February 2011, Vol. 238 No. 2


Business Meetings & Events

Cheniere Hires Financial Advisor To Move LNG Project Forward

Cheniere Energy Partners, has engaged SG Americas Securities, LLC, as financial advisor to Sabine Pass Liquefaction, LLC in connection with the development and financing of liquefaction facilities at the Sabine Pass LNG terminal.

Duncan Energy Receives Merger Proposal From Enterprise Products

Duncan Energy Partners L.P. has received a merger proposal from Enterprise Products Partners L.P.

February 2011 Ad Index

Advertisers from the print edition of <em>Pipeline & Gas Journal</em>, February 2011, Vol 238 No. 2.

Gastech 2011 Coming To Amsterdam

Pipeline developments and innovative technologies will be explored in depth at Gastech 2011 in Amsterdam March 21-24 with the new “Centres (Centers) of Technical Excellence” (COTE) show-floor workshops.

GE Intelligent Platforms Acquires SmartSignal Corp.

GE Intelligent Platforms has completed the acquisition of SmartSignal, a privately held analytics software company based in Lisle, IL.

Oil, Gas Brightened 2010 M&A Picture

Oil and gas proved a bright spot in the 2010 merger and acquisition landscape, according to Ernst & Young. Total industry transaction value topped $266 billion, up 33% from 2009. Total deal activity was up 13% from 2009, with deals reported having values that were up 2%. Midstream deals were up 71% to $25 billion. The total number of transactions in the segment was 57, up 4% from 2009.

Water Reclamation Services For Marcellus Shale Producers

STW Resources Holding Corp., a water reclamation services company, has signed an agreement with Aquatech International of Canonsburg, PA.

Editor's Notebook

ExxonMobil And Natural Gas: Looking Toward The Future

The one Energy Outlook I look forward to each January comes from our good friends at ExxonMobil. This year’s version is especially of interest to us because of its focus on natural gas and energy-efficiency issues.


Advanced Pipeline Welding Technologies Boost Productivity

For years pipelines have been constructed by manual welders using conventional arc welding processes and consumables. This approach is still used to construct small-diameter, low-pressure pipelines as well as tie-ins and repairs on larger diameter, high-pressure pipelines.

Advances In Wireless Monitoring Increase Intelligence Of Assets

Recent developments in process automation, wireless and information technology - and real-time data management systems - have helped make oil and gas field operations more intelligent.

Applying Wireless To EtherNet/IP Pipeline Automation

The use of Ethernet for industrial networking is growing rapidly in process control and SCADA systems such as oil and gas pipeline applications. The Open Device Net Vendor Association (ODVA) EtherNet/IP network standard is gaining popularity as a preferred industrial protocol. Engineers are recognizing the significant advantages that Ethernet-enabled devices provide such as ease of connectivity, high performance and cost savings.

Are You Saving Money With A Defensible Records Disposal Strategy?

Corporate data volume grew by about 50% last year and the budgets for that function grew by 0%, according to industry analysts. The explosion in data volume and diversity, including pipeline inspection documentation, is putting tremendous cost and control pressures on corporate information technology (IT) organizations.

Deciphering 49 CFR 195.446 Control Room Management Regulations When Choosing A SCADA System

Choosing a SCADA system based only on the human-machine interface (HMI) and a few performance features of the remote terminal unit (RTU) could paint you into an expensive corner when attempting to comply with 49 CFR 195.446. Understanding those regulations and keeping their requirements in mind when evaluating and choosing a SCADA system could save time, money and a lot of headaches.

Gas Advocates Step Back, Look Forward

The Gas Technology Institute (GTI) holds an unusual position in the natural gas industry: although it is a nonprofit, its business plan is based around an intense focus on the market. And although it advocates for natural gas, it’s looking for long-term innovation, not short-term politics.

Integrated Flow Assurance Solutions

Flow assurance is crucial for producing and transporting of oil and gas. The fluids – a combination of gas, crude/ condensate and water, together with solids - cause many potential threats like hydrate formation, wax/ paraffin, asphaltenes, scale deposition, sand erosion, emulsions and corrosion.

