Pipeline

A 10-inch diameter pipeline lateral carrying ethane-propane mix from Enterprise Products Partners’ Mid-America Pipeline System in Illinois exploded shortly before midnight Monday. The natural gas liquids (NGL) product burned, creating a large fire that has since been extinguished. No injuries were reported.

The rupture of a 12-inch DCP Midstream pipeline Friday night in Jackson County, LA, resulted in no injuries and was under control soon after, according to a report filed with the U.S. National Response Center.

While the U.S. State Department stopped short of endorsing the U.S.-to-Mexico Sierrita Lateral Pipeline being proposed by Sierrita Gas Pipeline LLC, it said it has “no objections” to a presidential permit being issued for the project.

TheRailroad Commission of Texas(RRC) has approved rule amendments that increase pipeline safety and regulatory program fees. The changes are published in theTexas Registerand are out for public comment until Sept. 23. The annual pipeline safety inspection and gas utility regulatory fee is to increase from 75 cents per service line to $1.00 per service line, which is the statutory maximum. Based upon the 2012 reported total of 4,856,251 service lines, the 25-cent increase will result in an estimated $1.21 million in additional revenue, the RRC said. The additional revenue, along with funds from the base pipeline safety grant, will fund 20 additional full time-equivalent personnel for pipeline safety activities, including inspection of intrastate pipeline and pipeline facilities, as specified by SB 1, which was passed by theTexas Legislatureearlier this year.

In a skirmish between a power generator looking to cover its intermittent service needs and a natural gas pipeline company attempting to switch some underutilized pipe to liquids service, American Electric Power Service Corp. (AEP) has told FERC it has “serious concerns” about a Texas Gas Transmission proposal to abandon portions of its Eunice, LA-to-Hardinsburg, KY, pipeline.

Rail transport of oil is in for a long-term ride in moving burgeoning U.S. crude supplies and other liquids, according to Rick Bott, president of Oklahoma-based Continental Resources Corp., the largest producer in the Bakken Shale, where railroad shipments in recent months have accounted for more than 70% of the oil moved to market (seeShale Daily,July 11).

After capturing a healthy and growing share of Canadian natural gas consumption with shale production from the United States, exploration and production companies are poised to repeat the feat in oil markets.

Upcoming successes, particularly with major natural gas infrastructure projects, should help San Diego-based Sempra Energy offset a one-time 2Q2013 charge and annual revenue losses due to its minority share in a closed nuclear power plant in Southern California, CEO Debra Reed said Tuesday during a second quarter conference call with financial analysts in which she reported increased profits for the quarter and first half of 2013.

Kinder Morgan Energy Partners LP and MarkWest Utica EMG LLC (MarkWest Utica) are putting up a $2 billion y-grade natural gas liquids (NGL) processing and transportation combo project that competes with the Bluegrass Pipeline, which has been proposed by Boardwalk Pipeline Partners LP and Williams.