Pipelines

The rupture and subsequent explosion on TransCanada PipeLines’ mainline system in Canada in early 2002 was due to a host of factors that came together in a near “perfect storm,” causing “stress corrosion cracking to initiate and grow to failure,” according to a report by the Transportation Safety Board of Canada (TSB) on the accident.

The rupture and subsequent explosion on TransCanada PipeLines’ mainline system in Canada in early 2002 was due to a host of factors that came together in a near “perfect storm,” causing “stress corrosion cracking to initiate and grow to failure,” according to a report by the Transportation Safety Board of Canada (TSB) on the accident.

TransCanada PipeLines Ltd., disappointed but refusing to be discouraged after decades of trying, declared itself still ready to collaborate with any credible new contender to build the American half of the Alaska natural gas megaproject after Warren Buffett’s Berkshire Hathaway withdrew its $6.4-billion entry (see Daily GPI, March 26).

Moody’s Investors Service confirmed TransCanada PipeLines’ (TCPL) A2 senior unsecured credit ratings and stable outlook on Friday following the Canadian pipeline giant’s announcement a week earlier that its parent company has signed an agreement to buy Gas Transmission Northwest Corp. (B2 senior unsecured, under review for possible upgrade) from bankrupt National Energy & Gas Transmission Inc. for US$1.7 billion, including $500 million in assumed debt.

In line with its plans to exit the refinery business and concentrate on North American natural gas pipelines and production, El Paso Corp. announced progress Wednesday on three petroleum asset sales totaling approximately $156 million. The news came on the heels of a deal that fell through to sell some properties in the Uinta Basin to Vintage Petroleum Co. (see related story).

TransCanada PipeLines’ preliminary investigations have indicated external corrosion was the likely cause of two ruptures in a 36-inch NOVA line pipeline in northwest Alberta last Monday and Tuesday that has closed down about 800 MMcf/d of throughput.

TransCanada PipeLines’ preliminary investigations have indicated external corrosion was the likely cause of two ruptures in a 36-inch NOVA line pipeline in northwest Alberta Monday and Tuesday that has closed down about 800 MMcf/d of throughput.

Williams announced Thursday that its midstream business has completed the sale of its interests in two natural gas liquids pipelines for $26.5 million. These assets were previously identified for divestiture. Affiliates of Enterprise Products Partners L.P. have purchased a 37.35% interest in Wilprise Pipeline Co. and a 16.67% interest in Tri-States NGL Pipeline LLC after exercising their rights of first refusal following Williams’ efforts to sell the interests to Sunoco Logistics Partners LP. in August. The agreement with Enterprise also contains an earn-out provision that allows Williams to potentially receive up to an additional $8.3 million based on transportation volumes for Wilprise and Tri-States through 2006. Including these most recent deals, Williams has divested interests in four NGL pipeline systems this year, all at pre-tax gains.

Fueled by the abundance of liquefied natural gas (LNG) receiving terminal proposals in the northwest corner of Mexico, the North Baja Pipeline reported Thursday that its six-month open season for expanded future capacity drew interest totaling about 5.5 Bcf/d. The current pipeline running from the Arizona-California border through the northern end of Baja is fully subscribed for its 500 MMcf/d capacity.