Editorial comment

A. Blume,Managing Editor 
Adrienne.Blume@GulfPub.com

Pipelines and terminals make up a significant portion of the gas processing and transport infrastructure. The maintenance of existing facilities is crucial for preserving the integrity and reliability of natural gas supplies, and the design of new pipelines and terminals involves considerable planning and analysis.

Project developers eye new pipelines, terminals. In this issue’s special report, technical analyses from Canada and Mexico examine pipeline engineering issues, such as wall thickness selection and transient analysis. Additionally, a policy examination shows that more pipeline capacity is needed in the gas-rich US Northeast.

Complementing the special report content are articles on pumps and valves for LNG service; an update on operations and infrastructure expansion in US shale plays; a review of LNG project startups in Queensland, Australia; and an executive viewpoint on the impact of sluggish oil prices on the gas processing industry.

Gas players watch market for direction. Associated gas output and NGL prices are sensitive to crude oil prices, which fell steeply in the second half of 2014 as OPEC maintained its production volume. Due to the sharp declines in oil and gas prices, NGL prices fell by at least 40% between early September and mid-December.

LNG exporters are keeping an eye on the market, as their ability to secure long-term contracts could be impacted by a prolonged price decline. A dozen new LNG export terminals have been proposed for the US (Fig. 1), although supply and demand, as well as pricing trends, will dictate the potential profitability of these multi-billion-dollar projects.

Fig. 1. US proposed LNG export terminal projects. Source: US Department of Energy.

However, energy pricing is cyclical in nature, and most market watchers are hopeful that prices will recover in the near future. Gas production will continue to expand and infrastructure needs will grow, requiring the construction and expansion of more gas pipelines and terminals. GP