February 2010 Vol. 237 No. 2


Business Meetings & Events

AGA President and CEO David N. Parker Announces Retirement

David N. Parker, president and CEO of the American Gas Association (AGA), announced Feb. 17 that he will retire from AGA at the end of 2010. Parker told the board that his retirement is part of a transition process that he initiated in 2007 to ensure that AGA continues to have a strong leadership team going forward.

ConocoPhillips Alaska President Killed, Employee Missing in Accident

ConocoPhillips Alaska president Jim Bowles was killed in an avalanche on Feb. 13 that struck him and missing Conoco employee Alan Gage while the two were snow machining on Alaska’s Kenai Peninsula.

February 2010 Ad Index

Advertisers from the February 2010, Vol. 237, No. 2 print edition of Pipeline & Gas Journal.

February 2010 Association and Personnel News

<strong>Association News:</strong> The board of directors of the <strong>Colorado Oil & Gas Association (COGA)</strong> selected Tisha Conoly Schuller as its new president. Schuller comes from Tetra Tech, an environmental consulting and engineering firm, where she was a vice president for regional operations.

Editor's Notebook

Editor's Notebook: Best Days For Natural Gas Still Ahead

While many in the natural gas industry are uncomfortable with the push toward cleaner fuels and climate change legislation, a combination of factors is joining forces to ensure that natural gas might rightly be crowned as the preferred fuel for the 21st century.


Clean Over Green: Oil And Gas in a Low-Carbon Future

Even with the world having reached a modicum of consensus in Copenhagen, it is becoming clear that the global obsession with anything green has subsided. This is a good thing. We can now move from breathless anticipation of a green dawn, to the more sober work of systematically and thoughtfully building toward a low-carbon future.

Cockrell Ranch Waterflood: What Wireless Network?

The Cockrell Ranch Waterflood project is an ambitious enhanced oil recovery project located in the Texas panhandle. Cano Petroleum uses state-of-the-art technology and methods to recover oil from wells that would have once been considered ‘tapped.'

Faster And Safer As-Built Drawings Available

For many years, gathering field data on existing piping systems remained basically unchanged. As piping systems became more complex, the people collecting field data were often required to place themselves in precarious situations to obtain the needed measurements. Those were the old days.

Making Money with Mobile Workforce Management

If your projects typically yield $1 million or more in hard-dollar benefits and have a three- to six-month payback, then life is good. But if you would like to experience such gains regularly, then you might consider implementing in-the-field decision-support systems, which can result in tremendous ongoing cost savings and operational improvements.

Material Selection For Sour Service Environment

Hydrogen sulfide (H2S) gas, also known as sour gas or sulfuretted hydrogen, is possibly the second-most deadly gas after carbon monoxide that man can encounter in the industrial environment. Common in all sectors of the petroleum industry, this gas can be found in any location where decaying matter is present.

Michels Crews Tackle Construction On Three Major North American Pipeline Projects

In 2009, Michels Pipeline Construction, a division of Brownsville, WI-based Michels Corp., was involved in construction of portions of TransCanada’s 2,148-mile Keystone Pipeline, Kinder Morgan’s 1,679-mile Rockies Express Pipeline and Enbridge Energy’s 1,000-mile Alberta Clipper Pipeline.

New Control Room Management Regulations Require Structured Management Approach

On Dec. 3, 2009, the Pipeline and Hazardous Materials Safety Administration (PHMSA) published its final regulations for control room management (CRM). These regulations were the result of a multi-year effort to address concerns expressed by the National Transportation Safety Board (NTSB).

Operational Excellence In IT Management

Companies that employ operationally excellent information technology services have a distinct advantage over their competitors, even when market demand is down and credit is tight.

Pipeline & Gas Journals 2010 International Pipeline Construction Report

P&GJ’s latest international survey indicates a much higher number of pipelines in the engineering and design phase vs. actual construction. This year’s figures show the international sector accounts for 90,624 miles of pipelines under construction and planned.

Station Configuration Impacts Availability, Fuel Consumption and Pipeline Capacity-Part 2 Of 2

The number of compressors installed in each compressor station of a pipeline system has a significant impact on the availability, fuel consumption and capacity of the system. Depending on the load profile of the pipeline, the answers may look different for different applications.

The 2009 Sino-Russian Gas Deals: Cementing a Strategic Partnership?

The pressures of the financial and economic crisis have lead to a slump in Europe’s natural gas demand. This has caused a sizeable reduction in Russian gas imports – up to 50 billion cubic meters (bcm) in Western Europe alone. Unsurprisingly, Gazprom has turned its attention towards the major emerging natural gas consumer China.

Video Pipeline Monitoring Offers A Tool To Avoid Costly Losses

We’ve heard of CPM, or computational pipeline monitoring. Isn’t it time that we embrace the opportunities of VPM: video pipeline monitoring? For years, pipelines have relied on traditional equipment for monitoring; that is, basic instrumentation brought back to the control room via some networking method.


