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I N N O V AT I O N S • O C T O B E R - D E C E M B E R 2 0 1 4
8
S A F E T Y M AT T E R S
Cost-Recovery Programs
Promote
Pipeline Safety
Projects
A cooperative
approach between
commissions, law
makers and operators
is driving pipeline
safety improvements.
With the popularity of natural gas surging around the globe,
more governments than ever are investing in pipeline safety. In Canada,
for example, the government is requiring more pipeline inspections.
And in England, a new regulatory model has been developed to reward
utilities for performance in several areas, including network safety.
In the United States, many of the safety projects taking place today
are being driven by state regulators and lawmakers who are embracing the
saying, “the carrot is better than the stick.”
In recent years, many local utility commissions in the United States
have worked with natural gas utilities on programs that enable operators
to recover the costs of accelerating replacement and modernization of
their infrastructure. As of mid-2014, the American Gas Association
(AGA) reported 38 states had some type of cost-recovery program in place,
and more are in the works.
“If you step back and look at the environment we’re in now, natural gas
is getting a lot of attention — and rightfully so,” says AGA Senior Vice
President and Chief Operating Officer Lori Traweek. “Many states are
looking for ways to expand natural gas infrastructure, and at the same time,
they want to make sure existing infrastructure is modernized and safe.”
Replaced With Confidence
One of the most important steps to pipeline safety is replacing
gas mains that may no longer be fit for service. Made of cast iron
or untreated steel, they can be susceptible to corrosion and leaks.
According to the United States Pipeline and Hazardous Materials
Safety Administration (PHMSA), there are more than 3.2 million
kilometers (2 million miles) of natural gas distribution mains and
service pipelines in place across the United States.
The good news, AGA says, is that during the last decade, natural
gas utilities have installed updated polyethylene lines at a rate of 48,000
kilometers (30,000 miles) per year, connecting new customers or
replacing older infrastructure. Today, only three percent of the entire
U.S. gas system utilizes cast iron mains.
By 2012, operators’ efforts to replace aging pipelines contributed
to nearly a 90 percent decrease in serious pipeline incidents within
the United States. AGA is confident that state efforts to accelerate
infrastructure replacement will play an important role in further
reducing that number.