PIN 2009-12

7/21/2019 PIN 2009-12

1/37

DECEMBER 2009ISSUE 002

PiggingPipelayersGASTAU Pipeline

United StatesREVIEW

7/21/2019 PIN 2009-12

2/37

7/21/2019 PIN 2009-12

3/37

Your pipelines are probably your single biggest physical asset. Protecting this

asset from third party damage ensures uninterrupted service for your customers

while it protects your investment.

Fade Resistant & UV StableTemperature stable from -40 to 150C.

North Slope of Alaska

Protect Your Pipelineswith Rhino TriView Systems

Available with Terminals

Bury It

TriGrip anchorbarbs fold out,

securing theTriView in

the ground.

Detail

Drive It

Easy & Versatile Installation

Decals in any Language

Durable & Flexible

See demos in action by watchinghigh speed and cold weather impact

videos at RhinoMarkers.com

Slide It

IN AN EMERGENCYORBEFOREEXCAVATING

CALL

FIBER

OPTICCABLE

Will withstand repeated impacts

Rhino Marking & Protection Systems www.RhinoMarkers.com

Grenoble Office: +33 970 44 91 51 USA Factory: 507-835-4646

7/21/2019 PIN 2009-12

4/37

2 PIPELINES INTERNATIONAL | DECEMBER 2009

ISSUE 002 | DECEMBER 2009

The publishers welcome editorial contributions from interested

parties. However, the publishers do not accept responsibility

for the content of these contributions and the views contained

therein which will not necessarily be the views of the publish-

ers. The publishers do not accept responsibility for any claims

made by advertisers.

Unless explicitly stated otherwise in writing, by providing edito-

rial material to Great Southern Press (GSP), including text and

images you are providing permission for that material to be sub-

sequently used by GSP, whole or in part, edited or un changed,

alone or in combination with other material in any publication

or format in print or online or howsoever distributed, whether

produced by GSP and its agents and associates or another party

to whom GSP has provided permission.

NORTHERN HEMISPHERE

(Editorial and Technical)PO Box 21Beaconsfield, BucksHP9 1NSUnited KingdomTel: +44 1494 675139Fax: +44 1494 670155

[email protected]

www.pipelinesinternational.com

SOUTHERN HEMISPHERE

(Sales and Subscriptions)GPO Box 4967Melbourne VIC 3001AustraliaTel: +61 3 9248 5100Fax: +61 3 9602 2708

REGULARS4 From the Editor15 Pipes & People61 Media Kit64 Advertisers Index Subscriptionform Comingin future issues

AROUND THE WORLD

6 TransCanada supersizesKeystone project

7 IP Pipeline moves forwardafter much discussion

8 Technological breakthrough crucial forSecond West East Gas Pipeline

9 South Stream: providing moregas to Europe

10 Peru to complete Camisea pipelineexpansion ahead of schedule

11 Egyptian pipeline complete12 World Wrap14 Project briefs

MEET THE COMPANY

16 Enags: expanding pipelinesin Europe

REGION REVIEW: USA

18 Pipeline development in

the land of the free23 REX appeal: pipeline construction

in the Rockies

TERRAIN REVIEW

24 Protecting pipelines in mountain areas

POLICY AND OPINION

26 Canadian perspective: a goal-orientedapproach to regulating pipelines

TECHNICAL

28 Environmental navigation of Germanlandfall and modelling pull-back

operations

PROJECTS

30 GDK: innovative pipeline constructionon GASTAU

33 Pipeline link constructedin central Australia

PIPLINE EQUIPMENT35 Pipelayers and sidebooms: the

essential pipeline machinery

38 Pipelaying with the PL61

PIGGING

40 Optimal identification: getting up closewith ID anomalies

43 GEs MagneScan inspectsNormandy pipeline

44 Prickly pigging: PipeWays Porcupinereaches the international market

45 PPSA: providing squeaky clean piggingadvice

46 Ensuring pipeline integrity:talking pigging in Houston

VALVES

48 5 simple steps tototal valve integrity

TECH TALK

50 A place for science in pipeline design

INDUSTRY NEWS

52 CTDUT: a model for sharing facilitiesand costs in research and development

HISTORY

54 Trans-Mediterranean Pipeline

PRODUCTS AND SERVICES56 Learn to weld with Lincoln Electrics

virtual welding system

56 Production begins on worlds largestthree-screw crude oil pipeline pump

56 Latest edition of WinDOT thePipeline Safety Encyclopedia

56 Cure pipes with Curapipe

EVENTS

57 Pipeline carnivale in Rio!58 Evaluating different

rehabilitation approaches

59 Pipeline Technology Conference:a scientific update from Ostend

60 APCE: pipeline success inSouth East Asia

60 Australian industry gathersin northern Australia

24 26 54

CONTENTS

Theglobal organizationfor oil and gas

pipeline engineers

www.pipeinst.org

Recognizing your skills and status

Promoting the highest engineering standards

Providing a professional network

SIGN UP TODAY!

7/21/2019 PIN 2009-12

5/37


It seems a paradox: 1015 years ago, as

intelligent inspection was developing

and the science was coming into its

own, a major point of discussion was to do

with the technology itself. The big question

was high resolution or low resolution?,

relating to the capacity of the equipment to

detect pipewall features. Putting this another

way, did the operator want a quick-and-

dirty (and therefore cheap) inspection,

or was the Full Monty required? The

issue revolved around the capacity of the

intelligent inspection tools to inspect, and

the cleanliness of the pipeline that the tool

was to inspect was sometimes considered of

less significance.

Now, however, intelligent inspection

tools are of an unimaginably greater

sophistication, and the general questionbeing asked is no longer to do with their

capacity to accurately and precisely detect

features, but to do with how clean the

pipeline is. A pipelines internal cleanliness

has, quite properly, become a question of

great significance. Nevertheless, there are

no published standards of cleanliness and

although there are many ways in which

deposits can be removed from a pipe wall,

ensuring a pipeline is clean enough for

an inspection to be carried out remains a

subjective process.

It has often been said that the best

cleaning tool is a magnetic-flux leakage

intelligent pig, and this remains true.

While it is clear that each pipeline and its

operating regime are different, it seems

surprising that it has not been found

possible to establish some basic guidelines

for achieving cleanliness. Under normal

operating conditions, minimisation of

pipewall deposits will improve flow

conditions as well as a pipelines overall

efficiency and cost-effectiveness, to say

nothing of the effect on reducing the

potential for corrosion. When its time foran inspection, deposits and other debris

must be removed, both to ensure that

the tools sensors can have unimpeded

access to the pipewall, and to remove the

possibility of debris clogging-up the tool,

and even causing it to become stuck.

The question of how clean is clean?

is not unfamiliar and, in fairness, is

being asked more frequently. One of the

most detrimental cleaning problems

for gas pipelines is the formation and

accumulation of so-called black powder.

This material which is as fine as flour,

although far more dangerous because it is

both abrasive and pyrophoric is one of

the least understood but most prominent

contamination problems in gas pipelines.

Black powder is the name given to the

mixture of iron oxides, carbonates, and

sulphides found in gas lines. Its sources

include millscale, corrosion products,

salts and scales from gas wells and wet

gas gathering systems, and atmospheric

corrosion. The variability of its composition

is illustrated by reports of the powder

ranging from being completely iron sulphide

to completely iron oxide.

Black powder can cause product quality

problems and excessive wear and erosion on

internal pipewalls and many other pipeline

components, including compressors,turbines, and valves. The accumulated solids

can plug small orifices and consequently

affect measurement equipment and, as the

particles settle out of the gas stream, they

can fill-in surface pits and other internal

pipewall anomalies, preventing accurate

inspection. In sag bends, these build-ups can

harbour corrosive bacteria.

Although difficult to deal with, the

problems caused by accumulations of this

material can be overcome as can most

pipeline problems by careful planning

and attention to detail. However, removal

of the black powder from the pipeline is

not the end of the affair. As the material

is hazardous, necessary arrangements for

its disposal must be made, and obviously

these should be in place before any pigging

operations begin.

A special session on this problem is

being organised at the Pipeline Pigging and

Integrity Management (PPIM) Conference

being held in Houston on 1718 February

(see page 46), and other papers at the event

will also address the issue.

The more the subject of how clean isclean? can be discussed, the more likely it is

that shared experiences can lead to a shared

solution; at the very least, clean needs to

be kept in the spotlight of pipeline integrity

management and operations.

John Tiratsoo

Editor-in-Chief

FROM THE EDITOR

Cover shows workersfinalising pipe

stringing on a portion

of Enbridges Alberta

Clipper Pipeline project,

a 36 inch, 450,000 barrels

per day crude oil pipeline

from Hardisty, Alberta,

Canada, to Superior,

Wisconsin, USA.

