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Keystone Pipeline Shut Down After North Dakota Rupture, Raising Fear Of Fuel Price Hike

Pipeline Technology Journal

Keystone Pipeline Shut Down After North Dakota Rupture, Raising Fear Of Fuel Price HikeThe Keystone oil pipeline was shut down Tuesday morning after it ruptured in a rural area of North Dakota, halting the flow of crude oil from Canada to refineries in the U.S. The pipeline's operator, South Bow, reported an estimated release of 3,500 barrels of oil confined to an agricultural field about 60 miles (97 kilometers) southwest of Fargo. South Bow said in a statement that control center leak detection systems indicated a pressure drop, prompting the shutdown. "The affected segment has been isolated, and operations and containment resources have been mobilized to site," the company stated, emphasizing the safety of personnel and environmental risk mitigation. The 2,689-mile (4,327 kilometers) pipeline, which transports crude oil from Alberta, Canada, to Texas, averaged 624,000 barrels per day in 2024, according to Canadian regulators. This makes the pipeline a critical fuel line whose closure can significantly affect fuel prices. Experts offered differing opinions on the potential impact on gasoline prices. Ramanan Krishnamoorti, vice president for energy and innovation at the University of Houston, suggested that prices at the pump, particularly for diesel and jet fuel, could rise within one to two days due to the disruption of a unique heavy crude supply. He also noted the potential for higher grocery prices due to increased diesel transportation costs. However, Patrick De Haan, lead petroleum analyst at GasBuddy, indicated that refineries typically have sufficient crude oil reserves to buffer against immediate impacts, but a prolonged shutdown could become problematic. Mark LaCour, editor-in-chief of the Oil and Gas Global Network, echoed this sentiment, stating that major refineries have ample storage to continue gasoline refining for several weeks. Bill Suess, spill investigation program manager with the North Dakota Department of Environmental Quality, said an employee near Fort Ransom heard a "mechanical bang" and shut down the pipeline within approximately two minutes. The explosion caused oil to surface about 300 yards (274 meters) south of a pump station. Emergency personnel responded, and a nearby seasonal stream was blocked off as a precaution. However, no injuries or structural damage were reported. Keystone Pipeline’s latest rupture isn’t the first time. Constructed in 2010, the 30-inch (0.8-meter) pipeline has experienced past ruptures, including one in Walsh County, North Dakota, a few years ago. Meanwhile, the Pipelines and Hazardous Materials Safety Administration (PHMSA) will investigate the cause of the rupture.

Chevron To Begin Surveying East Mediterranea Seabed For Cyprus-Egypt Gas Pipeline

Pipeline Technology Journal

Chevron To Begin Surveying East Mediterranea Seabed For Cyprus-Egypt Gas PipelineEnergy giant Chevron will begin surveying the east Mediterranean seabed early this summer in preparation for a pipeline connecting a significant natural gas deposit off the coast of Cyprus to processing facilities in Egypt. Chevron CEO Mike Wirth informed Cypriot President Nikos Christodoulides of the survey's timetable during a meeting at the company's Houston headquarters. Cypriot government spokesman Konstantinos Letymbiotis provided the update in a statement, offering no further details on the survey's specifics. The planned pipeline will link Cyprus’ Aphrodite field, estimated to hold up to 4.5 trillion cubic feet of natural gas, with an undisclosed facility on Egypt’s coastline. Christodoulides was in Houston as part of a weeklong trip to the United States aimed at attracting investment to the east Mediterranean island nation. Chevron, along with partners Shell and Israeli NewMed Energy, is responsible for developing the Aphrodite field, which was discovered in 2011 approximately 160 kilometers (100 miles) south of Cyprus within the island’s exclusive economic zone. In February, Chevron, NewMed, and Shell formalized an agreement with Egypt outlining the framework for the Aphrodite field's development. This agreement followed the Cypriot government and the Chevron-led consortium's approval of a revised production plan that includes a floating platform for initial gas processing and the subsequent pipeline to Egypt. According to the statement, Christodoulides emphasized to Wirth that the development of Aphrodite is a priority for Cyprus, highlighting the nation's potential as a new energy supplier for neighboring countries and the European Union. Chevron officials stated that Aphrodite is a key component of the company’s activities in the eastern Mediterranean, a region considered important for Chevron’s future plans and priorities. The company is currently the only energy company with operations in Cyprus, Israel, Egypt, and Greece.

