State regulators clear way for Florida Power and Light natural gas pipeline

A proposed $3.5 billion natural gas pipeline took a leap forward last Thursday and by 2017 is expected to be providing fuel to run Florida Power and Light Co.’s plants.

Florida’s two pipelines, the Florida Gas Transmission pipeline, and Gulfstream pipeline deliver gas primarily from such offshore areas as the Gulf of Mexico.

The pipeline’s northern 465 miles is a joint venture of Houston-based Spectra Energy subsidiary Sabal Trail Transmission and a newly formed subsidiary of Florida Power and Light’s parent company, NextEra Energy Inc., called U.S. Southeastern Gas Infrastructure LLC. The southern 126 miles, known as Florida Southeast Connection, is a subsidiary of NextEra.

The pipeline will travel through four Alabama counties, eight Georgia counties and 13 Florida counties. It will end at Florida Power and Light’s Martin County plant near Indiantown. The new pipeline will connect to FPL’s new plants under construction in Riviera Beach and Hollywood.

Commissioner Eduardo Balbis said the pipeline will help mitigate supply interruptions and price fluctuations. It’s also a plus that the cost is $450 million below that of other options.

The project is projected to create more than 6,600 jobs.

Jeff Householder, president of Florida Public Utilities Co., said the additional gas supplies, especially the cheaper shale gas, are needed for the state’s growth and economic development. He expects his company and others will build lateral lines from the pipeline.

Florida Power and Light has signed agreements with the two entities that will own the new pipeline for an initial 400 million cubic feet per day beginning in 2017 with an option for an additional 200 million cubic feet in 2020 and later.

Florida Gas Transmission’s pipeline has a capacity of 3,100 million cubic feet per day, and Gulfstream’s pipeline has a capacity of 1,300 million cubic feet per day

The project approved Thursday differs from a proposal the PSC rejected in 2009 when Florida Power and Light sought to build the 280-mile Florida EnergySecure Line itself.

The pipeline must be approved by the Federal Energy Regulatory Commission and other federal and state agencies. It would give the state 25 percent more natural gas capacity.


Marcellus Shale Coalition names David Spigelmyer as president succeeding Katie Klaber

The Marcellus Shale Coalition has tabbed one of its founders and past chairmen to be its new president.

David Spigelmyer, former vice president of Chesapeake Energy Corp.’s Appalachia division, succeeds Katie Klaber, who had worked as CEO since 2009.

Mr. Spigelmyer will oversee a growing coalition, formed in 2008, that works as an advocate for oil and gas developers in the Marcellus region.

The Pittsburgh-based organization has grown to include 45 full member companies and more than 200 associate members.

“I am deeply honored to have this organization’s trust instilled in me and grateful for the talented team of professionals that we have in place at the MSC,” Mr. Spigelmyer said in a press release.

At Chesapeake, Mr. Spigelmyer oversaw government relations, regulatory policy and communications, among other responsibilities.

His position there was one of several eliminated this summer in a massive corporate reorganization plan.

Before working for Chesapeake, he had similar roles at EQT Corporation and Dominion Resources.

He was chairman of the Marcellus Shale Coalition until this August, after he left Chesapeake. He previously served as the coalition’s vice chairman and as lead of its legislative committee.

Mr. Spigelmyer is a Penn State University graduate.

MATCOR is a proud member of the Marcellus Shale Coalition.


MATCOR’s Durammo™ Deep Anode System Provides Enhanced Performance

As we reach the home stretch of 2013, well drilling continues to advance at a strong pace, thanks to improvements of drilling technology. Advanced horizontal and directional drilling has opened a range of possibilities for energy companies and local economies. Along with the improved drilling technology, MATCOR has helped advanced the cathodic protection technology for wells.

Properly configured deep well anode systems are an integral portion of reliable cathodic protection wells. For deep well anode systems, which output less than approximately 75 amps, MATCOR has designed the Durammo™ continuous mixed metal oxide (MMO) wire anode systems to provide second-to-none value for those in need of high-quality cathodic protection systems.

