Contentious Trans Mountain Expansion Pipeline In Canada

OTTAWA/CALGARY (Reuters) - Canada on Tuesday approved as expected a hotly contested proposal to expand the western Canadian crude oil pipeline it bought last year, providing hope for a depressed energy industry but angering environmental groups.
Construction on the expansion of the Trans Mountain pipeline is scheduled to resume this year, Prime Minister Justin Trudeau told a news conference. A senior government official, speaking on condition of anonymity, said earlier that Ottawa expected legal challenges to the approval. The project would triple Trans Mountain's capacity to carry 890,000 barrels per day from Alberta's oil sands to British Columbia's Pacific coast, alleviate congestion on existing pipelines and diversify exports away from the United States. Trudeau, who faces a tough fight in a national election scheduled for October, has been under pressure both from western Canadian politicians who accuse him of doing too little for the oil industry, and from environmental groups, which see the oil sands as a highly polluting source of crude production.

"This isn't an either/or proposition. It is in Canada's national interest to protect our environment and invest in tomorrow, while making sure people can feed their families today," he said, adding he knew some people would be disappointed. The Liberal government previously approved the expansion in 2016 but that decision was overturned last year after a court ruled the government had not adequately consulted indigenous groups. The approval was widely expected as the government spent $3.4 billion to buy the 66-year-old pipeline from Kinder Morgan Canada Ltd last year to ensure that the expansion proceeded. Western Canada's oil production has expanded faster than pipeline capacity, causing a glut of crude to build up.

Trudeau said the government would make a series of accommodations to indigenous concerns about the pipeline, including on protections of killer whale and fish habitats in British Columbia. One group of indigenous activists in British Columbia, called Tiny House Warriors, vowed in a statement that the expansion would not be built on their territory. "The Trudeau government does not have the right to put a pipeline through unceded Secwepemc land," spokeswoman Kanahus Manuel said. FURTHER OBSTACLES AHEAD The government's latest approval can be appealed through the courts. Trans Mountain also requires various permits and route approvals in British Columbia, where that province's left-leaning New Democratic Party government opposes the project. The B.C. government also plans to appeal a recent British Columbia Appeal Court ruling that the provincial government cannot restrict the flow of oil on pipelines that cross provincial boundaries.

British Columbia Premier John Horgan said his government was "disappointed" with the federal government's decision but would not unduly withhold construction permits. Construction is expected to take 2-1/2 years, investment bank Tudor Pickering Holt & Co said. Assuming work on the expansion resumes this year, the expanded pipeline could be in service in early 2022. "We will measure success not by today's decision but by the beginning of actual construction and more importantly by the completion of the pipeline," said Alberta Premier Jason Kenney, a frequent critic of Trudeau. "This is now a test for Canada to demonstrate to the rest of the world we are a safe place in which to invest."

The decision will help create billions in economic benefits across Canada as it allows Canadian oil to reach higher-paying international markets, the Canadian Energy Pipeline Association said in a statement. Eighty percent of the expanded pipeline's total capacity has been contracted to companies including Suncor Energy Inc , Canadian Natural Resources Ltd and Exxon-owned Imperial Oil Ltd, according to a National Energy Board filing. The Canadian government has long said it planned to sell the pipeline once most of the obstacles to its construction have been cleared. Numerous indigenous groups have said they are interested in investing in it.

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THERMAL ANALYSIS MODEL FOR HOT-TAP WELDING

(EWI) developed the PRCI Thermal Analysis Model for Hot Tap Welding V4.2 for PRCI. The model is intended to provide welding engineers with guidance for establishing safe parameters for welding onto in-service pipelines (hot-tap welding).

PRCI Thermal Analysis Model for Hot-Tap Welding There are two primary concerns with welding onto in-service pipelines. The first is for welder safety during welding, since there is a risk of the welding arc causing the pipe wall to be penetrated allowing the contents to escape. The second concern is for the integrity of the pipeline following welding, since welds made in-service cool at an accelerated rate as the result of the ability of the flowing contents to remove heat from the pipe wall. These welds, therefore, are likely to have hard heat-affected zones (HAZ) and a subsequent susceptibility to hydrogen cracking. The model allows burnthrough risk to be controlled by limiting inside surface temperature and hydrogen cracking risk to be controlled by limiting weld-cooling rates.



