June 2011 Vol. 238 No. 6


Business Meetings & Events

INGAA Foundation Reinforces Pipeline Safety Stance

The Interstate Natural Gas Association of America Foundation met April 6-8 at the Las Colinas Four Seasons resort in Irving, TX with a tight schedule focusing on pipeline safety, public outreach and preparing for an uncertain future. Attendance was strong, although not a record, with 175 participants.

Insituform In Joint Ventures With Wasco Energy

Insituform Technologies, Inc. announced creation of two joint ventures with Wasco Energy Ltd., a subsidiary of Wah Seong Corp. Berhad, in Kuala Lumpur, Malaysia and a leading provider of pipe coating, insulation and protection services to the oil and gas industries.

June 2011 Ad Index

Advertisers from the print edition of <em>Pipeline & Gas Journal</em>, June 2011, Vol. 238 No. 6.

P&GJ Editor Jeff Share Sweeps Houston Press Club 2011 Column Awards

<em>Pipeline & Gas Journal</em>'s editor Jeff Share walked away from the Houston Press Club's 2011 Lone Star Award Dinner on June 27 with four major awards, including first, second and third place awards in the magazine column category.

Pipe Line Contractors Association Of Canada Holds 57th Annual Convention In Maui

Three hundred attendees left snow-bound Canada to attend the Pipe Line Contractors Association of Canada’s (PLCAC) 57th annual meeting at the Hyatt Regency, Maui, Hawaii, in mid April. There were representatives present from the Association’s 33 regular and 62 associate member firms, plus the pipeline craft unions and various guests including several past presidents.

Pipeline Suspension Bridges Topic At Pipeliners Meeting

Parsons project manager Seth Condell, P.E. discussed the intricacies involved in pipeline suspension bridges at a recent meeting of The Pipeliners Association of Houston.

Ritchie Bros. Auction In Houston June 22-23

Ritchie Bros. Auctioneers will conduct a multi-million dollar unreserved public auction at the Company's permanent auction site in Houston, Texas on Wednesday and Thursday, June 22 - 23, 2011. More than 2,000 heavy equipment items and trucks will be sold during the two-day auction, including a large selection of forestry and agricultural equipment.

Stanley C. Horton To Head Boardwalk As President, CEO

Boardwalk Pipeline Partners, LP named Stanley C. Horton president, CEO and a director of Boardwalk GP. With more than 35 years of experience in the natural gas and energy industry, Horton brings extensive industry knowledge to Boardwalk and its three interstate natural gas pipelines: Gulf Crossing Pipeline Company LLC, Gulf South Pipeline Company, LP, and Texas Gas Transmission, LLC.

TMK IPSCO Breaks Ground For R&D Center In Houston

Worldwide pipe manufacturer TMK IPSCO held a ground-breaking ceremony May 3 for a new 51,000-square-foot Research & Development Center in Houston.

UniversalPegasus Receives TransCanada's Gold Medal For Safety On Keystone Cushing Project

UniversalPegasus International (UPI) was awarded the prestigious Vice President’s Gold Medal Safety Award, TransCanada Corporation’s highest award for safety performance, for an exceptional safety record for work on the Keystone Cushing Extension Project.

Editor's Notebook

Editor's Notebook: Tough Times

It’s been a tough few weeks: first, two of my all-time sports heroes passed away, baseball Hall of Famer Harmon Killebrew and wrestling great Randy “Macho Man“ Savage. Around the same time another death may have occurred – one that has been reported periodically over the years but whose time may have finally come.


A Fresh Approach To Control Room Management And Related Best Practices

This article summarizes a SCADA implementer’s perspective regarding the intent of the Pipeline Hazardous Materials Safety Administration’s (PHMSA) Control Room Management (CRM) rule. In addition, it intends to provide a fresh approach to CRM, describing why companies should use the CRM process to go beyond compliance requirements and implement operating best practices that would significantly enhance operations reliability and pipeline safety.

Bending Stresses From External Loading On Buried Pipe

The pipeline industry has long been interested in evaluating the effects of external loading due to fill and surface loads, such as excavation equipment, on buried pipes. This interest stems not only from the initial design of pipeline systems, but also from the need to evaluate changing loading conditions over the life of the pipeline. Variations in loading conditions can arise due to the construction of roads and railroads over the pipeline and one-time events in which, for example, heavy equipment must cross the pipeline.

Brendan Ryan Elected President Of Pipe Coating Group

The National Association of Pipe Coating Applicators (NAPCA) elected Brendan Ryan to serve as its president for 2011-12 during the association’s 47th annual meeting which was held in April in Fort Lauderdale, FL. Ryan is vice president and general manager-North America of Bredero Shaw, Calgary, Alberta, Canada.

