Global Valve and Controls
25Oct/120

Pipeline Components

Pipeline Components

“The speed at which pipelines are built is one of the more serious constraints in preventing impacts. Most big infrastructures take many years to plan and build. Completion of pipelines, on the other hand, often takes 24 to 36 months. This means it is even more important for the ESA of pipelines to begin as soon as the prefeasibility planning begins. Route selection, the main means of reducing impacts, is often one of the first items planned by the engineers. “

Being how I am blogging for a Valve Manufacture, I will save you some extra details about what a pipeline consists of. Depending on if you are an end-user, Mfg, or just a reader hoping to gain more info, you probably already know the different parts.  Typically, you might see pipes, flanges, valves, fasteners, and of course many more parts. Some of the ball valves you might see would be the Trunnion Mounted Ball Valves. (This is our specialty)

 GVC’s Trunnion Ball Valve are manufactured accordance to API 6D, NACE Compliant, they consist of 2 piece and 3 piece designs, also are Double Block & Bleed. We have a variety we keep in stock from ANSI 150-2500. If you are interested in GVC’s Trunnion Mounted Ball Valves, and want to know more information please visit our direct website which will route you to our Trunnion Valves: (For more information on our Trunnion Ball Valves, please visit our site; http://http://gvcintl.com/products_trunnion_mounted_ball_valves.html

Trunnion Ball Valves Pipeline Components

Source:

http://www.google.com.pe/url?sa=t&rct=j&q=refineries%20on%20archeological%20sites%20in%20peru&source=web&cd=15&ved=0CE4QFjAEOAo&url=http%3A%2F%2Fwww.goodlandrobert.com%2FPipelinesBK.pdf&ei=y7FoT9HFINPSgQfF5YW6CQ&usg=AFQjCNFH0U-cOcTuTyjKUZ5XP3zE7MkGBw

 Pipeline Components
4Oct/120

Pneumatic Valve Actuators in Sub-Arctic Climates

Sub-arctic climates experience temperatures from 100° F (38° C) in the summer to –60° F (–51° C) in the winter. While there is nothing spectacular about the high end of the range, the low end impacts the functionality of pneumatic actuators”

You may ask, how exactly does the temperature impact the pneumatic actuators that are in the fields right now? There are a few things you have to consider.

First, the actuator housing is steel, thus the housing becomes brittle. This does not necessarily mean it becomes weaker but a sudden impact or an imperfection can result in a sudden fracture at these temperatures because the temperature is below the brittle transition temperature of steel.

Secondly, the “precipitation-hardened shaft material has also become brittle and may fracture given an impact load. If, for example, the driven valve resists opening and then breaks free, the resulting sudden impact may cause the actuator shaft to fail.”

There are many solutions to these issues, but the best would be to call your actuator mfg to discuss how to avoid any fractures caused by these temperatures. Just like the manufacture should know what to do, the users of the actuators should know what to do as well. If you are not able to get in contact with your manufacturer, here are a few steps you can take:

First, and most obvious, users should shelter the actuator from weather extremes where possible. ­Second, users must assure a dry air supply, at least 15° F (–9° C) below the lowest temperature that may be ­experienced since ice plays havoc with air flow and mechanical motion. ­Finally, users should assess the recommended actuator and whether all possible precautions have been incorp­orated by the supplier.”

Clearly, pneumatic actuators can perform their intended functions despite having to operate in extreme temperatures. However, they need to be designed and manufactured ­properly, and users need to take ­responsibility to keep them functioning correctly.

Pneumatic actuators Pneumatic Valve Actuators in Sub Arctic Climates

 

 

 

 

 

 

 

 

http://www.valvemagazine.com/index.php/magazine/actuators-and-controls/4357-pneumatic-valve-actuators-in-sub-arctic-climates

 Pneumatic Valve Actuators in Sub Arctic Climates
2Jul/120

Enbridge new Pipeline expansion project

Not, all the pipeline projects are dead yet! I am hoping with the new election coming up, there will be new projects and new pipelines to build.