Essentially, there are two basic types of anode configurations:

Discreet Anodes
Here, several individual anodes are placed a minimum of ten feet apart throughout the system in order to avoid mutual anode interface effects. In this configuration, it is not abnormal to have 10 or 15 discreet anodes throughout the system (old technology).

Continuous Anode Assembly
In MATCOR’s deep anode assembly system, Durammo™, a continuous wire that is fed from a cable at each is used in lieu of many individual anodes. In order to create electrical redundancy, factory connected jumper cables are installed to the wire anode every ten feet. This arrangement effectively eliminates risk of mutual anode interference.

Additionally, MATCOR’s Durammo™ Anode System is made with MMO as opposed to graphite or high silicon cast iron to create a light, stable anode that has the capability of operating at higher current densities. They also use MATCOR’s Super-Vent™ pipe assembly to enhance overall venting capability and cabling with a chlorine-resistant PVDF layer for protection.

Overall, for deep well systems with outputs under 75 amps, MATCOR’s Durammo™ technology provides superior value through several performance enhancements and greater longevity.

To learn more about MATCOR’s Durammo™ continuous anode system contact MATCOR or learn more about MATCOR’s other cathodic protection products.

Kinder Morgan – Eagle Ford Pipeline Expansion Project

Kinder Morgan Energy Partners is adding 18 miles of lateral pipeline in the Eagle Ford Shale.

Kinder Morgan’s pipeline extension will carry crude and condensate from its DeWitt County, Texas station to a new facility it will build northwest in Gonzales County.

The company’s $74 million pipeline addition would allow it to reach markets along the Houston Ship Channel and a pipeline that services a Phillips 66 refinery in Brazoria County.

Kinder Morgan said Wednesday it struck a deal with a large producer in the Eagle Ford to extend the 178-mile pipeline in the South Texas shale play, but did not disclose the company.

The expansion provides “much needed optionality to Eagle Ford producers and Houston market consumers,” said Don Lindley, Kinder Morgan’s president for natural gas liquids business development, in a written statement.

The new pipeline will be able to transport 300,000 barrels of oil equivalent per day to the new station in Gonzalez County, which will have 300,000 barrels of storage capacity, a pipeline pump station and truck offloading facilities.

It’s a drop in the bucket for the Houston pipeline operator, which currently plans to invest $900 million in Eagle Ford projects and joint ventures. Kinder Morgan’s general partner, Kinder Morgan Inc., owns the largest pipeline network in North America at 80,000 miles, according to data compiled by Bloomberg.

Earlier this year, Kinder Morgan said it would expand another pipeline 31 miles from the DeWitt Station to a ConocoPhillips facility in Karnes County. That investment would amount to $107 million.


Spectra Energy to add as much as 7.3 bcfd pipeline capacity by 2017

Spectra Energy has more than 3.3 bcfd of US natural gas pipeline expansions under way, with another 4 bcfd of capacity in development.

Spectra Energy projects currently under way include the New Jersey-New York Expansion Project, Texas Eastern Appalachian Market (TEAM 2014), Kingsport Projects, Ohio Pipeline Energy Network (OPEN), Algonquin Incremental Market (AIM Expansion), and Sabal Trail Transmission LLC.

The 800-MMcfd NJ-NY Expansion will extend Texas Eastern’s reach further into New Jersey and into New York City for the first time, connecting Marcellus shale supplies in northeastern Pennsylvania with a delivery point in Manhattan. Customers of the $1.2 billion project include Chesapeake Energy Corp., Consolidated Edison, and Statoil Natural Gas. Spectra Energy expects the project, currently 95% complete, to enter service next quarter. Construction includes 15.9 miles of 30-in. OD pipe extending from Staten Island to Manhattan.

TEAM 2014 (600 MMcfd) will deliver gas from Marcellus producer customers to the northeast, Midwest, and Henry Hub markets. Customers include Chevron Corp. and EQT. Spectra Energy expects TEAM 2014 to enter service fourth-quarter 2014 at a cost of $500 million. Preliminary construction includes 33.5 miles of 36-in. OD loop at seven sites at four compressor units with a total 77,000-hp net addition.