PHMSA Announces Final Control Room Management Rule

The Pipeline and Hazardous Materials Safety Administration (PHMSA) published a final rule dictating the shape and content of new control room management programs for hazardous liquid, gas transmission and distribution pipelines.

In The News

February Newsreel: Gas Growth Supports NE Renewables; Pace, Ridge Global Ally; Crosstex Acquires Intracoastal

<a href="http://pipelineandgasjournal.com/february-newsreel-gas-growth-supports-ne-renewables-pace-ridge-global-ally-crosstex-acquires-intraco?page=2#growth">Growth In Gas Use To Support Northwest Renewable Energy Development, Reduce Emissions</a>; <a href="http://pipelineandgasjournal.com/february-newsreel-gas-growth-supports-ne-renewables-pace-ridge-global-ally-crosstex-acquires-intraco?page=3#pace">Pace, Ridge Global Ally On Energy, Industrial Markets</a>; <a href="http://pipelineandgasjournal.com/february-newsreel-gas-growth-supports-ne-renewables-pace-ridge-global-ally-crosstex-acquires-intraco?page=3#crosstex">Crosstex Energy Acquires Intracoastal Pipeline From Chevron</a>; <a href="http://pipelineandgasjournal.com/february-newsreel-gas-growth-supports-ne-renewables-pace-ridge-global-ally-crosstex-acquires-intraco?page=3#egpi">EGPI Firecreek Acquiring Sierra Pipeline Natural Gas Gathering System</a>; <a href="http://pipelineandgasjournal.com/february-newsreel-gas-growth-supports-ne-renewables-pace-ridge-global-ally-crosstex-acquires-intraco?page=3#energy">Energy Transfer Names New Directors</a>; <a href="http://pipelineandgasjournal.com/february-newsreel-gas-growth-supports-ne-renewables-pace-ridge-global-ally-crosstex-acquires-intraco?page=4#markwest">MarkWest Energy Partners Sells JV Interest In Starfish Pipeline Company</a>;


Brazils First Floating LNG Facility Planned

Technip, in association with JGC Corp. and Modec Inc., was awarded a lump sum contract by Petrobras for the front-end engineering design (FEED) of a proposed floating LNG (FLNG) project.

Bredero Shaw Contract Award

Bredero Shaw, a division of ShawCor Ltd., received contracts valued at US$170 million from Mitsui & Co. Ltd. to provide pipeline coatings and related products and services for Esso Highlands Ltd.’s PNG LNG Project in Papua New Guinea.

British Gas Leads Way With New-For-Old Boilers

British Gas will match-fund the British government's £400 boiler scrappage allowance, meaning that customers buying a new boiler from British Gas can cut the cost by £800 this winter.

Buckeye Partners and Nova Chemicals Form Marcellus Gas Partnership

Buckeye Partners and Nova Chemicals Corp. have signed a memorandum of understanding regarding the development of a pipeline to carry Marcellus Shale gas from the Pittsburgh region to a Nova pertrochemical complex in western Ontario.

Chevron Signs Gorgon LNG Sale Deal With Nippon Oil

Chevron Corp. has signed a 15-year deal to sell Japan's Nippon Oil Corp. 4.5 million tons of LNG from its Gorgon project in western Australia.

CNPC To Build And Operate China-Myanmar Pipeline

China National Petroleum Corp. signed an agreement with Myanmar's Energy Ministry to receive exclusive rights to build and operate the China-Myanmar crude oil pipeline.

ConocoPhillips Facing Delay In Middle East Project

ConocoPhillips and Abu Dhabi face delays on a $12 billion sour gas project in the sheikdom amid ongoing uncertainty over how to safely transport toxic material, Dow Jones Newswire reported.

Customers Ask Capacity Expansions In Dutch, German Gas Transport Networks

To meet increased demand for gas transport capacity, Gasunie's transportation grid in the Netherlands and Germany needs to be expanded urgently, the Dutch-based company reported.

Dawn Gateway Pipeline Seeks Ontario Jurisdiction To Advance Project

The Dawn Gateway Pipeline Limited Partnership withdrew its applications with Canada’s National Energy Board (NEB) and will work to advance its Dawn Gateway Pipeline project under the jurisdiction of the Ontario Energy Board (OEB).

ENSTOR Announces Non-Binding Open Season for Houston Hub

ENSTOR is conducting a non-binding open season for Phase I of its Houston Hub Project, located 30 miles northeast of Houston, Texas. The season will last from March 1 to March 12, 2010.

ExxonMobil Prepares For Venture With Qatar

ExxonMobil Corp. will work with Qatar Petroleum to develop a petrochemical complex fueled by a huge natural-gas field off Qatar's Persian Gulf coast.

FERC Approves Pipeline And LNG Terminal

The FERC has authorized construction of the Jordan Cove terminal for LNG imports and a related pipeline project in Oregon.

FERC Finds Bison Pipeline Environmentally Acceptable

The Federal Energy Regulatory Commission has prepared a final environmental impact statement (EIS) for the natural gas pipeline facilities proposed by Bison Pipeline, L.L.C.

