Category Archives: Gas

The World’s Longest Gas Pipeline – Operational

The world’s longest gas pipeline became operational in China as of December 30.

The China National Petroleum Corporation announced the last section of the west-to-east pipeline that stretches more than 5,400 miles was completed.

It is carrying natural gas from the central part of the country to Shanghai in the east and Guangzhou and Hong Kong in the south, crossing through 15 provincial regions.

China.org reported that the pipeline cost $22.5 billion dollars to build and will help bring power to 500 million people.

The pipeline will help China deliver energy to meet its increasing demands. China Daily reported the country’s electricity consumption continued to rise, growing 7.6 percent in November compared to the same month in 2011. October saw a 6.1 percent year-over-year rise, the article stated.

NextEra Requests Bids to Build Third Gas Pipeline Into Florida

NextEra Energy Inc. (NEE)’s utility Florida Power & Light Co. said it’s requesting bids to build a third natural gas pipeline into Florida to meet growing demand from power generators.

The approximately 700-mile (1,125-kilometer) pipeline would deliver gas from western Alabama to a new hub in Central Florida that would connect to FPL’s gas system in Martin County, the Juno Beach, Florida-based company said today in a statement. The line would deliver about 400 million cubic feet of gas a day starting in 2017, and would increase after that, the company said.

Bids for the project, which will consist of two segments, are due by April 3, 2013, Richard Gibbs, a spokesman for FPL, said today in a telephone interview. The “multibillion dollar” pipeline will need federal, state and local approvals, Gibbs said.

Florida uses more natural gas to produce electricity than any U.S. state other than Texas and 60 percent of the state’s power is generated by gas plants, the company said.

SOURCE: http://www.bloomberg.com/news/2012-12-19/nextera-requests-bids-to-build-third-gas-pipeline-into-florida.html

New Pipeline carrying Marcellus Shale gas

The impact of the Marcellus Shale natural gas boom is about to reach a corner of South Jersey.

Surveyors have started several months of work in Gloucester County as part of a planned major pipeline expansion project to carry gas from northern Pennsylvania to the country’s Northeast and Mid-Atlantic markets.

Dubbed the East Side Expansion project, it is expected to cost $210 million and it had not yet received approval of the Federal Energy Regulatory Commission.

Most of the work would be on right-of-way owned by Columbia Gas Transmission L.L.C., a subsidiary of Houston’s NiSource Gas Transmission & Storage, said Chevalier Mayes, a NiSource spokeswoman.

Construction would begin in early 2015 and end in the fall of that year, the company said.

In Gloucester County, Woolwich Township Administrator Jane DiBella said the pipeline would run along the Columbia Gas right-of-way parallel to Center Square Road, which extends from Logan Township into Swedesboro.

The Gloucester County leg is just a small segment of a project covering four states. The main line is to run from Milford, in Pennsylvania’s Pike County, to Loudoun County, Va.

The Gloucester branch would connect to the main north-south pipeline in Chester County and cross the Delaware River to bring gas to Columbia Gas’ existing redistribution facility in West Deptford, according to a map accompanying a solicitation of bids for the pipeline project.

 A planned Nov. 5 presentation by Columbia Gas officials to the Woolwich Township Committee was canceled because the company was involved in recovery operations related to Hurricane Sandy, DiBella said. The public session is expected to be rescheduled.

SOURCE: http://articles.philly.com/2012-11-17/news/35157753_1_pipeline-columbia-gas-transmission-llc-marcellus-shale

New gas pipeline being built in central NY

A 44-mile-long, $280 million natural gas pipeline under construction in central New York will carry natural gas from northern Pennsylvania to East Coast markets.

Construction began late last month on New York’s section of the Bluestone Pipeline that will carry natural gas produced in northern Pennsylvania to the Millennium Pipeline, which will take it to energy markets on the East Coast.

“We hope to be complete and have gas flowing by the end of the year,” said Mike Armiak, a spokesman for the pipeline.

Bluestone Gas Corporation of New York Inc., a subsidiary of Detroit-based DTE Energy, filed preliminary paperwork in July 2011 outlining plans for a nine-mile portion of the pipeline, 20 inches in diameter, in eastern Broome.

On Sept. 21, the state Public Service Commission issued a certificate that gave the company the green light for the project. Construction began Oct 20.

