Appalachian NGL Storage Hub Enters Phase 2 – Built in 2-3 Years?

Last week MDN friend and ace reporter Rick Stouffer from Kallanish Energy hosted a one-day event in Pittsburgh called “Kallanish New Horizons: Appalachin Basin.” One of the speakers was Denise Brinley, senior energy advisor for the Pennsylvania Department of Community & Economic Development. She addressed the topic of an NGL (ethane) storage hub. We’ve written a number of posts on what was originally billed as a $10 billion project, to be located somewhere in the Marcellus/Utica region–most likely West Virginia (see Is the Appalachian NGL Storage Hub Close to Reality?). Brinley tossed out some numbers last week that are different from (contrary to) numbers we’ve seen in the past. For example, she says the facility will cost $2.5 billion to build, not the $10 billion number we’ve seen quoted so often. She also said said such a facility will open in 2-3 years, which is the first time we’ve seen any potential time frame pegged for building it.
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DOE Reports Gives Full-Throated Support for Appl. NGL Storage Hub

Continuing on the topic of the NGL storage hub that is today’s lead story (see Appalachian NGL Storage Hub Enters Phase 2 – Built in 2-3 Years?), a number of politicians previously lobbied the U.S. Department of Energy to study the issue of if, and where, a natural gas liquids (NGL) storage hub should be located. Namely, West Virginia’s two U.S. Senators, Shelly Moore Capito and Joe Manchin, were behind the request for a DOE study (see WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub). The hope was/is that DOE would find justification (and throw government backing) behind a proposed $10 billion NGL storage hub project. Yesterday the DOE issued their report to Congress, titled “Ethane Storage and Distribution Hub in the United States” (full copy below). Here’s something really cool for us at MDN HQ: Marcellus Drilling News is referenced (quoted) twice in the report!
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Philly OKs $60M Plan to Partner with Russian re LNG Export Plant

Russian native Boris Brevnov, a former Enron executive, and banker Charles Ryan, a Radnor native who was once chief country officer in Moscow for Deutsche Bank, have just landed themselves a sweetheart deal with Philadelphia Gas Works to build a small LNG plant that will export Marcellus gas. The Philadelphia Gas Commission voted to approve a deal yesterday with Liberty Energy Trust. We frankly have mixed emotions about the news. We’re glad to see another LNG export facility, this one in PA (albeit quite small), but unhappy that these particular people are the ones building and operating it. Yes, there’s a lot of history to cover in this story.
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PA Natural Gas Production Hits Another All-Time High in 3Q18

Yesterday the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for Jul-Sep 2018 (full copy below). It shows natgas production rose an amazing 18.5% compared to the same period last year. The report also shows the number of producing wells is up 10.4% from last year. Total natural gas production volume was 1,567.5 billion cubic feet (Bcf), and the number of producing wells in 3Q18 was 8,917 (of which 8,431 were shale wells). The biggest news is that once again 3Q18 saw the highest quarterly production of natural gas in the state–ever. This is the eighth quarter in a row there has been an increase in production. Two-thirds of the state’s natural gas production consistently comes from four counties: Susquehanna, Washington, Greene and Bradford.
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PA Shale Water Company Hiring 125 New Employees

This is the kind of news we love to share! Keystone Clearwater Solutions, which was once majority owned by Rex Energy until they sold it to American Water Works in 2015 (see Rex Energy Sells Keystone Water Subsidiary to American Water Works), is hiring. And boy are they hiring! Keystone needs to hire 125 people, from truck drivers (most of the positions) to mechanics to technicians to supervisors. Keystone offers “complete water management solutions” to the shale industry, from the development and operation of surface water intakes to the operation and maintenance of water pipeline systems, pipeline construction projects, and water transfer services. Keystone is holding interviews across PA, OH and WV in December to fill the open positions. Christmas came early!
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DEP Issues 4th Update to PA’s Bizarre Climate Action Plan

Every three years the Pennsylvania Dept. of Environmental Protection is required, by state law, to produce an update to the state’s so-called Climate Action Plan. The fact that they have such a plan boggles the mind–a plan to address global warming (the operative word being “global”) from one state. To be fair, a number of states and even large cities also have such plans. These plans are all arrogant nonsense. No entity, especially not a single state, can do a darned thing to affect the temperature of Mom Earth, but they pretend they can. And they use the existence of such plans as a manipulative political tool to force policy changes that inflict great economic harm on their citizens–all in the name of saving the planet. They’ve brainwashed our children into believing we’ll die if we don’t give up fossil fuel use. The DEP recently released their triennial update, and it’s as crazy as ever.
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Wilkes-Barre, PA Suburb Votes to Block Marcellus Industry

It’s kind of unusual, but we suppose not totally unheard of, for a township in the heart of the Pennsylvania Marcellus region in the northeast to essentially reject the Marcellus industry and tell the industry it isn’t wanted in their town. That’s the very loud and clear message just sent by Dallas Township (Luzerne County, near Wilkes-Barre) in adopting new zoning regulations that limit businesses related to the Marcellus industry from operating anywhere but in ~10% of the town. And we’re not talking about drilling–there is no Marcellus drilling in Dallas, in fact none in Luzerne County at all. We’re talking about things like “compressor stations, metering stations, processing facilities, hydraulic fracturing water withdrawal and treatment services.” And such restrictions do impact the industry, especially those related to pipeline infrastructure.
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Energy Stories of Interest: Wed, Dec 5, 2018

The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: LDCs expect little change in natgas use, slight increase in cost in PA this winter; Southwestern completes transformation with close of Fayetteville Shale exit; LNG tanker arrives at Cheniere Energy’s Corpus Christi plant; MXCC and Eversource energy host first graduation for natural gas field technicians; U.S. coal consumption in 2018 expected to be the lowest in 39 years; Trump’s policies bring not just energy independence, but energy dominance; Why OPEC will send natural gas prices even higher; OPEC oil decision could undercut U.S. natural gas price surge.
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