Panama Canal Authority Approves Gas Pipeline Project Amid Geopolitical Tensions

Pipeline Technology Journal

Panama Canal Authority Approves Gas Pipeline Project Amid Geopolitical TensionsThe Panama Canal Authority (ACP) has approved a public tender for the construction and operation of an 80-kilometer (50-mile) interoceanic gas pipeline along the isthmus. The project would transport liquefied petroleum gas (LPG) from the Panamanian Caribbean coast to the Pacific side for re-export to Asia, a diversification of the canal's energy and logistical activities. ACP said the LPG would primarily be brought in via terminals along the East Coast of the U.S., shipped to Panama, and shipped on via the planned pipeline. The project, involving the private sector, will ease bottlenecks in canal capacity for some gas carriers. ACP Administrator Ricaurte Vásquez indicated that global LPG consumption is increasing at a rapid pace and will double over the next decade, making the pipeline an important route for energy transport. The announcement came weeks after the ACP formally stated its intentions on the interoceanic LPG transport facilities. However, the business intention of the venture has raised issues regarding whether contradictions between foreign involvement and national sovereignty can occur, particularly in light of recent United States President Donald Trump statements that suggest a redo of Panama's government regarding the canal. The United States built the Panama Canal, a primary artery for global energy trade, and transferred it to Panama in 1999. While the ACP, a self-governing public corporation, has sole authority over canal operations as well as the associated projects, the tender for the gas pipeline brings in the factor of international operators managing primary energy infrastructure, making the selection process highly sensitive. Meanwhile, the ACP has not yet published a complete schedule for the tender process or the shortlisting criteria. The pipeline will be the second one along the Isthmus, as a pipeline for crude oil, owned by another company other than the ACP, already exists, running through the canal in the opposite direction. The latest project serves to underscore the ongoing dilemma of balancing foreign investment with national control in a strategically strategic area.

Probe Into The Cause Of Putra Heights Gas Pipeline Fire Delayed & Aid Increased

Pipeline Technology Journal

Probe Into The Cause Of Putra Heights Gas Pipeline Fire Delayed & Aid IncreasedA technical investigation into the Putra Heights gas pipeline fire that caused destruction worth $14.5 million (RM65.4 million) will be delayed until after April 15, Selangor Menteri Besar Datuk Seri Amirudin Shari said Monday. Ground stabilization efforts, which began Monday evening, must be completed before a thorough probe can commence. "The technical probe will only begin after April 15, as the process of strengthening and stabilizing the ground will only begin today evening," Amirudin told reporters at the Selangor State Secretary building. "After April 14 or 15, the technical investigation team will evaluate the cause of the incident."Police reports have provided an initial understanding of the incident, but authorities plan to examine surrounding factors, he said. The Department of Occupational Safety and Health (DOSH) requires approximately 10 days for ground stabilization before beginning its investigation, police said Sunday. Petronas will provide additional financial assistance to affected homeowners, with RM5,000 ($1115) for total loss properties and RM2,500 ($557) for partially damaged homes. This supplements the aid earlier announced by Prime Minister Datuk Seri Anwar Ibrahim, bringing the total assistance to RM10,000 ($2231) and RM5,000 ($1115), respectively. Amirudin said that by Sunday evening, 613 households out of 437 houses had registered for assistance, indicating that some houses had rental units. The state government began distributing the first round of aid on Monday. During a site visit last Tuesday, Anwar Ibrahim previously announced RM5,000 for completely destroyed homes and RM2,500 ($557) for partially damaged homes. The state government will also provide RM2,000 ($446) per month for six months to cover rental costs for victims, depending on the duration of home repairs. This decision came after residents voiced concerns about temporary housing in Kota Warisan, Sepang, which they deemed too far from their residences. The total state government aid amounts to RM7.35 million ($1.64 million).