New Satellite Data Handling Platform Boosts Bolivias Pipeline Operations

Bolivia has more than 4,700 miles of gas and liquid pipelines comprising a vital part of the nation’s infrastructure and critical to its economic wellbeing and security. One company manages more than 80% of Bolivia’s pipeline operations: YPFB Transporte.

SCADA Networking Facilitated Using DNP3

Although malware has, for good reason, recently grabbed the attention when it comes to SCADA security, the other threats have not exactly gone away. Since the Stuxnet worm specifically targeted SCADA systems, that is all the better reason to ensure that vulnerability assessments and implementation measures encompass an even broader range of threats to one’s system.

Spread Spectrum Communications For SCADA Systems

As oil and gas companies work toward greater automation and e-business solutions, the challenges of getting real-time, reliable data from remote locations continues to be one of the greatest hurdles.


In Wake of San Bruno, PHMSA Calls Oversight Of IM Programs "Lacking"

A National Transportation Safety Board (NTSB) hearing March 1-2 in Washington may push Congress to renew failed efforts from last fall to upgrade pipeline safety laws. The hearings will air the NTSB's preliminary findings from the Pacific Gas & Electric Co. (PG&E) pipeline explosion in California in September where seven people were killed.

INGAA calls Senate pipeline safety authorization bill constructive starting point

A bill introduced Feb. 3 by Senators Frank Lautenberg (D-NJ) and Jay Rockefeller (D-WV) to reauthorize the Pipeline Safety Act is a “constructive starting point” for renewing the law that ensures the safety of the interstate natural gas pipeline system that delivers almost one quarter of the energy consumed by Americans, said INGAA President and CEO Don Santa.

In The News

Capital Prompting Investment In New Technology And Talent

According to a study by BDO USA, LLP, an accounting and consulting organization, capital is flowing back into the oil and gas exploration and processing industry – more than half (56%) of CFOs report their ability to access capital and credit is either the same or better than last year.

ExxonMobil Wants Hike In Rate To Move Alaskan Oil

ExxonMobil has asked Alaskan regulators to increase the rate it charges to ship oil on the trans-Alaska oil pipeline to in-state destinations by about 22%.

Gas Groups Back State-based Registry Of Hydraulic Fracturing Fluids 

Leaders of the Natural Gas Supply Association and the Interstate Natural Gas Association of America have announced support for a new state-based registry for companies to voluntarily disclose the contents of fluids used during the hydraulic fracturing (“fracing”) process common in the completion of shale gas wells.

Koch Pipeline Employees Complete Year Without Safety Incidents

Koch Pipeline Company, L.P. reported that its employees worked all of 2010 with no minor or significant injuries.  “No award or accolade can fully highlight the dedication to safety and the focus on ensuring that every Koch Pipeline employee goes home safely each and every day,” said Kim Penner, company president.

Nearly One-Fifth Of U.S. Coal Fleet Could Retire By 2020

ICF International’s latest Energy Outlook reports that new regulations being developed by the Environmental Protection Agency will affect U.S. energy markets over the next 20 years and projects that nearly 20% of the coal fleet could retire in response to new air, waste, and water regulations over the next 10 years.

NTSB Issues 'Urgent' Recommendations In Wake Of San Bruno Explosion

Federal safety officials probing the San Bruno natural gas blast issued several "urgent" recommendations Jan. 3 designed to improve gas pipeline safety. The September blast in the San Francisco suburb killed eight people and destroyed dozens of homes. The National Transportation Safety Board, which issued the recommendations, has not determined the cause of the blast.

PRCI Announces 2011 Program For Energy Pipeline Research

Pipeline Research Council International, Inc. (PRCI), said its 2011 program will address a spectrum of research needs and opportunities covering nearly every aspect of pipeline operations. Specific initiatives include:


$16 Billion Gladstone LNG Project Approved

Santos announced that the Gladstone LNG (GLNB) partners approved development of the US$16 billion, 7.8 million ton per annum (mtpa) project in Queensland, Australia.

Acadian Haynesville Contract Awards

Willbros Group Inc. announced that a unit of its upstream oil and gas segment has been awarded the construction contract for a portion of the Acadian Haynesville Extension Project, a natural gas pipeline being developed by Acadian Gas LLC.

