Category Archives: Pipeline

MATCOR Offers Take on Natural Gas Liquids Production and NGL Transportation

“There is much discussion about the abundance of natural gas deposits in Marcellus Shale, and there is tremendous focus in extracting this precious resource. However, the industry’s ability to get this product to the end user is impacted by the infrastructure that currently exists.

“While rail is a means to transport natural gas, MATCOR is working with a growing number of midstream companies in expanding transmission and distribution piping networks. The key is to get product to market in a cost-effective and safe manor, and MATCOR’s cathodic protection products and services help ensure any new pipeline, regardless of the product it delivers, is in compliance and protected from corrosion.”

John Rothermel, PE

Vice President of Sales, MATCOR

Pipelines Planned for NGL Transportation Through Central Pennsylvania

At least one company is looking to take advantage of the rapid growth of natural gas liquids production from two of the largest shale regions in the nation.

Sunoco Logistics, a Philadelphia-based company that transports, terminals, and stores crude oil and refined petroleum products, recently announced that it was surveying land for a new pipeline, dubbed Mariner II East, that would connect production of natural gas liquids (NGL) from the Marcellus and Utica  shale regions of Pennsylvania, Ohio, and West Virginia to one of the company’s oil and diesel tank farms outside of Mechanicsburg.

The company also has plans to convert its existing Mariner East I pipeline, which used to carry oil and diesel fuel west, so that it carries propane and ethane east to its facility in Marcus Hook, which had also been idled.

The company bought the refinery from the former Sunoco Co. earlier this year for $60 million and is spending an unspecified amount of money to upgrade it and bring it back online as a natural gas liquids production refinery.

Sunoco Logistics is betting on the continued growth of natural gas production, of which NGLs like propane and ethane are byproducts. Natural gas production has increased in recent years thanks to hydraulic fracking, which has resulted in a larger supply that has driven prices down and has therefore, like a circle, created bigger demand for natural gas.

As a result of this process, NGL production has climbed during the last four years from 50 million to 70 million barrels per month. But, without greater avenues for NGL transportation, the increased production is moot.

Sunoco Logistics says that its plan to build a new NGL transportation pipeline, and convert an old pipeline for NGL transportation, will help create a northeast NGL hub in Marcus Hook that will help meet the demands of NGL producers and local and overseas consumers.

The Mariner East projects are only a few of the pipelines being planned by Sunoco Logistics. The company has roughly a dozen oil and gas projects on the books over the next 12 months at a cost of $1.3 billion, four times what it spent on capital expenditures each of the last four years.

MATCOR offers cathodic protection safety products and services to companies like Sunoco Logistics, which require cathodic protection equipment to maximize safety, efficiency, and capital investment in their pipeline projects.

Further Reading

Sunoco Logistics Plans Marcellus, Utica Pipeline Through Susquehanna Valley,” The Patriot News, Nov. 21, 2013.

Enbridge Energy applies to build pipeline from North Dakota

Enbridge Energy has applied to build the largest oil pipeline yet from western North Dakota’s booming oil patch and will soon begin courting oil producers to reserve space, a key step in a $2.6 billion project that would move millions of gallons of oil to Minnesota and Superior, Wis.

Enbridge Energy, based in Calgary, Alberta, is proposing the 612-mile Sandpiper pipeline to carry 225,000 barrels of oil each day to a hub in northern Minnesota and 375,000 barrels to one in northwestern Wisconsin. If approved by regulators, it would be the largest pipeline moving oil out of North Dakota, the nation’s second-leading producer of oil behind Texas.

North Dakota has more than doubled its oil production in the past two years, closing in on a million barrels of oil a day. But because of the lack of pipeline capacity in the state, about 60% of the state’s daily oil production is being shipped by rail. A barrel is equivalent to 42 gallons.

Enbridge Energy comments that the project is “needed and in the public interest.”

Oil shipped to Superior would be shipped through Wisconsin on a network of pipelines already in place. Enbridge Energy has proposed an expansion that would not add pipe in the state, but would expand pump stations to allow more oil to flow through the Wisconsin pipelines.

The pipeline is the biggest project yet to come before North Dakota regulators to move oil from the rich Bakken and Three Forks formations in the western part of the state, said Brian Kalk, who heads the North Dakota Public Service Commission. The three-member commission oversees a slew of public interests, from pipelines to grain elevators, though much of its recent work has involved the oil and natural gas industry.

A spokesperson for Enbridge Energy said the new pipeline would provide “a timely, cost effective and long-term transportation solution, thereby serving the public’s interest in improved access to an abundant, secure, and reliable crude oil supply to satisfy consumers’ demand for refined products.”

Kalk said the commission is reviewing the application and that at least three public hearings will be held in communities along the pipeline’s proposed route in North Dakota.

If it is approved, the two-phase expansion project for Wisconsin entails construction or upgrades at 13 Wisconsin pumping stations, along with three in Illinois, that would permit the pipeline from Superior to Illinois to triple its capacity to 1.2 million barrels a day from 400,000 barrels a day.

Enbridge Energy operates about 50,000 miles of pipelines in North America, and several hundred miles of pipelines in North Dakota, including one that runs between Minot, N.D., and Clearbrook, Minn. The line, built in 1962, has the capacity to ship 210,000 barrels of North Dakota crude daily, or about 8.8 million gallons.