Editor-in-Chief: John TiratsooAssociate Editor: Lyndsie Mewett

Product Manager: Scott Pearce

Journalists: Stephanie Clancy

Julia Cooke

Sales Manager: Tim Thompson

Snr Account Manager: David Marsh

Sales Representative: Brett Thompson

Design Manager: Michelle Bottger

Designers: Sandra Noke

Stephanie Rose

Venysia Kurniawan

Publisher: Chris Bland

ISSN: 1837-1167

January 19-20 DIMP Distribution Integrity Management Program (Houston)

February 2-5 Subsea Production Systems Engineering (Aberdeen)

February 15-16 Pigging & In-line Inspection (Houston)

February 15-16 Defect Assessment in Pipelines (Houston)

February 15-16 Pipeline Repair Methods / In-Service Welding (Houston)

February 15-16 Introduction to Excavation Inspection & Applied NDE for Pipeline IntegrityAssessment (Houston)

February 15-16 Pipeline Risk Management (Houston)

February 15-16 Performing Pipeline Rehabilitation (Houston)

February 15-16 DOT Pipeline Safety Regulations - Overview and Guidelines for Compliance(Houston)

February 15-18 Pipeline Pigging & Integrity Management Conference (Houston)

February 15-19 Subsea Pipeline Engineering Course (Amsterdam)

April 12-16 Practical Pigging Training (Rio de Janeiro)

April 20-23 Engineering for Arctic Environments (Houston)

April 26-27 Microbiological Corrosion in Pipelines (Houston)

April 26-30 Subsea Pipeline Engineering Course (Houston)

April 27-30 Subsea Production Systems Engineering (Houston)

May 10-14 Pipeline Defect Origination, Characterization and Sizing (Houston)

May 17-21 Deepwater Riser Engineering Course (Houston)May 17-21 Onshore Pipeline Engineering (Houston)

January 2010

February 2010

APRIL 2010

May 2010

e ru DOT n e Sa e ati vervi Gui e Co ceHo

ruar Pip ggi & Int ty emen re e Hou

ruary Su e i gineer ng e A m

12-1 Prac iggi g JaneirAPRIL 201L 2

Training coursesearly 2010

Are you up to speed?

Working with a faculty of some 38 leading industry experts, Clarion and Tiratsoo Technical areprivileged to provide some of the best available industry based technical training courses for

those working in the oil and gas pipeline industry, both onshore and oshore.

Complete syllabus and registration details for each course are available at:

www.clarion.org

102000 0

7/21/2019 PIN 2009-12

6/37

PIPELINES INTERNATIONAL | DECEMBER 2009 7

TransCanada is seekingregulatory approvals inCanada and the United Statesto construct and operate a3,200 km expansion of its3,456 km Keystone Pipeline,which would make it one of thelargest oil delivery systems inNorth America.

In September 2009, Canadas National

Energy Board held a hearing to review

the application for the Canadian

portion of the Keystone Gulf Coast

expansion dubbed Keystone XL with

a decision expected in early 2010. Permits

for the US portion of the expansion are

expected by mid-2010. Construction of the

Keystone expansion is expected to begin

once TransCanada receives the necessaryregulatory approvals.

The proposed Keystone XL Pipeline

would increase the capacity of the original

pipeline system from Western Canada to the

US Gulf Coast by 500,000 barrels of oil per

day. Once completed, the pipeline system

would have the capacity to deliver 1.1 million

barrels of oil per day.

The extension is proposed to originate in

Alberta, Canada, and extend south to serve

markets on the Gulf Coast, Texas.

The 36 inch diameter pipeline would

begin in Hardisty, Alberta, and travel

527 km to Monchy, Saskatchewan, and

then 1,360 km from Morgan, Montana, to

Steele City, Nebraska, where it would link

into the original 477 km Keystone Pipeline

extension to Cushing, Oklahoma, scheduled

for construction in 2010. From Cushing,

Keystone XL will run to Houston and Port

Arthur, Texas.

The total cost of the Keystone and

Keystone XL project is expected to be

approximately $US12 billion.

Meanwhile, the initial phase of

TransCanadas Keystone Pipeline isnearing completion with the pipelay

works set to reach Patoka, Illinois, by the

first quarter 2010.

At the time of writing, the first phase

of the project was 90 per cent complete,

with TransCanada on schedule to begin oil

deliveries in the first quarter of 2010.

The Keystone Pipeline originates in

Alberta, Canada, and extends 3,456 km to oil

refineries in Wood River and a tank farm in

Patoka, Illinois.

The first phase involves the construction

of 2,592 km of pipe and the conversion of

864 km of natural gas pipeline to oil service.

Converting the existing facilities in Canada

began in 2008.

TransCanada supersizesKeystone project


AROUND THE WORLD AROUND THE WORLDAROUND THE WORLD

Iran has completed a major portion of the construction work on the Iran Pakistan (IP) Pipeline projectwith the gas pipeline to reach the Iran Pakistan border within the next few months, according to theIranian Consul General based in Pakistan, Masoud Mohammad Zamani.

Iranian Foreign Minister Manouchehr

Mottaki has said that over 100 km of

the 1,935 km pipeline project has been

constructed in Iran. Pakistan has also started

construction on the project, added Mr Mottaki.

With an anticipated gas capacity of

26,485 cubic feet per annum, the 42 inchdiameter gas pipeline will run from the

Assaluyen Gas Field in southern Iran to

Pakistan.

Formerly called the Iran Pakistan

India Pipeline, the project has been under

discussion for almost two decades and

initially intended to inc lude India. However,

when Iran and Pakistan signed a gas sales

purchase agreement for the pipeline project

in May this year, India refrained from

partaking in signing the agreement due to

security concerns about the pipeline.

In July 2009, the Iranian Ministry of

Petroleum and Natural Resources announced

that supply of gas from Iran has been

scheduled for October 2013.

The Pakistani Economic Co-ordinationCommittee (ECC) approved the $US3.2 billion

Iran Pakistan gas pipeline the following

month. A sub-committee of the ECC decided

that the route of the pipeline would mainly run

through the state of Balochistan, in Pakistan.

Pakistan Federal Minister for Petroleum and

Natural Resources told local media that only local

companies would be involved in the project.

In September, the Pakistani ambassador

to Iran Muhammad Bux Abassi claimed

that India had definitely quit the pipeline,

however Iranian officials are said to have

denied these comments. Officials from Iran

and Pakistan said that the option remains

open for India to join the project at a later

stage, but Iran said that it would not wait

indefinitely for India to commit to the project.Shortly after, the Iranian Ambassador to

India Seyed Mehdi Nabizedeh told local news

sources that China was interested in the project,

but no formal agreements have since been made.

The original Iran Pakistan India

Pipeline was proposed to be 2,670 km long,

running from the Assaluyen gas field in

southern Iran to the Gas Authority of India

Limiteds Hazira Vijaipur Jagdishpur

Pipeline in Gujarat.

IP Pipeline moves forwardafter much discussion

COPON Internal Pipe Linings have been

applied to over 140,000 km of diverse

service pipelines worldwide during a

period spanning more than 45 years:

Gas & Oil

Sour Gas & Oil

Water

Aviation Fuel

Refined Product

Petrochemical

+44 (0)1609 780170

+44 (0)1609 780438

[email protected]

COPON Pipelinings

www.pipelinings.com

COPON AND THORTEX HAVE BEEN REBRANDED TO FORM PART OF THE SCOTCHKOTE PRODUCT RANGE FROM 3M

COPON Pipelinings - one of the world leaders in flow coating & lining technology

Corrosion Protection Products

3M United Kingdom plc

23 Standard Way, Northallerton, North Yorkshire DL6 2XA United Kingdom

Tel:

Fax:

Email:

7/21/2019 PIN 2009-12

7/37


Europes energy demand continues to grow, with an additional 205 billion cubic metres of naturalgas estimated to be required by 2030. Gazproms South Stream Pipeline will make an importantcontribution to improving Europes energy security.

South Stream: providingmore gas to Europe

AROUND THE WORLD AROUND THE WORLDAROUND THE WORLD

The South Stream Pipeline will deliver gas

from the Russian Unified Gas System,

which sources its gas from Russian

domestic gas sources and Central Asian gas

suppliers, to Europe via the Black Sea.

The pipeline i nvolves the construction

of three sections of pipeline: an onshore

Russian section, an offshore section, and an

onshore south and central European section.

Onshore route selectionThe Russian onshore section of the

pipeline will run from the Pochinki

Compressor Station to the Black Sea coast.

A feasibility study is currently underway to

select the route for this section of pipeline.

Several possible routes for the onshore

south and central Europe sections are

currently being considered. Gazprom has

negotiated inter-governmental agreements

with Greece, Serbia and Bulgaria, which

contemplate the creation of joint venture

enterprises between Gazprom and local

companies to develop and operate the South

Stream Pipeline on their territories. Gazprom

is currently in the process of starting those

joint ventures with its partners.

Offshore challengesThe offshore section of South Stream

will extend 900 km across the Black Sea

at depths of up to 2 km and connect the

Russian and Bulgarian coasts. Italian

company Eni will partner Gazprom in the

offshore construction of the project.

Gazprom and Eni have gained experience

in the course of construction and operation

of the Blue Stream Pipeline across the

Black Sea. Gazprom says that Blue Stream

has demonstrated that the construction of

subsea projects has only a temporary and

local effect on the marine environment,

and the risk of potential pollution can be

effectively minimised.

Currently, Gazprom and Eni are

carrying out a detailed feasibility study

of the projects offshore section, which is

scheduled to be completed in the beginning

of 2010. At the conclusion of the study the

pipeline route, technical requirements and

capacity will be finalised.