Additional Gathering And Processing Capacity For Eagle Ford Producers

Kinder Morgan Energy Partners LLC and Copano Energy, L.L.C. plan to expand the scope of their Eagle Ford Gathering LLC joint venture.

Bakken Area Gas Gathering System Planned

Bear Tracker Energy, LLC has signed an agreement to build, own, operate and expand a natural gas gathering system in the Bakken area of North Dakota.

Capano To Increase NGL Handling Capacity

Copano Energy, L.L.C. has executed agreements increasing the company’s capability to handle natural gas liquids (NGLs) associated with growing natural gas volumes from the Eagle Ford Shale.

Contract Awards For Bonaparte LNG Project

GDF Suez Bonaparte, operator of the Bonaparte LNG project, has awarded the contracts for pre?front end engineering and design to Granherne, a wholly owned subsidiary of KBR, (upstream) and DORIS Engineering (midstream).

Dominion To Build Gas Processing And Fractionation Facility

Dominion has reached an agreement with PPG Industries on an option for Dominion to purchase land at PPG's Natrium, WV site for the construction of a natural gas processing and fractionation facility.

Independent Panel Finds Mackenzie Valley Pipeline Environmentally Acceptable

On Dec. 30 Canada’s Mackenzie Valley natural gas pipeline project received the stamp of approval from an independent panel charged with considering the environmental, social and economic impacts of the proposed 1,200-km line on the Northwest Territories.

Inergy Plans Tres Palacios Header Pipeline Extension

Inergy Midstream LLC recently held a non-binding open season for an expansion of its Tres Palacios gas storage facility pipeline header system.

Insituform and Air Products Cooperate on Hydrogen Pipeline

The Bayou Companies LLC, subsidiary of Insituform Technologies, has been awarded a contract with Air Products and Chemicals, Inc., the world’s largest hydrogen producer.

Keystones Cushing Extension Begins Deliveries To Oklahoma

On February 8, 2011, the second phase of TransCanada’s US$12 billion Keystone Pipeline system began delivering crude to Cushing, OK.

Linde Corporation To Build Marcellus Shale Gathering System

The Linde Corporation is constructing Laser Northeast Gathering Company LLC’s Susquehanna Gathering System in New Milford, PA.

MarkWest Acquires NGL Pipeline, Gas Processing Complex

MarkWest Energy Partners, L.P. is acquiring EQT Corporation’s natural gas processing complex in Langley, KY and an associated natural gas liquids (NGL) pipeline for $230 million.

NEB Approves NOVA Gas Transmissions Horn River Project

Canada’s National Energy Board (NEB) has approved an application from NOVA Gas Transmission Ltd. (NGTL) a wholly owned subsidiary of TransCanada, to extend its Alberta System to transport sweet natural gas from the Horn River area in B.C. to a tie in point on the existing Northwest Mainline of the Alberta System.

NGL Transport and Fractionation Services For Eagle Ford Shale

Targa Resources Partners LP has finalized an agreement with TexStar Midstream Services, LP and TEAK Midstream, LLC for development of a new y-grade natural gas liquids (NGL) pipeline in the Eagle Ford shale.

ONEOK Partners To Invest $240 Million In NGL Projects

ONEOK Partners, L.P. plans to invest $180-240 million over the next 18 months for natural gas liquids (NGL) projects.

Open Season For Eastern Illinois Storage Facility Draws Positive Results

Wabash Gas Storage LLC says it had positive results from its recently completed non-binding open season.

Partnership To Provide Midstream Services In West Virginia

MarkWest Liberty Midstream & Resources has executed a long-term agreement with affiliates of Chesapeake Energy Corporation to provide additional natural gas midstream services for Chesapeake’s substantial Marcellus acreage in northern West Virginia.

PII And Partner To Inspect Major Australian Pipelines

PII Pipeline Solutions, a GE Oil & Gas and Al Shaheen joint venture, has been selected to provide advanced inspection technology and engineering services to monitor the integrity of two of Australia’s major natural gas pipeline infrastructure networks.

Plains All American Announces Expansions

Plains All American Pipeline, L.P. (PAA) has announced two planned expansion projects.

Questar Seeks Support For Compressor Station Modifications

Questar Pipeline Company (QPC) recently held an open season to seek binding support for the reconfiguration of compression facilities and piping modifications at its Fidlar compressor station in Uintah County, UT.