Enbridge has secured commercial support to proceed with several projects designed to increase capacity on the Enbridge crude oil mainline system in Canada and the U.S. and to increase capacity on pipelines that serve eastern U.S. and Canadian refineries.”

 “Elsewhere the installation of a new 35-mile, 20-inch pipeline twinning the existing Enbridge Line 17 (Toledo pipeline) will add 80,000 bpd of capacity to the Enbridge mainline system. The line is expected to be available for service in early 2013 at a cost of approximately $0.2 billion.”

Pipeline Ball Valves Enbridge new Pipeline expansion project

http://www.valvemagazine.com/index.php/news/end-user-news/4149-enbridge-announces-series-of-expansion-projects

 Enbridge new Pipeline expansion project
7Jul/110

Best Flanged Valves On The Market

300px Seccion valvula de bola Best Flanged Valves On The Market

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Flanged Valves

The prosperity of the valve industry has been shown in many fields. Actually, there is great variety of the types of the valve. All these types are making their own contributions to the development of the whole modern industry. As we all know, Flanged Ball Valves are made to control the flow of gases, liquids and granular solids in many systems. In order to meet various requirements, valves are designed and manufactured with a wide range of the types, sizes, materials, working temperature and pressure and means of actuation and so on. At this moment, we take the type of the ball valve and gate valve out for a comparison.  Learn more about flanged valves below.

Flanged Valves

 Best Flanged Valves On The Market
2Jun/110

Ball Valves – Are They Useful?

Ball Valves in our history, have always proven helpful in a variety of ways.  Review the article below and let us know what you think.  Enjoy!

Importance of Ball and Pressure Valves to Industry Today

Although the ball valve was invented in the 1950’s it is more used today than ever before in history. This valve made of a simple ball with a hole in it has found wide spread applications in the chemical, petroleum refining, paper making, water treatment plants, and many other industries.

The engineering beauty of ball valves and control valves from their simplicity. A ball with a hole in the middle sits inside passage way that fluid or air from passing through. When the ball is turned so its hole is in line with the pipe the fluid passes though, however when it is turned so the hole does not line up with the pipe the movement of fluid is stopped. This simple design allows ball valves to withstand temperatures of up to 200 degrees and pressures of up to 700 bars making them ideal for most industrial uses and easy to repair. The whole mechanism can easily be controlled by a handle outside the valve that can be turned 90 degrees.

Ball valves come in a large variety. There sizes range from as small as half of a centimeter to is much is 30 centimeters. They also come in five different body styles: split body, single body, top entry, three-piece body, and wielded. Despite the variety in ball valves, all ball valves work in much the same way.

Houston.jpg.scaled500 Ball Valves   Are They Useful?

 

 

4May/110

Selecting A Butterfly Valve For An Application

300px Bidirectional tight butterfly valve The Alloy Valve Stockist Selecting A Butterfly Valve For An Application

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Butterfly Valve

 

Used as a primary control device in fluid transfer applications, butterfly valves are preferred over most other types of valves for different reasons. Firstly, they perform a quarter-turn open/close operation, which is frequent, quick, and at less fluid resistance. Second, they display good flow control for a wide range of liquids, gases, suspended solids, and slurries. Lastly, they are compact, lightweight, and available in a wide range of materials, too.

The wastewater treatment, pharmaceutical, power generation, paper processing, food & beverage, and fine chemical industries utilize butterfly valves extensively. PTFE lined (FEP / PFA) valves are used in high corrosive chemical environments, whereas hygienic valves made from special types of elastomers are used in the food & beverage industry. Butterfly valves also come in fire safe designs to meet the safety requirements of the petrochemical industry.

Typically, butterfly valves come in sizes ranging from 1 to over 200. Their pressure capabilities range from 150 psi to 750 psi. Available in manual and automatically actuated modes, they are used as an on/off as well as controlling/modulating device. The seat material, body style (wafer or lug), and stem- design play crucial roles in selecting a butterfly valve.