Speaking about the progress of the

pipeline, Gazprom Management Committee

Chair Alexey Miller said We have the

technical know-how required to build

South Stream in compliance with the

latest environmental and technological

requirements, and we are making significant

progress on the pipeline. We are currently

carrying out feasibility studies which will

allow more accurate routeing.

Pipeline construction works are scheduled

to be completed by the end of 2015.


The 8,704 km pipeline consists of onetrunk link and eight branches that will

connect Horgos, located in Xinjian

Uygur Autonomous Region with the Hong

Kong Special Administrative Region after

traversing 14 provinces, autonomous regions

and municipalities.

CNPC has successfully incorporated

technological breakthroughs from six

of its research projects to support the

construction.

Seven new products have been

developed and manufactured domestically

on an industrial scale. These products

include large diameter, high grade steel

pipe materials, spiral submerged arc welded

pipes, hot bending bends and hot-drawn

T-joint pipe fittings.

The new X80 steel welding wire and flux

increased welding speed by up to 1.7 m per

minute, which is 30 per cent higher than the

speed achieved on the first West East Gas

Pipeline.

Welders on the Second West East

pipeline received guidance on more than

100 techniques developed through the

project including automatic welding,semi-automatic welding, joint-connecting

welding and rework welding of the X80

steel pipes. Significant progress was also

made in fracture control, anti-corrosion

field coating, gas storage location, integrity

management technologies, and safety pre-

warning technologies, which have benefited

the construction and safe operation of the

pipeline.

Pipeline progressThe project has been divided into

eastern and western sections with Zhongwei,

located in Ningxia Hui Autonomous Region,

designated as the pipelines midpoint.

The western section, running 2,461 km

from Horgos to Zhongwei, commencedconstruction in February 2008 and the

welding work on the principle parts of the

trunk line is now complete.

The eastern section, running 2,477 km

from Zhongwei to Guangzhou with designed

pressure of 10 MPa, commenced construction

in December 2008. The eastern section is

expected to connect into the Turkmenistan

China Gas Pipeline, which is currently

under construction, by the end of 2009 and

is scheduled to be comissioned in 2011.

On November 16, the tunnelled crossing

of the Changjiang River was successfully

completed. The crossing was a key

engineering project for the Second West

East Gas Pipeline. The crossing took place

between Jiujiang City in Jiangxi Province

and Wuxue City in Hubei Province, with a

horizontal crossing span of 2,590 m. China

Oil and Gas Pipeline Company was the

engineering, procurement and construction

contractor.

The next step is to lay a 48 inch diameter

pipeline in the tunnel, which is expected to

be completed in April 2010.

Once completed, the pipeline willtransport natural gas imported from Central

Asian countries, as well as gas produced

domestically in the Tarim, Junggat, Tuha

and Ordos basins, to the Pearl and Yangtze

River delta areas and the central west part of

China.

The pipeline is expected to increase

the share of natural gas in Chinas energy

consumption by 12 per cent and play a

significant role in boosting the countrys

domestic natural gas demand, facilitate

the improvement of Chinas machinery

manufacturing, improve the nations energy

structure and promote economic and social

development to the adjacent regions along

the pipeline.

China National Petroleum Corporations (CNPC) intensive research and development programme hasbeen integral in the construction of its Second West East Gas Pipeline.

Technological breakthrough crucialfor Second West East Gas Pipeline

Construction progressed as planned onthe first West-East Gas Pipeline.

7/21/2019 PIN 2009-12

8/37

10 PIPELINES INTERNATIONAL | DECEMBER 2009 PIPELINES INTERNATIONAL | DECEMBER 2009 1110 PIPELINES INTERNATIONAL | DECEMBER 2009

Pluspetrol was scheduled to begin

the mobilisation of materials and

equipment to expand its Malvinas

Gas Processing Plant, which extracts gas

from the Camisea Gas Fields to feed into the

Camisea Gas Pipeline, in November 2009.

The Camisea pipeline connects the

Camisea Gas Field, located in the UcayaliBasin, 431 km east of Lima, to the Port of

Pisco, Peru. The downstream project consists

of two pipelines: a 714 km natural gas

pipeline and a 540 km liquids pipeline.

The two pipelines run parallel to each

other from the Camisea field passing through

the Andes mountain range via the Malvinas

gas processing plant to Pisco. From Pisco,

the natural gas pipeline turns north along

the coastline to the Lima city gate to supply

gas for domestic use.

Transportadora de Gas Peruano (TGP) is

a consortium led by Argentinas Tecgas and

includes Pluspetrol, Hunt Oil,

SK Corporation, Sonatrach and Grana y

Montero. TGP was awarded three different

33 year contracts by the Government of Peru

as part of the Camisea downstream project

in 2000 a contract for the transportation of

gas from Camisea to Lima, a second contract

for the transportation of natural gas liquids

from Camisea to the coast, and a third for the

distribution of gas in Lima and Calleo.

Two major upgrades, both due for

completion in the second half 2009, are

under way: an increase of capacity at a

compressor station in the Ayacucho region

and the construction of a loop along

Peru's coast. The upgrades will expand

the pipeline from its current capacity of

115 billion cubic feet per annum (Bcf/a)to a capacity of 164 Bcf/a in an attempt to

meet the demand for gas in Perus densely

populated coastal regions. It was originally

anticipated that the pipeline would reach

164 Bcf/a in 2015; however the spike in

Peruvian gas consumption from 95 Bcf/a in

2007 to 120 Bcf/a in 2008 has led domestic

pressure to be placed on the Peruvian

Government to meet domestic natural gas

supply needs.

TGP is on schedule to complete the

pipeline expansion in December 2009

according to Mr Gamarra.

TGP has made considerable advances in

this process of amplification and its likely to

be ready by the end of the year, he said.

The Camisea Gas Pipeline, commissioned in August 2004, will increase its capacity by 43 per cent bythe end of 2009, according to the Peruvian Minister of Energy and Mines, Pedro Sanchez Gamarra.

Peru to complete Camisea pipelineexpansion ahead of schedule

AROUND THE WORLD

Nile Valley Gas Company (NVGC) was

granted an exclusive franchise by

the Egyptian General Petroleum

Corporation (EGPC) in April 1998 to develop

a natural gas transmission and distribution

pipeline system to provide natural gas to

consumers in Upper Egypt.

NVGC was formed as a joint venture led

by British Gas with a 37.5 per cent interest,

Edison with a 37.5 per cent interest, Orascom

with a 20 per cent interest and Middle EastGas Association holding the remaining

5 per cent. Edison has since sold most of its

Egyptian assets to Petronas of Malaysia.

NVGC holds the right to develop a pipeline

system across an area, which commences at

El Wasta, a small town 80 km south of Cairo,

and extends through the governorates of Beni

Suef, El Minya, Asyut, Sohag, Qena, Luxor and

Aswan, including the New Valley governorate

and Toshka.

The completed pipeline extends

1,200 km and its ultimate marketing capacity

is targeted to be as much as 6 billion cubic

feet per day (Bcf/d).

The 1,200 km pipeline has been constructed

in five stages. In the first phase of the project,

NVGC took over a pipeline built by the

Government from Cairo to the Kuraymat

Power Station located near Beni Suef. Stage 2

involved the construction of 150 km of 32 inch

diameter pipeline extending from Beni Suefto Abu Qurqas. Stage 3 saw 136 km of 32 inch

diameter pipeline laid from the governorate of

Minya to Assiut at a cost of $US75 million, while

Stage 4 involved the laying of 100 km of 30 inch

diameter pipeline from Assiut to Sohag.

The final stage involved the laying of

408 km of 30 inch diameter pipeline from

Sohag to Aswan. The last section of the

pipeline was brought online at the end of

November and Egyptian Minister of Petroleum

Sameh Fahmi attended a ceremony in Aswan

to celebrate the completion of the project.

The project also involved the design and

construction of three compressor stations

two between Beni Sueg and Assiut and one

near Cairo.

The 1,200 km pipeline was worth

approximately $US9.3 billion in investment

and forms part of a broader development

programme. Mr Fahmi said that the delivery of

natural gas to the provinces of North and SouthSinai would accelerate the reconstruction and

development of the area by providing energy to

attract industrial projects.

The whole pipeline has a design capacity

of 0.84 Bcf/d across a zone populated with

massive agricultural and agro-industrial

settlements.

The pipeline will have a major role in

reshaping the investment map of the entire

southern Egypt, said Mr Fahmi.

The Upper Egypt Gas Pipeline reached the governorates of Minya, Assiut and Sohag in August this yearand the final stage was completed in November, bringing gas to Aswan homes and businesses for thefirst time.

Egyptian pipeline complete

AROUND THE WORLD

The spike in Peruvian gas

consumption from 95 Bcf/a

in 2007 to 120 Bcf/a in

2008 has led domestic

pressure to be placed onthe Peruvian Government

to meet domestic natural

gas supply needs.

7/21/2019 PIN 2009-12

9/37

WORLD WRAP

Gas pipeline extends into Northwest LouisianaAcadian Gas plans to extend its 1,609 km Louisiana intrastate natural

gas pipeline system into Northwest Louisiana to provide producers in the

Haynesville shale play with access to multiple markets through connections

with the pipeline system in South Louisiana, as well as nine major interstate

pipelines. The 400 km extension will have a capacity of 1.4 Bcf/d of gas.