Regency Plans Series Of Expansion Projects

Regency Energy Partners LP plans a series of expansion projects along its rich gas gathering system in south Texas to meet increasing producer demand in the Eagle Ford Shale.

Spectra Energy Holds Open Season For AIM Project

Spectra Energy Corp.'s Algonquin Gas Transmission, LLC recently held a non-binding open season for the Algonquin Incremental Market (AIM) project.

Studies To Test Viability Of Barents Sea Pipeline

Partners in the Snøhvit license, located in the Barents Sea, off Norway, will undertake studies of possible concepts for building a new LNG plant at Melkøya in Hammerfest.

Two South Texas Pipelines To Handle Eagle Ford Shale Production

Energy Transfer Partners has entered into multiple long-term agreements with shippers to provide transportation services from the prolific Eagle Ford Shale located in South Texas.


Alaskan Gas Pipeline Is Viable, And Now

The state remains bullish about a pipeline for transporting gas from Alaska’s North Slope to the lower forty eight states. I am too. North Slope’s proven natural gas reserves currently stand at around 30 Tcf. Alaska governor Sean Parnell has said the state is working to settle a lease dispute seen as critical to building the natural gas pipeline (<em>P&GJ</em>, December 2010, p.4). I trust this happens soon.


Elster Perfection Announces Gas Service Line Retrofit Program

Elster Perfection, manufacturer and supplier of systems for the natural gas, propane and water distribution industries, recently launched its Retrofit Program. The company says it its new program was guided by its customer relationships.

Remote Monitoring Applications Profitably Feed SCADA Systems

Reliable remote monitoring applications for cathodic protection and other assets are available today to feed a pipeline SCADA system and increase operational efficiency, according to Finland’s FF-Automation. The company is a manufacturer of remote terminal units (RTUs) and supplier of supervisory and control and data acquisition (SCADA) solutions.

T.D. Williamson Introduces Spiral Magnetic Flux Leakage Inspection Tool

T.D. Williamson, Inc. (TDW) recently announced the debut of its patent-pending spiral magnetic flux leakage (SMFL) inspection tool.

Web Exclusive

7th Annual Pipeline Opportunities Conference Focuses On Pipeline Integrity

Many of the energy industry’s leading experts on safety issues will participate in the 7th Annual <a href="/pipeline-opportunities-conference-2011">Pipeline Opportunities Conference</a> on April 19 at the Intercontinental Hotel in Houston.

Fire Breaks Out At Enterprise Complex In Texas

On Feb. 9, 2011, Enterprise Products Partners L.P. announced that the west storage facility at its Mont Belvieu, TX complex, located approximately 35 miles east of Houston, experienced a fire that broke out on Feb. 8, 2011. UPDATE: A worker originally reported missing during the blaze has been confirmed killed after the fire burned itself out the morning of Feb. 9.

Study: Eagle Ford Shale Generated $3 Billion During 2010

In less than three years of development, the Eagle Ford Shale already accounts for over six percent of the Gross Regional Product for the 24-county South Texas area it encompasses, according to a study released today by the Center for Community and Business Research at the University of Texas at San Antonio Institute for Economic Development.

What's New

New Products: February 2011

New products from Lincoln Electric, Polyguard, R&M Energy Systems , TechCorr, Automated Safety Hitch, Rhino Marking Systems, Ametek, Emerson Process Management, Alltec, Honeywell, HYTORC Clamp-Nut, STMicroelectronics and Omron, Stanley Proto, HSB Solomon Associates and PFERD.

Product Showcase: Cathodic Locating Ability

The Schonstedt XTpc82 pipeline locator is lightweight, portable and extendable. Tracks transmitted frequencies as well as cathodic frequency created by a rectifier.

Product Showcase: Gregg Engineering

As a leading global provider of pipeline simulation technology and business solutions, our innovative tools offer accuracy, reliability, guidance, and support.

Product Showcase: Gregg Engineering Operator Trainer

Gregg Engineering’s Control Room Management Trainer integrates SCADA and Virtual Pipeline Modeling to train and qualify controllers and operators using their own pipeline systems.