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SEPTEMBER 2014
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World Pipelines
5
Praxair launches development
programme
Praxair, Inc. has announced a new Skills Pipeline
programme, the company’s multifaceted
approach to help address the growing need for
skilled workers in today’s global economy. The
first phase of the programme will provide more
than US$ 300 000 to train 100 new welders in
an accelerated one year curriculum in Louisiana.
Funded by Praxair’s Global Giving
Programme and conducted in co-operation
with the Louisiana Community and Technical
College System (LCTCS), Praxair’s Skills Pipeline
programme will be offered through Baton
Rouge Community College, Delgado
Community College and SOWELA Technical
Community College. Scheduled to begin this
month, the programme also provides funding
for new instructorships and professional
development opportunities for existing welders.
“Praxair is constantly focused on developing
a diverse pipeline of talented science,
technology, engineering, math and skilled trade
professionals to ensure we meet our critical
business needs and remain competitive
globally,” said Anne Roby, Senior Vice President
at Praxair.
“Praxair’s initiative wastes no time in
addressing what looms as a very specific and
pressing need for our state,” said Louisiana
House Speaker, Chuck Kleckley. “Praxair’s Skills
Pipeline scholarships offer an accelerated
educational effort providing the state of
Louisiana with 100 credentialed welders ready
to go to work within a year. The state of
Louisiana has more than US$ 60 billion in new
plant construction slated to begin by 2016 and
the need for skilled welding professionals is
urgent. This programme is a prime example of
the industry-academia-governmental
collaborations envisioned for the state’s
workforce and innovation for a stronger
economy programme.”
LCTCS President Dr. Monty Sullivan spoke
of the significance of such a programme: “This
investment by our partners at Praxair comes at a
critical time for Louisiana as we continue the
drive to increase the skilled workforce of
tomorrow. Welding and construction skill crafts
are some of the fastest growing and some of
the highest paying professions in the state. This
effort will give more Louisiana citizens the skills
to go to work.”
Ukraine ensures reliable gas transit to EU
According to Naftogaz, Ukraine will ensure reliable gas transit to European
consumers despite strained relations with Russia.
The draft law of Ukraine ‘On Sanctions’, which was submitted for the
consideration of parliament by the Cabinet of Ministers of Ukraine on 8
th
August,
does not envision automatic introduction of economic and restrictive measures. The
law creates legal grounds for introduction of restrictions related to certain types of
economic activity, including transportation of energy resources. Such restrictions can
be introduced by the National Security and Defence Council (NSDC) following
recommendations from parliament, the President, the Cabinet of Ministers, the
National Bank of Ukraine or the Security Service of Ukraine.
Imposition of sanctions on transit of resources can limit or terminate gas
transport services by certain counteragents of Naftogaz of Ukraine and Ukrtransgas. In
this respect, transportation of natural gas via the territory of Ukraine to the EU,
Turkey and Moldova can be passed to counteragents not subject to sanctions. To do
this, any prospective counteragent would have to sign direct agreements with
Ukrtransgas, the operator of the Ukrainian gas transport system.
Naftogaz of Ukraine remains a reliable partner for transportation of natural gas to
the EU. During the current crisis, the company has continued to provide quality gas
transport services despite extremely strained relations between Ukraine and Russia.
Naftogaz has remained fully reliable despite Russia’s termination of gas supplies to
Ukrainian consumers in mid-June and the creation of artificial barriers to using existing
gas transport facilities flowing from the EU to Ukraine. “Naftogaz of Ukraine confirms
its readiness to continue Ukraine Andriy Kobolyev said.
Kinder Morgan restructures
KMI Kinder Morgan, Inc. (KMI) will acquire its associated companies and reorganise as
one corporation. In a US$ 70 billion US deal, KMI will acquire all of the outstanding
equity securities of Kinder Morgan Energy Partners, L.P., Kinder Morgan Management,
LLC, and El Paso Pipeline Partners.
“All shareholders and unitholders of the Kinder Morgan family of companies will
benefit as a result of this combination,” said Chairman and Chief Executive Officer Richard
Kinder. “Everyone will hold a single, publicly traded security – KMI – which will have a
projected dividend of US$ 2 in 2015, a 16% increase over the anticipated 2014 dividend of
US$ 1.72. We expect to grow the dividend by approximately 10% each year from 2015
through 2020, with excess coverage anticipated to be greater than US$ 2 billion over that
same period. This combined entity will be the largest energy infrastructure company in
North America and the third largest energy company overall with an estimated enterprise
value of approximately US$ 140 billion. Additionally, we will have a leading position in
each of our business segments and operate in the rapidly growing North American energy
infrastructure sector.”
KMI has reviewed the proposed transaction with the rating agencies and expects the
combined entity will be investment grade. The Kinder Morgan companies will put in
place cross guarantees among and between the Kinder Morgan entities (with limited
exceptions) to be effective on closing of the transaction in order to create a single
creditor class and eliminate the structural subordination.
“This transaction dramatically simplifies the Kinder Morgan story, by transitioning
from four separately traded equity securities today to one security going forward, and by
eliminating the incentive distribution rights and structural subordination of debt,” Kinder
said. “Further, we believe that KMI will be a valuable acquisition currency and have a
significantly lower hurdle for accretive investments in new energy infrastructure. In the
opportunity-rich environment of today’s energy infrastructure sector, we believe this
transaction gives us the ability to grow KMI for years to come.”