Pemex awards pipeline contractsto UPMPetrleos Mexicanos (Pemex) has

awarded United Pipeline de Mexico

(UPM) a $US12.4 million contract for

the construction, replacement and

rehabilitation of approximately 40 km

of pipelines in Mexicos Chicontepec

oil region, as well as a $US13.9 million

contract for the construction of

connecting pipelines and associated

infrastructure to tie-in the oil wells

produced in the same region.

WORLD WRAP

Vietnam to build nationslongest gas pipelinePetroVietnam will construct a

400 km pipeline running from

Depot B on the southwestern

continental shelf to the

Mekong Delta to supplythe O Mon Power Station.

Military Zone 9 Command will

provide services to protect

the pipeline in areas under

its management during the

time of construction and

after completion. The project

will be Vietnams longest gas

pipeline.

Construction commences on China Myanmar PipelineChina National Petroleum Corporation (CNPC) has commenced

construction on the 771 km China Myanmar Pipeline and a

crude oil port in Myanmar. The pipeline will have a capacity

of 12 MMt/a and connect Myanmars port at Maday Island in

the Indian Ocean via Mandalay in central Myanmar, to Ruili in

Chinas southwestern province of Yunnan.


Nord Stream granted Swedish andFinnish permitsThe Swedish and Finnish governments

have granted permits to Nord Stream

AG to construct the twin 1,220 km Nord

Stream natural gas pipelines through their

exclusive economic zones in the Baltic Sea.

The approvals process for the pipeline is

also continuing in Russia and Germany,

with construction scheduled to begin in

early 2010.

Austria and Slovakia sign-off onBratislava-Schwechat PipelineA joint venture between Slovakian

company Transpetrol and Austrian

OMV AG will build the Bratislava-

Schwechat Pipeline, a 62 km oil

pipeline connecting Slovakias

Friendship Pipeline, which brings

crude oil to the country from Russia,

with a refinery in Schwechat, Austria.

Construction of the 5 MMt/a capacity

pipeline is scheduled to begin in 2012.

Kenya, Uganda agree to reverse-engineer oil pipeline

The Eldoret Kampala Oil Pipeline, locatedin East Africa, will be reverse engineered to

allow oil to flow in both directions through the

pipeline, as it is becoming increasingly likely

that an oil refinery will be built in Western

Uganda. The 320 km pipeline is being built

under a public private partnership between

the Kenyan and Ugandan governments as well

as Libyan contractor Tamoil East Africa.

Saudi Aramco begins offshorepipeline constructionPipeline construction and associated

works have commenced at Saudi

Aramcos offshore Karan Gas Field,

in Saudi Arabias Khuff region,

approximately 160 km north of

Dhahran. The Karan onshore facility

will have the capacity to process

1.8 Bcf/d of Karan Khuff gas, which

will then be transported through a

110 km subsea pipeline from the field

to onshore processing facilities at the

Khursaniyah Gas Plant.

Fugro maps out Peruvian oil pipelineOil and gas exploration and development company

Perenco has engaged Fugro to provide detailed

topographic mapping of a proposed oil pipeline route in

northern Peru. Perencos proposed pipeline system will

transport oil production to the Bayovar export terminal,

located 1,000 km from its Block 67 group of oil fields,

located in the Maranon Basin on the Pacific coast.

To stay informed on all this news and more, subscribe to the Pipelines InternationalUpdate www.pipelinesinternational.com

7/21/2019 PIN 2009-12

10/37


Name change for StatoilhydroSTATOILHYDRO ASA HAS changed its

name to Statoil ASA.

The company advised that ticker symbols

will remain unchanged as STL on the Oslo

Stock Exchange and STO on the New York

Stock Exchange.

Statoil is an i nternational energy

company with operations in 40 countries.

The company is based in Norway and has

more than 35 years of experience from

oil and gas production on the Norwegian

continental shelf.

Statoil is technical service-provider for

approximately 7,000 km of pipeline from the

Norwegian continental shelf to Europe.

New Chair at PRCITHE BOARD OF Directors of Pipeline

Research Council International (PRCI)

elected Vice President of TransCanada

Pipelines Operations and Project Services

Paul F. MacGregor as Chair at its Annual

Meeting on 15 September 2009. He replaces

Enbridge Pipelines Oil Sands Projects Senior

Vice President Art Meyer.

Mr MacGregor has been a PRCI Board

member for four years, serving most recently

as Vice Chair, a member of the Executive

Committee, and Chair of the Audit and

Finance Committee.

He has held numerous key positions

with TransCanada since joining the company

in 1981, and is currently responsible for

the companys supply chain management,

procurement activities, and performance

standards.

Mr MacGregor said This is an

important time for research, and

particularly collaborative research, in the

energy pipeline industry. I am honoured

that my colleagues in PRCI have entrusted

me with this position, and I look forward

to working with them and the PRCI team

to continue to extend the success of PRCIs

collaborative model.

New Vice President at PLMPIPELINE MACHINERY INTERNATIONAL

(PLM) President Mel Ternan, is pleased to

announce that Anthony (Tony) J. Fernandez

has taken on the position of Senior VicePresident with PLM.

With Tony taking responsibility for daily

operational and sales issues, we will have

more opportunity at the president level to

concentrate on strategic and PLM expansion

plans, said Mr Ternan.

Mr Fernandez has been with PLM since

its inception in May 2005. He previously

worked with Ring Power Corporation for

17 years as International Accounts Manager

and later Pipeline Division Manager. Tony

participated in the early discussions that

resulted in a four-dealer partnership to form

PLM and provide Caterpillars global focus to

the pipeline industry.

Additional PLM information is available

on the PLM website at www.plmcat.com

Role changes at RosenAFTER YEARS of direct involvement in

the Australasian industry, Vice President

and General Manager Operations of Rosen

Asia Pacific Chris Yoxall has relocated within

Rosen to Houston, United States, to take up

the position of Vice President, Rosen USA.

He has been succeeded by Neil Pain who

has been appointed as General Manager,

Rosen Australia. Mr Pain is well known,

having been in the industry for more than a

decade, and has been with Rosen for over six

years. In this time, Mr Pain has undertaken

a number of responsibilities including

quality assurance, project management and

business development.

As part of the restructured changes,

Myles Youngs has assumed the role of

General Manager, Operations in Australia.

Mr Young has been with Rosen for three

years in capacity of Operations Manager. He

is now responsible for all operational aspects

including the processors of data evaluation,

operations and maintenance within the

Australian organisation.

PROJECT BRIEFS


Project briefsKasimovskoye UGS Voskresensk CS Gas TrunklinePROPONENT:OAO Gazprom, 16 Nametkina Street, Moscow GSP-7, Russian Federation Tel: +7 495 719 3001

JOINT VENTURE PARTNERS: Gazprom Transgaz Moscow, Gazprom UGS

PROJECT SCOPE:The Kasimovskoye UGS Voskresensk CS pipeline, which began construction in 2005,

connects the Kasimovskoye underground gas storage (UGS) to the Voskresensk compressor station (CS). The

pipeline includes two compressor stations located at Tuma and Voskresensk and one gas metering station at

Kasimov. The project includes a total of 108 rivers, streams, railways and highway crossings during construction

and the trunkline will provide highly reliable and uninterrupted gas supply to Moscow and its suburbs.

PROJECT UPDATE: Commissioning occurred on the trunkline in October.

PIPELINE LENGTH: 204 km

PIPELINE CAPACITY:95 Bcf/a of gas when fully operational.

COMPLETION DATE: The pipeline has been commissioned with a ceremony marking the occasion held in

Voskresensk District, Moscow Oblast on 23 October, 2009.

Shandong Natural Gas Pipeline NetworkPROPONENT: China National Petroleum Corporation

(CNPC), 9 Dongzhimen North Street, Dongcheng District,

Beijing 100007, P.R. China. Tel: +86 10 6209 4114

JOINT VENTURE PARTNER:Shandong Natural Gas Pipeline

Network Company

PROJECT SCOPE: The network will enable CNPC to

transport gas from central Shandong to cities including

coastal Qingdao and Weihai in the east, and tie in to the

Shaan Jing Gas Pipeline and the Second West East Gas

Pipeline via the Ji Ning Pipeline and Taian branch of the

Shandong Pipeline.

PROJECT UPDATE:Construction has commenced on the

Taian Weihai section of the pipeline network.

PIPELINE LENGTH: 1,067 km of pipeline system,

consisting of one trunk line and six branch lines.

PIPELINE CAPACITY: 388 Bcf/a of gas when fully

operational.

EXPECTED COMPLETION DATE:Late 2010.