The pipeline will snake through Susquehanna County, Pa., before it crosses into New York in the Town of Sanford. Plans indicate it will run through 9.2 miles of rural land before reaching the Millennium Pipeline, a massive energy artery that cuts through the Southern Tier on its way from Corning to Ramapo, N.Y.

“It’s a way to get more benefits from the Millennium Pipeline by having this interconnect with Bluestone,” Armiak said, noting that union labor is being used when available. “What it means is there’ll be diversification of supply.”

The natural gas will come from wells located within a 30,000-acre footprint in Susquehanna County controlled by Houston-based Southwestern Energy Services Company, which signed an agreement with DTE Energy earlier this year.

The pipeline will have a capacity to pump 275 million cubic feet of natural gas per day — roughly enough to provide heat to 3,800 homes for a year — following DTE Energy’s planned $280 million investment in the system over 2012 and 2013, according to the company’s most recent filing with the Securities and Exchange Commission.

SOURCE: http://www.pressconnects.com/article/20121105/NEWS01/311050070/-1/?nclick_check=1

TransCanada lands second pipeline deal in Mexico

CALGARY — Mexican authorities have awarded TransCanada Corp. another natural gas pipeline contract.

The Calgary-based company said Monday that it will invest about US$400 million in a 413-kilometre pipeline between El Oro and Mazatlan, near Mexico’s west coast.

The 61-centimetre-diameter pipeline has a contracted capacity of 202 million cubic feet a day and is expected to be in service in the fourth quarter of 2016, TransCanada said.

The Mazatlan pipeline will connect with the US$1-billion Topolobampo pipeline that TransCanada was awarded last week.

TransCanada will build, own and operate the two new pipelines through its Mexican subsidiary, Transportadora de Gas Natural del Noroeste.

Both projects are supported by 25-year natural gas transportation service contracts with the Comision Federal de Electricidad, or CFE, Mexico’s federal power company.

“We are pleased to be working with the government of Mexico on new natural gas infrastructure that will bring its cleaner-burning natural gas to businesses and residents,” said TransCanada president and CEO Russ Girling.

“These new projects build on our experience developing safe and reliable pipelines in Mexico and across North America.”

TransCanada already has one of North America’s largest networks of gas and oil pipelines, including two natural gas lines already operating in central Mexico. The company built, owns and operates the Guadalajara and Tamazunchale natural gas pipelines in central Mexico and will soon break ground on a Tamazunchale pipeline extension.

Besides is network of some 68,500 kilometres of natural gas pipelines that tap into virtually all major gas supply basins in North America, TransCanada is also developing one of North America’s largest oil delivery systems, including the controversial Keystone XL pipeline designed to transport Canadian crude to refineries on the Texas Gulf Coast.

The company began work this summer on a US$2.3-billion crude pipeline connecting an oil storage hub at Cushing Okla., to Texas refineries that is expected to start up in 2013. The Gulf Coast pipeline was initially part of TransCanada’s $7.6-billion Keystone XL proposal but has been held up by political and environmental wrangling in the United States.

Meanwhile, TransCanada is also one of the continent’s largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity and has interests in more than 10,900 megawatts of power generation in Canada and the United States.

SOURCE: http://business.financialpost.com/2012/11/05/transcanada-lands-second-pipeline-deal-in-mexico/

TransCanada to invest $1-billion in Mexican natural gas pipeline

TransCanada Corp. plans to invest about $1-billion (U.S.) in a new natural gas pipeline in Mexico.

The Calgary-based pipeline giant announced Thursday that it has been awarded a contract to build, own and operate the pipeline by Mexico’s federal power company, the Comision Federal de Electricidad or CFE.

The 530-kilometre-long El Encino-to-Topolobampo pipeline will have a contracted capacity of 670 million cubic feet per day and is supported by a 25-year natural gas transportation services contract.

“Mexico’s government is engaged in a comprehensive plan to expand the nation’s electrical grid and generating capacity and much of that generation will be natural gas fired,” TransCanada president and CEO Russ Girling said in making the announcement.

“This award is another example of TransCanada’s commitment to help develop Mexico’s energy infrastructure in a sustainable and cost-efficient manner.”

The Topolobampo pipeline begins in El Encino, in Chihuahua state, and terminates in Topolobampo, in Sinaloa state, interconnecting with other pipelines that are expected to be built as a result of separate bid processes by the CFE.

Mr. Girling said TransCanada is bidding on a number of CFE proposals. The company has already built and is operating the Guadalajara and Tamazunchale pipelines and will soon break ground on a Tamazunchale pipeline extension.