Industry Leader in Pipeline Software Tools

The use of this software model is not a substitute for procedure qualification. The model provides guidance for establishing safe parameters, but provides no means for demonstrating that these parameters are practical under field conditions. To demonstrate that the parameters are practical, a welding procedure based on these predictions should be qualified under simulated conditions. (1) A brief history of cooling rate prediction methods for welds made onto in-service pipelines is given in Appendix A of the user manual. Software Description The PRCI Thermal Analysis Model for Hot-Tap Welding is a stand-alone, user-friendly Windows application based on a complex finite element mathematical model. The model uses a proprietary finite-element solver developed at Edison Welding Institute (EWI). Mesh generation capabilities include sleeve, branch, and bead-onpipe geometries, the latter for buttering layers and weld deposition repairs. Heat-sink capacity values can also be predicted for comparison with fieldmeasured values. The multi document user interface (MDI) allows multiple cases to be run and heat input selection curves to be generated. The model was designed and developed to meet the requirements of API 1104, API 1107, ASME Section IX, BS4515, BS6990, and CSA Z662.



THERMAL ANALYSIS MODEL FOR HOT-TAP WELDING Systems Requirements Running the PRCI Thermal Analysis Model for Hot-Tap Welding V 4.2 software requires the following: 200 MHz or higher processor clock speed recommended Intel Pentium/Celeron or AMD K6/Athlon/Duron or compatible processor Software Validation The PRCI Thermal Analysis Model for Hot-Tap Welding was validated by comparing model predictions to experimental data generated during a previous PRCI-sponsored program at EWI and to predictions made using the existing Battelle model. The Cooling Rate Prediction capability results indicate that Battelle model predictions tend to be non-conservative for thin-wall materials, particularly at low flow rates, and very conservative for thick-wall materials. The PRCI model predictions tend to be relatively accurate, with a consistent level of conservatism across wall thickness range. Price: The current Thermal Analysis Model is available only on a lease basis

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Differences between API 5L PSL 1 and PSL 2

An API 5L line pipes manufactured in two varieties PSL 1 and PSL 2. But what is PSL? PSL stands for Product Specification Levels. PSL stands for Product Specification Levels.

Pipes are used in different type of environment such as corrosive and non-corrosive.  Pipes used in severe corrosive environment required material that can withstand such process condition. On other hands for normal services, a standard quality level pipe will also serve the purpose.    

The difference between PSL1 and PSL2 pipes are as follows;

1. Difference in Chemical Properties
2. Difference in Mechanical Properties
3. Difference in Manufacturing
4. Difference in Inspection and Defect Repair
5. Difference in Certification & Traceability

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Expand Infrastructure for Growing Argentina Production

(P&GJ) – ExxonMobil announced it will proceed with long-term development in Argentina's Vaca Muerta shale, including the construction of pipeline and export infrastructure to support an expected 55,000 oil-equivalent bpd by 2024.

Development of Argentina’s Bajo del Choique-La Invernada block will include 90 wells, a central production facility and export infrastructure connected to the Oldeval pipeline and refineries, the Irving, Texas-based oil giant said.

If the expansion is successful, ExxonMobil could invest in a second phase, which would produce up to 75,000 oil-equivalent barrels per day. Timing of the second phase depends on initial project performance and business and market conditions, among other factors.

“We are encouraged by the excellent results of our Neuquén pilot project and look forward to increased production through this significant expansion,” said Staale Gjervik, senior vice president of unconventional at ExxonMobil. “The reforms implemented by the federal and provincial governments have been critically important to enabling the development of the Vaca Muerta basin as one of the country’s main energy resources.”

In 2015, the Neuquén provincial government granted ExxonMobil a 35-year concession in Vaca Muerta for the Bajo del Choique-La Invernada block. ExxonMobil began an exploration pilot program the following year and now has three producing wells, and three additional wells moving into production. A production facility, gas pipeline and oil terminal have been in operation since 2017 and were recently connected to the Pacific Gas pipeline by a 16-inch pipeline.

Bajo del Choique-La Invernada is a 99,000-acre block, located about 58 miles northwest of Añelo and 114 miles northwest of Neuquén city. ExxonMobil Exploration Argentina is operator and holds 90 percent interest in partnership with Gas y Petróleo del Neuquén, which holds 10 percent interest. ExxonMobil Exploration Argentina is leading its unconventional operations in the Neuquén basin under a joint venture agreement with Qatar Petroleum, which has 30 percent interest in ExxonMobil’s upstream affiliates in Argentina.

“ExxonMobil has been an active player in the Neuquén basin since 2010 and in Argentina for more than 100 years,” said Daniel De Nigris, ExxonMobil’s lead country manager. “We will continue to work closely with the government and our partners and will use our expertise and capabilities to bring jobs and other benefits to local communities.”

