January 2012, Vol. 239 No. 1


Business Meetings & Events

January 2012 Ad index

Advertisers from the print edition of <em>Pipeline & Gas Journal</em>, January 2012, Vol. 239 No. 1.

Editor's Notebook

Editor's Notebook: U.S. On Track To Be Oil Exporter

Let’s repeat that slowly so there’s no misunderstanding: "U.S. On Track To Be Oil Exporter." This was the headline of a report in the Dec. 19 issue of USA Today. According to the article, during the first quarters of 2011, we exported more oil than we imported. This means it’s highly likely that 2011 will be the first time in more than six decades that the United States will be a net exporter of petroleum products, the report said.


2012 Worldwide Pipeline Construction Report

<em>P&GJ</em>’s worldwide survey figures indicate that 118,623 miles of pipelines are planned and under construction. Of these, 88,976 represent projects in the planning and design phase; 29,647 miles reflect pipelines in various stages of construction.

China's Demand For Oil Will Equal U.S Demand By 2040

Despite aggressive demand-management policies announced in recent years, China’s oil use could easily reach levels comparable to today’s U.S. levels by 2040, according to a new energy study by the Baker Institute.

Contrasting Welding Techniques Used On Pipelines And Refinery Piping: Uphill Versus Downhill

When one looks on a huge oil and gas installation like a refinery spread across many acres and representing millions of dollars on equipment and infrastructure investment, one does not see the raw crude oil injected into the refinery for the refining process. This is because the crude oil is transported through an underground pipeline. The pump station which pumps oil into the pipeline is also located far away from the refinery.

How Alliance Pipeline Is Taking Advantage Of Opportunities While Dealing With Changing Market Dynamics

Shortly after Alliance Pipeline celebrated its 10th anniversary, company President and CEO, Murray Birch, and Bob Blattler, Manager, Supply Development, took time to respond to <em>P&GJ</em>’s questions regarding the company’s recent milestone, safety strategy, training methods, near-term challenges and a move toward becoming a multi-service pipeline.

Koch Well Prepared For Eagle Ford Activity

The Eagle Ford Shale play in South Texas is not just hot, it’s sizzling these days. A number of oil companies last year discovered huge pools of oil and gas in the region, which stretches across 24 counties. Until the Bakken play in the upper Midwest takes hold, many experts are saying that not only was the Eagle Ford the hottest oil play in the U.S. for 2011, but it’s likely just getting started.

Mastering Construction Challenges In The Sahara Desert

The challenges and complexities of building oil and gas infrastructure in a remote and inhospitable part of the Sahara Desert are adding to the stores of knowledge possessed by ABB engineers and technicians.

Oil Pipeline Bypassing Turkish Straits Would Not Significantly Reduce Safety Shipping Risks

An oil pipeline bypassing Turkey’s Bosphorus Strait would have little impact on shipping safety on the waterway because crude oil shipments constitute a small and declining percentage of total traffic, according to a new IHS Cambridge Energy Research Associates (IHS CERA) report.

Shah Deniz Consortium Evaluates Transportation Options For Azeri Gas

<em>The Shah Deniz consortium is considering the expansion of gas transport infrastructure to deliver Azeri gas from Stage-2 of the Shah Deniz project to Western Europe.

Shale Gas Supports More Than 600,000 American Jobs, Study Says

The natural gas "shale gale" that has dramatically transformed the outlook for U.S. energy supplies is also having profound economic impacts - creating jobs, reducing consumer costs of natural gas and electricity, stimulating economic growth and bolstering federal, state and local tax revenue, according to a new IHS Global Insight study.

Texas Court Makes Proving Common-Carrier Status More Difficult

On Aug. 26, 2011, the Supreme Court of Texas issued its opinion in Texas Rice Land Partners Ltd. v. Denbury Green Pipeline-Texas LLC (No. 09-0901), which provides landowners yet another avenue by which to frustrate and delay common carriers’ acquisition of pipeline easements. Simply put, this decision makes life a little more difficult for companies trying to exercise the power of eminent domain.


Obama Signs New Pipeline Safety Bill; PHMSA Starts Rulemaking On EFVs

The new pipeline safety bill President Obama signed in December gives PHMSA new latitude to expand integrity management requirements to new areas and require new industry safety measures such as automatic or remote-controlled shut-off valves.