Dry Gas Seals For High-Pressure Gas Injection Compressors

The escalating worldwide demand for oil and the continuously rising prices are driving oil companies to explore new oil field resources. However, exploration also incurs increasing expense in terms of technology. Many of these projects have a common need in that natural gas, which is associated with crude oil, has to be re-injected into the reservoirs.

HDD Instrumental In Bison Project

When TransCanada Corp. opened its new 305-mile, 30-inch Bison Pipeline between the Rockies and the Midwest earlier this year, horizontal directional drilling (HDD) played an important role in its completion.

Inline Cathodic Protection: Its All About Current

The external pipeline corrosion control field has seen great change over the years from a regulatory standpoint. However, the field has seen few advances in new technology to assist in monitoring the effectiveness of mitigation efforts. That changed recently with the introduction of an inline inspection (ILI) tool that measures cathodic protection (CP) current flowing on a pipeline.

Keystone Pipelines Cathodic Protection Journey Spans Three Years And 2,147 Miles

The Keystone Pipeline is a 2,147-mile (3,456-km) pipeline that transports crude oil from Hardisty, Alberta, to U.S. Midwest markets at Wood River and Patoka in Illinois, and ultimately to Cushing, OK. On June 30, 2010, TransCanada (TCPL) began commercial operation of the first phase of the Keystone Pipeline System.

NYSEARCHs Validation Program Of Transkors Magnetic Tomography Method Of Pipe Inspection

NYSEARCH is leading a validation effort of a new non-contact method for inspecting steel pipelines known as Magnetic Tomography Method (MTM). MTM has been developed by Transkor-K of the Russian Federation and has been used for pipeline inspections worldwide.

Pipeline Corrosion Highlights Petro.t.ex Africa 2011

To highlight the latest developments in corrosion technologies, the Corrosion Institute of Southern Africa (CorrISA) scheduled a one-day technical workshop at Petro.t.ex Africa for June 9 covering the topic of field joint coatings. The Petro.t.ex Africa expo was scheduled for June 7-9 at Gallagher Convention Centre in Midrand, Johannesburg.

Pipeline Safety, Keystone XL On API Agenda

SAN ANTONIO, TX-Meeting amid the backdrop of several headline-making events, a record attendance of nearly 470 participated in API’s 2011 Pipeline Conference held in San Antonio.

Two New Web Applications Help Guide Composite Repair Decision-making

Composite pipeline repair technology has been around for more than a decade, representing an affordable and timesaving option for pipe rehabilitation. The introduction of national and international ASME and ISO engineering standards has helped composite repairs gain wider acceptance in the industry as an effective solution for restoration of pipeline integrity and structural strength.

Whats Ahead For Transporters And Marketers of CO-2?

Kinder Morgan’s R. Tim Bradley, president of carbon dioxide (CO-2), discusses the impact the company’s new 91-mile, 10-inch CO-2 distribution pipeline and complementary facilities will have on future enhanced oil recovery operations in the region and the company’s future plans.


DOT Control Room Regulation To Take Effect Early

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) announced June 16 that a new regulation to improve the management of pipeline control rooms will go into effect over a year earlier than originally planned.

Pipeline Safety Bill Starts to Move Through Congress

A new pipeline safety bill started its trek through Congress May 5 when the Senate Commerce Committee passed The Pipeline Transportation Safety Improvement Act (S. 275). The mild bill is largely unobjectionable to the gas and liquid pipeline industries, but neither does it grant INGAA's long-standing top priority: adopting a risk-based approach to retesting of pipelines in high consequence areas (HCAs).

In The News

20th World Petroleum Congress Issues Final Call For Projects

The 20th World Petroleum Congress (20th WPC) Organizing Committee has issued its Final Call for Projects, inviting oil and gas companies to share their knowledge and expertise with delegates and attendees at the industry’s largest and most prestigious oil and gas event, being held in Doha in December.

Atlas Pipeline Partners To Purchase Interest In NGL Pipeline

Atlas Pipeline Partners, L.P. signed an agreement to partner with Chevron Pipeline Co. for purchase of a 20% interest in West Texas LPG Pipeline Limited Partnership from Buckeye Partners, L.P. for $85 million.

Corrpro, STARC Form Corrosion Protection Joint Venture In Saudia Arabia

Insituform Technologies, Inc. announced June 27 that its subsidiary Corrpro Companies, Inc. is forming a joint venture in Saudi Arabia with Saudi Trading & Research Co., Ltd. (STARC).