Spectra Energy’s Kingsport projects will provide additional supplies to Eastman Chemical Co.’s power generation plant in Kingsport, Tenn. Spectra Energy expects to have 25-MMcfd of expanded capacity operating by next quarter, with an addition 61 MMcfd in service by first-quarter 2015. The $120 million project includes replacing 5.8 miles of 8-in. OD pipe with 24-in. pipe on the East Tennessee pipeline and installing 5.4 miles of 16-in. loop and 4.1 miles of 16-in. pipe between the Fordtown compressor station and the Eastman plant.

OPEN will deliver 550 MMcfd of Ohio Marcellus and Utica shale gas to US Gulf Coast and east coast markets. The $500-million project is underpinned by anchor shipping agreements with Chesapeake Energy Marketing and another producer. The projects features 73 miles of 30-in. OD pipe the Kensington gas processing plant in the Utica shale to Texas Eastern’s Clarington compressor station. A new 18,800-hp compressor station will be added along this line, with 5 existing Texas Eastern stations totaling 139,450 hp reversed to east-west flow. All components are expected to be operational by second-half 2015.

The AIM Expansion will move 300 MMcfd of Marcellus production from the Stoney Point compressor station to the Algonquin City Gate outside Boston. At an estimated cost of $850 million, Spectra Energy expects the project to enter service second-half 2016 serving customers such as UIL Holdings, National Grid, NiSource, and Northeast Utilities. Additional horsepower at almost every compressor station and expanding portions of the line to 42-in. OD from 26-in. will provide the additional capacity.

Sabal Trail Transmission LLC is a joint venture of Spectra Energy and NextEra Energy Inc. to deliver more than 1 bcfd via 480 miles of 36-in. OD greenfield pipeline from Transco Station 85 to the Central Florida Hub. Florida Power & Light is the charter customer, with others expected before the $3 billion project enters service first-half 2017. The pipeline will include five compressor stations totaling 210,000 hp.

Transmission projects Spectra Energy has in development include:

  • Uniontown to Gas City (U2GC), Appalachia to Midwest, 425 MMcfd, in-service second-half 2015.
  • South Louisiana Expansion (Sola), expand Texas Eastern to South Louisiana industry, 600 MMcfd, first-half 2016.
  • Gulf Markets Expansion, Texas Eastern to US Gulf Coast, 650 MMcfd, second-half 2016-17.
  • Renaissance, Appalachia to Northern Georgia-Atlanta, 1.3 bcfd, first-half 2017.
  • NEXUS, Appalachia to Eastern Canada local distribution companies and power markets, 1 bcfd, second-half 2017.

Pipeline Editor – Oil & Gas Journal


Utica Shale – Plans For A New 38 Mile Natural Gas Pipeline

Utica Shale News: A Columbia Gas sister company released plans  to build a 38-mile pipeline that will transport natural gas liquids from Ohio’s Utica shale.

Pennant Midstream said the pipeline will connect the Hickory Bend processing plant in Mahoning County to the Utica East Ohio Kensington plant in Columbiana County. It will cost about $60 million and have the capacity to deliver 90,000 barrels per day.

This is one of several projects in northeastern Ohio that will provide ways to get natural gas liquids such as ethane and propane to market. The liquids have a wide array of uses; among them, ethane is a key ingredient in chemical manufacturing, and propane is a fuel for home heating.

The liquids often need a dedicated pipeline, the construction of which is an important part of developing the Utica, said Ben Ebenhack, associate professor of petroleum engineering at Marietta College.

“You don’t want to move vast quantities of liquids in a gas pipeline,” he said. “They will tend to accumulate in the pipeline and block the flow of the gas.”

The Utica is rich in liquids, which is helping to drive much of the investment there.

While the market price of natural gas has been low for several years, the liquids sell for a much higher price.

