Pipeline

A subsidiary of Plains All American Pipeline LP (PAA) said Thursday it would pay $1.67 billion to acquire BP plc’s Canadian natural gas liquids (NGL) and liquefied petroleum gas (LPG) business.

For years executives in the liquefied natural gas (LNG) industry have dreamed of fungibility, of market liquidity for LNG where tankers function as a sort of “movable pipeline.” But when will that happen?

For years executives in the liquefied natural gas (LNG) industry have dreamed of fungibility, of market liquidity for LNG where tankers function as a sort of “movable pipeline.” But when will that happen?

With a strong natural gas pipeline/storage infrastructure but limits on supply sources, Europe is putting more research and development into making synthetic methane from hydrogen, which some energy stakeholders think will be the future means of beefing up natural gas supplies. A number of large utilities are partnering with researchers in Germany who think this has commercial possibilities.

In the article “Senate Passes Pipeline Safety Reauthorization Bill” (see Daily GPI, Oct. 19), NGI incorrectly stated that a provision that would have grandfathered older pipelines from having to install certain safety devices had been removed from S. 275. In fact, senators included in the bill an amendment calling “for testing to confirm the material strength of previously untested natural gas pipelines located in certain areas.” The amendment would require tests on pipelines operating at more than 30% of specified minimum yield strength in densely populated or environmentally sensitive areas. Language requiring the use of automatic or remote-controlled shut-off valves “on transmission pipelines constructed or entirely replaced” after a final rule is issued remains in the legislation. NGI regrets the error.

Northwest said the Jackson Prairie storage facility will become available again for customer withdrawals on Friday’s gas day. The pipeline said it also will perform a withdrawal test that day and encouraged customers to limit banking as on-system balancing will be limited.

Water services company Heckmann Corp. reiterated its emphasis on serving shale gas and oil developers in the United States in announcing the divestment of China Water & Drinks Inc. through the sale of nine of its 25 Chinese legal entities to Pacific Water & Drinks (HK) Group Ltd. (PWD). The deal closed Sept. 30, and Heckmann will no longer have business exposure in China except through its equity holding in PWD. “With our positive view of our current core water business and the growth opportunities in the United States, we are pleased to put the China experience behind us,” said CEO Richard J. Heckmann. “We now have almost 1,100 employees in the U.S., up from fewer than 30 a year ago. We believe that the water business as it relates to shale gas and shale oil production will continue to drive our growth. In addition, the customer reaction to our conversion to LNG [liquefied natural gas] powered vehicles [see Shale Daily, Aug. 23], which we are now putting in service, has been very positive.”

Enogex has agreed to acquire natural gas midstream pipeline assets with dedicated rights to gather and process production from a large acreage position in the Granite Wash, Tonkawa and Marmaton plays of northwestern Oklahoma, the company said Friday.

Tennessee lifted a systemwide Imbalance Warning Saturday. The pipeline also rescheduled a line abandonment project for the 523M-7300 and 523M-7600 lines offshore Louisiana to Wednesday through Oct. 4. The work, which will require suspension of flows at four Vermilion meters, previously was set for last Saturday through Oct. 2.