September 2011, Vol. 238 No. 9


Business Meetings & Events

Cameron Acquires LeTourneau For $375M Cash

Cameron has agreed to acquire LeTourneau Technologies Drillings Systems and Offshore Products divisions from Joy Global Inc. for approximately $375 million in cash.

September 2011 Ad Index

Advertisers from the print edition of <em>Pipeline & Gas Journal</em>, September 2011, Vol. 238 No. 9.

Editor's Notebook

Editor's Notebook: Courage Under Fire

You can’t really define a hero. Nobody wakes up and realizes he or she is going to face a life-altering event later that day.


Advanced Pulsation Analysis For Reciprocating Compressors

Pulsation fluid models for reciprocating and screw compressor piping have become more sophisticated as the horsepower and speed ranges for the compressors have increased. This is due, in large part, to the need to more reliably predict system responses for control of high vibrations.

Gas Turbine Compressor Blade Fouling Mechanisms

Fouling of compressor blades is an important mechanism leading to performance deterioration in gas turbines over time. Fouling is caused by the adherence of particles to airfoils and annulus surfaces. Particles that cause fouling are typically smaller than 2 to 10 ?m.

HDD Solves Crude Line Replacement Across St. Clair River

Enbridge sprang into action after confirming a minor anomaly on its 30-inch Line 6B crude oil pipeline where it crosses under the St. Clair River spanning from Marysville, MI to St. Clair Township, Ontario.

How Weather Reporting Affects Petroleum Prices

It has already been an historic year in 2011 for weather disasters. The National Climatic Data Center (NCDC) is reporting that the economic cost from these events already surpasses $32 billion and the height of hurricane season is approaching. Typically, the year-to-date total is near $6 billion. The damages come from a combination of major weather events including severe weather outbreaks, winter storms and flooding.

Natural Gas Price Picture May Change By Late 2012

The natural gas market today is a completely different market from that of just three years ago. A shortage of supplies has turned into an overabundance, and production continues to outpace demand. In July 2008, the price of natural gas in Louisiana was close to $14 per MMBtu, and according to the Energy Information Administration (EIA), natural gas production levels in the Lower 48 states was 62.78 Bcf/d. Today, the price of natural gas in Louisiana is hovering around $4 per MMBtu, and natural gas production levels in the Lower 48 states have climbed to over 69 Bcf/d.

One-Dimensional Modeling For Compressor Engine Controls

In modeling and control of power equipment, mathematical models are often used to develop robust control systems. The models are used both in the calculation of performance metrics and in determining control set-point parameters. These one-dimensional control functions require a method to determine an output value given some known input parameter. This article will describe various mathematical modeling methods that are used in compressor unit control systems as well as the advantages and disadvantages of each method.

Pennsylvania The New Hub Of Pipeline Work

Pennsylvania and the Marcellus Shale natural gas reservoir are emerging as a key focus of natural gas pipeline operators, as the increasing gas flow spurs projects to bring it to customers in the northeastern U.S. and possibly Canada.

Petrochemical Industry Closely Watching Shale Plays

Much has been written about how oil and gas derived from shale is going to bring back North America as a viable energy source, making it at the least more self-reliant and at the most a major exporter of energy products and fuels.

Pipeline Route And Depth-Of-Cover Survey Considerations

Geophysical and geotechnical survey techniques used for shallow water pipeline route investigations can also be used to determine the pipeline depth of burial in shallow water regimes. Multidiscipline surveys enable: 1) mitigation of risks from natural or man-made seafloor hazards; 2) regulatory compliance (archaeological, integrity management, shallow hazards); and 3) establishment of design criteria for pipeline, cable, template, etc.

Recent Developments In Testing Wet Gas Flow Meters

Natural gas is being produced from many varied and challenging locations around the world. Gas-prone reservoirs tend not to produce clean dry gas flows but rather wet natural gas flows where the gas is mixed with hydrocarbon liquids and water. Furthermore the wet natural gas production from each reservoir is unique. No two wet natural gas production flows are identical.

SCADA Security For Critical Pipeline Infrastructure

The economy of every developed country in the world depends on the supply of oil, gas and water. The average American each day consumes two gallons of gasoline, 220 cubic feet of natural gas for heating and cooking, 30 kilowatt-hours of electricity- produced primarily from fossil fuels - and 150 gallons of water. The supply is an essential part of the critical infrastructure. Providing and protecting the security of that supply is a clear-cut mandate.

