More Canadian LNG Heads to New England; Why Not from Marcellus?

Gaz Métro LNG loading

4/24/17 Update: A sharp MDN reader wrote to alert us that in all likelihood, the gas getting liquefied by Gaz Métro is coming from the Marcellus/Utica. See a special note below.

Gaz Métro is the largest natural gas distribution company in Quebec, Canada where its network of 6,200 miles of underground pipelines serves some 300 municipalities and more than 200,000 customers. Gaz Métro also has a presence in Vermont, with more than 310,000 customers through its subsidiaries Green Mountain Power and Vermont Gas Systems. One of the business units Gaz Métro operates is a liquefaction, storage and regasification (LSR) plant in Montréal–which has been in operation for 45 years. Last year via a major investment from Investissement Québec and the government of Québec, Gaz Métro tripled the plant’s liquefaction capacities. And now Gaz Métro is making a play to sell more gas–a lot more gas–to New England. Gaz Métro is using Canadian gas, liquefying it, and selling it to New England–when the Marcellus is as closer or (often) closer to the very markets where Gaz Métro is selling its LNG. So if the dunderheads in New England keep rejecting pipelines, why don’t we just ramp up an LNG operation here in the Marcellus and send them gas via tanker trucks, like Gaz Métro is doing?…
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Keeping Trans Energy’s Bacon Out of Fire Earned Law Firm an Award

Last October EQT announced a deal to buy Trans Energy, Inc., a public pure-play driller in the Marcellus in West Virginia, which will become a wholly-owned subsidiary of EQT (see EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M). EQT also bought Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (in WV). When the deal closed, investment bank Gordian Group strutted around making some big boasts about their role in the deal. Gordian, via a press release, took credit for keeping Trans Energy out of bankruptcy court and for soaking EQT on the purchase price (see EQT Closes on Trans Energy Deal; Investment Bank Makes Big Boasts). It seems Gordian isn’t the only one strutting about the the EQT/Trans Energy deal. International corporate law firm Haynes and Boone, with a big energy practice in Texas, also assisted with the deal. In fact, in a Haynes and Boone press release, they boast that keeping Trans Energy solvent long enough to sell out to EQT earned the law firm the 2016 “Out-of-Court Restructuring Deal of the Year” award by The M&A Advisor…
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Dela. Riverkeeper Protects Wm. Penn Foundation’s Tax Exemption

MDN friend Tom Shepstone has long pointed out the incestuous connection between THE Delaware Riverkeeper and the William Penn Foundation. William Penn is a nonprofit that, according to its nonprofit charter, cannot use its considerable wealth to engage in political activities. So like an organized crime ring, William Penn uses Riverkeeper as the front organization to do its dirty work–investing millions in the Riverkeeper to carry out its (William Penn’s) radical environmental agenda. All at an arm’s length–to protect William Penn’s tax exempt status (hello IRS and PA Attorney General’s office, are you reading this?). It is a thinly-veiled shell game of money changing hands. The William Penn/Riverkeeper shell game is exposed in a recent article in the Washington Examiner
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Even Without CPP, NatGas Will Dominate Electric Power Gen

Last week the Natural Gas Supply Association (NGSA) released a report by Pace Global about the “critical role” of natural gas in generating affordable (and clean) electricity in the U.S. The report, titled “Natural Gas: Essential to a lower carbon energy future” (full copy below), finds that whether or not the U.S. federal government adopts Obama’s disastrous so-called Clean Power Plan, the shift was already underway and will continue–from using sources like coal to using natural gas to generate electricity. It is the single, biggest factor in lowering carbon dioxide emissions–if you care about that sort of thing (which we don’t). Along with the Pace report the NGSA released four key policy recommendations that will encourage even more use of natgas in power generation, and increasingly important market for Marcellus/Utica gas…
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Dear President Trump: FERC Needs a Quorum. NOW.