First Subsea Performs Successful Installation On STL Buoys Off Massachusetts

First Subsea has completed installation of four diverless bend stiffeners for risers and umbilicals off the coast of Gloucester, MA.

Mackenzie Gas Project Gains Canadian Panel Approval

The Joint Review Panel has conditionally recommended approval of the proposed Mackenzie Gas Project, after considering its socioeconomic and environmental impact for five years.

McDermott Acquires Interests In Construction Vessels

J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc. has finalized a transaction with Oceanteam ASA for the construction vessel, North Ocean 102 (NO102) and a new build vessel, North Ocean 105 (NO105).

Nearly 200 New Underground Storages Projects Forecast By 2015

Cedigaz, the international association focused on natural gas statistics, forecasts that nearly 200 new underground storage sites will likely be built around the world in coming years.

Nord Stream Project Wins OK From Germany

The Nord Stream natural gas pipeline project recently secured the first of two permits it is required to obtain from Germany.

Pipeline Inspection Minimizes Project Risk In Angola Oilfield

UK-based specialist measurement technology company Optical Metrology Services (OMS) Ltd. has completed a pipe inspection study for BP Exploration (Angola) Ltd. in fields that lie in a water depth of 2,000 m northwest of Luanda, Angola.

Pipeline To Handle Haynesville Shale Production Planned

An indirect wholly owned pipeline subsidiary of CenterPoint Energy Inc. and NextEra US Gas Assets LLC, an affiliate of FPL Group, Inc., signed a joint development agreement to explore construction of a pipeline in north Louisiana to transport natural gas from the Haynesville Shale.

Rex Energy And Stonehenge Form Midstream Joint Venture

Keystone Midstream, a newly formed joint venture between Rex Energy Corp. and Stonehenge Energy Resources, L.P., will initially invest up to $25 million to build a high-pressure gathering system and cryogenic gas processing plant in Butler County, PA.

Rezoning Opens Route For Ruby Pipeline Project

The Cache County Council has approved rezoning of land from agricultural and forest/recreation to the utility corridor overlay zone to make way for El Paso’s $3 billion Ruby Natural Gas Pipeline in southern Utah.

Spectra Energy Finalizes Agreements For Gas Deliveries Into New York And New Jersey

Spectra Energy Corp. has signed binding precedent agreements with Chesapeake Energy Corporation, Consolidated Edison and Statoil Natural Gas for an expansion of its existing Texas Eastern Transmission and Algonquin Gas Transmission pipeline systems to deliver natural gas supplies to the New Jersey and New York area.

Study Finds Strong Potential For AUV Market

Although 629 Autonomous Underwater Vehicles (AUVs) have been produced to date, they are still regarded as a relatively new technology.

Technip Awarded Contract for Fields Off Spanish East Coast

Technip has been awarded a lump sum contract by Repsol Investigaciones Petroliferas SA for the development of two fields located approximately 50 kilometers off the east coast of Spain.

TransCanada Settles Crossings Challenges On Keystone-Cushing Pipeline Route

County officials and representatives from TransCanada signed an agreement outlining the terms for the crossing of 12 county roads during construction of the Keystone Pipeline Cushing Extension in Dickinson County, KS.

Turkmenistan Opens New Gas Pipeline Into Iran

Turkmenistan last month took another step to reduce its reliance on Russia as an export partner for natural gas, launching a new pipeline link to northeastern Iran.

Woodside Contract Awarded To Fugro GOES

The Australian office of Fugro GEOS has been awarded a contract by Woodside Energy Ltd. to undertake a year-long metocean study 37 miles north of Broome in western Australia.


A Builder + A Problem Solver = Cleve Hogarth

Cleve Hogarth has always prided himself as a problem solver and a builder. Along with integrity, can there be any traits more important to someone in the oil and gas business?


Buried District Regulator Stations Using Dresser FloSystems Prefabricated Sets

District regulator stations are often constructed in densely populated areas such as subdivision communities. They typically require a developer to commit a sizable piece of real estate and often create an unattractive and unappealing installation to the local residents.

DATUM Centrifugal Compressor Line Sees Continuing Improvement

Energy conversion technology has played a major role in the oil and gas industry for more than a century, and Dresser-Rand is an industry leader in designing, manufacturing and servicing centrifugal and reciprocating compressors, gas and steam turbines, expanders, rotating separators and control systems.

DATUM Centrifugal Compressor Line Sees Continuing Improvement (1)

Energy conversion technology has played a major role in the oil and gas industry for more than a century, and Dresser-Rand is an industry leader in designing, manufacturing and servicing centrifugal and reciprocating compressors, gas and steam turbines, expanders, rotating separators and control systems.

How Predictive Analytics Helps Improve Critical Equipment Reliability

In the pipeline industry, a significant portion of lost profit is due to poor equipment reliability and unplanned production losses. Despite investments in infrastructure, systems, and people, critical equipment reliability problems still persist.

Web Exclusive

Toyotas Problems and Lessons for Engineers

The recent problems with Toyota’s recall due to faulty accelerators in eight car brands have a very important message for engineers and managers dealing with engineering and designing.