Selecting the Right Style:
The most common types of body designs or mounting styles in butterfly valves are the wafer, lug, semi-lugged, and double flanged styles. While the wafer design is cheaper and safer, the lug style helps in removing downstream piping. Wafer styles attribute to the lightweight structure of butterfly valves, which ensures ease of installation.

Selecting Stem Designs:
The stem or shaft of a butterfly valve comes in one-piece or two-piece designs. While selecting a stem design for a high performance application, one must be aware of the fact that they have to be in contact with the fluid media and hence media compatible.

Selecting the Right Seat Material:
Being critical elements, seals, or seat materials, also determine the quality of a butterfly valve. A variety of factors, including chemical compatibility, pressure, temperature, cost, and wear is considered prior to selecting seats. PTFE (Polytetrafluroethylene) and RTFE (Reinforced Polytetrafluroethylene) are two commonly used seat materials known for their abrasion resistant, electrical insulation, and thermal properties. UHMWPE (Ultra-high Molecular Weight Polyethylene) is another popular material with excellent corrosion and chemical resistance used in the tobacco industry. The material is also ideal for low-radiation environments.

If the application involves a highly abrasive environment, inflatable seats that offer high wear resistance are used. Today, many applications require butterfly valves with FDA approved seat materials. Fire-safe, metal-seated butterfly valves are also popular choices today.

Selecting the Right Type of Butterfly Valve:
Butterfly valves are classified into three types based on their construction:

1. Resilient
2. High Performance
3. Tricentric

The resilient type of butterfly valves uses the rubber flexibility and hence used widely in applications that require lowest pressure ratings. They handle temperatures ranging from 25F to 300F. High-pressure applications use high performance types of butterfly valves as these valves provides a wear-free sealing. Temperature ratings for these valves range from 400F to 450F. Tricentric designs feature a metal seat, which can withstand tremendous amount of pressure and temperatures up to 1000F.

Selecting the Right Valve Size:
We can determine the right valve size by calculating the Flow Coefficient (Cv) of the butterfly valve. You can use the below formula to calculate the Cv:

Cv = GPM / √ΔP

Here, GPM is the max flow requirement and P is the maximum pressure drop. The valve size that is equal to the calculated Cv value is the correct size. If the needed Cv value is between two valve sizes, the larger valve size is selected.

 

About the Author:
Ron Bargman is a regular contributor of manufacturing-theme articles drawing on his decades long experiences first as an owner of an auto-parts supplier and manufacturer, to his present status as the founder and president of Zycon, an internationally recognized search engine for manufacturers. Ron's rich industry history provides insight into manufacturing and engineering news and events that are timely, poignant and relevant.

 

 

Butterfly Valve

 Selecting A Butterfly Valve For An Application
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2Apr/110

