Hurricane Sandy impacts MATCOR’s Doylestown, PA Head Office

On Monday night, Doylestown PA, home of MATCOR’s Head Office and Manufacturing Plant, along with thousands of other businesses and homes became victims of Hurricane Sandy’s desctructive wind gusts in excess of 80 MPH.

Thankfully, early indications show MATCOR’s Doylestown office has not sustained any infrastructural damage, however due to the strong winds and downed power lines, the entire region is experiencing unprecidented power outages, and is affecting our Doylestown operation. As a result MATCOR’s communication systems (both telephone and email service) are temporarily unavailable.

Our Houston, TX operation is available by phone, and can be reached at: 281 558 2600, however email is connected with our Doylestown server and is therefore unavailable.

Further updates on the status of Doylestown’s operations are being posted to the home page of

In the interim we have setup the following email address to answer any questions you may have: 

If you need to talk to a member of the MATCOR team please call: 1 800 664 0899 (U.S. & Canada) or +1 281 558 2600 (Worldwide)

We apologize for the inconvenience and distruption this may have caused. We are doing everything within our ability to minimize the distrupton from Hurricane Sandy.

Keystone XL pipeline concerns are being addressed

A state agency has issued its preliminary review of the Keystone XL pipeline that appears to indicate most concerns are being addressed.

The draft evaluation report, released Tuesday afternoon by the Nebraska Department of Environmental Quality, concluded that the new route of the controversial crude-oil pipeline successfully avoids the Sand Hills region of Nebraska, a step agreed to during a special session of the Legislature last year.

The report also stated that pipeline developer TransCanada Inc. had, by making some minor changes to the pipeline route in August, addressed concerns raised by the agency about crossing areas of sandy soils or areas near municipal drinking-water supplies of two small communities, Clarks and Western.

The agency also said TransCanada has agreed to compile an emergency response plan for leaks that might occur in the 36-inch, high-pressure pipeline, and buy $200 million in third-party liability insurance policy to cover any clean-up costs.

The company has provided the state with a chemical makeup of several forms of crude oil that will be shipped through the pipeline, which will carry 30 million gallons of oil a day. The exact composition of the oil, the agency said, will be made immediately available in the event of a leak.

Environmental groups, including Bold Nebraska and the Sierra Club, have raised concerns about the lack of information about the chemical makeup of diluted bitumen that will be carried by the pipeline.

While Tuesday’s draft report doesn’t raise “concerns” like those this summer about sandy soils and drinking-water wells in the path of the pipeline, he said it does “point out the impacts on different kinds of terrain” that will be crossed by the pipeline.

A public hearing on the draft report will be held at 6 p.m. on Dec. 4 at the Boone County Fairgrounds in Albion, Neb. Linder encouraged the public to comment on the report, either at the meeting or by mail or email.

A final report will be issued after the hearing. Gov. Dave Heineman will have the final say on whether the state approves the pipeline’s route across Nebraska.

That decision will be forwarded to the U.S. Department of State, which will make the final judgment on whether the entire Keystone XL project will be allowed. The project will transport oil from Canada’s tar sands region to the U.S. Gulf Coast, and pick up some oil from North Dakota and Montana along the way.

Read More Here:

Nabucco moving closer to BP-led gas group

A cooperation agreement with stakeholders in a natural gas field in Azerbaijan would enable them to take on shares in the Nabucco pipeline, a spokesman said.

Christian Dolezal, spokesman for Nabucco Gas Pipeline International, said talks between the pipeline group and those in the BP-led consortium working on the Shah Deniz II gas field offshore Azerbaijan were “progressing well.”

The Shah Deniz II consortium is expected by next year to make a final decision between the Nabucco West pipeline and the Trans-Adriatic Pipeline as the conduit for Azeri natural gas.

Europe is eager to secure natural gas reserves from Caspian suppliers to break the Russian grip on the regional energy sector. Nabucco West is part of a series of transit networks outlined in the Southern Corridor package of gas pipelines for Europe.