We reported back in February that a group of far-left House of Representatives Democrats sent a letter to President Trump imploring him to appoint new members to the Federal Energy Regulatory Commission (see Anti-Drilling Democrats Ask Pres. Trump to Fill Up FERC). Then in March, a group of lefty Senate Dems did the same thing (see Senate Democrats Send Letter to Trump Requesting New FERC Members). FERC is the agency that, among other things, reviews and approves interstate oil and gas pipeline projects. The agency has been without a quorum since Feb. 3, when Norman “cry baby” Bay quit in a huff (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). So why would those who hate FERC want it staffed up and humming along? Because without a quorum, FERC can’t hear requests for re-hearing. In Democrat-land, you want to get to a liberal judge as quickly as possible to stop a pipeline project. Dems can’t litigate until FERC denies a request for re-hearing a decision to green light a pipeline project. Without a quorum, previous decisions stand and pipelines are getting built–a five alarm emergency is radical enviro-land. So they’re trying to pressure Trump to appoint at least one more commissioner, stat. But the antis aren’t the only ones. Now those on the pro-drilling, pro-pipeline side of the isle are joining the chorus and attempting to “encourage” (pressure, cajole, goose) President Trump into getting more commissioners appointed asap. The Natural Gas Supply Association, American Gas Association, Energy Equipment & Infrastructure Alliance, Independent Petroleum Association of America and Interstate Natural Gas Association of America penned a joint, open letter to President Trump, published in a major Washington, DC newspaper, requesting he get at least one FERC appointment done. Soon. ASAP. Now. Even if that happens, it’s likely to take another two months before the new commissioners are seated and working…
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Kinder Morgan 1Q17: Profit Up 45%, M-U Projects Online in ’17

Last week Kinder Morgan, the largest midstream (i.e. pipeline) company in the U.S., filed its first quarter 2017 update. 1Q17 saw a profit of $401 million, up $125 million (45%) from 1Q16. Revenue was up $229 million (7%) to $3.4 billion. And costs rose just $65 million (3%) to $2.4 billion. All in all a good start to 2017. However, as always, what we’re interested in is an update on key projects that Kinder Morgan is working on–projects that are located in or close to (with an impact on) the Marcellus/Utica region. Projects like the Utopia Pipeline in Ohio, the Elba Island LNG export facility in Georgia, the Orion Project in northeast PA, and the Louisiana pipeline project, going bi-directional to move our gas to the southwest. There were plenty of updates about projects of interest to the Marcellus/Utica (particularly those coming online in 2017) in the latest quarterly report…
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PwC Report: Oil & Gas M&A in 1Q17 Saw “Stunning” 160% Increase

According to one of the top accounting/consulting firms in the world, PricewaterhouseCoopers (PwC), mergers & acquisitions (M&A) activity in the oil and gas sector in the U.S. set a new record high in 1Q17 for the first quarter of any year–$73.04 billion in deals. The report, titled “US Oil & Gas Deals insights first quarter 2017” (full copy below), says the market is quite pleased with The Donald’s pro-energy policies and is loosening up the money to fund new exploration and production. In fact, first quarter spending represents a “stunning 160% increase in deal value year over year.” Some 53 deals were announced in 1Q17, with upstream (i.e. exploration/drilling) taking the lion’s share with 32 deals worth $36.6 billion…
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Big Chemical Selfishly Wants to Block NatGas Exports

Big Chemical–companies like Dow Corning, BASF, Eastman Chemical and others, via their trade association, have launched a war to try and block American-made natural gas from getting exported to other countries. The reason? They want the natural gas they buy (in very large quantities) to be as cheap as possible. They recently sent a letter (copy below) to Secretary of Energy Rick Perry asking Perry to create barriers to exports of natural gas, ’cause you know, it’s “America First” now baby, and we want that gas all to ourselves. Strumming the patriotic heartstrings, the the Industrial Energy Consumers of America (IECA) says keeping all the gas here will grow more American jobs–and The Donald loves jobs for Americans. These are the same companies that, at the drop of a hat, left our shores and built plants in other countries. To play the patriotic “keep it all home” card is disgustingly hypocritical…
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Marcellus & Utica Shale Story Links: Mon, Apr 24, 2017

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Texas Eastern gets FERC permission to shut down pipeline between OH & PA; NY AG abused his investigative power with #ExxonKnew witch hunt; Marietta college student presents on waterless fracking alternatives; why every state should care about the DRBC lawsuit; PA natgas to the rescue!; Marcellus worker sought in attempted murder investigation; Mass. senators ask FERC to shut down Connecticut Expansion plan; how shale boom turned the world upside down; greens make natgas their next target; and more!
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