Report Volume XXII, Number 1, September 1st, 2010

INDUSTRY NEWS (Shelton, CT) – Iroquois Gas Transmission System, L.P. has announced the commencement of a binding open season for its Wright Transfer Compressor project which would add up to 15,400 horsepower of transfer compression at Iroquois’ existing interconnection with Tennessee Gas Pipeline’s 200 Line in Wright, New York.

As supplies on Tennessee have increased from Marcellus Shale and Atlantic LNG, Iroquois has received significant interest from shippers in making its Wright interconnect bidirectional. According to Scott Rupff, Vice President of Marketing, Development and Commercial Operations, “The WTC project would enable us to physically receive gas from Tennessee, further diversifying supply options for our customers, enhancing system reliability and reducing supply cost. The siting of this transfer facility adjacent to our existing compressor station brings added benefit as it will minimize the environmental and community impact and help streamline the permitting process.”

WTC would compress up to 375 MDth/day from Tennessee into Iroquois at Iroquois’ rate zone boundary, thereby enabling WTC shippers to supply both Zone 1 and Zone 2 markets on Iroquois. The project is targeted for service commencing Summer 2012. Any party interested in acquiring firm transportation capacity on the WTC project may express such interest during this open season. Results from the open season will determine the final design and scope of the project. Bids will be accepted beginning Monday, August 30, 2010 through Friday, October 15, 2010.

INDUSTRY NEWS (Houston, TX & Valley Forge, PA) – NiSource Inc. and UGI Corporation announced that NiSource’s NiSource Gas Transmission & Storage unit and UGI’s UGI Energy Services, Inc. unit, are partnering to develop a new natural gas pipeline to provide Marcellus Shale producers in Pennsylvania improved access to high-value markets. An estimated 500,000 Dth/day of transportation capacity will be made available for increased production along NiSource’s Columbia Gas Transmission pipeline system in Clearfield, Centre and Clinton counties to interconnections with Transcontinental Gas Pipeline Corp., Tennessee Gas Pipeline Company, Dominion Gas Transmission, Inc., and Millennium Pipeline Company in north central Pennsylvania and southern New York, as well as connections to UGI’s Tioga/Meeker natural gas storage facilities and extensive gas distribution network.

“With the significant increase in drilling and deliverability of natural gas in the Marcellus Shale, there is a growing need for capacity to facilitate the movement of producers’ gas to downstream markets,” said Christopher A. Helms, executive vice president and group CEO for NGT&S. “Providing solutions to deliver this exciting new supply source to high-value markets is a key focus area for NGT&S. With this and other projects, we are working diligently to advance the NGT&S strategic plan to meet customer needs through thoughtful infrastructure investment.”

Bradley C. Hall, president of UGI Energy Services, said, “This joint marketing agreement brings together two major players with strategic assets, supplier relationships, and customers in and near the Marcellus Shale region. UGI has a large appetite for natural gas and we believe this project will provide our utility and transportation service customers with cost effective and reliable gas supply. We look forward to working with NGT&S on this important new supply initiative, especially given its operating and construction expertise with transmission and gathering pipelines.”

INDUSTRY NEWS (Houston, TX) – PipeLine Machinery International (PLM), Caterpillar’s global pipeline equipment dealer, has recently teamed with ek pass for the provision of global training and consulting services for the pipeline industry.

ek pass is an international training and consulting firm specializing in the development and delivery of all types of heavy equipment and safety training. They have been delivering comprehensive training programs to the pipeline industry addressing a broad spectrum of needs from clearing to clean-up. They have also provided training audit and consultancy to pipeline owing companies and are involved in numerous training and safety committees for energy industry associations.

“We are pleased to partner with ek pass in this important area of training,” said PLM Senior Vice President Tony Fernandez. “Pipeline operator training and safety training programs have always been on our front burner because it is an elemental challenge for our customers around the globe. By teaming with ek pass we connect our customers with world class, custom training delivered in classrooms, at job sites, through elearning – in whatever format the contractors or owning companies require.”

Equipment Operator Training & Certificate Programs – ek pass offers tailored training to meet the specific needs of the contractor. Training is customized right down to the make, model and serial number of the machines in the customer’s fleet. Training begins with classroom instruction where fundamentals are covered, including safety, basic maintenance, operating techniques and advanced skills. The hands-on component is the bulk of the training and is conducted by an ek pass seasoned veteran and usually provided on an actual job site using the equipment the trainees will be operating. This allows for minimal disruption in work production with the added benefit of the operators learning in their actual work environment.

e-learning – Computer-based or web-based training programs are offered by ek pass in addition to the hands-on training. Program material is developed by the ek pass team of instructional designers, graphic designers, multimedia programmers, 3D animators, professional narrators and sound engineers. Content can be customized to machine-specific data and to the client’s specific requirements for policies, procedures, job-specific regulations, etc.

“The most exciting part of the PLM-ekpass collaboration is the potential,” said PLM Vice President – Product Support Lindley Imeson. “Throughout my years in the pipeline business, there has always been a need for bringing new operators and all new pipeline workers, for that matter, up to speed on the unique aspects of pipeline production. Even seasoned hands benefit from updated instruction that covers new machines and evolving best practices for maintenance and operations. With the increasing requirements for on-the-job safety and environmental training, we see the ek pass program as a onestop training solution for the industry.”

PLM was established in 2005 and is the first Caterpillar dealership to focus on a particular industry on a global basis. PLM provides purpose-built and traditional construction equipment to the mainline pipeline construction industry on projects around the world. PLM works closely with pipeline owners, contractors and local Caterpillar dealers to provide solutions tailored to the unique product and service needs of this industry.

PLM’s worldwide activities are currently supported through the corporate offices in Houston, Texas, USA, Edmonton, Alberta, Canada, The Hague, Netherlands, Beijing, China, Singapore and Australia.