Dolezal, in a statement emailed to United Press International, said the pipeline group expects to sign a cooperation agreement with the BP-led consortium by November.

“This cooperation agreement would also enable the SDII partners to take shares in the Nabucco project and is a vital leap forward for realizing the project,” his statement read.

Europe gets about 20 percent of its natural gas from Russia, though most of that runs through Ukraine’s gas transit system.

Read more here:

TransCanada Plans $3 Billion Oil-Sands Line With PetroChina

TransCanada Corp. (TRP) and a unit of PetroChina Co. Ltd. agreed to develop a C$3 billion ($3 billion) oil pipeline to ship crude from oil-sands projects in northern Alberta.

TransCanada and Phoenix Energy Holdings Ltd. will each own 50 percent of the proposed Grand Rapids Pipeline, which will ship oil 500 kilometers (310 miles) from the Fort McMurray oil- sands production area to Edmonton, according to a statement today. The stake would be the largest taken by a Chinese company in a Canadian pipeline, according to data compiled by Bloomberg.

“This is the first major pipeline project to meet the needs of this fast-growing area,” TransCanada Chief Executive Officer Russ Girling said in the statement.

The plan includes a 900,000 barrel-a-day crude pipeline, and a 330,000 barrel-a-day pipeline for diluent, fluids mixed with tar-like bitumen so it can flow through pipelines. The project is expected to be in service by 2017.

“Transportation in the Athabasca region has become a bottleneck,” Zhiming Li, the chief executive officer of closely held Phoenix, said in the statement. “This transportation solution will be important to Phoenix and other potential producers in the area to monetize their huge resources.”

TransCanada will operate the system and Phoenix has agreed to ship crude on it.

Phoenix is a unit of publicly traded PetroChina, controlled by Chinese state-owned China National Petroleum Corp., according to filings. CNPC owns a controlling interest in PetroChina. Margaret Jia, a spokeswoman for CNPC companies in Canada, didn’t immediately return telephone calls seeking comment.

Read More Here:

PVR’s Wyoming Pipeline Comes Online

PVR Partners, L.P. ( PVR ) announced the completion of construction activities of its latest natural gas trunk line in the north-central province of Pennsylvania. The midstream project, Wyoming Pipeline, also came online commercially. The pipeline system was initially constructed by Chief Gathering LLC until it got acquired by PVR Partners in May 2012.

The pipeline is 30 miles in length and spans across the northern Wyoming County southward to connect with the Transco interstate pipeline system in Luzerne County. The 750 million cubic feet per day (“MMcfd”) capacity system will provide midstream services to the producers operationally active in the Marcellus Shale play. The program was bankrolled by funds that were added in the financing agreement during the purchase of Chief Gathering.

Presently, the partnership has secured contracts for reliable and efficient services on the Wyoming Pipeline from five independent producers and expects more agreements to come on the table. These agreements are wholly fee based and are insulated from any direct commodity price risks. For 2012, the initial firm transportation volume contracted by the producers totaled 255 MMcfd.

We believe the acquisition of Chief Gathering LLC is a strategic fit and will be a profitable addition to the partnership’s asset portfolio. The timely execution of this cost-effective project will enable the partnership to carry out its high-quality programs in the Marcellus play smoothly and also contribute positively to its future business plans in the region.

The partnership faced constraints in supplying volumes from its Susquehanna/Wyoming gathering facility to the Tennessee Gas Pipeline 300 Line which impacted PVR Partners’ operations. However, the partnership expects the Wyoming Pipeline-Transco Pipeline connectivity will lead to increase in volumes on the Susquehanna/Wyoming gathering facility by more than 20%.

The ongoing developments at the Susquehanna/Wyoming gathering unit will enable supply volumes to Wyoming Pipeline to further expand with the linking of additional wells thereby increasing productivity.