Brookfield Infrastructure To Acquire Colonial Pipeline In $9 Billion Deal

Pipeline Technology Journal

Brookfield Infrastructure To Acquire Colonial Pipeline In $9 Billion DealBrookfield Infrastructure Partners LP and its institutional partners have agreed to acquire Colonial Enterprises Inc., the operator of the largest fuel pipeline in the United States, in a transaction valued at $9 billion. The deal will see Brookfield take ownership of the 5,500-mile Colonial Pipeline, which runs from Texas to New Jersey and serves as the primary source of gasoline, diesel, and jet fuel for the East Coast. The pipeline was notably shut down for five days in 2021 following a cyberattack that caused fuel shortages across the region. As announced last week, colonial’s five current owners are selling their entire stakes. This includes a Shell plc unit, which will transfer its 16.125% interest for $1.45 billion. The other sellers include industrial conglomerate Koch Inc. (28.1%), a unit of private equity firm KKR & Co. (23.4%), Canadian pension fund Caisse de Depot et Placement du Quebec (16.5%), and infrastructure owner IFM Investors Pty (15.8%). Shell’s Midstream Operating unit will also sell its stake to a Brookfield affiliate named Colossus AcquireCo. The acquisition comes amid efforts by the current administration to expand domestic energy infrastructure. Currently, building new pipelines in the U.S. faces significant regulatory and permitting challenges, making new pipelines more valuable. Bloomberg News had reported in March that Brookfield was the leading contender to acquire Colonial. The transaction is anticipated to close in the fourth quarter. Morgan Stanley and Mizuho Bank Ltd. led the debt financing for the deal, with Jefferies, Greenhill & Co., and Morgan Stanley serving as Brookfield's financial advisors. Kirkland & Ellis LLP provided legal counsel. Brookfield has a history of investing in global pipeline assets, including a controlling stake in Brazil’s NTS pipeline and its participation in a consortium that acquired a $10.1 billion stake in Abu Dhabi’s natural gas pipelines in 2020.

Saipem Secures $720 Million Pipeline Contracts In The Middle East And Guyana

Pipeline Technology Journal

Saipem Secures $720 Million Pipeline Contracts In The Middle East And GuyanaItalian energy services firm Saipem announced it has been awarded pipeline contracts for approximately $720 million in the Middle East and Guyana. The first contract, signed with an undisclosed major client in the Middle East, involves engineering, procurement, construction, and installation (EPCI) work to repair damaged subsea pipelines within a timeline of 3 years. The second contract is a Limited Notice To Proceed (LNTP) from ExxonMobil Guyana Limited for the proposed Hammerhead oil field development project in the Stabroek block offshore Guyana, located at a depth of about 1000 meters. The LNTP also covers the engineering, procurement, construction, and installation (EPCI) of subsea structures, umbilicals, risers, and flowlines (SURF) for the production facility and gas export system. With the LNTP, Saipem can begin early work, including detailed engineering and procurement, to potentially ensure the earliest possible project startup in 2029, subject to government approvals. The remaining construction and installation activities are also subject to government and regulatory approval, as well as project sanction by ExxonMobil Guyana Limited and its Stabroek Block co-venturers. According to the announcement, Saipem will utilize various construction and support vessels, including to complete these projects. However, logistics will be managed entirely in Guyana through the Vreed-en-Hoop Shorebase Inc. (VEHSI) yard. The Guyana project, estimated to last four years, is expected to contribute significantly to the local economy by generating employment and local content opportunities for Guyanese workers.

