways still a specialty field, with innumerable complex issues at play between companies, regulators and the public when it comes to development, conservation and jobs. Few people understand the interplay well enough to provide context to those not in the midst of it, and those in the middle can lose sight of the big picture. Bernard “Bud” Weinstein, Ph.D., is applying his considerable talents to bridging those gaps.

An inline inspection (ILI) project is not complete until the reported features are verified in the field. The process is important because inappropriate inspection techniques can invalidate an otherwise valid report.

KIEV, Ukraine (AP) — Ukraine on Thursday suggested bringing in European and U.S. companies to help operate the strategic pipeline that carries Russian natural gas across the country to Europe.

Williams announced June 15 that the company will acquire all of its joint venture Access Midstream Partners' general partnership and bring its share in the limited partnership to 50%, a deal valued at $6 billion overall.

New products from Pergam, McElroy, Black Powder Solutions, Mattracks, Dresser-Rand, Olympus, American Innovations, DNV GL and more.