Valves and More at Global Valves and Controls

300px Duplex valves Valves and More at Global Valves and Controls

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Pipeline Ball Valves are manufactured and tested in accordance with the requirements of API 6D, and are designed not to rely on lubricant to ensure that they seal.
During manufacture and factory testing, the use of lubricants and/or sealants is prohibited. This is to prevent masking of any defects in the new valve.
Installation and commissioning into a pipeline is an interventive engineering process, making use of hot and cold working techniques relying on mechanical tooling. As a result it is inevitable that between valve installation and commissioning, an amount of foreign debris will enter the valve (i.e. sand / dirt / swarf / weld slag). This is a natural result of the manufacturing process that cannot be avoided.
Once installed the valve is usually cycled during the testing of its gearbox or actuator, and again during hydrostatic testing of the pipeline.
These activities create tiny scratches on the polished ball surface where the debris present in the line wears on the ball and seat during the cycling of the valve.
In time, this reduces the valves ability to provide an adequate seal, as these tiny scratches begin to cause minor leak paths. All fluid and gas flows contain an element of contaminant which contributes to this effect over the life of the valve.
Minor leak paths that seal at low pressure become obvious when using the valve to isolate high pressure gas. Seating material is often softer than the ball itself in order to provide a pliable material which takes up minor leak paths, but at higher pressures the gas compresses the seats and they become less pliable meaning that the minor leak paths become more significant at higher pressures.
This type of damage mechanism can also be said to be true for gate and plug valves, as gate and plug surfaces are also susceptible to the similar damage. In fact any sealing surface subject to mechanical friction is susceptible to the damage mechanism described above.
Lubricants, lubricant-sealants and emergency-sealants
Lubricants help clean valve internals, and reduce operating torque. Valvecare use a light lubricant called Equa-Lube Eighty from Sealweld immediately after hydrostatic testing of valve, to purge all test water from seat pockets where corrosion normally occurs. The advantage of this is that it removes as much debris as possible from the internal mechanism of the valve, thus reducing the chance for wear. Lubrication also reduces the friction between the wearing surfaces.  Of course, new contaminant can be introduced at any time via the flow in the pipeline.
Lubricant-Sealants help to preserve seat sealing effectiveness, and to seal worn valves with minor leakage problems. Valvecare use a lubricant-sealant called Total-Lube # 911 from Sealweld, this has been proven to seal minor scratches to sealing surfaces and shallow corrosion pits, as well as small nicks and cuts on soft seals.
For valves with sealing surface scoring, this is an effective way to achieve a bubble tight seal on a valve that would otherwise fail a leak test. Use of lubricant-sealants can delay or prevent the need for costly overhaul of a worn valve.
Emergency Sealants provide an effective temporary means of creating of leak tight seal, even on valves with severe leakage problems. Valve sealing plays an important role, when performing pipeline repair, modification or renewal work, as often the costs of shutting down, evacuating, draining, and excavating pipeline equipment are typically many times more than just the cost of a new valve. Valvecare use a Valve Sealant called Ball Valve Sealant #5050 from Sealweld, containing particles of PTFE, and is capable of sealing relatively large scratches to sealing surfaces.
Lubrication
Lubrication is introduced into the valve, using the seat injection fittings. Valves that do not have seat injections fittings can usually be retrofitted to include these. Specialist valve maintenance companies, such as Valvecare, can advise you on specifics for individual valves.
Seat lubrication, is a proven means of cleaning foreign debris from valve seats, and done properly as part of a scheduled valve maintenance programme, stops debris from getting there in the first place. This practice significantly reduces damage suffered during installation, commissioning and normal cycling operation, extending the service life of the valve dramatically. The costs associated with a scheduled maintenance program including lubrication are considerably lower than a full overhaul or replacement of the valve itself.

