March 2010 Vol. 237 No. 3


Business Meetings & Events

Emery Johnson joins EagleBurgmann

EagleBurgmann, a manufacturer of mechanical seals, systems, packing and expansion joints, announced March 9 that Emery Johnson has accepted the position of Dry Gas Seal Sales Manager for North America.

Enterprise Chairman Duncan Dies

Enterprise Products Partners and Enterprise GP Holdings L.P. announced on March 29 the death of Chairman Dan L. Duncan, 77, the previous night at his home in Houston. Duncan co-founded Enterprise Products Company in 1968 and took Enterprise Products Partners public in July 1998.

March 2010 Association News

The <strong>International Pipeline & Offshore Contractors Association (IPLOCA) </strong>has a new address: Chemin des Papillons 4, 1216 Cointrin/Geneva, Switzerland. Phone +41 022 306 02 30; Fax: +41 022 306 02 39.

March 2010 Company News, Mergers & Acquisitions

<strong>Deepwater EU Ltd.</strong>, the European subsidiary of Houston-based Deepwater Corrosion Services Inc., has created a protection design and project management center at the University of Surrey Research Park in Guildford, UK.

March 2010 Personnel News

Tulsa, OK-based Darby Equipment Company has hired three employees to fill key management and engineering positions. <strong>Nick Minden</strong> joined Darby as chief financial officer. Joining Darby as senior mechanical engineer is <strong>Jeff Rollow</strong>. <strong>Robyne Chatham</strong> is now the purchasing agent at Darby.

NAPCA President's Message--Taking Stock

This mid-point in my term as NAPCA president is an ideal time to take stock of the last 12 months and look forward to the important work that remains to be completed. In 2009, the NAPCA Strategic Planning Committee commissioned a survey of members to help assess the state of our association and determine future concerns.

Obituary: William George Bruce Gant

<strong>William George Bruce Gant</strong> of Calgary died Jan. 31. He was 82. Gant was an honorary member and past president (1963-64 and 1970-71) of the Pipe Line Contractors Association of Canada.

Pipe Coating Industry Leaders Share Their Goals And Perspectives

Brendan Ryan has enjoyed the opportunity to serve on the NAPCA board of trustees since 2008. He is Vice President and General Manager of Bredero Shaw’s North American region, which operates from eight locations in Canada and the United States. Bredero Shaw is a division of ShawCor.

ROSEN Displays Pigging Tech at Houston Conference

ROSEN USA revealed its latest inline inspection technologies during an exclusive viewing party at the Pipeline Pigging and Integrity Management Conference held in Houston, Texas.

The National Association Of Pipe Coating Applicators Aims To Spark A Search For Technical Solutions

The National Association of Pipe Coating Applicators (NAPCA) stepped up the pace of its activities during 2009 as it concentrated its attention on technical information development and delivery.

Editor's Notebook

Editor's Notebook: Cans and Cannots

Socotherm LaBarge was recently informed that its client, Technip France, would be making a donation of $8,000 to the local fire department. This donation was to be strictly based on Socotherm LaBarge’s health, safety and environment (HSE) performance. It’s a good story that tells two important facts about our industry.


Claudi Santiago GEs Envoy To the Worlds Oil & Gas Industry

To have been a fly on the wall when GE Chairman and CEO Jack Welch picked up the phone in 1997 and called one of his rising young stars, a fellow named Claudi Santiago, about heading a new business segment that would later be called GE Oil & Gas.

Coating Properties And Test Procedures

The coating is the premier external corrosion protection method for pipelines. As such, the selection and continued integrity of any parent or rehabilitation pipeline coating is of paramount importance. It is the coating that determines cathodic protection (CP) requirements and the magnitude of pipeline maintenance expenditures.

Corrosion Control In Oil And Gas Pipelines

In the United States, the annual cost associated with corrosion damage of structural components is greater than the combined annual cost of natural disasters, including hurricanes, storms, floods, fires and earthquakes(1). Similar findings have been made by studies conducted in the United Kingdom, Germany, and Japan.