Although natural gas prices are currently on a downhill, we anticipate with rising demand for electricity in the U.S., gas prices will improve steadily, which could add to the partnership’s near term top-line. Nonetheless, unexpected infrastructure outages and pipeline accidents are risks that could pose serious challenges to the partnership’s operations.

We remind investors that the partnership had divested its Crossroads natural gas gathering system and processing plant for roughly $63 million to DCP Midstream Partners, LP ( DPM ), in mid-June 2012, to focus on the development of its core midstream business in the Marcellus shale and Texas plays.

The Zacks Consensus Estimates for the third quarter and full year 2012 for PVR Partners are pegged at 9 cents per unit and 54 cents per unit, respectively. One of its competitors is Missouri-based Arch Coal Inc. ( ACI ).

The partnership owns and operates a string of natural gas midstream pipeline systems and processing plants and is also involved in the management of coal as well as natural gas properties. PVR Partners’ current market capitalization stands at $2.21 billion.


Alliance Receives OK for Bakken Natural Gas Pipeline

Alliance Pipeline received regulatory approval for a proposed pipeline that would deliver natural gas from the Bakken Shale formation to the Chicago market, which would reduce the amount of so-called flaring.

The 106.5 million-cubic-feet-a-day Tioga pipeline should be running by mid-2013, Alliance said.

Although new drilling technology has greatly boosted hydrocarbon production in the Bakken, in North Dakota’s Williston Basin, a lack of pipelines has led oil producers to resort to rail cars to move product, and to burn off excess natural gas.

“Moving more Williston Basin gas to market will also help reduce flaring and provide direct environmental and economic benefits to North Dakotans,” Mike McGonagill, senior vice president and chief operating officer for Alliance Pipeline, said Monday.

A natural-gas glut unleashed by the success of hydraulic fracturing has led U.S. energy companies to move drilling rigs to more profitable oil instead. But natural gas production keeps climbing, because there’s some gas associated with most crude extraction.

In the Bakken, about a third of the gas produced in June was burned via flaring, according to the latest information published by the North Dakota Department of Mineral Resources. Flaring the gas is considered both uneconomical and environmentally damaging to the atmosphere.

Although the percentage of natural gas flared in the Bakken should drop as more pipelines and processing plants are built, building the extra infrastructure will take time, said Tim Evans, senior energy analyst at Citi Futures.

“We may be doing well to not just fall further behind,” said Mr. Evans.


TransCanada gets Keystone XL win in Texas

A state judge in Texas ruled that Canadian pipeline company TransCanada can move ahead with pipeline construction in the south of the state.

TransCanada aims to build its Keystone XL pipeline to carry oil derived from oil sands operations in Alberta. Part of the U.S. section of the project would move crude oil across southeastern Texas to refineries along the southern coast.

Texas landowners sued TransCanada, saying property easement bonds weren’t posted according to the letter of the law. The company, however, increased the size of the bonds meant to cover potential damage and a judge gave the company consent to move forward in Texas.

“The statutory requirements for the issuance of writs of possession are now met,” Jefferson County Court at Law Judge Tom Rugg was quoted by Bloomberg News as saying.

TransCanada in July received the last of three permits needed from the U.S. Army Corps of Engineers to advance its 485-mile Gulf Coast Project, the domestic leg of Keystone XL.

The Gulf Coast Project will stretch from Cushing, Okla., to southern Texas. Another 47-mile project would transport oil to refineries in Houston.


Corrosion leader MATCOR Establishes Wholly Owned Subsidiary in Canada to Service Canadian Cathodic Protection Needs

Corrosion leader MATCOR Establishes Wholly Owned Subsidiary in Canada

Doylestown, PA (October 1) – MATCOR, Inc. the trusted full-service provider of proprietary cathodic protection products, systems, and corrosion engineering solutions announced the establishment of its new Canadian subsidiary, MATCOR Canada, Inc., in Calgary, Alberta.