Lubricating your valves gives the following operational advantages:
  • Cleans their seats of potentially damaging particles (Sand / Dirt / Swarf / weld slag)
  • Stops debris from getting stuck between seats if administered before pigging pipeline
  • Prevents and removes stiction (Torque to operate reduced / less strain on stem and actuator)
  • Preserves the life of their seals, and components against mechanical and corrosion damage
These advantages reduce operational cost and should therefore form part of your planned valve maintenance programme.
Sealing
Emergency Sealing involves the introduction of heavy sealant, through the valve seat injection fittings, to achieve a temporary seal.  Valves that do not have seat injections fittings can usually be retrofitted to include these. Specialist valve maintenance companies, such as Valvecare, can advise you on specifics for individual valves.
Emergency Sealing your valves:
Provides an temporary bubble tight seal, even on valves with severe leakage problems
Has significant cost savings, when compared to alternatives
Saves time, with lead times for some replacement pipeline valves taking several months
The Lubrication, lubricant-Sealant and Emergency Sealant process involves the use of specialist equipment, capable of pumping a range of lubrication and sealant types safely at pressures of 10,000–15,000 psi. It is recommended that trained valve service engineers, proficient in the safe use of sealant guns and pumps, carry out this procedure.
Important Considerations
Lubrication and sealing becomes more critical in applications such as Natural Gas, Production Wellheads, Gathering Systems, Gas processing Plants, Pipelines, Gas Storage Facilities and Gas Distribution Systems. Applications like these are more likely to cause damage to the critical sealing surfaces of valves, due to the lack of lubrication present in dry gas, and the presence of sand and debris in production wellheads. As part of a valve maintenance programme, preventative valve maintenance helps minimises the adverse effects of these services, increasing the service life of your valves.
For increased valve service life, the presence of an emergency seat sealant injection feature is an important consideration when procuring pipeline valve stock.
Equally as important is the choice of injection fittings and/or adaptors that are installed on the valve. Sealant injection fittings feature a means of passing sealant or lubricant into the valve, and incorporate a high pressure metal seated check valve. As a safety precaution, Valvecare do not endorse the use of carbon steel, crimped style injection fittings. As standard, we only recommend the use quality stainless steel injection fittings incorporating a threaded spring retaining cage, in order to minimise the risk of dangerous fitting failure.
Valve lubrication and sealing is an essential part of an effectively managed valve maintenance programme. Once installed and lubricated, a regular documented lubrication schedule should be established for all critical valves. Valvecare specialise in a supplying a total management programme for your valves, with a focus on the criticality of valves in relation to impact on safety elements and production, maintenance routines, spares holding, valve tracking and selection procedures. This type of valve management programme is a highly effective way of optimising reliability and safety whilst minimising cost and downtime.
 Valves and More at Global Valves and Controls
1Apr/110

Making Use of Steel Ball Valves

 Making Use of Steel Ball Valves

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Making Use of Steel Ball Valves

When it comes to infrastructure, we can really name a lot of companies which are getting into it and one of the most in demand services anywhere today is plumbing. Without plumbing, people would always have a ruin day due to an inadequacy of water. More than that, when we are also going to talk about plumbing, we also need to consider the things that they mostly use and one of which are those valves that are useful in order to make a job successful. If you are among the plumbers, you will surely look for the most durable and top-quality kind of valve, and in such case, the use of steel ball valves should be taken account.

There are now plenty of manufacturing companies who had study hard in order to make the best valve to use in any sorts of plumbing activity and good thing was, Global Valve and Controls had able to establish the perfect valve to be used in any sorts of plumbing constructions. Steel ball valves are among their recent valves being made which has been establish through the finest technological method and had able to pass various evaluations from experts as well. With these steel ball valves, you can really have the guarantee that this would last long despite the fact that it is being use constantly.

Global Valve and Controls had undergone careful study in order to perfectly design the right valves to be use in all sorts of plumbing construction. GVC’s have their own technical support team who see to it that all steel ball valves are of top quality and will even provide you with best function. You can now start buying these steel ball valves since these are now available in all markets in your place.