Dow Growing North American Businesses With Shale Gas Liquids

Dow Chemical Company announced comprehensive plans to increase ethylene and propylene production and to integrate its U.S. operations into feedstock opportunities available from increasing supplies of shale gas in the Marcellus and Eagle Ford shale regions.

EQT Sells Big Sandy Pipeline To Spectra

EQT Corp. has sold the Big Sandy Pipeline to Spectra Energy Partners, LP for $390 million. Big Sandy is a 70-mile, 20-inch natural gas pipeline placed in service in April 2008. It has a capacity of 171,000 Dth/d. Big Sandy transports natural gas from the Langley, KY natural gas processing complex ultimately to the Mid-Atlantic and Northeast markets.

FERC Official Says Cyber Security Risks Can Come From Insiders

The threat of cyber attack is a very real issue with serious implications for U.S. energy companies and government agencies and the threat is as likely to come from a trusted employee, a disgruntled former employee or a business rival as from a terrorist attack, computer hackers or even solar flares, a Federal Energy Regulatory Commission (FERC) official said on Platts Energy Week.

Kinder Morgan Expands Ethanol Handling Services In Houston

Kinder Morgan Energy Partners, L.P. completed construction of its Deer Park Rail Terminal (DPRT) and related ethanol handling assets at its Pasadena terminal along the Houston Ship Channel.

New Report Details Increases In Natural Gas Supply In U.S.

The Potential Gas Committee’s (PGC) 2010 biennial report: Potential Supply of Natural Gas in the United States finds nation possesses an undiscovered natural gas resource potential of 1,898 Tcf, the highest resource evaluation in the PGC’s 46 year history — exceeding by 61 Tcf the previous record-high assessment from year-end 2008.

Pipeline Report: The $12 Billion Gas Treatment Plant

The Office of Federal Coordinator for an Alaska natural gas pipeline added another in-depth report to its website, focusing on the $12 billion gas treatment plant that would be needed at Prudhoe Bay.

PRCI, Research Partners Receive PHMSA R&D Contract For RAM Program

PRCI received notification from the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (DOT PHMSA) on the approval of R&D funding to support PRCI’s research effort on the Right of Way Automated Monitoring (RAM) Program.

Stanley C. Horton To Head Boardwalk As President, CEO

Boardwalk Pipeline Partners, LP named Stanley C. Horton president, CEO and a director of Boardwalk GP. With more than 35 years of experience in the natural gas and energy industry, Horton brings extensive industry knowledge to Boardwalk and its three interstate natural gas pipelines: Gulf Crossing Pipeline Company LLC, Gulf South Pipeline Company, LP, and Texas Gas Transmission, LLC.


ABB Wins Main Automation Contract For Gas Storage Site In UK

ABB won a Main Automation and Instrumentation contract for a new natural gas storage facility in Cheshire, United Kingdom.

El Paso Successfully Closes Companion Open Seasons

El Paso Natural Gas Company (EPNG), has successfully closed companion open seasons and signed long-term agreements to expand its Willcox lateral and provide mainline 95,000 Dth/d of natural gas transportation.

Energy Transfer Acquiring Southern Union Company

Dallas-based Energy Transfer Equity (which owns Energy Transfer Partners) announced June 16 that it will acquire Houston-based Southern Union Company.

Gazprom May Build LNG Complex For Japanese

Gazprom and a consortium of Japanese companies led by Itochu Corp. have agreed to study building a liquefied natural gas (LNG) plant and a gas chemical complex in Russia’s Far East city of Vladivostok as Japan seeks to boost fuel supplies after its worst nuclear accident.

Genesis Energy To Expand Upper Texas Coast Footprint

Genesis Energy plans to expand its crude oil pipeline and terminal capabilities on the upper Texas Coast and to expand its refinery services operating footprint with a new sour gas processing facility by year-end.

Habau, KHE Group Announce Sale Of Pipeline Contractor Nacap

KHE Group B.V. (Koop Group) from the Netherlands and Habau GmbH (Habau) from Austria reached agreement on a sale of 100% of the shares in the Nacap group of companies as all the activities of Nacap will be combined within the Habau Group.

KMP Increases Footprint In Eagle Ford And Haynesville Shale Plays

Kinder Morgan Energy Partners, L.P. has agreed to pay $855 million to Petrohawk Energy Corporation and assume $65 million in debt for Petrohawk’s 50% interest in KinderHawk Field Services.

