Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Regulation | Statewide WV | West Virginia
Atlantic Coast Actual Pipeline Construction Begins in WV
On Friday, the Federal Energy Regulatory Commission (FERC) issued Dominion Energy permission to begin construction of the actual pipeline for the Atlantic Coast Pipeline (ACP) project–in West Virginia. ACP is a (now) $6.5 billion project, up from a projected $5 billion due to delays from regulatory agencies and frivolous lawsuits filed by Big Green groups, that will run from WV through Virginia and into North Carolina–almost to the border with South Carolina. Until now FERC had allowed prep work, like tree cutting. But now actual pipeline construction can begin, which is a momentous occasion, worthy of celebration!…
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Last week RCL Chemical announced it has partnered with Y2X Infrastructure to build a $325 million gas-to-liquids (GTL) plant in Floyd County, Kentucky. GTL plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing GTL plants in the region. Although we’ve heard plenty of talk about such plants, we’ve only seen a few prototypes get built thus far. The RCL/Y2X story caught our attention because Kentucky hates new gas pipelines, yet wants to build a plant that will use gas coming from pipelines (see 
What’s happening with Kinder Morgan’s $4 billion Utica Marcellus Texas Pipeline (UMTP) project? In February MDN told you that Kentucky antis went to court to try and block a plan by Kinder Morgan to convert a portion of the Tennessee Gas Pipeline (TGP) that flows natural gas from the Gulf Coast to the northeast, to reverse the pipeline and flow natural gas liquids (NGLs) from the Marcellus/Utica region to the Gulf Coast (see 
Here’s a theme we have been writing about more and more–because it’s important. That theme is this: Oil drillers in Texas (and New Mexico), in the Permian Basin, are drilling so fast and so furious to get oil out of the ground, that they are creating an overabundance of natural gas that increasingly competes with Marcellus/Utica gas. How? Every time you drill for one hydrocarbon, like oil, other hydrocarbons often come of the ground with it. In this case, natural gas. The unintended but significant quantities of natgas coming out of the ground along with Permian oil is referred to in the biz as “associated gas.” As we wrote in March, natural gas prices in Texas did something that hasn’t happened in years–they became cheaper than the price of natural gas selling in the saturated Marcellus/Utica (see 
In April, the Pennsylvania Joint State Government Commission released a report (full copy below) tackling the question of whether or not PA’s environmental laws and regulations are more stringent than federal requirements. The report compared the main state and federal laws in place covering clean air, clean water, natural resources, waste management and more. The report says PA’s laws, “are generally no more stringent than their federal counterparts.” But in the same paragraph, the report says, “Where additional regulations have been made, it is generally justified as a compelling and articulable Pennsylvania interest and addresses definable public health, safety or environmental risks. The area of greatest deviation involves differences between the federal Clean Water Act and the Clean Streams Law. Other more stringent regulations are found in the areas of safe drinking water, the handling of hazardous materials, and mineral extraction. In some instances, Pennsylvania regulations build upon and supplement federal law; in others, Pennsylvania has acted in areas not regulated by the federal government” (pg 6). What does that say to you? It says to us: “Heck yeah, the enviro laws in PA are a lot more strict than federal laws, but there’s good reasons (according to the authors of the report) for it.” Are there good reasons for PA raising the bar higher than the federal government requires?…
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events. To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address.
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Where PA’s GOP gov candidates stand on issues important to the gas industry; PTT ensuring possible Belmont County cracker will be on solid footing; Shell Polymers goes back to the future; more than half of Williamsport buses run on CNG; FERC asks court to dismiss Atlantic Sunrise lawsuits; Texas heat may increase natgas prices this summer; Boston electricity 65% higher than other regions; US will be “very strong” for 15-20 years thx to shale & petchem; gas exports will rise following Iran deal pullout; ethane rejection economics; and more!