Pennant Midstream is operated and co-owned by a subsidiary of NiSource, which is the Indiana-based parent company of Columbia Gas of Ohio.

“The construction of new infrastructure is critical to unlocking the potential of the Utica shale play in Ohio,” Jimmy Staton, Columbia Pipeline Group and NiSource Midstream Services CEO, said in a statement.

“This partnership will not only provide a key link in that infrastructure, it will provide economic-related benefits for companies and residents of Ohio and the Appalachian basin.”

Harvest Pipeline Co., a subsidiary of Houston-based Hilcorp Energy Co., also co-owns Pipeline Midstream. Steve Jacobs, president of Harvest Pipeline, said the project is “an important milestone in advancing the development of the Utica shale.”

Construction has already begun on the project, with plans to finish by July.


U.S. grants funds for state pipeline inspections

The U.S. Department of Transportation said it awarded more than $46 million to state governments for oil and gas pipeline inspections.

Safety is our top priority and we’re committed to keeping communities safe and preventing pipelines incidents,” said U.S. Transportation Secretary Anthony Foxx.  “These grants help make sure that happens by funding personnel and equipment to carry out inspections and enforce important intrastate pipeline safety regulations that keep the entire pipeline network as safe as possible.”

The grants provide up to 80 percent of operating costs for state pipeline regulators that agree to pipeline inspections  on intrastate pipelines on PHMSA’s behalf. Participating states and territories account for more than 300 inspectors who are responsible for over 90 percent of the country’s intrastate natural gas and hazardous liquid pipelines. More than 2.6 million miles of pipeline transport oil and gas to homes and businesses throughout the country.

“Pipeline Safety Base Grants are a great collaboration between State and Federal safety regulators,” said PHMSA Administrator Cynthia Quarterman. “These funds enable us to triple the number of pipeline inspections we have out in the field enforcing regulations, and a strong local presence is vital to effectively monitor pipelines and help protect the public from pipeline incidents.”

Final pipeline inspection grant amounts are awarded based on State expenses and annual performance scores.

The 2013 Natural Gas Pipeline State Base Grant recipients are:

• Alabama – $1,222,239
• Arizona – $1,346,317
• Arkansas – $579,74
• California – $3,811,560
• Colorado – $455,561
• Connecticut – $801,472
• Delaware – $87,460
• District of Columbia – $258,277
• Georgia – $1,569,097
• Idaho – $197,987
• Illinois – $2,156,965
• Indiana – $1,178,078
• Iowa – $877,513
• Kansas – $636,693
• Kentucky – $370,621
• Louisiana – $1,007,285
• Maine – $275,199
• Maryland – $436,419
• Massachusetts – $951,597
• Michigan – $982,881
• Minnesota – $1,463,227
• Mississippi – $437,910
• Missouri – $685,875
• Montana – $174,853
• Nebraska – $302,170
• Nevada – $622,543
• New Hampshire – $596,020
• New Jersey – $821,294
• New Mexico – $666,513
• New York – $2,962,152
• North Carolina – $501,308
• North Dakota – $145,294
• Ohio – $1,268,707
• Oklahoma – $1,109,069
• Oregon – $437,879
• Pennsylvania – $1,775,954
• Puerto Rico – $255,124
• Rhode Island – $97,628
• South Dakota – $283,725
• Tennessee – $550,933
• Texas – $3,672,454
• Utah – $315,199
• Vermont – $149,027
• Virginia – $1,529,562
• Washington – $1,655,315
• West Virginia – $482,452
• Wisconsin – $403,150
• Wyoming – $204,903

The 2013 Hazardous Liquid Pipeline State Base Grant recipients are:

• Alabama – $91,997
• Arizona – $70,859
• California – $1,462,235
• Indiana – $23,061
• Louisiana – $288,082
• Maryland – $19,001
• Minnesota – $386,897
• New Mexico – $41,014
• New York – $228,399
• Oklahoma – $310,812
• Texas – $548,757
• Virginia – $109,532
• Washington – $183,743
• West Virginia – $14,491