CNX Scaling Back Wet Gas Production, Charts Course Next 7 Yrs

CNX Resources released its first-quarter 2020 update yesterday, along with hosting a conference call with analysts. CEO Nick DeIuliis laid out a plan for the company for the next seven years. Silencing the naysaying critics who say shale companies are not profitable and some sort of Ponzi scheme, CNX says it is on track to make $300 million in free cash flow (i.e. profits) this year, $400 million next year, and then $500 million each year until 2026. CNX is a cash flow machine!
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ET & DEP Still Squabbling over Revolution Pipe, New Violations

Energy Transfer’s Revolution Pipeline runs through Bulter, Beaver, Allegheny, and Washington counties in southwest PA. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed). What happened that led to a landslide and explosion of the pipeline? ET says historic, unprecedented rain caused the problem. The Pennsylvania Dept. of Environmental Protection (DEP) says ET took shortcuts and performed work without getting permission–work not up to code. The two sides squabbled until January of this year when the DEP levied a record-high $30.6 million fine (see ET Allowed to Fix/Restart Revolution Pipe…After Record $30M Fine).
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DC Circuit Skeptical of FERC Tolling Orders re Atlantic Sunrise

The full U.S. Court of Appeals for the District of Columbia (DC Circuit) heard oral arguments yesterday in a case of major importance to the future of all federally-approved pipeline projects. The case revolves around the Federal Energy Regulatory Commission’s (FERC) use of something called a tolling order in approving Atlantic Sunrise Pipeline (in the PA Marcellus). Big Green groups launched the lawsuit in an effort to strip away FERC’s right to use tolling orders when considering requests to “rehear” decisions to approve pipelines.
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DTE Energy Restarts Construction at Michigan Gas-Fired Plant May 4

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In August 2018 DTE Energy broke ground on a new state-of-the-art natural gas-fired power plant in St. Clair County, Michigan (see DTE Energy’s Michigan Gas-Fired Plant Breaks Ground Today). The gas-fired Blue Water Energy Center will produce 1,150 megawatts of electricity, enough to power 850,000 homes, helping to offset three coal-fired plants set to retire by 2023. Construction on the project, due to go online in spring 2022, was halted due to the coronavirus pandemic. Construction is set to resume on May 4.
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US LNG Export Cargoes Canceled as Coronavirus Destroys Demand

The shutdown of the world’s economy is not only affecting oil usage (and prices), it’s also affecting the usage and prices of LNG–liquefied natural gas. LNG and natgas usage are down around the world–particularly in Europe and Asia. Less demand means lower prices, and (in this case) the cancelation of a number of tankers that were supposed to deliver our LNG to other countries. Reuters is reporting 23 or more U.S. LNG cargoes for June loading have now been canceled.
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IGU’s 2020 World LNG Report – World LNG Trade up 13% Last Year

In contrast to today’s story about LNG being on the ropes (see US LNG Export Cargoes Canceled as Coronavirus Destroys Demand), the International Gas Union (IGU) published its annual LNG report yesterday. The report highlights the material changes in the global LNG industry happening in 2019. The worldwide LNG trade increased by 13% to a total of 354.7 MT (million tons). The Marcellus/Utica gets a prominent shoutout in the report.
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Court Rejects Stanford Prof’s Lawsuit Against Renewables Critics

A Standford University professor who sued another scientist who dared to criticize his wacky views on renewable energy in a journal article sued the scientist and the journal for defamation. It took a while for the lawsuit to play out (two years), but a judge in the case recently ruled the Standford prof was wrong in filing the lawsuit and must now pay the attorney’s fees for those whom he sued. Sweet justice.
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Shale Energy Stories of Interest: Tue, Apr 28, 2020

MARCELLUS/UTICA REGION: ExxonMobil donates medical-grade sanitizer to Pa. for COVID-19 response; Pipelines, transmission lines impacted by hold on federal stream permits; OTHER U.S. REGIONS: Final phase of natural gas line expansion between Wallingford, Middletown begins; Permian natural gas forwards curve signals better days ahead; Gas well projects spike amid negative oil prices; NATIONAL: Low liquidity and limited available storage pushed WTI crude oil futures prices below zero; Oklahoma governor says pandemic “Act of God,” asks Trump to help oil & gas; Trump faces big decisions on energy industry rescue as U.S. runs out of places to store oil; Natural gas broke a bearish trading pattern last week; As oil prices plunge, energy job losses soar; INTERNATIONAL: Hidden threat: Japan has only 2-week stockpile of LNG.
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