MATCOR’s Senior Director of Business Development Knut Fenner, who leads MATCOR Canada, stated: “The growth of the Canadian oil sands business along with recent issues involving oil spills and the resulting need for corrosion protection, are an opportunity to bring MATCOR’s full suite of superior cathodic protection products and services to the Canadian market. This includes but is not limited to our Linear Anode SPLTM, DurammoTM, our Deep Well Anode Systems, and MitigatorTM, our AC Mitigation products that will help protect the Canadian pipeline infrastructure from corrosion.

Fenner continued “We are the only manufacturer that owns the entire value chain from design, engineering, manufacturing, installation, commissioning, and service – plus, we offer the industry’s only 10-year extended warranty.”

As part of the expansion plan MATCOR has hired Shawn Kunst as its new Business Development Manager.  Shawn’s background includes technical sales to oil and gas producers in addition to well site equipment and service sales, providing equipment such as large storage tanks, heat exchangers and services to the petrochemical, refining, upgrading and transmission markets.

Fenner said, “Shawn’s long background in oil and gas, and well site equipment sales coupled with his proven success in business development, position him extremely well to lead our Canadian operations.”

MATCOR Canada’s new office is located within the Global Business Centre at 120 8thAvenue SE, Calgary, AB T2G 0K6. More information about MATCOR can be found online at


MATCOR, Inc. is a leading cathodic protection and corrosion prevention engineering design firm, providing environmentally beneficial systems and services to global clients for nearly 40 years. An expert in the field of cathodic protection, MATCOR offers proprietary corrosion protection products, installation, cathodic protection testing, maintenance and complete corrosion protection project management. MATCOR specializes in protecting the infrastructure of the oil and gas, electric utility, transportation and other infrastructure industries. 
To learn more about MATCOR, or call 800 768 5669.

Natural Gas Pipelines to Expand U.S. Supply


Natural gas pipelines coming into service by year end may boost deliveries from the Marcellus shale deposit in the U.S. Northeast by 30 percent, extending a supply glut that helped send prices to decade lows.

As much as 2 billion cubic feet of gas a day are set to flow from the lines in Pennsylvania, Ohio and West Virginia, bound for markets along the Eastern Seaboard, based on government and pipeline-company projections. About 1,000 Marcellus shale wells sit uncompleted, mainly because of a lack of pipeline infrastructure, according to the Energy Department.

Gas prices have dropped 60 percent since 2007 as producers used techniques such as hydraulic fracturing, or fracking, to reach supplies trapped deep in tight layers of shale. Gas futures tumbled to $1.902 per million British thermal units in April, the lowest price since 2002, as stockpiles ballooned during a mild winter and record U.S. production.

“There are new pipelines coming up and more Marcellus gas is going to flood storage going into winter,” Phil Flynn, senior market analyst at Price Futures Group in Chicago, said in a phone interview. “Unless you get a really cold winter, prices are going to be in the $2 range.”

Natural gas for October delivery rose 9.9 cents, or 3.4 percent, to settle at $3.023 per million British thermal units on the New York Mercantile Exchange. Prices have gained 1.1 percent this year.

The futures have averaged $2.679 since the April low after rising as high as $3.277. Prices may average $3.20 per million Btu during the first quarter of 2013, when demand peaks, based on the median of 18 analyst estimates compiled by Bloomberg.

Winter Demand

“Higher prices are all predicated on more normal space heating” this winter and demand from power generators burning gas instead of coal, Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York, said in a Sept. 21 interview. Viswanath expects first-quarter prices to average $3.60 per million Btu.

Cabot Oil & Gas Corp., which pumps gas from Marcellus deposits in Pennsylvania, has a break-even point that’s “probably below $2,” Chief Financial Officer Scott Schroeder said in a Sept. 14 interview from Houston.

About 4,525 miles of interstate gas pipelines serving consumers from Maine to Virginia have been put into service since 1996, Energy Department data show. About 693 miles of lines in the Marcellus, with a daily capacity of 8.06 billion cubic feet, are planned, under construction or already in service, according to Federal Energy Regulatory Commission data going back to 2006.