Oman Gas Pipeline Network Aims To Drive Down Hydrogen Costs & Support Green Energy Push

Pipeline Technology Journal

Oman Gas Pipeline Network Aims To Drive Down Hydrogen Costs & Support Green Energy PushOQ Gas Networks (OQGN), Oman’s national gas pipeline infrastructure provider, said it is leveraging its expertise to reduce the levelized cost of hydrogen (LCOH) production and support the country’s burgeoning green hydrogen economy. The majority state-owned company, part of OQ Group, announced its collaboration with government and public sector stakeholders to develop hydrogen pipeline infrastructure. These announcements were made during a recent discussion session focused on OQGN’s 2024 financial and operational performance. “OQGN has been one of the leading companies working with the government and other main stakeholders to grow and enable the energy transition, and specifically to enable the green hydrogen economy in Oman,” an official said. Oman has set ambitious targets to become a major exporter of green energy, including hydrogen and its derivatives. And OQGN aims to be the primary infrastructure provider for hydrogen transportation. As the designated National Infrastructure Provider for hydrogen pipelines, OQGN is working closely with Hydrom, the entity overseeing Oman’s green hydrogen industry, on pipeline network master planning. “OQGN is actively involved in Hydrom’s feasibility study, aligning on technical, commercial, financial, and legal considerations,” the company said in a presentation. The company signed a memorandum of understanding with Hydrom and is supporting the national goal to produce and export 1 million metric tons of green hydrogen annually by 2030, with a target of 8 million metric tons by 2050. OQGN is also collaborating with Hydrom on a pre-front-end engineering and design (FEED) study for a Common Use Infrastructure (CUI) system. This system will support green hydrogen projects across allocated and future government-awarded land blocks. Additionally, the company will develop and operate pipeline networks to transport green hydrogen from these land blocks to a dedicated zone near the Port of Duqm for processing into derivatives, such as green ammonia and green methanol, for export. Some of the hydrogen will fuel hard-to-abate industries like steel and aluminum. OQGN currently owns and operates Oman’s 4,235-kilometer natural gas transportation network, supplying fuel and feedstock to 130 major customers.

Hungary-Serbia Oil Pipeline Could Meet Needs By 2028

Pipeline Technology Journal

Hungary-Serbia Oil Pipeline Could Meet Needs By 2028A planned oil pipeline from Hungary to Serbia could meet all of Serbia's crude oil needs by 2028, Hungarian Foreign Minister Peter Szijjarto said Wednesday. Construction of the pipeline, with an annual capacity of 4-5 million tons, could begin late this year or early in 2026, Szijjarto said at a news conference with Serbian Energy Minister Dubravka Dedovic Handanovic. Ties between Serbia and Hungary have strengthened in recent years, and their leaders, Hungarian Prime Minister Viktor Orban and Serbian President Aleksandar Vucic, maintain strong relations with Russia. The two countries agreed in 2022 to build a pipeline to supply Serbia with Russian Urals crude via the Soviet-era Druzhba oil pipeline despite the ongoing efforts by the European Union (EU) member states to wean themselves off Russian energy supplies. While the European Union has sought to reduce reliance on Russian energy supplies since Russia's 2022 invasion of Ukraine, landlocked Hungary still receives about 80% of its natural gas and most of its crude oil from Russia. Hungarian oil company MOL, which has refineries in Hungary and Slovakia, presented a feasibility study for the pipeline Wednesday, Szijjarto said, which was approved by both countries. "Currently, Hungary's entire natural gas import needs can be met through Serbia. And with this new investment, Serbia's entire crude oil import needs will be met through Hungary," Szijjarto said, adding that the project would provide “a significant” energy security to both countries. The pipeline project includes Hungary increasing the capacity of oil flow between the Ukraine border and its Danube refinery and building a new 190-kilometer (118-mile) pipeline from the refinery to the Serbian border. Szijjarto said the cost of the capacity expansion and the construction of the new pipeline to the border would be about 130 billion forints ($350.33 million). Serbia, which is not a member of the EU, also relies on Russian crude supplies and has been working to find a solution to end Russian ownership in its NIS oil company since the United States imposed sanctions on the Russian oil sector in January.

