The natural gas infrastructure in the Northeast forms one of North America’s most complex systems. Operations and maintenance are just as complex and demand extra attention to ensure infrastructure integrity, lower your risks, and to meet regulatory requirements. EMS suggests that an integrated approach to meet these demands is the way to go.
No place in the US has more natural gas infrastructure than in the northeast – and it’s growing. Since 1990, four new pipeline systems opened in the region, connecting New England and New York to both western and eastern Canada supply basins. Canadian gas provides close to 35% of the gas supply to the Northeast region according to U.S. Department of Energy statistics; although, U.S. domestic supplies remain the key supply source and are delivered by the major interstate pipeline systems that serve New Jersey, New York and New England. Along with these transportation pipelines, there are distribution pipelines, LNG facilities, refineries and storage tanks everywhere (storage is also a critical part of the natural gas supply and delivery chain.) The Northeast has considerable underground storage, and new storage fields are planned for the greater Northeast region in the coming years.
System Enhancements
The Northeast’s natural gas industry is moving forward actively with numerous infrastructure projects designed to meet growing market demand, as the region still remains constrained at several points on its natural gas system. In 2007, regional infrastructure enhancements included the “Northeast Connection New England” pipeline project and the “Cape Cod Expansion,” and even more additions are expected in 2008. Just some of the few projects expected to come online this year are the Millennium Pipeline under construction in NY State, the Canaport LNG project in Saint John, New Brunswick, and the Maritimes and Northeast Pipeline Phase IV project in Maine.
According to the Northeast Gas Association, perhaps the greatest area of interest regarding domestic production for the Northeast is the gas output from the Rockies area. The Rockies represent about 22% of the U.S. gas reserves. There has been limited pipeline infrastructure to link reserves there to markets in the Midwest and East, but that is changing, as new pipeline infrastructure, the “Rockies Express,” is under construction and expected to be in-place by the end of 2008. The end-result is that the Northeast expects to gain access to increased Rockies supplies in the 2009-2011 timeframe.
It is a promising period for the Northeast, one of the most highly-populated, highly-priced and yet most highly-constrained gas markets in the U.S. These supply developments have the potential of transforming the traditional paths of supply sourcing into the region, creating a more diverse supply mix, and a more varied supply network; but when combining new and existing facilities, maintenance costs and operational risks can increase.
Integrated Pipeline Integrity Management (PIM) for Cost Control
There is constant pressure from every level to keep costs under control. To cope with this demand, integrated risk mitigation strategies are becoming more common at both upper and lower levels of operating companies, and it’s imperative and practical to establish and maintain operations-wide PIM that works up and down your system.
Divisional or splintered integrity practices work against effectiveness. Local management efforts, no matter how well established and “cost-effective” - even when individual anomalies get corrected - often conflict with the proven capability of centralized PIM.
A single, unified PIM Program pulls together different operating divisions into a centralized management process. Inspection and repair procedures can be made uniform and centrally managed. The result is more effective organization and control, right down to the way holes are dug and repairs are made - both outside and inside the fence.
“Best practices” procedures, which are mandated by DOT and absolutely necessary for additional and ongoing learning, can be properly gathered, implemented and maintained. Effective governmental reporting becomes a standard feature. When you’re making periodic cost decisions as well as day-to-day O&M choices, clear PIM guidelines and standards will deliver more than one major benefit.
Gas and Electric Power Generation
The electric power sector is another key driver in the Northeast’s push for greater supply development. The fastest growing gas consumption sector in recent years, nationally and regionally, has been gas for electric generation.
New technology, particularly combined-cycle technology, has made the natural gas power plant the energy system of choice. At the same time, the Northeast Gas Association states that new infrastructure is needed on the gas system as more and more customers, including power generators choose gas as their fuel.
Integrity in Integrated Systems: The End View.
State public service commissions like New York’s are depending on you to make certain your pipelines and systems are maintained properly; are in accordance with integrity regulations; deliver the gas that people need; and lower overall risks.
What is needed is a proven integrated service approach for your infrastructure O&M needs. Applying an integrated approach will help ensure that you – and your infrastructure – are ready, willing and able to continue your deliveries whatever the season.
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