MEDGAZ PipelinePROPONENT: MEDGAZ, Muelle de Poniente, Puerto de Almera,

04002 Almera, Spain Tel: +34 950 182 900

JOINT VENTURE PARTNERS: MEDGAZ is a consortium of fiveinternational companies: SONATRACH, CEPSA, IBERDROLA,ENDESA and GDF SUEZ.PROJECT SCOPE:The Medgaz Pipeline is a subsea gaspipeline that runs under the Mediterranean Sea from Beni Safon the Algerian coast up to l andfall on the Spanish coast ofAlmera. The pipeline is a strategic project for Algeria, Spain,and the rest of Europe, supplying natural gas directly fromAlgeria, without requiring transit through third countries.Saipem was contracted to construct the subsea infrastructure.PROJECT UPDATE:Saipem has completed subsea pipelayoperations, with the tie-in completed 1.6 km off the Algeriancoast. Hydrostatic tests are expected to be completed on thepipeline in March 2010.PIPELINE LENGTH: 210 kmPIPELINE C APACITY:282 Bcf/a of gas when fully operational.EXPECTED COMPLETION DATE:June 2010

PLMSenior Vice President AnthonyJ. Fernandez.

Thenew look Statoil.

PIPES AND PEOPLE

Fayetteville Express PipelinePROPONENT:Fayetteville Express Pipeline L.L.C, 3250 Lacey

Road, 7thFloor, Downers Grove, Illinois 60515, USA.

Tel: +1 630 725 3070

PARTNERS:Fayetteville Express Pipeline LLC is a joint

venture between Kinder Morgan Energy Partners and Energy

Transfer Partners.

PROJECT SCOPE: The pipeline will originate in Conway

County, Arkansas, and continue eastward through White

County, Arkansas, and terminate at an interconnect with

Trunkline Gas Company in Panola County, Mississippi. The

project will parallel existing pipeline or electric transmission

right-of-ways where possible to minimise impact to the

environment, communities and landowners.

PROJECT UPDATE:An application has been lodged with

the Federal Energy Regulation Commission and approval

is expected by the end of 2009. Construction contracts

are currently being negotiated and it is anticipated that

construction will commence in March 2010.

PIPELINE LENGTH:298 km

PIPELINE C APACITY:The pipeline will have an initial

capacity of 2 Bcf/d of gas.

EXPECTED COMPLETION DATE:Early 2011

Pipes & People

RosensMyles Young, Chris YoxallandNeil Pain.

7/21/2019 PIN 2009-12

11/37

16 PIPELINES INTERNATIONAL | DECEMBER 2009 PIPELINES INTERNATIONAL | DECEMBER 2009 17

Enags has developed and operated

natural gas transmission pipelines

in Spain since 1972. In 2000, the

company was appointed technical manager

of Spains gas system in accordance with the

Royal Decree-Law 6/2000, and this year the

company has been designated the operator

of the transmission system for Spains

high-pressure gas network under the Royal

Decree-Law 6/2009.

Today, Enags main activities include

natural gas transportation, regasification

and storage. The company transports gas

through over 9,000 km of high-pressure gas

pipeline and owns three regasification plants

located at Barcelona, Cartagena and Huelva,

as well as a 25 per cent interest in the Baha

de Bizkaia Gas Regasification Plant in Bilbao.

The company continues to develop its

transmission pipeline network and natural

gas assets in Spain, as well as promote the

development of a pan-European pipeline

network to ensure greater security of natural

gas to Europe.

Recent pipeline projectsEnags recently completed the

500 million euro ($US748 million)

Peninsula Baleares Pipeline project. The

company says that the project is a very

complex and important subsea pipeline

system that connects the Iberian Peninsula

with the Balearic Islands.

The project consists of three

components: a 65 km pipeline between

Montesa and Denia, the 267 km Denia

Ibiza Mallorca subsea pipeline, and a

compressor station located at Denia.

Enags says that only eight pipelay

vessels in the world specialise in this type

of project, which included installing pipe at

depths as deep as 997 m.

Operator of Spains natural gas pipeline system Enags continues to develop its transmission pipelinenetwork, recently completing the complex Peninsula Baleares Pipeline project. Here, the companytalks about the project and its plans for future pipeline expansions.

The company used the Castoro Sei

vessel and an auxili ary fleet of s ix boats

to complete the project. Approximately

22,500 pipes were used to construct the

underwater section of the pipeline.

More than 500 people were employed

to construct the pipeline, not including the

500 who worked on the Castoro Seipipelay

vessel.

"To date, this has been one of the mostcomplex pipeline projects constructed

as part of the Spanish Gas System," a

company spokesperson says.

Work began on the project in December

2007 and was completed in September

this year.

Enags says that the pipeline system

will bring important benefits to the

Islands.

Besides transporting natural gas for

distribution to residents, the project allows

the supply of natural gas to power plants

on the Islands, increasing the uptake of

natural gas in the area.

The pipeline gives Baleares energy

security as it connects the Islands directly

with the Spanish Gas System, an Enags

spokesperson said.

Enags also recently completed

construction on the 292 km Almera

Chinchilla Pipeline, which was built to

connect the Spanish Gas System with

the Medgaz Pipeline currently under

construction. The Medgaz Pipeline is a

strategic project for Algeria, Spain, and the

rest of Europe, supplying natural gas directlyfrom Algeria, without requiring transit

through third countries.

The 300 million euro ($US448.7 million)

project was constructed in two sections a

42 inch diameter, 122 km pipeline between

Almera and Lorca, and a 42 inch diameter,

170 km pipeline between Lorca and

Chinchilla.

The importance of gas storage andregasification facilities

Enags has been investing in storage and

regasification facilities since the company

first began. This year, the Barcelona

Regasification Plant is celebrating its 40 th

year of operations.

In September this year, Enags signed

a contract for the purchase of a 25 per cent

interest in a regasification plant at Bilbao.

The company also owns an underground

natural gas storage facility at Serrablo.

The company is currently working on

the construction of its fourth regasification

plant at El Musel Port in Gijn in the north of

Spain, and another underground gas storage

at Yela, Guadalajara.

Regasification plants give flexibility

to the gas system...reinforcing the security

of natural gas supply for Spain, says a

company spokesperson.

The company says that it will continue

to construct regasification plants and

underground storage facilities as necessary

to increase storage capacity.

Future pipeline projects:international connections

Enags says that construction of

international pipeline connections is

essential for a secure natural gas supply for

Europe. Spain has one of the most diverse

natural gas supply portfolios in the world,

and last year received natural gas from ten

different countries.

International connections are strategic

investments and essential to continue

guaranteeing gas system security, says an

Enags spokesperson.

There are currently two pipeline

connections between France and Spain

the 2.7 billion cubic metre per annum

(Bcm/a) Larrau Pipeline, and the 0.2 Bcm/a

Irun Pipeline.

Enags is part of the European Union

organisation, the High Level Group of the

South West Regional Energy Market. The

working group aims to:

Double the current capacity of the

Larrau Pipeline from 2.7 Bcm/a to

5.2 Bcm/a via looping and additional

compression. The project is expected toreach completion in 2013;

Increase the capacity of the Euskadour

Pipeline from 0.12 Bcm/a by 2013; and,

Construct the 190 km MidCat Pipeline,

which will run along the Mediterranean

coast and have a capacity of 7.5 Bcm/a.

The project is planned for completion

in 2015.

Having a pan-European gas network

is essential to have a real European natural

gas market. It is necessary to have a

network connecting Europe from north to

south, making it possible that in case of

any supply crisis, natural gas can circulate

through Europe in both directions, an

Enags spokesperson said.

MEET THE COMPANYMEET THE COMPANY

Enags: expanding pipelinesin Europe

The Peninsula pipeline during pipelay works.

L ow eri ng -i n th e P en in su la pip el in e. E na g s h ea dq ua rt er s i n M ad ri d.

Balearic Pipeline construction.

7/21/2019 PIN 2009-12

12/37


The United States of America boasts well established oil and natural gas pipeline systems, which arecontinuing to grow with the proposal and construction of more pipelines across the country. PipelinesInternationaltakes a look at some of the major projects in the pipeline.

Southeast regionKinder Morgan Energy Partners and

Energy Transfer Partners began service on

the Midcontinent Express Pipeline (MEP)

in August this year. The MEP consists of a

single pipeline originating near the town of

Bennington in Bryan County, Oklahoma, and

terminating with an interconnection into the

Transcontinental Gas Pipeline at Transcos

compressor station near the town of Butler in

Choctaw County, Alabama.

The pipeline is comprised of

approximately 48 km of 30 inch pipe, 442 km

of 42 inch pipe and 317 km of 36 inch pipe.

The MEP also has two compressor stations.

One station is located near Paris in Lamar

County, Texas, and the other near Perryville

in Union Parish, Louisiana.

The original capacity of the pipelineis being expanded through the addition of

incremental compression. When completed

in 2010, MEP will have capacity of 1.8 Bcf/d

in Zone 1 and 1.2 Bcf/d in Zone 2.

Florida Gas Transmission is proposing

to expand its natural gas pipeline system to

meet the growing energy needs of the Gulf

Coast and Florida. The company operates

an 8,046 km pipeline system, which has the

capacity to deliver 2.3 Bcf/d of natural gas to

the Florida peninsula.

The Phase VIII Expansion Projectwill

consist of approximately 777 km of multi-

diameter pipeline in Alabama, Mississippi,

and Florida, with approximately 587 km

built parallel to existing pipelines. One new

compressor station will be built in Highlands

County, Florida. The project will provide an

annual average of 798 million cubic feet per

day (MMcf/d) of additional firm transportation

capacity. The project is expected to be

completed and in service in 2011.