From Colonel Drake To The Marcellus Shale Gas Play - Transmission Developments

<em>Gamechanger</em> is just one of the terms being used to describe emerging shale gas plays across North America. In light of the red-hot intensity surrounding the largest of these, the Marcellus Shale Gas play, now recognized as the largest unconventional natural gas reserve in the world, it seems particularly relevant to remember the Greek philosopher Heraklietos and his axiom, that change is the only constant in the universe.

Improving Concrete For Enhanced Pipeline Protection

Different concrete mixes are used in various applications in the oil and gas industry, from oil well cementing to providing stability to offshore platforms. Concrete is also used in protecting oil and gas pipelines, most of them made of carbon steel, or providing them negative buoyancy in offshore applications and other wet environments.

Managing And Storage Of External Corrosion Direct Assessment Data

External corrosion direct assessment (ECDA) involves a large of amount of data resulting from the associated indirect inspections and direct examinations. It also requires data to even begin with pre-assessment activities.

Quality Assurance In Corrosion Prediction Of Multiphase Lines

One of the key factors in meeting the design life requirement of an oil and gas flow or export line depends on the accuracy of corrosion prediction and its management. Therefore, the assessment of internal corrosion of a pipeline system must also include examining the mechanism by which corrosion is expected and understanding how it is most likely to occur.

The Decade That Changed The Pipeline Industry

Cliff Johnson, director of Public Affairs at NACE International, The Corrosion Society, recently assembled a panel of NACE pipeline corrosion control experts to answer a series of questions on how recent regulations and developments are affecting the pipeline industry.

From the Burner Tip

Natural Gas Price Forecast Confusing; Close to $6/MMBtu Industry Consensus

Forecasting the prices of commodities such as natural gas and crude oil is far from a scientific endeavor. Sure, statistics, computer modeling, mathematics and more scientific means play a role in the eventual outlook, but it is pure art. A ouija board would be an ideal instrument in the forecasting business.


Natural Gas Companies Wary Of EPA Involvement In Fracturing Regulation; Natural Gas Sectors Nervous About EPA GHG Tailoring Rule

The ExxonMobil purchase of XTO Energy has sparked new congressional interest in the environmental safety of horizontal shale gas drilling, a concern also lately exhibited by the EPA.

In The News

March Newsreel: Boomerang Tube Funds Texas Plant; Oil & Gas Execs Predict More 2010 Employment and more

<a href="">Boomerang Tube Finalizes Funding For Line Pipe Plant In Texas</a> <a href="">Free Pipeline Welding Productivity Seminar</a> <a href="">Senior Oil & Gas Executives See Rising Employment This Year</a> <a href="">Dresser Selected For Project In Athabasca Oil Sands</a>


BP Expects Oil Price To Hold Steady

Oil is set to hold in its current range this year, although some upward movement could be possible, BP's chief economist Christof Ruehl said recently.

Buckeye Partners Finalizes NGL Pipeline Sale

Buckeye Partners L.P. has completed the sale of its NGL pipeline system to DCP Midstream Partners for $22 million.

Bulgaria Ratifies Agreement On Nabucco Pipeline Project

The Bulgarian parliament has ratified the inter-governmental agreement on the Nabucco gas transport project, implicitly confirming its preference for Nabucco over Gazprom’s South Stream.

Cegelec Awarded Qatar Contract

Cegelec has been awarded a contract by Qatar Petroleum to replace the turbine and compressor control system for two natural gas liquids production trains in Mesaieed, Qatar.

Chinese Launch Commercial Operations On Second West-East Pipeline

China National Petroleum Corp. (CNPC) has launched commercial operations on the 2,745-km western segment of the Second West-East gas pipeline, which, when fully completed, will be the longest pipeline transmission network in the world.