New Jersey Natural Gas Files to Build Natural Gas Vehicle Refueling Stations

New Jersey Natural Gas (NJNG) submitted a filing June 16 with the New Jersey Board of Public Utilities seeking authority to invest up to $15 million to build compressed natural gas vehicle refueling stations in Monmouth, Ocean and Morris counties.

Occidental Petroleum, DCP Midstream Sign TX Liquids Agreement

Occidental Petroleum Corporation (Oxy) announced its wholly owned subsidiary Occidental Chemical Corporation (OxyChem) has signed a preliminary agreement with DCP Midstream LLC (DCP) for the supply and transport of natural gas liquids in Texas.

Regency Energy Partners Announces Gathering System Expansion In South Texas

Regency Energy Partners announced June 2 that it has entered into agreements to provide gas and condensate gathering services for a producer in the Eagle Ford Shale.

Saipem Wins Offshore Contracts In China And Brazil

Saipem has been awarded new E&C Offshore contracts worth in excess of $1 billion in China and Brazil.

Siemens Completes World's Largest LNG "Train"

Siemens Industry, Inc. announced completion of the world's largest onshore LNG compressor "mega-train" for Qatargas in Qatar.

Subsea 7 Wins Contract in Norwegian Sea

Statoil has awarded Subsea 7 S.A. the Fossekall-Dompap marine installation and pipelay contract in the Norwegian Sea.

Targa Resources Announces Fractionation Expansion And Anchor Commitment For New NGL Pipeline

DCP Midstream LLC and Targa Resources Partners LP have entered agreements that provide a long-term anchor commitment to the DCP Midstream Sandhills Pipeline LLC.

Trans-Adriatic Pipeline Starts ESIA Process In Italy

The Trans Adriatic Pipeline (TAP) has begun a formal Environmental and Social Impact Assessment (ESIA) process in Italy, following a similar move in Albania in April.

Willbros Settles Contract Dispute with TransCanada

Willbros Group, Inc. announced June 27 that it had reached full and final agreement with TransCanada on the amount due to its U.S. construction subsidiary under a cost reimbursable target price construction contract for seven pump stations in Nebraska and Kansas.

Williams Companies Counters Energy Transfer's Southern Union Acquisition

Southern Union Company has confirmed receipt of a proposal by The Williams Companies, Inc. to acquire all of the outstanding shares of Southern Union for $39.00 per share in cash.

Williams Partners Increases Stake In Gulfstream Pipeline

Williams Partners L.P. has completed the acquisition of an additional 24.5% interest in the Gulfstream interstate gas pipeline system from Williams for $330 million.


Extraordinarily Safe Operations Result From Unvarying Management Attention

You might expect the folks at Koch Pipeline Company, L.P. to be in feeling pretty good about themselves and their company these days, and with good reason. In April, the company won the API Pipeline Distinguished Environmental and Safety Award in recognition of its employees having worked all of 2010 with no minor or significant injuries.

Industry Veteran Offers Trove Of Knowledge In New Job

Les Goodman recently took his 39 years of increasingly detailed and rich utility engineering and management experience to PricewaterhouseCoopers (PwC) where he is a director in the firm’s Advisory Practice offering enterprise asset management services to gas utilities and power companies.


New Caterpillar Welding Tractor Launched In Europe

A custom-built welding tractor - the latest pipeline offering from Caterpillar - was unveiled at the company’s Grenoble Echirolles plant in France.

Piggable Pressure Isolating System For Untapped Live Onshore Pipelines

In a perfect world every pipeline repair or maintenance site would just happen to have a valve on either side to use to isolate the work site. It is not a perfect world but the good news is that help has arrived. With the advent of new communications systems and piggable pressure isolation tools, that isolation capability now exists.

Satellite Notification Service For Pig Tracking, Benchmarking

Doing more with less is a constant drumbeat in the world today. Certainly pig tracking and ILI benchmarking are no different. Now, thanks to CDI’s innovative new LineStat satellite notification service, tracking, locating and benchmarking pigs has taken a high-tech turn that yields faster and more precise information with less manpower.

What's New

Enduro DigiTel Flux Logger

Enduro Pipeline Services is now offering the dual diameter DigiTel Flux Logger (DfL™). The logger is described as utilizing magnetic flux leakage (MFL) technology on pipe ranges that include 10-inch by 12-inch and 8 inch by 10 inch.

Lincoln Electric Lincolnweld

Lincoln Electric has introduced Lincolnweld® LAC-690, a low alloy flux-cored wire designed for submerged arc welding.

PFERD Polifan-Strong

PFERD says its Polifan® - Strong flap discs feature a major design innovation that allows the removal of more material in less time than any other consumable abrasive tool used with an angle grinder.