 Making Use of Steel Ball Valves
29Mar/110

Oil’s Changing Landscape: Ship Low, Sell High

 Oil’s Changing Landscape: Ship Low, Sell High

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At GVC we know our market, keeping up to date on all the latest news.
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Editor’s Note: This is the fourth in a multi-part series examining the fundamentals behind the structural transformation of the U.S. oil markets and the downstream logistics challenges that are resulting. The third installment covered the “disconnect” between inland crudes priced off Cushing crude values when the North American oil hub is flush with crude in storage. (Image Source: CN)
As geopolitical turmoil drives crude prices skyward and lifts retail gasoline to US$4.89 per gallon (/gal) in cities like Los Angeles, it’s anything but business as usual in the U.S. oil patch.
Inland producers who are left in the dust amid triple-digit waterborne crude prices on most every U.S. coast are pioneering inventive downstream logistics to ship crude at low cost to higher-priced markets – thereby avoiding the disconnect in the wild west of North America’s oil industry.
Nearly every multimodal logistics opportunity short of yesteryear’s Pony Express and today’s Federal Express is being considered to cost-effectively ship crude oil to profit from high-price spreads between landlocked and waterborne crudes.
In intra-day trading on March 2, a remarkable spread was logged as the West Canadian Select (WCS) grade saw discount pricing around $80.00 per barrel (/ bbl), while both Heavy Louisiana Sweet and Light Louisiana Sweet (HLS and LLS) crudes on the Gulf Coast traded at more than $122.00/bbl.
That astounding discount of more than $40.00/bbl represents 50% of the then current WCS value. The basis differential can partly be explained by crude quality, but these theoretically, wide-open arbitrage opportunities attract pioneering innovators like the land rush days of old.
Furthermore, the $19.70/bbl discount to LLS prices that day for 38 million barrels of crude stored inland at Cushing at the time represented $750 million in dollar terms.
In the void left by insufficient pipeline takeaway capacity, tankers are stepping in to ship crude via rail and inland waterways away from the heavily utilized and smaller Mid-Continent refining fleet toward a Gulf Coast refining fleet twice its size.
Canadian Railway Company Rides the Rails to the Rescue?
Canadian National Railway Co. (CN), based in Montreal, Quebec, has pioneered and trademarked, PipelineOnRail – described as an “economically sound, surprisingly fast way to ship crude oil products within Alberta to the rest of Canada, the U.S. Midwest, the Gulf coast and other export markets.”
The plan seeks to use its extensive North American rail system that already traverses the Canadian continent on an East-West axis to tank crude south along its interconnected rail spine spanning the U.S. down the Mississippi River valley all the way to and around the U.S. Gulf Coast.
On March 1, Hart Energy contacted CN’s Kelli Svendsen, senior manager of regional public and government affairs, and learned that “CN has been testing concepts to move crude (heavy, light, and pure bitumen) from areas in Western Canada to various markets in the U.S.”
Svendsen said two areas of Canada are already exporting crude oil to the U.S: “CN has moved pure bitumen from Fort McMurray to U.S. markets,” and “from the Bakken reserves in Saskatchewan (Canada) to the U.S.”
The Bakken effort began recently with shipments “in October 2010.” Svendsen said, adding that “CN is optimistic that rail will play an increasing role in the transport of crude moving forward.”
EnSys Study Documents Crude-by-Rail Potential
EnSys Energy noted in a December 2010 North American crude logistics assessment that “CN Rail currently imports condensate, for blending with oil-sands bitumen to make DilBit (a.k.a. diluted bitumen)” from the Kitimat Port on Canada’s west coast.
According to EnSys, the “PipelineOnRail … avoids the large, fixed investments associated with major pipelines.” EnSys also noted that CN indicates potential capacity to move “as many as 200,000 b/d or more.”
EnSys said the study did not allow for the expansion of the PipelineOnRail capacity in any scenario, because tariffs for rail are generally not considered attractive relative to pipelines.
“However, during a period of constrained pipeline capacity, the PipelineOnRail could compete as an alternative,” the assessment reads.
Pioneers on the U.S. Side of the Border
The Bakken petroleum that CN is shipping originates from a producing region that extends into the U.S. states of North Dakota and Montana. Drillers in North Dakota produce the area’s greatest share of petroleum using unconventional hydraulic fracturing and horizontal drilling techniques.
Justin Kringstad, director of the North Dakota Pipeline Authority (PA), wrote in a September 10, 2010, release: “Because of our distance to market, regional producers have always absorbed a per-barrel discount on production.” Yet he noted that recent increases in rail and pipeline “takeaway capacity has pared that discount down substantially.”
Kringstad tabulated new capacity for crude oil shipments from several takeaway projects, including new rail-loading terminals in the area. These include EOG Resource’s 65,000-b/d rail facility in Stanley, N.D., which began rail tanker shipments to Cushing, Okla., in December 2009.
Hart contacted EOG spokesperson K. Leonard on March 1, who shared that “EOG is currently utilizing five trains, with plans to add a sixth in the future.” Leonard said EOG leases the rail tankers it uses to ship crude.
“The company typically loads one train daily and regularly hauls 68,000 gross barrels of crude per train,” Leonard said, adding that “Each train has approximately 100 cars.”
North Dakota PA’s Kringstad further noted in his release that Hess Corp. is readying a $48-million, 60,000 b/d rail facility in Tioga, N.D., for an early-2012 start-up. His post also said that Dakota Transport Solutions began shipping crude from New Town, N.D., to St. James, La., in August 2010. Kringstad said that facility reportedly had the capacity to transport 20,000 b/d by the end of 2010.
Kringstad also noted that smaller rail facilities operate with an estimated combined capacity of 30,000 b/d and include North Dakota locations in Minot, Dore, Donnybrook and Stampede.