In 2007, El Paso Corporation placed

Phase 1 of its Cypress Pipelineproject into

service. The pipeline is an expansion of the

Southern Natural Gas (SNG) Pipeline,and provides an incremental 220 MMcf/d

of takeaway capacity from the companys

LNG facility near Savannah, Georgia. The

268 km pipeline extends the SNG system

to interconnect with the Florida Gas

Transmission system near Jacksonville,

Florida.

Phase 2 of the project was placed

into service in 2008. During this phase.

compression facilities were installed to add

an additional 116 MMcf/d of capacity to

the pipeline. Phase 3 of the project, which

is scheduled to be in-service by 2010, will

add an incremental 164 MMcf/d through

additional compression.

ETC Tiger Pipeline Company is proposing

to construct an interstate natural gas

pipeline to provide takeaway capacity

from the East Texas Carthage Hub area and

the Haynesville Shale play. The 289 km,

42 inch diameter Tiger Pipelinewill begin

near Carthage, Texas, and extend to the

Perryville, Louisiana area.

The project will have a capacity of 2

Bcf/d and is expected to begin operation

in the first half of 2011. Four compressor

stations have been planned for the pipeline.

The majority of the pipeline is to be

constructed within the right-of-way of the

existing 276 km CenterPoint Carthage to

Perryville Pipeline and Gulf Souths 389 km

East Texas to Mississippi Pipeline.

Enbridge has conducted an open

season for the proposed 523 km i nterstate

LaCrosse Pipeline, which would run

from the Carthage Hub in Texas to aninterconnection with the SNG Pipeline in

Washington Parish, Louisiana. The pipeline

will be designed to provide an outlet f or

increasing supplies coming out of the

Haynesville shale region. The pipeline is

scheduled for completion in 2013.

Midwest regionEnbridge has recently completed

construction on the Alberta Clipper

Pipelineto transport oil between Hardisty,

Alberta, Canada, and Superior, Wisconsin.

This 1,607 km , 36 inch diameter pipeline

is expected to be in service by mid-2010,

complementing the recently completed

Southern Access Project as crude oil supplies

from Western Canada continue to increase.

Initial capacity will be 450,000 barrels per

day (bbl/d), with an ultimate capacity of up

to 800,000 bbl/d.

Enbridge is expected to complete

construction of itsSouthern Lights

Projectby the end of 2009. The project will

transport oil from Canada to markets in the

US Midwest. It involves the construction of

new pipeline and the use of some segments

of existing pipeline on which the flow

direction has been reversed. The 20 inch

diameter pipeline was constructed at the

same time as and along the Alberta Clipper

line.

Enbridge is progressing the Southern

Access Extensionproject. The project

extends the companys Lakehead System

from the Flanagan Terminal near Pontiac,

Illinois, south to a petroleum transportationhub in Patoka, Illinois.

Stage 1 began operations in 2008 and

included 516 km of new pipeline along

the Lakehead System in Wisconsin and

the construction of additional pump

stations. Stage 2 involved the construction

of approximately 214 km of pipeline from

Enbridges Delavan pumping station near

Whitewater, Wisconsin, to the Flanagan

terminal. This stage began operation earlier

this year.

Stage 3 will see the system extend from

the Flanagan, Illinois, to Patoka, Illinois.

The cities are approximately 400 km apart.

The pipeline system will be constructed in

Northeast regionTennessee Gas Pipeline Company

(TGPC), a subsidiary of El Paso Corporation,

plans to increase the capacity of its

300 Line to transport new natural gassupplies to serve the growing demand in the

northeastern US.

The300 Line Expansion Project

involves the installation of seven looping

segments in Pennsylvania and New

Jersey totalling approximately 205 km of

30 inch pipeline, the installation of two

new compressor stations to be located in

northwestern Pennsylvania, and upgrades at

seven existing compressor stations.

Upon completion, TGPC expects that

the project will increase natural gas delivery

capacity in the region by approximately

3.4 billion cubic feet per day (Bcf/d). The

project is planned to be in service by

November 2011.

Spectra Energy has proposed the

HubLine/East to West Expansion Project,

which will be an expansion of the companys

Algonquin Pipeline System. The 1,800 km

Algonquin Natural Gas TransmissionSystem, located in New England, transports

2.2 Bcf/d of gas. The pipeline connects to the

Texas Eastern Transmission System and the

Maritimes & Northeast Pipeline.

The expansion project will involve a

total of 74 km of multi-diameter pipeline

and associated support facilities. Of this,

20 km of new pipeline will be located in

Massachusetts with 53 km of upgrades to

existing pipeline in Massachusetts and

Connecticut. The project is expected to be

completed in November 2010.

Dominion Transmission, Dominion

Resources natural gas transmission

and storage subsidiary, is proposing the

Appalachian Gateway Projectto meet

demand for natural gas in the mid-Atlantic

and northeastern US.

The project includes the construction of

approximately 177 km of pipeline between

20 and 30 inches in diameter to run betweenWest Virginia and Pennsylvania, as well

as four new gas compressor stations.

Construction is expected to start in 2011,

with transportation services to begin by

September 2012.

The pipeline will deliver natural

gas to Spectra Energys 14,000 km

Texas Eastern Transmission Pipeline

Systemat Dominions Oakford Station in

Delmont, Pennsylvania. The Texas Eastern

Transmission Pipeline connects Texas and

the Gulf Coast with markets in the mid-

Atlantic and northeastern US. The 6.7 Bcf/d

capacity pipeline connects the Algonquin Gas

Transmission Pipeline with Spectra Energys

430 km East Tennessee Natural Gas Pipeline.

REGION REVIEW

Pipeline development inthe land of the freeBy BJ Lowe, Clarion, Houston, USA and Lyndsie Mewett, Associate Editor

REGION REVIEW

CONTINUED ON PAGE 20

Construction works at Denbury Resources' Green Pipeline.A map of the Florida Gas Transmission Pipeline.

7/21/2019 PIN 2009-12

13/37

PIPELINES INTERNATIONAL | DECEMBER 2009 2120 PIPELINES INTERNATIONAL | DECEMBER 2009

2010 and begin operation later that year or

by early 2011.

The 5,600 km Lakehead System was

constructed in 1949 and is the worlds

largest crude oil and liquids pipeline

system, bringing crude oil from Western

Canada to the US.

Vector Pipeline and Vector Pipeline

Partnerships have launched a binding

open season to secure shipper interest in

a third expansion of the 550 km Vector

Pipelines System, which transports

natural gas between Joliet, Illinois, and the

storage complex at Dawn, Ontario, Canada.

The additional expansion proposes to

add long-haul capacity of up to 115M Mcf/d

by adding two new compressors andupgrades to the US portion of the system.

The expansion could also include

incremental short-haul capacity by adding

a loop to the US and/or Canadian portion

of the pipeline system. The project is

expected to be complete by November 2011.

The Vector Pipeline System, constructed

in 2000, has already undergone two

expansion projects. The first involved

the installation of compressor stations

at Joliet, Illinois, and Washington,

Michigan. The second expansion was

completed in October 2009 and involved

the construction of a compressor station at

Athens, Michigan, increasing the nominal

capacity of the pipeline from 1.2 Bcf/d to

approximately 1.3 Bcf/d.

Southwest regionKinder Morgan Energy Partners

and Energy Transfer Partners 298 km

Fayetteville Express Pipeline has been

proposed to run from Conway County

Arkansas, via White County, to an

interconnect on the 5,632 km Trunkline

Pipeline, located in Panola County,Mississippi.

Willbros Group has been awarded a

contract to construct spreads three and four

of the pipeline, which includes laying 193 km

of 42 inch diameter pipeline to parallelexisting utility corridors in the region,

beginning near Bald Knob, Arkansas, and

ending at the Trunkline Gas Company

interconnection. Spreads one and two of the

pipeline are yet to be awarded.

Construction of the pipeline is expected

to commence in March 2010 with the

pipeline to be in service by January 2011.

In addition, Kinder Morgan and

Copano Energy have entered into a letter

of intent to construct, as a first phase,

an approximately 35 km, 24 inch natural

gas gathering pipeline. The natural gas

pipeline will originate in LaSalle County

and terminate in Duval County, Texas, and

will have an initial capacity of 350 MMcf/d.

The pipeline is expected to be completed in

mid-2010.

Enterprise Products Partners and

Duncan Energy Partners are planning

to increase the capacity of the recently

announced Haynesville Extension Project

from 1.42.1 Bcf/d. As a result, Enterprise

and Duncan Energy placed an order

increasing the size of the 249 km pipeline

extension of their jointly-owned AcadianGas intrastate pipeline i nto Northwest

Louisiana to 42 inches in diameter.

The project is expected to be complete by

September 2011. The Haynesville Extension

will intersect with nine interstate pipeline

systems.

Central regionThe Rockies Express Pipeline(REX)

runs from the Meeker Hub in Rio Blanco

County, Colorado, to Audrain County,

Missouri, and Warren County, Ohio. The

531 km section f rom Meeker to the Cheyenne

Hub was placed in service in February 2007.