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Oil Pumping Stations on Saudi Pipeline attacked by Armed Drone

RIYADH/DUBAI, May 14 (Reuters) - Saudi Arabia said armed drones had struck two oil pumping stations on a pipeline Tuesday in what it called a "cowardly" act of terrorism two days after Saudi oil tankers were sabotaged off the coast of the United Arab Emirates.

Saudi Aramco's OSPAS center monitors the movement of crude oil, natural gas and refined products througout the kingdom. (photo: Saudi Aramco)

The energy minister of the world's largest oil exporter said the attack caused a fire, now contained, and minor damage at one pump station, but did not disrupt oil output or exports of crude and petroleum products.

State-run Aramco said it had temporarily shut down the East-West pipeline, known as Petroline, to evaluate its condition. The pipeline mainly transports crude from the kingdom’s eastern fields to the port of Yanbu, which lies north of Bab al-Mandeb.

Oil prices rose on news of the attack on the stations, more than 200 miles (320 km) west of the capital Riyadh. Brent was trading at $71.07 a barrel by 1347 GMT, up 1.20%.

Energy Minister Khalid al-Falih, in comments run by state media, said the drone attack and Sunday's sabotage of four vessels, including two Saudi tankers, off Fujairah emirate, a major bunkering hub, threatened global oil supplies.

"These attacks prove again that it is important for us to face terrorist entities, including the Houthi militias in Yemen that are backed by Iran," Falih said in an English-language statement issued by his ministry.

Houthi-run Masirah TV earlier said the group had carried out drone attacks on "vital" Saudi installations in response to "continued aggression and blockade" on Yemen.

A Houthi military spokesman claimed responsibility for the attack.

"The operation was executed using seven drone planes from the Air Force's drone weaponry," the spoksman, Yahya Sarea, said. "They have targeted the oil pumping stations at the main pumping lines, the eighth and the ninth, which act as a connection between Ra'as Al-Tanoura and Yanbo, and which pumps three million barrels of oil daily."

A Saudi-led coalition has been battling the Houthis for four years in Yemen to try to restore the internationally recognized government, in a conflict widely seen as a proxy war between Saudi Arabia and Iran.

The Houthis have repeatedly hit Saudi cities with drones and missiles, but two Saudi sources told Reuters this was the first time an Aramco facility was attacked by drones.

The attacks occurred amid a war of words between Washington and Tehran over sanctions and the U.S. military presence in the region.

Iraqi Prime Minister Adel Abdul Mahdi said on Tuesday that neither the United States nor Iran wanted war, and Iraq was in contact with both, state news agency INA reported.

"Any dangerous slip and the region will pay a dangerous price, Iraq will pay a dangerous price," Mahdi added.

Iran in Focus

The UAE has not revealed details about the nature of the attack on ships near Fujairah port, which lies just outside the Strait of Hormuz, or blamed any party or country.

Iran was a prime suspect in the sabotage on Sunday although Washington had no conclusive proof, a U.S. official familiar with American intelligence said on Monday.

Iran has denied involvement and described the attack on the four commercial vessels as "worrisome and dreadful". It has called for an investigation.

The U.S. ambassador to Saudi Arabia said Washington should take what he called "reasonable responses short of war" after it had determined who was behind the attacks near Fujairah.

"We need to do a thorough investigation to understand what happened, why it happened, and then come up with reasonable responses short of war," Ambassador John Abizaid told reporters in the Saudi capital Riyadh in remarks published on Tuesday.

"It's not in (Iran's) interest, it's not in our interest, it's not in Saudi Arabia’s interest to have a conflict."

The U.S. Embassy in the UAE advised its citizens to maintain a high level of vigilance for heightened tensions in the region.

The Saudi stock index, which suffered heavy losses in the last two days, closed up 0.1% after falling as much as 2.1% on the drone attacks. A Saudi-based banker said that state funds were supporting local stocks to limit the downside.

Washington has increased sanctions on Tehran, saying it wants to reduce Iranian oil exports to zero, after quitting the 2015 nuclear pact between Iran and global powers last year.

The U.S. Maritime Administration said last week that Iran could target U.S. commercial ships including oil tankers sailing through Middle East waterways. Tehran has called the U.S. military presence "a target" rather than a threat.

About 30% of all seaborne oil exports pass through the Strait of Hormuz from Middle East crude producers to markets in Asia, Europe, North America and beyond. The narrow waterway separates Iran from the Arabian Peninsula.

Iran's Revolutionary Guards threatened last month to close the chokepoint if Tehran was barred from using it.

U.S. President Donald Trump wants to force Tehran to agree a broader arms control accord and has sent an aircraft carrier and B-52 bombers to the Gulf in a show of force against what U.S. officials have said are threats to U.S. troops in the region.

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