US Government pledges support for large-scale pipeline modernisation project

11 May 2012

On May 11, US Department of Transportation Secretary Ray LaHood announced that the Pipeline and Hazardous Materials Safety Administration (PHMSA) will help gain federal permits for a 1,000 mile pipeline modernisation project by NiSource Inc that will produce thousands of jobs, enhance safety and increase energy capacity.

US Department of Transportation Secretary Ray LaHood

“A year ago, I asked pipeline operators to take a hard look at their infrastructure and identify those sections of pipeline that need to be repaired, rehabilitated or replaced to ensure safer and more reliable delivery of energy resources,” said LaHood. “And we are happy to help NiSource speed up construction and replace some of the oldest pipelines in the nation, ensuring good jobs and increased safety for people throughout Pennsylvania and the other states that will benefit from this project.”

NiSource has announced it will modernise its Columbia Gas Transmission pipeline system by replacing ageing infrastructure in six states, including the Marcellus shale gas production region, where the majority of the pipeline infrastructure is more than 40 years old.

This large-scale project by NiSource will take place in Kentucky, Maryland, Ohio, Pennsylvania, Virginia and West Virginia requiring the investment of $4 billion over 10 to 15 years, beginning in 2012.

This will involve the replacement of approximately 1,000 miles of large diameter pipeline using domestic-made steel, and create an estimated 7,000 to 8,000 direct jobs.

PHMSA Administrator Cynthia Quarterman said: “We will help them work through the process, and make sure the project is constructed safely.”

A year ago, LaHood issued a Call to Action to the nation’s pipeline operators, asking them to take a hard look at their infrastructure and identify pipelines that need to be repaired, requalifed or replaced to ensure safer and more reliable delivery of energy resources.

There are more than 2.5 million miles of pipelines that deliver oil and gas throughout the United States.