EU favours gas pipeline transparency

The European Union Gas Committee has made a draft decision on the proposed amendments to Chapter 3 of Annex 1 to the Regulation (EC) No 715/2009. The amendments aim to improve data transparency regarding the status, capacity and use of Europe’s international gas pipelines.

According to the amendments, system operators will be required to provide regularly-updated transmission information on a website freely available to the public. The information must be provided in English and the official language of the Member State.

The required information includes all entry and exit points to and from a transmission network operated by a system operator; all points connecting the network of a transmission system operator with an LNG terminal, physical gas hubs, storage and production facilities; and, all entry and exit points connecting balancing zones of transmission system operators.

In addition, the website should include data on flow capacity, actual physical flows, as well as planned and actual flow interruptions.

If approved by the European Parliament, these amendments will come into force on 3 March 2011.

Anti-vandalism standard for Canada

CSA Standards recently released a standard designed to help manage the security of Canadian pipeline systems from vandalism, sabotage and other security threats. Known as CSA Z246.1: Security Management for Petroleum and Natural Gas Industry Systems, this is the first standard of its kind in North America.

The standard was developed in response to changes made to the National Energy Board Act, which brought security within the mandate of Canada’s National Energy Board.

The standard specifies security risk reduction measures, and is intended to avoid disruption in energy supply due to sabotage or vandalism, and also ensure the wellbeing of workers and surrounding communities. It provides a framework for pipeline owners and operators to establish governance, conduct planning, and implement and refine security operations.

The standard applies to onshore oil and gas pipelines, as well as liquefied gas production, storage and handling facilities, underground hydrocarbons storage, petrochemical installations, oil and gas treatment, production processing, storage operations and related assets.

UK boosts pipeline safety

It is expected that recent amendments to the United Kingdom’s Pipeline Safety Regulations (PSR) 1996 will come into force in October 2010. The PSR outlines the management of pipeline safety and applies to all onshore pipelines in UK, as well as offshore pipelines in UK territorial waters and on the UK Continental Shelf.

The proposed amendments include the classification of gasoline and CO₂ as dangerous fluids, the introduction of a duty on the local authority to implement their emergency pipeline plan without delay, and the introduction of a duty on the operator to notify the local authority and emergency services.

The amendment process is also intended to improve the clarity of the PSR, and hence improve awareness among pipeline owners and operators of their safety obligations.

Nigeria proposes overhaul of energy legislation

The Nigerian National Assembly is currently considering a Petroleum Industry Bill (PIB), which represents the most comprehensive review of the legal framework for the Nigerian oil and gas sector since its establishment in the 1960s.

The PIB represents the outcome of a report produced by the Oil and Gas Reform Implementation Committee (OGIC), which was established in 2007 with the aim of facilitating the professionalisation and commercialisation of the Nigerian oil and gas industry.

The PIB is intended to act as an all-encompassing piece of legislation and, if ratified, 15 existing pieces of legislation will be revoked, including the Oil Pipelines Act 1990. A Petroleum Directorate with policy-making authority will replace the existing Department of Petroleum Resources, and the structure and function of the National Nigerian Petroleum Company will also be altered.

Other major reforms included in the PIB include the creation of separate licences for oil and gas, the establishment of a new Environmental Quality Management program, and the introduction of higher local content mandates. The PIB also includes numerous provisions to allow the Directorate to take over licences after ten years of inactivity.

However, the legislation has faced some opposition from international oil companies, and Royal Dutch Shell has recently warned that its planned $US40 billion investment in Nigeria may be withdrawn if the Bill is passed in its current form.