On October 28 and 29th, PipeLine and Gas Technology (PGT) and Hart Energy Publishing successfully hosted the 2nd Annual Pipeline Leak Detection & Monitoring (PLDM) Conference at the Omni Woodway Hotel in Houston, Texas.
On Wednesday, the morning keynote was offered by Ray M. Miller, Vice-President of Pipeline Management, Kinder Morgan. His presentation, “Promoting Expansion and Insuring Integrity: Reviewing Kinder Morgan’s Position in the North American Energy Market,” addressed industry trends, projects and the importance of leak detection and prevention.
Miller told attendees that natural gas and coal are running head-to-head as major fuels for U.S. energy consumption, reaching nearly 18 quadrillion Btu per year. Gas, combined with petroleum products, accounts for some 60 quadrillion Btus produced per year, and nearly all of it moves through pipelines.
He pointed out that U.S. pipelines, as a growth industry, have increased from about 900,000 miles on the ground in 1984 to nearly 1.4 million miles in 2008. However, the industry faces a plethora of current challenges, including a decline in product demand, lower commodity prices, an increased focus on greenhouse gas emissions and volatility in the capital markets.
On the upside, the sector has seen lower short-term interest rates and lower costs as steel, equipment and service prices fell. To increase costs savings, pipeline operators are increasing efficiencies to serve the increased use of heavy crude, gas storage, new storage developments and geographically shifting domestic gas supply due to emerging shale-gas plays.
Miller explained that sustained regional pricing differentials are also driving the need for new pipelines. New projects are supported by supply and demand increases, access to capital markets, transporters with firm commitments and the availability of material and contractors.
Accompanying the need for new construction, as a cost-savings benefit as well as employment of environmentally sound business practices, is the need to prevent leaks or to detect and repair leaks quickly.
One 8-inch pipeline leak undetected and repaired for 8.5 hours can emit as much as 547 million cubic feet of gas, at today’s cost of more than $2.7 million, and releasing some 290,600 tonnes of CO2 equivalent into the atmosphere, explained Miller. Less quantifiable but equally important are the effects on safety, clean up, business interruptions, repair costs, business reputation, unfavorable publicity and the attention of regulatory agencies such as the EPA, OSHA, FERC and other state and federal entities.
“Everyone has to participate in leak detection,” said Miller, including landowners as well as employees in his list of stakeholders. “We need every set of eyes.”
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