In The News

Cardinal Gas Storage Partners Plans Natural Gas Storage Facility Near Perryville/Delhi Hub

Cardinal Gas Storage Partners LLC said its wholly owned interstate natural gas storage subsidiary, Cadeville Gas Storage LLC, has executed a ten-year Precedent Agreement with Shell Energy North America, L.P. to construct a depleted reservoir storage facility in Ouachita Parish, LA near the Perryville/Delhi Hub in northeast Louisiana.

Chevron To Spend $32.7 Billion In Capital Projects In 2012

Chevron Corp. expects to spend a record $32.7 billion on capital projects in 2012 as it continues to invest in massive oil and gas projects worldwide. The budget is 17% higher than the $28 billion spent last year, its highest level of spending ever.

ConocoPhillips Sells $2 Billion Of U.S. Pipeline Assets

As part of its ongoing strategy to create shareholder value, ConocoPhillips will sell its interests in two U.S. pipeline companies for $2 billion. ConocoPhillips has agreements with a subsidiary of Caisse de dépôt et placement du Québec for its 16.55% interest in Colonial Pipeline Co. and Colonial Ventures LLC. In addition, ConocoPhillips has entered into agreements with Enbridge Holdings (Seaway) L.L.C., a subsidiary of Enbridge (U.S.) Inc., for its ownership interest in the Seaway Crude Pipeline Co.

Energy Spectrum Selling Eagle Ford Assets to Plains All American

Energy Spectrum Partners V LP is selling its interests in Velocity South Texas Gathering, LLC, a subsidiary of Velocity Midstream Partners, LLC, to Plains All American Pipeline, LP.

EQT Plans MLP For Interstate Natural Gas Transmission Business

EQT Corp. will file a registration statement with the Securities and Exchange Commission for an initial public offering of common units of a master limited partnership that would own portions of the assets of Equitrans, L.P., EQT’s interstate pipeline subsidiary.

KGRA Energy, Chesapeake Plan 2MW Alternative Power Generation Installation

KGRA Energy LP, a developer of waste heat recovery power generation projects, will develop a pioneering waste heat recovery project to harness reciprocating engine exhaust heat.

Kinder Morgan Investing $130 Million In New Condensate Processing Plant

Kinder Morgan Energy Partners, L.P. will build, own and operate a petroleum condensate processing facility near its Galena Park terminal on the Houston Ship Channel.

Midstream Announces Major Expansion In Delaware Basin

Houston-based Nuevo Midstream, LLC plans to significantly increase processing and treating capacity at its Ramsey plant site in the Delaware Basin near Orla, TX. Nuevo has bought a cryogenic processing plant with capacity of 100 MMcf/d and a second amine treating plant with a capacity of 475 gallons per minute (gpm).

Oiltanking Partners Announces 1st Phase Of Pipeline, Crude Storage Expansion

Oiltanking Partners, L.P. has announced expansion projects including construction of two crude oil pipelines in the Houston Ship Channel and 1 million barrels of new crude oil storage capacity at the Partnership's Houston terminaling facility.

Plains All American Converting Oklahoma LPG Pipeline To Crude Service

Plains All American Pipeline, L.P. is converting an existing Oklahoma liquefied petroleum gas (LPG) pipeline into crude oil service.

Shell Says Exports, Truck Fuel Among Options for U.S. Shale Gas

Peter Voser, CEO of Royal Dutch Shell Plc, said it is weighing options for rising North American natural-gas output including exports and making liquid fuels.

Southern Union Shareholders Approve Merger With Energy Transfer

Houston-based Southern Union Co. shareholders overwhelmingly approved the proposed merger with Dallas-based Energy Transfer Equity, L.P.

Superior Pipeline Adding Cryogenic Processing Plant In Mississippian Trend

Tulsa-based Superior Pipeline Company LLC, a wholly owned subsidiary of Unit Corporation, is installing a 30 MMcf/d cryogenic processing facility in Kay County, OK.

US Infrastructure Acquires Wildcat Sabine Natural Gas Gathering System

US Infrastructure Holdings, LLC will acquire the Wildcat Sabine Gathering System located in the Bossier-Haynesville Shale.


Bredero Shaw Awarded Pipe Coating Contract

ShawCor Ltd.’s pipecoating division, Bredero Shaw, has received a contract with a value in excess of US$45 million from Hyundai Heavy Industries to provide corrosion protection and concrete weight coating for the Barzan pipeline project in the Qatari sector of the Arabian Gulf.