The completion of REX-West in May 2008,

added 1,147 km of 42 inch diameter pipeline,

which runs from the Cheyenne Hub in

Weld County, Colorado, to Audrain County,

Missouri.

The 1,027 km REX-East Pipeline section

completed commissioning in November

this year. REX-East is the final segment of

the REX Pipeline, and runs from Audrain

County, Missouri, to the Lebanon Hub in

Warren County, Ohio.

Following the completion of REX-East, the

pipeline has a capacity of 1.8 Bcf/d of gas.

The pipeline is a joint venture between

Kinder Morgan Partners, Sempra Pipelines

and Storage, and ConocoPhillips.

TransCanada is currently constructing

the 3,456 km Keystone Pipeline project,which combines both the new construction

of pipeline and the conversion of an existing

pipeline from natural gas to oil service.Approximately 2,219 km of new

pipeline is to be constructed in the US. The

Canadian portion of the project includes

the construction of approximately 373 km

of new pipeline and the conversion

of approximately 864 km of existing

TransCanada pipeline from natural gas to

crude oil transmission. It is expected that

the project will be complete by 2012.

In addition, the Federal Energy

Regulatory Commission (FERC) has

prepared a draft environmental impact

statement for TransCanadas proposed

Bison Pipeline.

The project includes approximately

486 km of 30 inch diameter natural gas

transmission pipeline extending northeast

from Wyoming through Montana to North

Dakota. TransCanada has also proposed

one compressor station at Hettinger County,

North Dakota.

The pipeline is designed to have a

capacity of approximately 477 MMcf/d of

gas, but will be expandable to 1Bcf/d.

TransCanada has said that future

development plans for the pipeline includethe expansion and extension of the Bison

Pipeline into the Rockies Basin.

Construction is expected to begin on

the pipeline in 2010, with the pipeline to be

operational in November of that year.

Colorado Interstate Gas Company (CIG),

a subsidiary of El Paso, is building the Raton

Expansion Projectto serve increasing

demands for Rocky Mountain natural gas

supplies. The Raton Expansion Project

involves the installation of approximately

188 km of 16 inch pipeline in Las Animas,

Huerfano, Pueblo and El Paso counties,

Colorado.

The Raton 2010 Expansion Project will

start in southern Las Animas County and

will terminate in southern El Paso Countyat an interconnection with CIGs pipeline

system. This expansion will enable gas to be

transported to CIGs mainline for ultimate

delivery to the Cheyenne Hub in northern

Colorado for delivery to major national

markets.

CIG had hoped to receive FERC

authorisation for the project by October

2009, with a proposed in-service date in May

2010. The authorisation is still pending.

Enbridge has proposed the North

Dakota System Expansion Phase 6 project

to bring its North Dakota Systemexpansion

to 161,000 bbl/d of oil by early 2010. The

expansion will involve upgrades to existing

pump station sites.

The North Dakota System consists of

531 km of crude oil gathering and 998 km

of interstate transmission pipeline. It

delivers oil from North Dakota and Motana

to Minnesota, where it connects with the

Lakehead System and the third party

Minnesota Pipeline.

Alliance Pipeline and Questar Overthrust

Pipeline Company have jointly proposed the

1,738 km, 42 inch diameter Rockies AlliancePipeline(RAP) to connect the Rocky

Mountain Region to the Chicago market hub.

The project will take advantage

of existing Overthrust and Alliance

infrastructure. The companies are currently

undergoing a second open season to

evaluate the potential gas capacity

expansion of the pipeline.

The pipeline will originate from

Wamsutter, Wyoming, where Questars

Overthrust Pipelinewill be expanded from

the Opal and Meeker receipt hubs to meet the

need for additional capacity. During an open

season, Questar Overthrust Pipeline received

interest for approximately 1 Bcf/d of new

pipeline capacity for delivery into RAP.

Upon in-service of the proposed

project, RAP will initially provide 1.3 Bcf/d

of transportation capacity. The pipeline is

expected to be commence construction in

2012 and completed by 2013.

Questars Overthrust Pipelineis a

270 km, 36 inch diameter pipeline, located in

southwestern Wyoming. The 141 km pipeline

section from Whitney Canyon to Kanda

comprises the western-most segment of the

701 km Trailbalzer Pipelinesystem. The

128 km section from Kanda to Wamsutter,

completed in 2007, makes up the western

segment of the REX Pipeline.

The Questar Overthrust Pipeline

expansion would run west from a

compressor station near Rock Springs to

Black Fork, Wyoming, and parallel an

existing Questar pipeline that runs from

Wamsutter to Blacks Fork and on to Opal.

The 69 km, 36 inch diameter pipeline

would cost approximately $US94.3 million to

construct and have a capacity of 800 MMcf/d

of gas. The pipeline is expected to tie into El

Paso Corporations proposed Ruby Pipeline.The Ruby Pipeline will connect natural

gas reserves in the Rocky Mountain region

with markets the western US. The project will

involve approximately 1,086 km of 42 inch

diameter pipeline beginning at the Opal Hub

in Wyoming and terminating at interconnects

near Malin, Oregon.

The project will have an initial design

capacity of up to 1.5 Bcf/d of gas and f our

compressor stations will be constructed:

one near the Opal Hub in southwestern

Wyoming; one south of Curlew Junction,

Utah; one at the mid-point of the project,

north of Elko, Nevada; and, one in

northwestern Nevada.

REGION REVIEWREGION REVIEW

CARBON DIOXIDE PIPELINES

Denbury Resources recently began a feasibility study into constructing an 804 km and1,126 km long carbon dioxide pipeline project connecting proposed gasification plantsin the Midwest to existing pipeline infrastructure in Mississippi and Louisiana.Denbury has said that it expects the pipelines to take four to five years to complete.The study comes as two proposed Midwestern gasification plants, with whichDenbury has carbon dioxide purchase contracts, have been granted approval to theterm sheet negotiation phase under the US Department of Energy loan guaranteeprogramme.

A third proposed gasification plant has also been selected by the loan guaranteeprogramme to be built along the Gulf Coast of Mississippi. Denbury plans tocommission a study for a 177 km pipeline that could connect the plant to the existingFree State Pipeline.

CONTINUED FROM PAGE 19

CONTINUED ON PAGE 22

Enbridge is expected to complete construction of its

Southern Lights Project by the end of 2009. The project

will transport oil from Canada to markets in the US

Midwest. It involves the construction of new pipeline and

the use of some segments of existing pipeline on which

the flow direction has been reversed.

Welded pipe during the construction of Alberta Clipper.

Pipestacking inpreparationfor the Vector

Pipeline Systemconstruction.

7/21/2019 PIN 2009-12

14/37

The Rockies Express Pipeline, or REX, crosses eight states and travels approximately 2,735 km.Beginning in Colorado and ending in eastern Ohio, the REX project is one of the largest natural gaspipelines constructed in North America over the last 25 years.

Kinder Morgan Energy Partners;

Sempra Pipelines & Storage, a unit of

Sempra Energy; and, ConocoPhillips

jointly developed the Rockies Express

(REX) Pipeline project. The pipeline was

constructed in three phases:

The 528 km REX-Entrega section across

Colorado;

REX-West, which runs 1,147 km from

Colorado to eastern Missouri; and,

The recently completed REX-East portion,

which stretches from eastern Missouri to

eastern Ohio.

The REX-West section was completed in

early 2008, after receiving Federal Energy

Regulatory Commission authorisation in

April 2007. REX-East finalised construction

and was placed into service on 12 November

2009. Following the completion of REX-East,

the pipeline has the capability to transport

up to 1.8 billion cubic feet (Bcf) of natural

gas per day.

Each region along the 2,735 km pipeline

route offered unique challenges for the

construction of the pipeline. The majority

of the route passed through mountainous

terrain starting in the Rocky Mountains

and extending to the Appalachian Region

which brought with it significant technical

challenges.

The REX-Entrega and REX-West pipeline

routes cross the Rocky Mountains and

much of the REX-East route also covers

mountainous terrain, which presented the

projects crews with a variety of construction

issues. However, the crew successfully

managed to move the project forward

without delay.

Most of the REX Pipeline was constructed

along existing pipeline corridors. Much

of the terrain was already level and ready

for the pipe stringing and trenching in

preparation for pipelaying, Mr Fore said,

however construction crews faced a variety of

landscape and geographical challenges as the

pipeline construction progressed eastward

along the route into the Appalachian Region

on the REX-East Pipeline route.

Welding to scheduleNew technology was employed to

ensure that pipeline construction proceeded

smoothly.

REX was designed with a construction

schedule that favoured automatic field

welding. The automatic welding equipment

provided by CRC Evans of Houston, Texas,

and RMS Welding Systems of Nisku, Alberta

was a large part of how the construction

proceeded in such an efficient fashion.

The automatic welding systems enabled

a very high level of productivity that

exceeded 100 welds per day for the mainline

pipelay. Additional project pace was gained

by the establishment of mini pipe gangs,

which were capable of laying up to 20 joints

of pipe per day. The mini gangs were ideal to

lay pipe in the rough terrain encountered on

the project.

The welding work was completed using

cutting edge components.

Tie-in welds were made with Hobart

welding wire, Trimark Flux Core and Fab

Shield X80, which is a special wire produced

to weld the high strength X80 pipe used.