TransCanada operates a network of natural gas pipelines that extends more than 68,500 kilometres and tap into virtually all major gas supply basins in North America. It is also developing one of North America’s largest oil delivery systems.

The company began work this summer on a $2.3-billion crude pipeline connecting an oil storage hub at Cushing Okla., to Texas refineries. It’s expected to start up in mid to late 2013.

The Gulf Coast pipeline was initially part of TransCanada’s $7.6-billion Keystone XL proposal, which would have sent Alberta crude to the Gulf via six U.S. states but has been held up by political and environmental wrangling in the United States.

SOURCE: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/transcanada-to-invest-1-billion-in-mexican-natural-gas-pipeline/article4809829/

Gov. Brown signs 3 bills tightening pipeline safety

Three bills that will tighten safety restrictions on natural gas pipelines as well as prioritize revenue for upgrades instead of executive compensation were signed into law Sunday by Gov. Jerry Brown.

Brown signed 34 pieces of legislation Sunday, including Assembly Bills 578, 861 and 1456, all sponsored by Assemblyman Jerry Hill, D-San Mateo.

Hill’s district includes the Crestmoor neighborhood in San Bruno, which was devastated when a PG&E natural gas pipeline exploded in September 2010. The blast and subsequent fire killed eight people and destroyed dozens of homes. Hill has made it a priority to increase regulations on utility companies to prevent another disaster.

AB 578 will require the California Public Utilities Commission, the agency that oversees and regulates utilities, to adopt the standards set forth by the National Transportation Safety Board. If the commission opts not to adopt the standards, it must submit reasons for the decision in writing.

Provisions under AB 861 would “ensure utilities don’t cut corners on safety and maintenance in order to convert ratepayer dollars into bonuses for executives,” according to Hill.

The assemblyman said company executives often receive big payouts even when there are pipelines that need to be replaced and standards that need to be upgraded.

With AB 1456, the CPUC will be required to adopt performance metrics for pipeline safety and will have the power to levy fines to those utilities that are found to be performing poorly.

Hill is scheduled to host a news conference announcing the signing of the legislation at the CPUC building in San Francisco at 10 a.m. today.
SOURCE: http://www.sfexaminer.com/local/2012/09/gov-brown-signs-3-bills-tightening-pipeline-safety#ixzz27OeOPwBq

Summit deal would expand local gas pipeline holdings

Summit Midstream Partners, LLC, is seeking to vastly expand its local (Colorado) and overall natural gas pipeline holdings with a proposed $207 million acquisition.

Summit announced Friday that it has agreed to spend that amount to acquire ETC Canyon Pipeline, LLC, which gathers and processes natural gas in the Piceance and Uinta basins in Colorado and Utah.

Summit has reached the agreement with La Grange Acquisition, L.P., a subsidiary of Energy Transfer Partners, L.P. The purchase would entail more than 1,600 miles of pipeline, 44,000 horsepower of compression facilities, processing facilities with a total capacity of 97 million cubic feet of gas per day, and two natural gas liquids injection stations.

The deal is subject to regulatory approvals and other closing conditions, and is expected to be consummated in the fourth quarter of this year.

Last year, in its initial expansion to the Rockies, Summit agreed to spend $590 million to buy part of the Piceance Basin distribution systems of Encana USA. The deal consisted of 260 miles of pipeline and 90,000 horsepower of compression facilities in the Rifle-Parachute area. The facilities transport 500 million cubic feet of gas per day.

Summit is based in Dallas and has offices in Denver, Atlanta and Houston. It also has holdings in the Fort Worth Basin, which includes the Barnett Shale formation in Texas.

The company was formed in 2009 by members of its management and funds controlled by Energy Capital Partners II, LP, a private equity firm. That firm sold an interest in Summit to GE Energy Financial Services last year.

Last month, Summit filed for an initial public stock offering of about $301.9 million to support its growth. Summit said in a U.S. Securities and Exchange Commission filing that its holdings as of June 30 included about 385 miles of pipeline and 147,600 horsepower of compression, and its systems gathered an average of about 909 million cubic feet of natural gas per day during the first half of the year.

SOURCE: http://www.gjsentinel.com/breaking/articles/summit-deal-would-expand-local-gas-pipeline-holdings/

 

Washington Gas ordered to pay six-figure penalty in home explosion case

Washington Gas has agreed to replace copper lines throughout a Chantilly neighborhood and pay Virginia a six-figure penalty stemming from a explosion in 2010, but the settlement will not compensate the homeowner’s whose loss launched the investigation.

