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PA PUC Votes to Redefine Landlords with Gas as Pipeline Operators

We have news about a disturbing ruling from the Pennsylvania Public Utilities Commission (PUC) issued last Wednesday. By a vote of 3-2 along party lines (Democrats in the majority), the PUC commissioners labeled landlords as “pipeline operators” if they have behind-the-meter gas distribution systems on their properties. The move will require, with limited exceptions, landlords throughout the commonwealth — regardless of size — to comply with federal gas pipeline safety laws, including the regulations of the federal Pipeline Safety and Hazardous Materials Administration (PSHMA), in the same manner as natural gas distribution companies and gas pipeline operators. It’s completely bonkers. Read More “PA PUC Votes to Redefine Landlords with Gas as Pipeline Operators”

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CNX Issuing New Notes for $200M to Help Fund Purchase of Apex

CNX Resources announced in December that it had struck a deal to buy the assets of Apex Energy II, LLC, a portfolio company of funds managed by Carnelian Energy Capital Management, for $505 million (see CNX Resources Buys Apex Energy for $505M, Adds Pa. M-U Assets). Apex owns wells, acreage, and pipelines in Westmoreland County, PA. Its assets are close to (in some cases adjacent to) CNX’s considerable regional holdings. The deal is expected to close in the first quarter of 2025. However, CNX needs more money to help fund it. Read More “CNX Issuing New Notes for $200M to Help Fund Purchase of Apex”

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Gov. Ned Lamont Fiddles While Connecticut’s Electric Rates Burn

Faced with the possibility of blackouts, Connecticut’s Democrat Governor, Ned Lamont, wants to keep his nuclear and gas-fired power plants. But Lamont isn’t interested in building more pipelines or new gas-fired plants. That’s a bridge too far for Lamont. He’s happy to allow the residents of Connecticut to continue paying some of (perhaps THE) highest electric rates in the country because, you know, global warming. Connecticut is heading over the renewables cliff into economic oblivion. Paying sky-high prices is A.O.K. for Lamont, but blackouts are not. Hence, his statements in last week’s State of the State speech were about keeping the nukes and gas the state already operates. Read More “Gov. Ned Lamont Fiddles While Connecticut’s Electric Rates Burn”

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NYMEX Gas Price Slips Due to Lower Feedgas to Freeport LNG

Based on comments in two different Reuters articles published yesterday, the Freeport LNG export facility is again experiencing an outage. It appears to be a partial outage. Freeport, in typical tight-lipped fashion, refuses to say anything. According to Reuters, flows to the 2.1 billion cubic feet per day (Bcf/d) Freeport facility were on track to drop to 1.4 Bcf/d yesterday, down from 1.6 Bcf/d on Sunday and an average of 2.1 Bcf/d over the prior seven days. Here we go again. Read More “NYMEX Gas Price Slips Due to Lower Feedgas to Freeport LNG”

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Gas-Fired Power Back in Style, Driven by AI & Data Centers

If you’ve read MDN for any time, you’ve come across at least a few articles about gas-fired power. Nationwide, natural gas produces 43.1% of all electricity, the number one source of electric generation (see this EIA page). Nuclear is number two, producing 18.6% of all electricity. Coal is number three, producing 16.2%. Wind produces 10.2% and solar 3.9%, pointing out the futility of claims that “renewables” are about to dislodge fossil energy in electric generation any year now. With the rise of data centers and artificial intelligence (AI) that uses enormous amounts of electricity, building new gas-fired power plants and buying existing gas-fired plants is suddenly all the rage. Read More “Gas-Fired Power Back in Style, Driven by AI & Data Centers”

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U.S. LNG Industry, Pipelines Prepare for Boom Years Under Trump

The U.S. LNG industry and natural gas pipeline operators expect the incoming Trump Administration to launch a new wave of capacity expansions that would cement America’s position as the world’s largest LNG exporter. President-elect Donald Trump is preparing an energy package to expand domestic oil and gas drilling on federal lands and offshore lease sales, in addition to expediting LNG export permits. You can expect Trump to unpause Biden’s pause on new LNG export approvals, likely on his first day in office. Read More “U.S. LNG Industry, Pipelines Prepare for Boom Years Under Trump”

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Unashamed Venture Global LNG Plans Huge $2.3 Billion IPO

Venture Global, which uses loopholes and excuses to avoid selling LNG cargoes to the companies that signed contracts to buy those cargoes, is about to launch an initial public offering (IPO). According to Reuters, Venture Global will pitch investors in its IPO this week. The company hopes to raise $2.3 billion, which values the company at $110 billion. Read More “Unashamed Venture Global LNG Plans Huge $2.3 Billion IPO”

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Baker Hughes Nat’l Rig Count Loses 5, M-U Rig Count No Change

After remaining at the same level for five weeks in a row, the Baker Hughes U.S. rig count lost five rigs last week, dropping from 589 to 584. The Marcellus/Utica rig count was a combined 34 last week—the same number for five weeks in a row. PA has operated 15 rigs for the past nine weeks, with the exception of one week, when the number briefly increased to 16 rigs (the week ending on Dec. 6). OH has operated nine rigs for the past six weeks, and WV has operated 10 rigs for an astonishing 18 weeks in a row, going back to Sep. 13. Read More “Baker Hughes Nat’l Rig Count Loses 5, M-U Rig Count No Change”