Corus Awarded Shetlands Gas Field Pipeline Contract

Corus has received a letter of award worth nearly £200 million from Total E&P UK Ltd. regarding a pipeline to serve the Laggan-Tormore offshore gas field development in the region West of the Shetlands.

Double Jointing/Welding Services Contract Awarded For Deep Panuke Gas Field

CRC-Evans/Global Pipelines will provide onshore double jointing of production lines for the EnCana Deep Panuke natural gas field located 155 miles southeast of Halifax, Nova Scotia.

Duke Energy To Build Gas Pipeline

Duke Energy is exploring conversion of two of the units at its Gallagher power plant from coal to gas.

Enbridge Plans Christina Lake Expansion

Enbridge Inc. has an agreement with FCCL Partnership to provide additional pipeline and terminal facilities to support expansion of the Christina Lake enhanced oil project which is operated by Cenovus Energy.

Entrepose Contracting Acquires HDI

Entrepose Contracting announced the acquisition of Horizontal Drilling International (HDI) by Spiecapag, its 100% subsidiary.

Fayetteville Express Begins Construction

The Fayetteville Express Pipeline (FEP), a 50/50 joint venture between Energy Transfer Partners and Kinder Morgan Energy Partners, began construction on March 8.

Frontier Acquires Fayetteville Shale Gathering Systems

Frontier Gas Services, LLC has acquired two gas gathering systems located in the Fayetteville Shale in Faulkner and Conway Counties, AR.

Gazprom, MFB Create South Stream Hungary Joint Venture

Recently in Budapest, First Deputy Prime Minister of the Russian Federation Viktor Zubkov and Hungarian Prime Minister Gordon Bajnai signed documents incorporating the South Stream Hungary Zrt joint engineering company.

GL Noble Denton Plans To Hire 700 Technical Experts

Over the next two years GL Noble Denton plans to hire more than 700 new technical personnel, engineers and marine operations specialists.

Haynesville Expansion And Red River Lateral Begin Service

Regency Energy Partners LP, Alinda Capital Partners LLC and an affiliate of GE Energy Financial Services recently placed the Haynesville Expansion Project and Red River Lateral into service.

International Companies Seek To Bid On $700 Million Abu Dhabi Pipeline Project

More than 20 international engineering firms have applied for approval to bid on an Abu Dhabi pipeline project worth $US700 million.

Japan Steelmakers To Supply Pipe For Australian LNG Development

Japanese steelmakers JFE Steel Corp. and Marubeni-Itochu Steel were awarded a large-volume pipe order for the Chevron-operated Gorgon LNG development in Australia.

Joint Venture Formed To Serve Russian Offshore Pipeline Market

ShawCor Ltd.’s pipecoating division, Bredero Shaw, has entered into a joint venture with Russian offshore pipeline contractor OOO ArkhTekhnoProm to establish a pipe-coating facility in the Arkhangelsk Region.

Pembina To Build Two Pipelines Valued At $444 Million

Pembina Pipeline Corp. has announced a spending plan for 2010 of $240 million that places a priority on expanding its oil sands and heavy oil business.

Petrobras World's Fourth-Biggest Energy Company

Petrobras rose from the ninth to the fourth place in the ranking of the 50 biggest energy companies in the world according to the PFC Energy think tank.

Russia, Turkey Eye Oil Pipeline

Moscow and Ankara have agreed to accelerate efforts to build the $2.5 billion Samsun-Ceyhan oil pipeline in Turkey, Russian Prime Minister Vladimir Putin said, signaling that a similar, Russia-backed link through Bulgaria and Greece may no longer be in the cards.

Southern Unions Trunkline LNG Infrastructure Enhancement Project Placed In-Service

Southern Union Company announced March 15 that it received approval from FERC to place its Trunkline LNG Infrastructure Enhancement Project (IEP) into service.

The Alaska Pipeline Project Files Open Season Plan With FERC

The Alaska Pipeline Project has filed its plan with the U.S. Federal Energy Regulatory Commission (FERC) to obtain approval to conduct the first natural gas pipeline open season to develop Alaska’s vast natural gas resources.