SOURCE: http://www.jsonline.com/business/canadian-firm-applies-to-build-pipeline-from-north-dakota-to-superior-b99135995z1-230738391.html

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.

SOURCE: http://www.palmbeachpost.com/news/business/state-regulators-clear-way-for-fpl-natural-gas-pip/nbXkw/

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.

SOURCE: http://fuelfix.com/blog/2013/10/09/kinder-morgan-expanding-eagle-ford-pipeline-to-new-facility/

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

SOURCE: http://www.ogj.com/articles/print/volume-111/issue-10/general-interest/spectra-energy-to-add-as-much-as-7-3-bcfd.html

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.

SOURCE: http://www.dispatch.com/content/stories/local/2013/09/30/new-northwest-ohio-pipeline.html

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

SOURCE: http://www.phmsa.dot.gov/staticfiles/PHMSA/DownloadableFiles/Press%20Releases/phmsa1613.pdf

Utica Shale – New $125M Pipeline Planned

PVR lands Hess deal to build Utica shale pipeline

PVR Partners LP, an Eastern Pennsylvania midstream company, is teaming with Hess Corp. (NYSE: HES) as it expands into the Utica Shale play in eastern Ohio.

PVR (NYSE: PVR) has been tapped to build, own and operate a 45-mile natural gas trunkline and gathering pipelines and facilities for Hess. The company is expected to have a total capital investment of between $125 million to $150 million. The project should be online in late 2014, according to a statement from PVR.

“PVR is pleased to announce this strategic expansion of our midstream business into the Utica Shale and we welcome the opportunity to serve Hess Corp., a world-class energy provider,” said Bill Shea, president and CEO of PVR, in a written statement. “We believe Hess’s selection of PVR as their midstream provider in the Utica Shale is another validation of our growing reputation for supplying reliable high-quality midstream services to meet the needs of shale gas producers.”

The project consists of a minimum 20-inch diameter trunk line with anticipated minimum capacity of 450 million cubic feet per day and connections with the Texas Eastern and Rockies Express interstate pipelines, according to PVR. Additional connections could also be added to other interstate pipelines. The project also includes constructing compression stations, dehydration and other facilities.

PVR is expected to invest $10 million in this project during the rest of 2013 and another $50 million during the first half of 2014. An additional $50 million will be invested in the second half of 2014 and the remainder in 2015, according to the company.

SOURCE: http://www.bizjournals.com/pittsburgh/blog/energy/2013/09/pvr-lands-hess-deal-to-build-utica.html

MATCOR’s Insights that Work

This is great news for the Utica Shale region with this natural gas pipeline. However, there is a large responsibility for pipeline safety, cathodic protection management and more.

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 ISO 9001:2008 certified expert in the field of cathodic protection, MATCOR offers proprietary corrosion protection design, engineering, manufacturing, installation, cathodic protection testing, annual surveys, maintenance and complete corrosion protection project management. We specialize in protecting the infrastructure of the oil and gas, utility, transportation and construction industries.

MATCOR Launches Linear Anode Specific for HDD – Iron Gopher™

The Only Linear Anode Designed Specifically for Horizontal Directional Drilling (HDD) Applications 

CHALFONT–September 4–MATCOR, Inc. the trusted full-service provider of proprietary cathodic protection products (for example: linear anode), systems and corrosion engineering solutions, introduces Iron Gopher™, another first in a long series of MATCOR innovations for the cathodic protection industry.

Linear Anode
Introdroducing Iron Gopher™ The only anode designed specifically for Horizontal Directional Drilling (HDD) application

“In direct response to our clients’ needs, MATCOR designed a linear anode system specifically for the stresses of Horizontal Directional Drilling (HDD) environments. The Iron Gopher™, which is ready to install upon delivery to the job site, is an elegant solution to a difficult problem.  The strength of the Iron Gopher™ is unmatched in the market,” said Doug Fastuca, President of MATCOR, Inc.

“We recently installed several thousand feet of MATCOR’s Iron Gopher™ linear anode at an HDD project.  With its unique design and greatly increased strength, the product is superior to anything in the market for HDD applications.  The HDD installation went exceptionally well and the linear anode is performing as expected.  We were excited to work with MATCOR and expect to come back to the Iron Gopher™ for future HDD projects,” said Michael Pearce, Corrosion Program Manager, Colonial Pipeline Company.

The patent-pending Iron Gopher™ features a rugged stainless steel outer jacket for greatly increased pulling strength in HDD installations.  The Iron Gopher™ utilizes MATCOR’s proven SPL™–Anode as its core and adds a patent-pending, high-strength stainless steel overbraid, a proprietary aluminum nosecone and a pulling-cable assembly to create a system with superior strength.  In addition, the Iron Gopher™ utilizes the patented Kynex® connection technology to ensure waterproof connections in the anode.

For further technical and product information about the Iron Gopher™ contact your MATCOR Account Manager, visit www.matcor.com/products/matcor-iron-gopher or call (US. & Canada) 1 800-215-4362 (Worldwide) +1-215-348-2974.

About MATCOR

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 ISO 9001:2008 certified expert in the field of cathodic protection, MATCOR offers proprietary corrosion protection design, engineering, manufacturing, installation, cathodic protection testing, annual surveys, maintenance and complete corrosion protection project management. We specialize in protecting the infrastructure of the oil and gas, utility, transportation and construction industries. To learn more about MATCOR, please visit www.matcor.com or call 1-800-523-6692.