Operations

Husky Energy to Portion off Midstream Assets for $1.7 Billion

Husky Energy will sell 65% ownership interest in select midstream assets in the Lloydminster region of Alberta and Saskatchewan to Cheung Kong Infrastructure Holdings and Power Assets Holdings Limited (PAH). Husky, which will remain the operator, will receive $1.7 billion of gross cash proceeds, whi..

Mountaineer NGL Storage Open Season Underway

On April 11, 2016, Mountaineer NGL Storage, LLC began its non-binding open season for up to 1.6 million barrels of initial storage capacity with more than 25,000 bbls per day of load-in and load-out. The Mountaineer NGL Storage Project will provide storage services to a growing number of gas proces..

Bayou Bridge Pipeline Begins Nederland-Lake Charles Operations

Bayou Bridge Pipeline started commercial operations on the 30-inch segment of the Bayou Bridge Pipeline from Nederland, TX, to Lake Charles, LA. The project is owned by subsidiaries of Phillips 66 Partners, Energy Transfer Partners and Sunoco Logistics Partners. In addition, as a result of successf..

Floridian Natural Gas Storage Announces Non-Binding Open Season for Firm Gas Storage Service

Floridian Natural Gas Storage Company, LLC (FGS) is soliciting non-binding bid proposals from interested parties for a firm liquefaction, storage, and redelivery by vaporization service to a new delivery point through an interconnect with Florida Gas Transmission Company (FGT) at a location at or ne..

House Democrats Seek to Toughen Senate Pipeline Safety Bill

Key Republicans and Democrats in the House were determined to pass a pipeline safety bill this year, although it may have some differences with the bill just passed by the Senate. That bill is called the Securing America’s Future Energy: Protecting Infrastructure of Pipelines and Enhancing Safety (S..

PHMSA Cites External Corrosion as Cause of Santa Barbara Spill

External corrosion on a pipeline pumping crude was the root cause of the rupture last May that spilled over 140,000 gallons of oil on the Santa Barbara coast, federal regulators reported. The spill occurred after pumps on the Plains All American Pipeline were shut down and restarted, sending a large..

SoCalGas Finally Able to Plug Leaking Injection Well

A Los Angeles-area injection well was permanently sealed on Feb. 18 and taken out of service, according to Southern California Gas. The leak was temporarily plugged earlier and SoCalGas finished pumping cement into the base of the well. Residents who were relocated to temporary housing because of th..

U.S. Natural Gas Production Reaches Record High in 2015

U.S. natural gas production reached a record high level of 79 billion cubic feet per day (Bcf/d) in 2015, an increase of 5% from the previous year, even as natural gas prices remained relatively low. Production from five states—Pennsylvania, Ohio, West Virginia, Oklahoma, and North Dakota—was respon..

Natural Gas Storage Ends Winter Heating Season at Record High

Working natural gas inventories ended the winter heating season at 2,478 billion cubic feet (Bcf), exceeding the previous end-of-March record high of 2,473 Bcf, set in 2012, according to EIA’s Weekly Natural Gas Storage Report. Inventory withdrawals during the traditional heating season (November th..

TransCanada Resumes Oil Shipments Through Keystone Pipeline

SIOUX FALLS, S.D. (AP) — TransCanada Corp. has resumed sending oil through the Keystone Pipeline after a weeklong shutdown prompted by a leak and oil spill in southeastern South Dakota. The pipeline came back online Sunday, but with a reduced pressure. The company says it is continuing cleanup and ..

Oil Majors Only Replace 75% of Oil and Gas Produced in 2015

The oil majors failed to replace all of the oil and gas reserves that they burned through in 2015, a worrying sign for the industry’s future. The Wall Street Journal reported that the seven largest oil and gas companies only replaced about 75 percent of the reserves on average that they produced la..

New Pipeline Safety Proposal Contains Multiple New Requirements

Pipeline industry executives are pouring over the 500-plus page safety proposal from the Pipeline and Hazardous Materials Safety Administration (PHMSA), an effort that will take some time before informed comments can be made. The initial comment deadline is at the end of May. “The typical 60 days in..

NACE International Brings the Corrosion Fight to Vancouver, BC

NACE Corrosion 2016, held March 6-10 in Vancouver, B.C., brought together a widely diverse representation of those involved in the coating and anti-corrosion materials fields. In all about 6,500 attendees whose interests ranged from applications for highway and bridge construction to wastewater pro..

CO2 Corrosion Prediction: Consider the Need for Validation

Carbon dioxide (CO2) corrosion modeling software is used by asset owners, contractors and consultants in the oil and gas industry to predict the CO2 corrosion rate at both the design and operation phases of pipelines and well tubing. Prediction results from a dozen CO2 corrosion models are known to ..

NACE International’s IMPACT Breaks New Ground in the Study of Corrosion Management

Over past decades there have been significant studies in various parts of the world on the cost of corrosion and how it affects a country’s economy. The often-cited 2002 study, “Corrosion Costs and Preventive Strategies in the United States,”1 revealed that the total annual estimated direct cost of ..