Fall Completions

New pipelines can quickly add 1 billion cubic feet a day of Marcellus gas to the market and as much as 2 billion, as projects with 3.5 billion cubic feet of additional pipeline capacity will be completed from September through December, Viswanath said. Marcellus gas output in May averaged 6.85 billion cubic feet a day, according to the most recent Energy Department data.

Shale gas has been key to the country’s move toward energy independence. Production gains helped the U.S. meet 81 percent of its energy demand in 2011, the highest level since 1992, according to U.S. Energy Department data compiled by Bloomberg.

Stockpiles in the week ended Sept. 14 totaled 3.496 billion cubic feet, 8.6 percent above the five-year average, the Energy Department said on Sept. 20. Supplies of gas may rise to a record 3.95 trillion by the end of October, before demand begins to rise with colder weather, according to department estimates.

Mid-Atlantic Lines

Spectra Energy Corp.’s (SE) Texas Eastern Transmission pipeline has a project that will go into service in November to carry 200,000 dekatherms (200 million cubic feet) a day from West Virginia to eastern Pennsylvania to connect to mid-Atlantic points, Brian McKerlie, vice president of business development at Spectra in Houston, said in a Sept. 19 interview.

Spectra is also building a pipeline to ship Marcellus gas to Manhattan by next November and is seeking customers to build a line to Florida, according to the company.

TransCanada Corp. (TRP), based in Calgary, is reversing its Niagara pipeline to start moving Marcellus gas from West Virginia into southern Ontario in November, Karl Johannson, executive vice president of natural gas pipelines with TransCanada, said in a Sept. 19 interview.

“It’s a very large resource and it’s going to change the flow of gas in North America,” Johannson said.

Williams Cos. projected that more than half of its estimated $11.5 billion of capital investments from 2012 through 2014 is in the Marcellus region, according to a Sept. 5 presentation by the Tulsa, Oklahoma-based company.

Rising Production

Kinder Morgan Energy Partners LP (KMP)’s Tennessee Gas Pipeline and a unit of Dominion Resources Inc. also have Marcellus projects under construction.

Marcellus will account for 22 percent of the 79 billion cubic feet a day of U.S. gas output in 2016, or about 17.4 billion a day, according to Goldman Sachs Group Inc. estimates. The region accounted for 5 percent of output last year and none in 2006, the bank’s data show.

Barclays Plc estimates that additional pipeline capacity may boost daily U.S. supplies by 1.8 billion cubic feet by the end of this year and by another 3.4 billion in 2013, the majority of it from Marcellus.

“We will be watching for evidence of a large uptick in production” in November, March and November 2013, Shiyang Wang, a Barclays analyst in New York, said in an Aug. 28 report.

Winter Demand

Laurent Key, a natural gas analyst with Societe Generale in New York, predicts that 900 million cubic feet a day of Marcellus production will come online in the fourth quarter, according to a Sept. 10 note to clients. Key’s first quarter price forecast is $3.07.

Demand for the fuel used by power plants and in home heating peaks in January and February, though last winter’s mildest weather since 2000 has helped keep inventory levels at seasonal records.

The movement of drilling rigs to the Eagle Ford shale in Texas from Haynesville in Louisiana will slow U.S. natural-gas output growth, David Greely, head of energy research at Goldman Sachs in New York, said in a Sept. 24 research report.

The additional capacity in Pennsylvania will cut pipeline costs, Richard Hunter, vice president of investor relations with Carrizo Oil & Gas Inc. in Houston, said in an Aug. 28 interview. Charges in Pennsylvania, where the company has wells, rose as high as $1.40 per thousand cubic feet recently, about double the rate before it started to run up in mid-2012, Hunter said.

“Starting in November of this year to December, that price is going to fall dramatically on new pipeline capacity,” to 50 or 75 cents per thousand cubic feet, he said.