XcL Midstream Building New Dry & Wet Gas Gathering Pipes in WV
It doesn’t happen often, but every now and again we read about driller or (in this case) pipeline company operating in the Marcellus/Utica we had never heard of before. Such is the case today. A new (to us) midstream company, XcL Midstream, has formed and is already building a dry gas gathering pipeline system in West Virginia, with plans to build a wet gas gathering system in WV too. According to its website, XcL “operates in the premier region of the Appalachia basin in Marshall and Wetzel Counties, West Virginia. XcL Midstream’s Appalachia Connector Pipeline is strategically located at the intersection of every major long-haul interstate pipeline system in Southwest Appalachia and provides shippers with market price optionality.” XcL plans to gather and process dry gas, wet gas (i.e. natural gas liquids), and transport water for its customers. XcL has its headquarters in Canonsburg, PA, near Pittsburgh. The reason that the company popped up on our radar is because Platts ran an article announcing that XcL has signed a customer–THQ Appalachia I, an affiliate of Tug Hill–to use 600 million cubic feet per day (Mmcf/d) on the dry gas pipeline, 200 Mmcf/d on the wet gas pipeline system, and to use a forthcoming water pipeline to boot. Here’s the thing: both XcL and THQ/Tug Hill are backed by private equity company Quantum Energy Partners. So apparently this is one of Quantum’s portfolio companies doing business with another of Quantum’s portfolio companies. In essence, one cousin helping out the other cousin. Perhaps we can call them kissin’ cousins?…
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Yesterday saw the first two (of four) public hearings being hosted this week by the Pennsylvania Dept. of Environmental Protection (DEP) to elicit comments on the proposed $3 billion, 198-mile Atlantic Sunrise Pipeline, an expansion of Williams’ Transco Pipeline system. One of yesterday’s meetings was held in Lancaster (Lancaster County), and the other in Tunkhannock (Wyoming County). The striking thing about both meetings is that they were not the usual circus freak shows by anti-fossil fuelers we’ve come to expect. Indeed, in both venues, an overwhelming majority of those speaking were there to speak IN FAVOR of the projects. Oh, there were detractors, to be sure. Nonsensical statements made by people like Malinda Clatterbuck, one of the locals in Lancaster who is attempting to turn Lancaster into another North Dakota fiasco. Clatterbuck said “angst over the pipeline has caused premature births, divorces and heart attacks” among people she knows. Complete rubbish. Anyone can say (or do) anything at these hearings. Mark Clatterbuck (Malinda’s husband) also spoke. Mark was a protester in North Dakota against the Dakota Access Pipeline. He warned (threatened?) DEP representatives of a coming “community uprising” against the Atlantic Sunrise pipeline. Even though there was some opposition like the clattering Clatterbucks at last night’s hearings, the big news is that their opposition was drowned out by supporters of the pipeline project. And that’s good news for all Pennsylvanians…
We just knew getting a “virtual pipeline” facility built in ultra-liberal Broome County, NY was proceeding a little too easy. MDN recently told you about a proposed virtual pipeline (i.e. natgas trucking system) coming to MDN’s neighborhood. NG Advantage wants to build a new compressor station and tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County (see 
Rex Energy began selling natural gas, gas liquids and condensate from its four newest wells, part of the “Baird” pad (in Butler County, PA) on May 31st. The company issued a press release yesterday to do some well-deserved crowing about their wells. Two of the wells (the 1H and 4H) are Marcellus wells and initial production is averaging 12.1 million cubic feet equivalent per day (Mmcfe/d). The other two wells (the 2H & 3H) target the Upper Devonian layer and initial production for those wells has been 8.1 Mmcfe/d. Rex also posted a new company PowerPoint presentation (full copy below) which shows a new 6-well pad in Butler County will go online to sales in August, another 4-well pad in September, and a 2-well pad and 4-well pad sometime in the fourth quarter. In addition, Rex expects to begin drilling a 3-well pad in the Ohio Utica (in Carroll County) in July…
During the Obama reign of terror, the world’s #2 largest oilfield services company, Halliburton, tried to buy the world’s #3 largest oilfield services company, Baker Hughes. The Obama Dept. of Justice (DOJ) killed that deal (see 
Yesterday, MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Get ready to break new records–again! In July, we will once again hit the highest output of shale gas we’ve seen, ever. All seven major plays will produce an amazing 51.7 billion cubic feet per day (Bcf/d) of natural gas, and 5.5 million barrels of oil per day. In the Marcellus, natural gas output will hit 19.4 Bcf/d. In the Utica, output will reach 4.3 Bcf/d. The biggest natural gas story continues to be the Texas Permian–an oil play! When you drill like crazy for more oil, you also get natural gas out of the hole along with the oil. It’s called “associated gas.” And because the Permian is red hot with drilling, it makes sense natural gas production will spike up too. The Permian will add 161 million cubic feet per day (Mmcf/d) of natural gas production in July and hit a total output of 8.5 Bcf/d, now #2 behind the mighty Marcellus…
Competition is good. Last week we told you about the coming competition between the Marcellus/Utica Shale play in Pennsylvania, West Virginia and Ohio, and the Haynesville Shale play in Louisiana (see 
In March, Mark McCollum, who had been Chief Financial Officer (CFO) of Halliburton, the world’s second largest oilfield services company, left to become the CEO of Weatherford, the world’s fourth largest oilfield services company (see 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Appalachia gas supply outlook vs. takeaway capacity; critics see Cuomo power play at the PSC; Beaver County developer buys 63 acres behind Beaver Valley Mall near Shell cracker site; ethane cracker tops Pennsylvania’s top construction projects; shale-oil boomtown climbs back from the bust; be happy that natural gas and fracking are here to stay; fracking says “You’re welcome, America” for low gasoline prices; Harold Hamm says American natgas is going to have “world impact”; Trump wants to boost natgas exports to India; and more!