In the agreement between the company and the State Corporation Commission, Washington Gas neither admits or denies violating safety standards. The company has been directed to undertake several safety improvements, including the replacement of all copper service lines in the Brookfield Community where the explosion occurred.

As of Dec. 20, 2010, charred debris was all that remained of Thuan Nguyen’s two-story home in the 4300 block of Lees Corner Road. No one was hurt in the explosion as the Nguyen family was out at the time.

A subsequent investigation and report of the accident by the SCC’s Division of Utility & Railroad Safety cited nine alleged violations of the commission’s gas pipeline safety standards against Washington Gas.

The report states the gas service line under Lees Corner Road leading to Nguyen’s home experienced severe corrosion that resulted in a major gas leak.

However, the report also states that alone is not enough to prove culpability for the explosion on the part of Washington Gas because it cannot be proved that a 1-inch diameter gas fuel line that “terminated on the second floor of the [Nguyen] residence” had been properly capped.

According to the report, the end threads of that fuel line were tested after the explosion for the presence of pipe thread sealant; none was found.

Representatives of the SCC and Washington Gas announced the settlement May 24 during a public forum in the neighborhood.

“We turned over every stone we could,” said Massoud Tahamtani, director of SCC’s Division of Utility & Railroad Safety. “What we found is that there were two sources of the potential leak; one under Washington Gas’s control and one under the homeowner’s control.”

According to SCC safety manager Shane Ayers, Washington Gas will be pay a penalty of $154,800 to the state, with an additional $219,700 due if the remedial actions set forth in the order are not met.

“We’ve got over 200 lines to replace in this neighborhood,” said Steve Price, Washington Gas spokesman.

“So if you don’t think the explosion was caused by faulty copper lines, why all this work?” Nguyen asked during the public forum.

“The corrosion rate for copper pipes is greater than other materials like steel,” Stabler replied. “It is rare to see corrosion and we only see two corrosions per year on average. We will take this opportunity to replace older copper lines in this neighborhood. ”

SOURCE: http://www.fairfaxtimes.com/article/20120601/NEWS/706019697/1117/washington-gas-ordered-to-pay-six-figure-penalty-in-home-explosion&template=fairfaxTimes

 

PG&E Names New Executive to Gas Pipeline Team

PG&E added another executive to its gas operations team to help rebuild the company following the 2010 pipeline explosion in San Bruno.

Jesus Soto Jr., who is currently the vice president of operation services for El Paso Corp.’s pipeline group, will now become PG&E’s senior vice president of gas transmission, operations, engineering and pipeline integrity.

In his new role, Soto Jr. will be responsible for four areas for the company:

  • public safety and integrity management;
  • project engineering, design and management;
  • gas transmission; and
  • gas system operations.

“PG&E and our customers are fortunate to have someone with such a strong background working to make our system the best in the country,” said Nick Stavropoulos, PG&E’s executive vice president of gas operations, who was recently hired himself to help chart a new path for the utility following the San Bruno disaster. “We have already made excellent progress in turning our operations around, and there is still more to do. I have every confidence Jesus will play a major role in meeting this challenge.”

PG&E has been steadily making strides to revamp its pipeline operations by bringing in Stavropoulos and new CEO Anthony Earley and following through on the pipeline safety recommendations the National Transportation Safety Board issued following the explosion.

The utility also is trying to get a $2.2 billion plan approved by the California Public Utilities Commission to modernize its pipeline system throughout the state.

Meanwhile, PG&E has still been beset with problems stemming from its pipeline operations.

The CPUC recently fined PG&E $3 million for failing to comply with the commission’s orders to provide records for its gas transmission pipelines following the explosion. The company has set aside another $200 million for pending fines that are expected for the explosion.

More than 250 people have filed lawsuits against PG&E for the explosion, and the jury trial starts in July. The lawsuits are expected to be costly.

PG&E also just reached a settlement with the city for $70 million as restitution for the fire.

Soto said he hopes to help turn the company’s operations around.

“I look forward to quickly integrating myself into the PG&E Gas Operations organization and reinforcing a team and a culture that are driven to operational excellence anchored in public, employee and contractor safety, facility integrity, regulatory compliance and system reliability,” he said in a statement.

SOURCE: http://sanbruno.patch.com/articles/pg-e-names-new-executive-to-gas-pipeline-team