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Weather Causes NYMEX NatGas Price to Soar, M-U Spot Prices Soar Too

The prices natural gas is selling for, both the NYMEX futures price and the spot price at various trading hubs, continue to climb. Last Friday, the NYMEX “front month” futures contract (based on gas flows at the Henry Hub in Southern Louisiana) traded above $4/MMBtu for some of the day, but ultimately closed at $3.989, up 28.8 cents day/day. Just a little over a penny away from $4! That’s the highest closing price in two years. The physical spot price of gas trading at large northeastern cities, like Boston and New York, soared. Even the price for pipeline gas in places like northeastern and southwestern Pennsylvania hit highs not seen in nearly one year. Read More “Weather Causes NYMEX NatGas Price to Soar, M-U Spot Prices Soar Too”

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Leftists Eye Pa. Law in War Against Fossil Fuel Companies

We’ve read a number of articles warning the radical left is gearing up to launch a blizzard of lawsuits (i.e., lawfare) against the incoming Trump administration—particularly related to environmental and energy policies and regulations. It’s standard operating procedure for the left, which has taken to bastardizing our justice system in recent years. While the left often dreams about putting its political opponents in jail, not much has been done along those lines (see NYC Dem Politicians, Radical Groups Seek to Jail Big Oil Execs). So it was particularly chilling to read a PBS story about a new journal article in which leftist lawyers seriously discuss using a Pennsylvania law already on the books to prosecute oil and gas companies for the “crime” of causing mythical global warming. This is no longer wishful thinking but the left outlining tactics they intend to deploy to jail those who refuse to agree with them. Read More “Leftists Eye Pa. Law in War Against Fossil Fuel Companies”

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Biden Treasury Dept. Ruins 45V “Clean” Hydrogen Tax Credit

On Jan. 3, the Biden IRS issued its final clean hydrogen tax credit rule, otherwise known as the 45V Clean Hydrogen Production Tax Credit. We previously wrote about 45V back in June (see Biden IRS 45V Tax Rule Endangers Hydrogen Hub Projects in M-U). Our take back then has not changed with the release of the final rule. The 45V tax credit, part of the misnamed Inflation Reduction Act (IRA), can only be used if the hydrogen produced is “green” — meaning NOT made from natural gas. In addition, the electricity used to produce the hydrogen can’t come from fossil fuel sources like natural gas (if you want the tax credit). From what we can tell, nothing changed between then and now, other than allowing coal-mine methane to qualify for the higher tax credit. Read More “Biden Treasury Dept. Ruins 45V “Clean” Hydrogen Tax Credit”

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Court Rulings & Regs Cause Delays in New LNG Export Plants

RBN Energy recently concluded a two-part series on LNG delays and what’s causing delays in bringing more export capacity online. Friday’s Part 2 of the series looks at recent court rulings and regulatory issues and their impact on U.S. LNG development. Yes, Joe Biden’s ill-timed “pause” on the Department of Energy issuing new export approvals certainly had a big impact (see White House Makes it Official – Biden Declares War on LNG Exports). But, there were other regulatory and court-related issues in 2024 that also had an impact on the slowdown in new LNG exports. Read More “Court Rulings & Regs Cause Delays in New LNG Export Plants”

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The Legal Case Against NY Law Taxing O&G $75B for Global Warming

Not only did New York Gov. Kathy Hochul, an extremist liberal, sign a ban on using carbon dioxide to frack wells in the state at the last minute before the end of the current legislative session (see New York Has Fallen: Gov. Hochul Signs CO2 Frack Ban Into Law), she followed it up by signing into law a new climate bill forcing fossil fuel companies to pay $75 billion in “recovery” assessments over the next 25 years for their alleged role in causing “extreme weather” (see NY Gov. Hochul Goes Nuts: Signs Law Billing O&G Companies $75B). A Forbes article discusses how the NY law is completely unconstitutional and illegal. Read More “The Legal Case Against NY Law Taxing O&G $75B for Global Warming”

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Venture Global’s Plaquemines LNG Ships First Cargo to Germany

At the end of December, Venture Global’s Plaquemines LNG export facility officially shipped its first cargo…to Germany. Unfortunately for Venture Global’s contracted customers, they will have to wait to receive their legally contracted shipments. Venture Global has admitted it will (as it has with the its Calcasieu Pass facility) pretend the Plaquemines LNG is not “commercially ready,” allowing the company to cream the market and make more money for the first couple of years (see Plaquemines LNG Coming Online, Will Hose Customers for 2 Years). It’s a disgusting business practice. Read More “Venture Global’s Plaquemines LNG Ships First Cargo to Germany”

Other Stories of Interest: Mon, Jan 13, 2025

OTHER U.S. REGIONS: Shale executives raise bar to boost gas drilling, survey says; Don’t block the will of voters on natural gas; NATIONAL: Zeldin’s EPA confirmation hearing scheduled, radicals get shrill; US oil growth slows as gas takes the lead; Enbridge preps pipeline buildout for Trump-driven drilling boom; Trump unveils ambitious 100-executive order plan focusing on border, energy; INTERNATIONAL: USA ramps up pressure on Russia with fresh energy sanctions; Crude oil market has come alive. Read More “Other Stories of Interest: Mon, Jan 13, 2025”