Shale Gas in Todays Context

It’s no secret: popular media publications and those from the energy industry don’t always agree. But about six years ago, the national press radically split with the industry press on the subject of natural gas.

Smart Microchip-based Gas Chromatographs

Natural gas is one of the most important energy resources1. However, its chemical composition can fluctuate considerably, depending on where it is found. Added to this, the various gas qualities are mixed together due to the networked pipeline system of main and sub branches, receiving and transfer stations and gas storage facilities. This means that the natural gas must be tested qualitatively and quantitatively at strategic points to establish its volume and its quality parameters such as its calorific value (CV or Btu), hydrocarbon dew point and hydrogen sulfide content.

To Calibrate Or To RecalibrateThat Is The Question

COLORADO SPRINGS, CO--Measurement may not be the most glamorous aspect of the natural gas business, but it sure is one of the most important from a dollars and cents perspective.


INGAA Prefers House Pipeline Safety Bill; EPA Air Emission Proposal Would Affect Pipeline Compressors

The House pipeline safety bill introduced in July is similar in many ways to the Senate bill which the Commerce Committee passed in May. But there are differences, with the House bill, called the Pipeline Infrastructure and Community Protection Act of 2011, being the preferred option in the view of the Interstate Natural Gas Association of America (INGAA).

In The News

Bluestone Plans Gas Gathering System

Bluestone Gathering has signed a long-term agreement with Southwestern Energy Services Company to build and operate a natural gas gathering system in Susquehanna County, PA and Broome County, NY.

CNG Initiatives Available In Virginia

Infrastructure Developments Corp. of Salt Lake City plans to expand development of its compressed natural gas business into Virginia as the state bolsters efforts to convert public vehicles to CNG.

Corrosiveness Of Oil Sands Crude An Unproven Science

While recent oil spills has added to debate over the safety of shipping Canada’s oil sands crude through pipelines, there is little hard evidence that the oil is more corrosive than conventional crude, according to a report by Reuters which interviewed various scientists and regulators.

Dominion To Build Gas Processing, Liquids Separation Facility

Dominion is proceeding with its next major project in the Marcellus and Utica shale regions, construction of a large natural gas processing and fractionation plant along the Ohio River in Natrium, WV. The first phase of construction includes facilities that can process 200 MMcf/d of natural gas and fractionate 36,000 bpd of NGLs. This phase of the project is 90% contracted and is expected to be in service by December 2012.

Enterprise Extends Open Season For Double E Pipeline

Enterprise Products Partners L.P. and Energy Transfer Partners, L.P. extended its binding open commitment period for capacity on a proposed crude oil pipeline from Cushing, OK, to Houston.

EQT Acquires Peregrine Midstream Partners

EQT Infrastructure has acquired 70% of Houston-based Peregrine Midstream Partners, LLC from the management team and other existing investors. EQT’s investment will allow Peregrine Midstream to fund completion of Ryckman Creek, the company’s first storage facility and one of several gas storage projects in Peregrine midstream’s portfolio.

Members Of Natural Gas Industry Investigate Safety Models

In an effort to learn continually from other operators and to improve North America’s pipeline system safety, the American Gas Association, the American Petroleum Institute, the Association of Oil Pipe Lines and the Interstate Natural Gas Association of America, together with the Canadian Gas Association and the Canadian Energy Pipeline Association, have initiated a comprehensive study to explore safety models and procedures utilized by other industry sectors in an effort to deliver natural gas and pipeline-transported liquids more safely and reliably.

Meritage Midstream Plans Gas Gathering System In Texas

Meritage Midstream Services, LLC plans to build a new rich-gas gathering system in Webb County, TX. Escondido Resources II, LLC will serve as the system’s anchor tenant and will also have firm capacity on Meritage’s existing Eagle Ford Escondido Gathering System to move its Eagle Ford volumes. Escondido Resources will dedicate 33,000 acres to Meritage including deep and shallow rights in the Eagle Ford, Escondido and Olmos formations.

NuStar Reactivates Pipeline To Transport Eagle Ford Crude 

As part of an agreement with Koch Pipeline Company, L.P., NuStar Logistics has reactivated its Pettus South Pipeline to transport Eagle Ford shale crude oil to Corpus Christi, TX.