Pipeline Industry Leaders to Produce Safety Leadership Training Program

Caterpillar, in collaboration with PipeLine Machinery International, Inc. (PLM) and a group of industry leading companies, is now offering the Pipeline Safety Leadership Program, a first-of-its-kind training course produced specifically for pipeliners. With a focus on personal accountability for saf..

SwRI-Designed Computer Model Predicts Corrosion Risks

Oil and gas pipelines crisscross the nation beneath critical infrastructure, such as highways, railroads and waterways, as well as passing through population centers. Because over half of U.S. pipelines date to the 1950s and 1960s, corrosion prevention and related repairs are increasingly important ..

Improving Pipeline Corrosion Protection Systems with Computer Simulation

Computer-modeling technology has developed over a number of years and is now widely used to verify the performance of cathodic protection (CP) systems used in combination with coatings to manage the corrosion risk to underground assets. Modeling can be used to verify the protection provided by the ..

Considering Corrosion Allowances for High-Strength Steels

Due to great chemistry and metallurgical innovations of the steel industry, higher strength steels have made significant strides, in specified minimum yield strength (SMYS), wall thickness control, toughness and weight per foot. However, one significant factor in these great improvements was no con..

Apache Faces More Charges in Canada over Safety

The Alberta Energy Regulator said Apache could be slapped with a penalty of up to $2.5 million for a spill in northwestern Alberta two years ago. In that incident, contaminated water spilled about 40 km from Whitecourt, affecting a nearby creek. Apache has been charged on five counts under the Pipel..

Liquid Pipeline Safety Proposal Criticized from All Sides

Reaction to the PHMSA’s proposed rule (NPRM) to tighten liquid pipeline safety regulations has run along predictable lines. The pipelines think the proposal is too expansive and expensive. The environmental community and some notable safety experts believe the Pipeline and Hazardous Materials Safety..

High Production, Low Prices Mean Little Change in Natural Gas Storage Capacity

High levels of natural gas production and relatively low natural gas prices are affecting markets for seasonal natural gas storage, including the value of additional storage capacity. For the second year in a row, no new natural gas storage facilities were added, and the slight changes, both positiv..

Ultrasonic Metering, Creative Insulation Engineering, Aid LNG Plant

A major East Coast storage facility for liquefied natural gas (LNG) had a flow metering challenge on one line.  The problem was directly related to the temperature of the product. LNG is liquefied to concentrate its volume for shipping and, as a result, the temperature of the liquid drops to a cryog..

New View on Oil and Gas Facilities

Spatial information – an object’s location, size, shape and relationship to other structures and objects – is an essential component in planning, constructing and operating energy facilities. In order to support efficient production and transport of oil and gas, energy producers must have accurate,..

Storage Site Leak Raises Environmental, Reliability Concerns

Southern California Gas Company (SoCalGas) detected a major leak Oct. 23 at Aliso Canyon, an underground natural gas storage facility located 30 miles northwest of Los Angeles. The Aliso Canyon storage facility, which has 115 wells, is the second-largest natural gas storage field in the western Unit..

Henry Hub, Marcellus Spread Narrows as Pipeline Capacity Grows

Natural gas spot prices around the United States are often compared to prices at the Henry Hub in Louisiana. At trading points in and around the Marcellus and Utica shale plays in Pennsylvania, West Virginia and Ohio, natural gas prices consistently trade below the Henry Hub national benchmark pric..

Measuring Methane Emissions: Part of Gas Pipelines’ Future

When examining the growing cottage industry of methane emissions control, it is clear upfront that it is one of the toughest sub-specialties in the emerging conglomerate that makes up the national response to climate change impacts. Researchers, engineers and public-policy wonks must start with the ..

OPEC Says $95 Oil Coming, But Not Until 2040

This week opened with the average global price of oil at an 11-year low, yet OPEC expects its own producers eventually will cut back on production, causing prices to rebound to $70 per barrel by 2020. That may seem a long time for producers to wait for oil to become more profitable, but in OPEC’s annual World Oil Outlook, issued Wednesday, the oil cartel does not see oil prices returning to the heights of $110 per barrel, where it was before the price crisis began in June 2014. Instead, it says it doesn’t expect prices to reach even $95 per barrel until 2040.

Oil Jobs Drive North Dakota to Lead US in Population Growth Again

BISMARCK, N.D. (AP) — North Dakota is once again leading the nation in population growth, and the number of residents in the state is at an all-time high, according to figures released Tuesday by the U.S. Census Bureau. The bureau's most recent estimate put the state population at 756,927 in July, an increase of 16,887 residents — or about 2.3% — compared to July 2014. That percentage, far higher than the national average, is largely driven by people in search of jobs in oil-rich western North Dakota.

Columbia Pipelines Looking to Spend $1.1 Billion on Modernization

Columbia Gas Transmission has filed a customer agreement with the Federal Energy Regulatory Commission (FERC) to extend its long-term system modernization program by three years, through 2020.The agreement, with a requested approval by March 31, would provide for $1.1 billion of additional investment. Parent company Columbia Pipeline Gas (CPG), has invested about $1 billion under the modernization programs over the past three years, placing more than 100 projections into service. These include: • Replacement of more than 130 miles of bare steel pipelines and wrought iron facilities