Rangeland Energy LLC a New Pioneer
Rangeland Energy LLC (Rangeland), based in Sugar Land, Texas, has also announced plans that would enable Bakken producers to ship crude by rail tanker to the U.S. Gulf Coast.
On March 1, Hart spoke with Chris Keene, Rangeland president and CEO, and learned the company is developing the “COLT” rail terminal hub or connector to ship 100 rail tankers daily (60,000 b/d) of Bakken crude via the BNSF Railway Company to points including the Gulf Coast.
Keene said his company was formed in 2009 and noted: “It’s a huge opportunity, and I think our facility that we are building will be extremely valuable to the industry. It’s been great.”
“There are new rail tank cars being built as we speak. As fast as they can build them, they are being leased. In fact, they are being leased before they build them. Tank car makers, Keene said, have a huge backlog at present – driven by this trend.
Although Keene would not name names, Hart learned that Dallas-based Trinity Industries, Inc., and Oregon-based The Greenbriar Companies, manufacture multi-modal tankers for rail, barge and/or land transport. A review of company disclosures suggested a confirmation of strong backlogs in tanker manufacturers.
The new rail tankers “are coming on because you have a huge demand that has grown not only in North Dakota but also in the Eagle Ford,” Keene added.
Shippers also “are doing whatever they can using existing fleets … a refiner that has an existing fleet of rail cars that maybe they were moving refined products. They convert them and move crude oil,” according to Keene.
“We have not looked at rail into Canada although we have talked with the folks working Saskatchewan’s Bakken trend. Everything we have looked at doing is in and around Williams County in North Dakota where we will be building,” Keene noted. “But certainly the opportunity exists wherever there is existing infrastructure, rail infrastructure, there is an opportunity to do manifest or unit trains.
“Currently, we have a huge draw to get it to the Gulf Coast, into the LLS market,” he said, but “non-traditional” markets for inland crude could soon take the rising flows shipped by rail tanker from Bakken and Eagle Ford producers. “Bakken crude is going to California at Bakersfield right now, by manifest trains, a few cars at a time.”
Keene further mused about the potential for Eagle Ford to flood the Gulf Coast, saying that this could back crude up at Cushing and further back in the Bakken.
“Now you have this rush of light, sweet crude coming on the market; where is it going to go? It’s an interesting story,” Keene said. “It will be interesting to see which refiners run it given that a lot of these refiners just a couple years ago were converting to run heavy, sour crude with investments of billions of dollars.”
Musket Trading Makes The Connection
On March 1, Hart Energy also contacted Oklahoma-based Musket Trading and spoke to Dan House, managing director of crude oil. House said the shifting North American oil industry landscape has “been pretty active as far as the changes that are going on. That creates opportunity, so it’s a good place for us.”
Musket owns and operates rail-served terminals; maintains some 2,000 railcars; provides shipment logistics in 39 states and Canada; and distributes crude oil and other commodities via more than 20,000 railcars annually. That includes crude from the Bakken region to the U.S. Gulf Coast.
House confirmed that rail shipments of Canadian crude are increasingly being talked about and occurring in small batches. “We have done a small amount of it, and I know there are a lot of people looking at it in a bigger way recently,” House said.
Regarding Eagle Ford production, House said producers there yield “a lot more condensate type material that will be railed out of the Eagle Ford. The crude seems to have a good local market, but the condensate volumes that they are talking about do not seem to have a natural home down there.”
Hart also asked House if the Eagle Ford condensate could be sent northward to Alberta’s bitumen producers for use as diluent instead of importing it at Kitimat and shipping it by CN rails to Alberta. House agreed that this opportunity is “most likely” and “that’s where we are seeing it make sense.”
Kirby Inland – Heavy Oil to Crude Tanker?
To obtain the waterborne tank barge perspective, Hart Energy spoke with Steve Holcomb, communications officer for Kirby Corp. in Houston – among the largest inland waterway shippers in the U.S.
According to Holcomb: “We carry very little crude oil. We’ve had a lot of inquiries into it, but they have got to get the product to the Mississippi River or the Arkansas River. So it’s a logistics problem of getting the crude to a river system that is navigable.”
When asked about CN’s rail plan, Holcomb said: “A tank barge would be much more economical way to move it than rail cars. But then, of course, you have to have access to [load the crude] on a viable waterway.”
“Our utilization is pretty high, so we don’t have a lot of barges available, but the industry may have some available … If you move refined products in a barge and you switch it over to crude service, then you have a significant cost of cleaning that barge. You cannot carry a petroleum product upriver and bring crude oil back.
“That doesn’t work. It must be dedicated,” Holcomb said, or the shipper could incur something like “$50,000 to $60,000 to clean it.” That cleaning cost could be justifiable, Holcomb said, if spread-over barrels shipped over a lengthy lease commitment.
“If it’s moved in a black oil barge, it’s a little different. We have 112 black oil barges out of our total fleet of 825,” Holcomb told Hart, noting that such costly cleaning procedures would be unnecessary.
Hart noted the EnSys stance that “rail linked in to barge (or tanker) could also play a role in the transport market. Small volumes of WCSB crudes are currently arriving in the Gulf Coast in part via barge.”
Holcomb offered assurance that “Somebody will figure it out before long. If it involves inland tank barges, Kirby will benefit, because it will tighten up the inland barge market. Barge availability will be much less than what it is today, and rates will begin to escalate.”
According to Holcomb, several other black oil barge firms provide similar services. If Hart Energy makes headway on researching those, they will be covered in a future segment of Hart Energy’s Oil’s Changing Landscape special series.