Utility Plans First Gas-fired Power Plant In Wyoming

Cheyenne Light, Fuel & Power has applied to state regulators to build a $158 million gas-fired power plant - the first natural gas-powered electrical generating plant in the state. Construction would start on the 120-MW, three-turbine power plant in 2013. It would go online in 2014, if approved by the state utilities commission.

WGL Holdings Named A Top Corporation For Cultural Diversity

WGL Holdings, Inc., the parent company of Washington Gas and other energy-related subsidiaries, has been named one of the 40 Best Companies for Diversity for the fifth consecutive year, according to <em>Black Enterprise</em> magazine.


ARC Machines Move Reinforces Support For Oil, Gas Industries

Arc Machines Inc., a UK manufacturer of automated orbital welding technology for the oil and gas industry, has consolidated all of its UK activities, including customer support, operator training, equipment maintenance and repair and spares supply, in a purpose-built facility in Daventry, Northamptonshire.

Carib Energy Wins DOE Authorization To Export LNG

Carib Energy (USA) LLC received authorization from the U.S. Department of Energy to export LNG to Free Trade Agreement (FTA) countries in Central America, South America and the Caribbean.

Construction Begins On $235 Million Red Bluff Project

Southern Union has approved construction of the $235 million Red Bluff Project, a 200 MMcf/d natural gas processing plant and associated gathering, compression and treating facilities, through its midstream segment, Southern Union Gas Services (SUGS).

DCP Midstream Approves 720-mile NGL Pipeline

DCP Midstream Board of Directors approved the construction of the Sand Hills Pipeline designed to provide critical new capacity for NGL transportation from the Permian and Eagle Ford producing basins to market centers along the Gulf Coast.

East European Oil Pipeline Facing Russian Freeze

Russia's oil pipeline monopoly Transneft will freeze construction of the troubled Burgas-Alexandroupolis project, which has been largely obstructed by Bulgaria. Transneft will not abandon the oil pipeline project - despite its partner Bulgaria's failure to provide financing - but will freeze the construction this fall.

Enbridge Seeks Approval For $5.5 Billion Northern Gateway Project

Enbridge Inc. announced that Enbridge Northern Gateway Pipelines has filed with Canadian regulator, the National Energy Board, commercial agreements which fully subscribe for long term service and capacity on the Northern Gateway Pipeline.

Enterprise/Energy Transfer Scrap Plans For 584-Mile Crude Line

Enterprise Products Partners L.P. will not be moving forward with a proposed joint venture with Energy Transfer Partners L.P. to develop and construct a 584-mile crude oil pipeline from Cushing, OK to Houston.

Fluor Wins Contract For Caspian Expansion Project

Fluor has been awarded a contract by Chevron Neftegaz—one of three project managers engaged by the Caspian Pipeline Consortium—for its recently announced expansion project.

Gas Pipelines To Account For Most Planned Pipeline Length Addition

During 2011–2015, gas pipelines will account for about 75% of the total global planned pipeline length addition, according to a GlobalData report.

Global Engineering To Build Multi-Products Lines In South Africa

Foster Wheeler’s subsidiary, Global Engineering and Construction Group, has been awarded a contract by Engen Petroleum Limited for engineering, procurement and construction management services for Engen's new multi-products pipeline feeder lines and infrastructure project at Engen's Durban Refinery in South Africa.

Honeywell Tapped To Help Meet Vietnams Surging Energy Demand

Honeywell has been hired by PetroVietnam Technical Services Corp. (PTSC) and the Bien Dong Petroleum Operating Company (BDPOC) to supply an integrated process control system for their new central processing platform being built in Vung Tau, Vietnam.

Iran-Pakistan Pipeline Should Be Ready By 2012

Pakistani officials said the Iran-Pakistan gas pipeline project will be completed by 2012. They said Iran has completed its work on laying pipeline while Pakistan will resume its work within six months.

KM Plans 710-Mile Pony Express Pipeline

Kinder Morgan Energy Partners recently held a binding open season for available capacity on a proposed crude oil pipeline from Guernsey, WY to Cushing, OK called the Kinder Morgan Pony Express Pipeline LLC.

Larsen & Toubro Wins UAE Gas Project

Larsen & Toubro Limited has been awarded a contract from Abu Dhabi Gas Industries Limited (GASCO) for the Habshan-Ruwais-Shuweihat gas pipeline project. Valued at around US$ 189 million, the contract involves EPC installation and commissioning of the pipeline to be commissioned in 24 - 26 months.

