JANUARY 2015
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World Pipelines
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Harper government announces introduction of the Pipeline
Safety Act
On 8 December 2014, Greg Rickford, Canada’s Minister of Natural Resources, announced
the introduction of the Pipeline Safety Act. The act introduces legislative measures to
further enhance Canada’s world-class pipeline safety system.
The announcement builds on previous action taken by the Harper government to
prevent incidents, including increasing the number of annual pipeline inspections and
audits conducted by the National Energy Board (NEB) and strengthening the Board’s
enforcement capabilities by giving it authority to fine pipeline operators for smaller
incidents. Currently, 99.999% of the oil transported through 73 000 km of federally
regulated pipeline is completed safely, including 1500 km in Quebec.
The government’s latest measures proposed in the legislation introduced in the House
of Commons include: Introducing absolute liability for all NEB-regulated pipelines;
companies continue to have unlimited liability when at fault or negligent; providing the
NEB authority to order reimbursement of any cleanup costs incurred by governments,
communities or individuals; and providing the NEB authority and resources to assume
control of incident response if a company is unable or unwilling to do so (i.e. in
exceptional circumstances). Other non-legislative actions being taken by the government
include developing a strategy with industry and Aboriginal communities in an effort to
increase Aboriginal Peoples’ participation in pipeline safety operations.
Rickford linked the pipeline safety improvements to the Canadian government’s plan
for Responsible Resource Development, which strengthens environmental protection,
enhances Aboriginal engagement and streamlines the review of major resource projects
to make the process more timely and predictable.
Rickford said: “The new measures announced today demonstrate that we can benefit
from resource development while increasing protection of the environment. Our
government is once again demonstrating, through these new measures, its commitment
to enhancing Canada’s world-class pipeline safety system while engaging with
communities across the country.”
President Obama’s political gamesmanship over KXL needs to
end
API President and Chief Executive Officer Jack Gerard told the White House that
despite the ongoing years of delay, the industry will not give up on the Keystone XL
pipeline.
“Six years of review and five positive environmental assessments from the State
Department are enough,” said Gerard. “We are calling on President Obama to approve
the Keystone XL pipeline. There is more than enough evidence to move forward
immediately – without waiting for Congress to vote again in the new year when
congressional support for Keystone XL will be even stronger. President Obama can end
the delay today and give America’s construction workers a Christmas gift they’ve been
waiting six years for.
“When America’s construction sector goes to work building Keystone XL, they’ll be
building not just a pipeline, but energy security. We’re within 10 years of the ability to
supply 100% of our liquid fuel needs from right here in North America, but we won’t get
there through presidential dithering on infrastructure projects that are obviously in our
national interest.
“President Obama’s approach to Keystone XL has been to delay a decision until after
the next election, then the next. With no more elections left, it’s time for the president
to look beyond the next election cycle to the next generation and do what’s right for
America’s future.”
API is the only national trade association representing all facets of the oil and natural
gas industry, which supports 9.8 million US jobs and 8% of the US economy. API’s more
than 625 members include large integrated companies and they provide most of the
nation’s energy and are backed by a growing grassroots movement of more than
25 million Americans.
32% of natural gas pipeline capacity
into the Northeast US could be
bidirectional by 2017
Spurred by growing natural gas production in
Pennsylvania, West Virginia, and Ohio, the US
natural gas pipeline industry is planning to
modify its systems to allow bidirectional flow to
move up to 8.3 billion ft
3
/d out of the Northeast.
As of 2013, the industry had the capacity to
transport 25 billion ft
3
/d of natural gas from
Canada, the Midwest, and the Southeast into the
Northeast. In addition to bidirectional pipeline
projects, the industry is planning to build
35 billion ft
3
/d of additional capacity to support
the growth of natural gas production in the
Northeast.
Flows on ANR Pipeline, Texas Eastern
Transmission, Transcontinental Pipeline, Iroquois
Gas Pipeline, Rockies Express Pipeline, and
Tennessee Gas Pipeline accounted for 60% of
flows to the Northeast in 2013. Flows on these
pipelines in 2013 were between 21 - 84% below
2008 levels. As a result of these pipelines being
underutilised, the pipeline companies have
announced plans to modify their systems to allow
for bidirectional flow, adding the ability to send
natural gas out of the Northeast region:
)
)
Columbia Gulf Transmission completed
two bidirectional projects in 2013 and 2014
that enable the system to transport natural
gas from Pennsylvania to Louisiana.
)
)
ANR Pipeline, Tennessee Gas Pipeline,
Texas Eastern Transmission and
Transcontinental Gas Pipeline are planning
to send natural gas from the Northeast
to the Gulf Coast. These projects total
5.5 billion ft
3
/d of flow capacity.
)
)
The Rockies Express Pipeline’s partial
bidirectional project (2.5 billion ft
3
/d of
capacity) is primarily to flow Marcellus
natural gas to more attractive markets in
Chicago, Detroit, and the Gulf Coast.
)
)
The Iroquois Gas Pipeline’s bidirectional
project (0.3 billion ft
3
/d of capacity) will
deliver natural gas from the Marcellus to
Canada.
In comparison to building new pipelines,
modifying existing pipeline to enable bidirectional
flow requires significantly less capital investment,
fewer regulatory permits, and lower construction
and labour costs, while resulting in fewer
environmental impacts. Modifying these systems
to be bidirectional can be executed quickly to
respond to new market dynamics that will
improve pipeline utilisation rates.