Digital Visual Sidewall Scanning: Streamlining Collection And Analysis Of Inspection Data

Since the advent of miniature cameras, plant and utility personnel have used them to assess pipe condition and troubleshoot problems. Over the years, new delivery mechanisms have emerged to carry cameras deeper and deeper into pipelines while capturing increasingly better images.

Green Software Solution Can Save Pipeline Companies On Power Use

Green solutions can often mean spending a great deal of green. From new departments full of power- optimization professionals who are searching for the best energy-savings solutions to researching the robust offering of energy-saving equipment, pipeline companies have their work cut out navigating the maze.

Web Exclusive

AGA Holds Conference on Shale Production

The American Gas Association (AGA) announced March 10 that it will sponsor a "strategic conference and technical exhibition revolving around new discoveries of shale gas" November 3-5 at the Gaylord Texan Resort in the Dallas, TX metro area.

BENTEK: Marcellus Shale Production Poised to Disrupt U.S. Natural Gas Market

BENTEK Energy, LLC, predicts that growth in natural gas production from the Marcellus Shale in the Appalachian Basin will result in widespread disruption to regional flow patterns and downward pressure on prices in the Northeast region.

Energy Solutions Forecasts Second Quarter Price Rally from Natural Gas April Lows

The April 2010 natural gas futures contract on the New York Mercantile Exchange (NYMEX) recently hit a new low of $4.036 per MMBtu. “Last week, price support at $4.25 per MMBtu crumbled quickly following the release of the storage report,” says Valerie Wood, President of Energy Solutions, Inc.

EnerSys and UCDS Partner For SCADA Streamlining

EnerSys Corporation, a Houston-based upstream energy services company specializing in custody transfer measurement, SCADA and automation for oil and gas operations, announced a partnership with User Center Designed Services (UCDS) March 28. UCDS specializes in situation awareness and human factors in the control room.

IHS CERA/World Economic Forum Report: Energy Efficiency Has Moved to Top of Energy Agenda

The need to address climate change and the expected surge in energy demand from the developing world have moved energy efficiency to the top of the agenda for government and business, according to a new report by IHS Cambridge Energy Research Associates (IHS CERA) and the World Economic Forum.

New EPA Ozone Standards Opportunity for Natural Gas Growth

Non-profit organization American Clean Skies Foundation (ACSF) filed comments with the EPA March 22 stating that the EPA's tougher proposed air quality standards for ozone could be met, in part, by greater use of natural gas for power generation and transportation.

New Rules For Reporting GHG Emissions Affect Oil & Gas Facilities Owners, Operators

The changes to the EPA's Mandatory Greenhouse Gas Reporting Rule (MRR) announced March 22 mean that owners and operators of petroleum and natural gas facilities not previously subject to reporting under the existing MRR must now report their emissions, according to environmental law firm Vinson & Elkins.

Siemens To Build $135 Million Gas Turbine Plant In Charlotte

Siemens is building a new production plant for 60-Hertz gas turbines at its existing facility in Charlotte, North Carolina. The initial investment will be approximately $135 million. Production is slated to start in the fall of 2011.

TechCorr LRGUT Single-Point Pipe Inspection

TechCorr's Long Range Guided Wave Ultrasonic Technique (LRGUT) was designed to inspect 100 percent of a pipe segment from one single location.

What's New

March New Products

New products and innovations from Lincoln Electric, Wasco Energy and Deepwater Corrosion, GE Sensing & Inspection, BJ Services, R&M Energy, BS Coatings, Dresser, Applus RTD, Mokveld Valves BV, MSA and TechCorr.

Whats New In Corrosion Control Products

What's new in Corrosion Control from Rosen, Henkels & McCoy, International Paint Protective Coatings, NACE, Denso North America, NDT Systems, TechCorr, Mesa Corrosion Control, MATCOR, Farwest Corrosion Control, GE Sensing & Inspection and more.