 

 Oil’s Changing Landscape: Ship Low, Sell High
29Mar/110

Keeping Up Todate With Global Valves and Controls

 Keeping Up Todate With Global Valves and Controls

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Southcross Energy Agrees To Construct Major Natural Gas Pipeline Extension In South Texas
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March 8, 2011
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Southcross Energy, Dallas, Texas, has reported that the company has entered into a long-term agreement with Swift Energy Company to provide natural gas gathering, transportation and processing services for production from Swift Energy’s acreage in McMullen County, Texas. Southcross will construct a 25-mile, 20-inch natural gas pipeline with related lateral gathering lines and convert an existing dry pipeline system to rich gas service in order to gather the Swift Energy gas for processing.
The McMullen extension will have an initial, expandable capacity of 120 million cubic feet of natural gas per day. The system, which is expected to be in service in mid-2011, will originate in McMullen County, Texas and extend to Southcross’ CCNG Transmission pipeline for gas delivery to and processing at Southcross’ processing plant near Gregory, Texas.
“This pipeline will be an additional extension for Southcross into the Eagle Ford Shale play, an important step in accomplishing our growth strategy. We are delighted to establish this relationship with Swift Energy and provide the important services Swift Energy requires in South Texas,” says David W. Biegler, Southcross Chairman and Chief Executive Officer.
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