Once the welding was completed, each joint

was checked carefully by the onsite scanning

technology. Weld integrity was ensured by

using ultrasonic weld inspection systems

to scan 100 per cent of the field welds for

defects.

The system used was an analog to digital

conversion unit, but an innovative phased

array weld inspection system, provided by

UT Quality of Texas, was also used on the

pipeline. The totally digital system was first

qualified in the US for the REX-West project.

By allowing the system to be less complex

and highly accurate in weld interpretation,

REX saw more robust results.

REX Director of Community Relations

Allen Fore said The REX Pipeline was

constructed using the latest technology

in all aspects of the construction process,

but the biggest asset was the skilled and

experienced workers employed on the

project.

The pipeline construction process is

often compared to a sort of moving assembly

line and during peak construction efforts,

there were thousands of construction

workers on the pipeline spread.

The innovative technology employed

ensured that the pipeline was built in the

safest and most efficient way possible and

will maintain the integrity of the pipeline in

the future, said Mr Fore.

REX appeal:pipeline construction in the Rockies

REGION REVIEW

Western regionWilliams subsidiary Northwest Pipeline

has proposed to construct the 30 inch diameter,

192 km Blue Bridge Pipelineproject.

The project involves six pipeline loops

running parallel to Northwests existing

26 inch mainline along the Columbia

River Gorge, Washington. Construction is

set to begin in the first half of 2012, and

commercial service to launch in the second

half of 2012.

The proposed Palomar Gas

Transmission Pipeline is a new interstate

natural gas pipeline that will provide

additional energy infrastructure to serve

Oregon, the Pacific Northwest, and other

western states. Palomar is a joint venture

between TransCanada and NW Natural.The 36 inch diameter pipeline will be

approximately 354 km long. The proposed

Palomar project is seeking a certificate from

the FERC for permission to construct and

operate the pipeline.

Subsidiaries of Williams, PG&E

Corporation and Fort Chicago Energy

Partners, have agreed to jointly pursue

construction of a LNG import terminal

(Jordan Cove LNG), to be located in Coos

Country, Oregon, and a interstate natural

gas transmission system (Pacific Connector).

This project will increase the supply of

natural gas for the Pacific Northwest,

northern California and northern Nevada.

The Pacific Connector Pipelineproject

is a 370 km, 36 inch diameter pipelinedesigned to transport up to 1 Bcf/d of natural

gas from the proposed Jordan Cove LNG

terminal to markets in the region. The Pacific

Connector project includes interconnects to

Williams 6,276 km Northwest Pipeline, the

386 km Tuscarora Gas Transmission system,

and Gas Transmission Northwests system,

all located in Oregon.

Alaskan proposalsThere are currently two competing large

diameter pipeline projects proposed that

would link Alaskas North Slope gas reserves

to markets in Canada and the US.

The proposed Denali Pipelineproject

consists of a gas treatment plant on the North

Slope, an approximately 3,219 km long pipelineto Alberta, Canada, and if required, a 2,414 km

long pipeline from Alberta to Chicago at a

current estimated cost of $US30 billion.

The proposed TransCanadaAlaska

Pipeline project would include a gas

treatment plant to be built at Prudhoe Bay,

a 2,736 km long pipeline from North Slope

Alaska through Yukon and northeastern

British Columbia to the British Columbia/

Alberta border near Boundary Lake,

and would include new and existing

infrastructure in Alberta.

The pipeline projects require a certificate

of public convenience and necessity to be

granted by the FERC in order to commence

construction and operation activities.

CONTINUED FROM PAGE 21

REGION REVIEW


The REX Pipeline before lowering in.

Above:Overland Pass Natural Gas Pipelinemap.Constructionworks on theTexas Eastern TransmissionPipelineSystem.

7/21/2019 PIN 2009-12

15/37


Steel transmission pipelines going through mountain areas often face significant risks during theirconstruction and service life. One of the biggest challenges is to protect the pipe and its externalcoatings against mechanical damage from impact and penetration.

When installing and operating

transmission pipelines in

mountain regions, one has to

account for specific risks in order to mitigate

potential lost time, increased costs, and

accidents with human and economic costs.

Climate is an important consideration

during both pipeline construction and

operation in mountain areas. Some seasonscan be harsh, with heavy snowfall or rain,

and extreme temperatures and winds,

restricting the access to the right-of-way

(RoW) during construction. In addition,

weather patterns are usually rapidly

changing quick temperature changes

and flash rains which can delay the

construction of the pipelines. During pipeline

operation, pipelines in permafrost regions

face stability issues.

Geography is another significant risk

factor with two sub-categories topography

and geology. Mountain areas can have

a challenging topography such as steep

slopes, river and lake crossings. Geology can

also raise issues during both construction

and operation, with companies faced with

hard rock, wet or frozen ground conditions,

earthquake and fault zones, erosion and

landslides, karst and sinkholes.

Mountains often include environmentally

sensitive and protected areas, such as

national parks. Pipeline projects have to

be designed, installed and operated with

a minimum footprint on flora and fauna,

usually translated in reduced RoW and

temporary workspace. Minimising any

risk of accidental harmful discharge or

contamination is also important.Supplying some of the required materials

such as sand for padding, and safely

disposing of surplus materials can be difficult

during the construction phase of a mountain

pipeline.

Finally, building and operating pipelines

in mountain regions can be dangerous for the

people involved. Clear safety standards and

operating procedures have to be in place to

avoid accidents.

In order to address the above-mentioned

risk factors, the pipeline industry is

dedicating a lot of effort to prepare and

standardise the construction and operation

of pipelines in mountain regions.

The International Pipeline and

Offshore Contractors Association (IPLOCA)

presents ten different pipeline construction

environments in its recently released

recommended construction practices for

onshore pipelines, Onshore Pipelines: The

Road to Success. Three of these environments

directly describe mountain areas the

side slope, ridge and rock RoW scenarios.

Another two refer to arctic conditions and

the environmentally sensitive area often

encountered in mountain terrain. In all the

scenarios, one of the most efficient ways of

mitigating the pipeline construction andoperating risks is to protect the steel pipe

against mechanical damage from impact and

penetration.

The need for supplementarymechanical protection

Mechanical damage to the pipe can

occur during all phases of the pipeline

construction and operation, for example

during transportation, handling (loading in

and out), storage, lowering-in, backfilling,

and during pipelines service life. Impacts

and penetration damage can be caused by

many factors:

Other pipes or pipe handling equipment;

Lowering-in; and,

Rocks in the trench bottom or impact

from the backfill material.

Steel pipe is impact resistant by itself and

some of the external coatings applied on steel

increase this basic mechanical protection.

However, in order to ensure an incident-free

service life for the pipeline, the steel pipe

and the anti-corrosion coating have to be

intact during construction and operation.

This cannot be guaranteed by the basic

mechanical protection of the steel and anti-

corrosion coatings. Therefore, the industry

has developed supplementary mechanical

protection systems that are aimed at reducing

or eliminating the risk of mechanical

damage.

As the industry uses a wide range of

supplementary mechanical protection

systems, this article will focus on the systems

that protect the entire diameter and length

of the pipe, and which are the most efficient

in protecting the pipe and its coating against

impact and penetration. Today, most pipelineprojects use the following supplementary

mechanical protection system: concrete

coatings, sand padding and select backfill

(mechanical padding), as well as non-woven

geotextiles and rockshield materials.

Mechanical protection systemsConcrete coatings for mechanical

protection have been developed during the

last 2530 years in North America, Australia

and Europe, and are usually applied in

specialised coating facilities.

Steel wire mesh reinforced concrete

coatings that are usually 2025 mm thick and

fibre-reinforced concrete coatings

(810 mm thick) are the two types of

mechanical protection concrete coatings.

Wire-mesh concrete coatings are applied

using a side-wrap process, while the fibre-

reinforced concrete coatings are applied

using a spraying process, without any

damage to the pipe and the pipe coating

during application.

The concrete coatings offer excellent

damage resistance minimum impact

resistance of 150 J for the fibre-reinforcedconcrete coatings and 450 J for the

wire-reinforced concrete coatings. The

mechanical protection concrete coatings

are fully bendable according to the industry

standards; do not need additional equipment

or manpower for installation; and, do not

have any usage limitations in terms of

terrain configuration, ground conditions or

climate. Concrete coatings are currently the

only supplementary mechanical protection

systems that protect steel pipe through all the

construction and service life phases from

transportation, handling and storage to

lowering-in, backfilling and long-term service

life.

Sand bedding and padding is still

the most frequently used supplementary

mechanical protection system. Sand is

usually supplied to the RoW, where it

is used in the trench to protect the pipeagainst impact and penetration from rocky

outcrops in the trench bottom or impacts

from rocks in the excavated trench material.

The sand layer usually has a thickness

of 2030 cm around the pipe and has a

minimum impact resistance of 300450 J.

Sand padding needs additional equipment

such as sand trucks, padding machines,

temporary work and storage space at the

RoW, as well as additional manpower and

materials. Additional costs are usually

incurred for the transportation and disposal

of the original trench material that becomes

surplus material after the use of sand. This

system protects

Documents

PIN 2009-12