Millennium Pipeline Begins $43 Million Minisink Compressor Project

Millennium Pipeline Co. L.L.C. received Federal Energy Regulatory Commission approval to construct its Minisink Compressor project.

Newly Formed Joint Venture To Build 580-Mile NGL Pipeline

A three-company joint venture made up of Enterprise Products Partners, Enbridge Energy Partners and Anadarko Petroleum plan to construct a new NGL pipeline that will originate from Skellytown, TX in Carson County and extend approximately 580 miles to NGL fractionation and storage facilities in Mont Belvieu, TX.

Nova Gas Announces Pipeline Plans

NOVA Gas Transmission Ltd., a wholly owned subsidiary of TransCanada Pipe Lines Ltd., recently announced plans for two pipelines. The first involves plans to construct and operate four new segments of pipeline and related facilities for the proposed Komie North Extension Project.

Offshore Pipeline Completed Off Trinidad

National Gas Company of Trinidad & Tobago President, S. Andrew Mc Intosh announced completion and commissioning of the 59-mile, 36-inch North-Eastern Offshore (NEO) pipeline.

Oil, Gas Poll Reveals Concern Over Reduced R&D Investment

A recent survey conducted at the Offshore Europe conference in Aberdeen suggests oil and gas industry professionals are concerned over the lack of industry spending on research and development and the impact it may have on the sector’s ability to grow.

Partners Signs Agreement for Interconnector Greece-Bulgaria

The contract for the Front End Engineering Design (FEED) and Environmental Impact Assessment (EIA) was signed between Interconnector Greece-Bulgaria “ICGB AD” and the Consortium Penspen Ltd. - C&M Engineering S.A. The Consortium was awarded the contract as a conclusion of an international tender issued in January.

Polands Gas System Gets Vital Boost

The Luxembourg-based European Investment Bank (EIB) is lending PLN $600 million (some EUR 150 million) for construction of two sections of the natural gas transmission system in northwest and central Poland.

Spectra Energy Places Two Expansion Projects In Service

Spectra Energy Corp. placed into service, on time and under budget, two major expansion projects. This brings to six the total number of expansion projects brought into service this year, as part of the company's $1 billion to $1.5 billion per year ongoing capital expansion plan.

Ukraine Ready To Upgrade Pipeline Network

Ukraine has launched the first stage of a long-planned project to upgrade its pipelines which carry Russian gas to Europe. As the cash-strapped national oil and gas behemoth, Naftohaz Ukrainy, has no money for an upgrade costing billions of dollars, Ukraine will rely on assistance from the end consumer, the European Union, while the supplier, Russia, remains an onlooker – at least for the time being.

Wasco Awarded Pipe Coating Contracts

Wasco Energy’s Pipe Coating Division has been awarded a line pipe coating contract with a value of over US$2 million from Samsung Engineering Co. Limited for the Sabah Oil and Gas Terminal (SOGT) project.

World War II Mine Lying Next To North Sea Pipeline Removed

An unexploded World War II mine, which had been lying next to the key Forties crude oil pipeline operated by BP PLC in the North Sea, was removed and towed to a safe area for disposal.


A Strategy To Boost Client Outcomes By Harmonizing Disciplines

The automation side of the oil and gas business may seem one of the less glamorous parts of the industry, but without the proper controls in place, energy could not be delivered safely or efficiently anywhere in the world.


Variable Speed Drives For Gas Compressors

Power conversion specialist Converteam has been commissioned by Chipeta Processing LLC to supply a complete variable speed drive system (VSDS) to control two natural gas compressor trains at the Chipeta Processing Plant in Utah. The system is expected to save an estimated $2 million per year in energy costs.

What's New

How to Use Ethernet to Improve Your Midstream Oil and Gas Communications

Midstream oil and gas markets typically use three types of networks. The first type is for control and for safety shutdown systems, typically starting at the controller level and extending down to I/O and instruments. The second type is for Supervisory Control and Data Acquisition (SCADA) systems, starting at the controller level and extending up to MES and to ERP systems. The third type of network is intranets for internal communications such as VoIP, dedicated email servers and file transfers. On any of those networks, switching to Ethernet may decrease costs and improve connectivity.