Cadeville To Build Louisiana Gas Storage Facility

Cardinal Gas Storage Partners’ wholly owned interstate natural gas storage subsidiary, Cadeville Gas Storage LLC, has executed a 10-year precedent agreement with Shell Energy North America (US), L.P. for Cadeville to construct a depleted reservoir storage facility in Ouachita Parish, LA near the Perryville/Delhi Hub in northeast Louisiana.

Crestwood/Mountaineer Gathering System Planned

Crestwood Midstream Partners has signed an MOU with Mountaineer Keystone LLC, Pittsburgh, to construct a 42-mile, 16-inch natural gas gathering system to serve MK's Marcellus Shale development program in northeast West Virginia.

Enbridge Wins Bakken Pipeine Project Approval

Canada’s National Energy Board (NEB) has approved the Bakken Pipeline Project Canada application submitted by Enbridge Bakken Pipeline Company Inc., on behalf of Enbridge Bakken Pipeline Limited Partnership.

Enterprise To Build Marcellus/Utica Shale Ethane Pipeline

Enterprise Products Partners L.P. has received sufficient transportation commitments to support development of its 1,230-mile Appalachia to Texas pipeline (ATEX Express) that will deliver growing ethane production from the Marcellus/Utica Shale areas of Pennsylvania, West Virginia and Ohio to the Gulf Coast.

Enterprise/Enbridge Announce Concurrent Open Seasons

Enterprise Products Partners L.P. and Enbridge Inc. planned to hold concurrent open seasons from Jan. 4 through Feb. 10 to solicit capacity commitments from shippers for an expansion of the Seaway pipeline and an extension of the pipeline into the Port Arthur/Beaumont refining market.

FERC Approves Northeast Supply Link

Williams Partners’ Transco pipeline filed an application with the FERC to provide 250,000 Dth/d of incremental, year-round firm natural gas transportation capacity to serve growing markets in the Northeast by November 2013.

FMC Subsea Systems Headed For Who Dat Field

FMC Technologies, Inc. has signed an agreement with LLOG Exploration Company, LLC, for the design, manufacture and supply of subsea production systems to support its Who Dat project in the Gulf of Mexico.

Joint Venture To Build Double Eagle Pipeline

Copano Energy, L.L.C. and Magellan Midstream Partners, L.P. formed a joint venture to deliver Eagle Ford Shale condensate to Corpus Christi, TX.

Kinder Morgan Plans Alberta Storage Terminal

Kinder Morgan Energy Partners plans to invest $210 million to build seven tanks with storage capacity of 2.4 MMbbls for crude oil and condensate at its Edmonton Terminal in Strathcona County, Alberta.

Largest Slitter In North America Slated For Installation In Kentucky

TMK IPSCO and Ferrous Metal Processing have entered into an agreement for the installation of the largest slitter in North America, a new .625-inch x 87-inch line, at the TMK IPSCO facility in Wilder, KY. The new slitting operation will start commercial production this fall.

Questar Holds Open Season For Uinta Basin Expansion

Questar Pipeline Co. held an open season concluding Jan. 31 to solicit binding support for the installation of nine miles of pipe and ancillary facilities on its Jurisdictional Line (JL) 47 in Duchesne County, UT.

Texas Eastern To Develop Ohio Pipeline Energy Network Project

Spectra Energy Corp.'s Texas Eastern Transmission, American Electric Power and Chesapeake Energy Marketing, Inc. plan to develop the Ohio Pipeline Energy Network (OPEN) project, a proposed expansion of the Texas Eastern pipeline system that will connect Ohio's Utica and Marcellus shale gas supplies with the fast-growing markets attached to the Texas Eastern system, in particular natural gas-fired power generation.

Williams To Acquire Assets In Marcellus Shale

Williams Partners is negotiating to acquire Delphi Midstream Partners, Laser Gathering System and other midstream businesses, located primarily in the Marcellus Shale.

What's New

January 2012 New Products

New products from CECO, ProAct, IBM, Pegasystems, Above Ground Marker, Endress+Hauser, FF-Automation, Heath Consultants, Invensys Operations Management, Moyno, Inc., Radiodetection, McElroy, Engineered Concepts, LLC, Thomas & Betts Hazlux.