Argentina Begins Gas Exports To Brazil Via Bolivian Pipelines

Pipeline Technology Journal

Argentina Begins Gas Exports To Brazil Via Bolivian PipelinesArgentina has begun exporting natural gas from its Vaca Muerta shale formation to Brazil, utilizing pipelines through Bolivia. This marks a significant step in establishing a long-term route for Argentine gas to Brazilian markets. The deal, involving TotalEnergies, Bolivia’s YPFB and Matrix Energia, saw approximately 500,000 cubic meters of gas transported through the Bolivian pipeline, according to sources cited by Reuters. Matrix Energia, in a statement, said the “unprecedented operation” aimed to ensure the technical viability of the logistics network. The company has agreements with TotalEnergies’ Argentine division and YPFB, forming a tripartite operational arrangement. Initially, Bolivia was hesitant to impose a tolling fee for its infrastructure, preferring to purchase Argentine gas and resell it to Brazil. However, negotiations progressed after potential supply contracts were identified, the report said. The pipeline, historically used to transport Bolivian gas to Brazil and Argentina, faces declining volumes due to Bolivia’s reduced output, necessitating new suppliers. For Brazil, the arrival of Vaca Muerta gas aligns with President Luiz Inacio Lula da Silva’s goal of providing cheaper gas to the country’s industry. Sustained exports could benefit Argentina, where gas output is increasing under President Javier Milei’s policies, potentially improving the country’s energy trade balance. The tripartite agreement includes a spot contract allowing for supply interruptions to Brazil during Argentina’s peak winter demand . YPFB did not comment. However, Brazil’s Petrobras is exploring contracts to import liquefied natural gas and is negotiating pipeline supplies from Argentina. “I think that there is a real possibility to make some deal,” said Mauricio Tolmasquim, Petrobras’ former chief of energy transition. In a related development, CB&I has secured a contract from VMOS for the engineering, procurement, fabrication and construction of new storage facilities at the Vaca Muerta crude oil exportation facility in Punta Colorada, Argentina. The project involves building storage with a total capacity of 630,000 cubic meters, equivalent to four million barrels.

Northland Water Pipeline Projects Secure $40M In Govt. Loans

Pipeline Technology Journal

Northland Water Pipeline Projects Secure $40M In Govt. LoansTwo water pipeline projects in drought-stricken Northland are set to receive government loans totaling more than $40 million, Regional Development Minister announced Monday. According to the trust leading the work, the project will transform local economies and solve Dargaville's ongoing water supply problems. Regional Development Minister Shane Jones announced a $17.5 million loan to build a 22-kilometer (13.7-mile) pipeline from the newly built Waihekeora Reservoir to Dargaville, which is currently under level 4 water restrictions, forbidding all but essential water use. Jones also announced a $24 million loan to build a pipeline connecting the Otawere Reservoir, expected to be completed in the coming months near Waimate North, with the Matawii Reservoir built near Kaikohe two years ago. All three reservoirs were built by Te Tai Tokerau Water Trust with loans from the former Provincial Growth Fund. The new funding, which will need to be repaid, will come from the Coalition government's Regional Infrastructure Fund. Jones said the two projects would significantly increase Northland's water security and unlock economic growth. Te Tai Tokerau Water Trust Chairman Murray McCully said the Kaipara pipeline would provide water to approximately 3,000 hectares (7,413 acres) of potential horticultural land between Te Kopuru and Dargaville, as well as to Silver Fern Farms' processing plant at the eastern end of Dargaville. From there, the Kaipara District Council will build a pipeline to its water treatment plant, which currently relies on the drought-sensitive Kaihu River. McCully said the scheme would allow farmers along the flats south of Dargaville to access irrigation water and end Dargaville's water shortages. "The town is suffering under these level 4 water restrictions and is, I think, hanging out for a solution. We're pleased to be able to provide it," McCully said. Meanwhile, the Otawere pipeline project further north will connect the 4 million cubic meter (141.3 million cubic feet), $47 million Otawere Reservoir with the existing 750,000 cubic meter (26.5 million cubic feet) Matawii Reservoir. Jones said the 15-kilometer (9.3-mile) pipeline would create a "water corridor" across mid-Northland, unlocking another 1,600 hectares (3,954 acres) of highly fertile land between Waimate North and Kaikohe.