New Pipeline Designed to Connect M-U Gas to Gulf Coast LNG Exports

An exciting new pipeline project to tell you about. Two days ago Enable Midstream Partners announced a plan to build an interstate natural gas transportation project called the Gulf Run Pipeline. The pipeline itself is 165 miles of large-diameter pipeline to be constructed from northern Louisiana to Gulf Coast markets. The pipeline will connect to other pipelines, and that’s how Marcellus/Utica gas will reach it and go on to the Gulf Coast. In fact, the plan is to connect to multiple pipelines that in turn connect to not only the Marcellus/Utica, but also to the Haynesville, Barnett, and the Mid-Continent shale region too. The Gulf Run Pipeline project is backed by an agreement with an undisclosed “cornerstone shipper” that has signed up for 20 years, committing to use 1.1 billion cubic feet per day of capacity along the pipeline–to deliver the gas to an LNG export plant. If the LNG plant doesn’t get built the deal is off and the pipeline won’t get built. Still, Enable is confident enough in the project that they are running a non-binding open season from now until Oct. 26…
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Last week we told you that the forces of good had overcome the forces of evil–evil being the Sierra Club and the Southern Environmental Law Center (SELC) and their mission to stop the Atlantic Coast Pipeline (ACP) from getting built (see
The price tag to build the 303-mile Mountain Valley Pipeline is going up. When first announced, the project, which will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA, was originally estimated to cost $3.5 billion. That number was tweaked this summer to $3.7 billion. Now MVP (i.e. EQT Midstream) says it will cost a whopping $4.6 billion–more than a billion dollars higher than the original estimate. Why the big hike? Two things, says MVP: (1) A work stoppage imposed by the courts and by FERC (thank you Sierra Club), and (2) heavy rain. The rise in cost is due more the former rather than the later. It was only yesterday we ran a story about how much it costs, per mile, to build a major pipeline in the northeast (see
The Pennsylvania Senate Environmental Resources and Energy Committee yesterday heard testimony from several witnesses on the topic of foreign meddling meant to suppress or stop Marcellus Shale production in the Keystone State (and beyond). There were three witnesses, all of them stars (and all MDN friends). One of the three was MDN buddy Tom Shepstone, writer of the always-excellent
Perhaps this is an overstatement and a tad too generalistic, but once again Republican lawmakers have shown they are the party of law and order, while Democrats have shown they are the party of lawlessness and disorder–at least in Pennsylvania. Yesterday the PA House Environmental Resources and Energy Committee tweaked and then passed (on a party line vote) Senate Bill (SB) 652 which makes trespassing on rights-of-way of “critical infrastructure” (pipelines, power lines, refineries, etc.) a felony instead of a misdemeanor. Democrats don’t like it, because their party’s members are typically the ones who engage in illegal trespass in order to slow down and block work on things like don’t like–like pipelines. Dems maintain they have a right to “free speech” to illegally block pipeline work, just because they don’t like it and can’t stop it using lawful means. The difference between the two sides could not be more clear…
Sometimes you can’t convey it all in a headline that should be 65 characters or less (in order to make the Google gods happy). In this case, the longer headline we would have used is this: “Lobbyists tell Pennsylvania lawmakers that nuclear powered electric plants are safer from cyber and physical attack than natural gas-fired plants (and therefore should be preferred to gas-fired plants).” That was the upshot of a hearing held yesterday by the PA House-Senate Nuclear Caucus, a hearing in which nuclear energy lobbyists claimed “no mandatory physical or cyber security standards exist for natural gas systems” in contrast to the nuclear energy industry that has to meet “demanding security requirements.” We should hope so! We hope that nuke facilities are more strictly regulated than natural gas facilities. If a nuke goes offline/has an accident/is overtaken in a physical attack, thousands of people die and it’s an environmental disaster. If a natgas-fired plant goes offline, the lights go out for a while. Big difference, we would say…
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PA General Assembly advances bill on conventional drilling; Natural gas company helps flood victims; NEXUS revenue questions: Sen. Gardner to meet with Woodmore board; State PUC urges Philly to get rid of ‘duplicative’ gas commission; Shell’s Pennsylvania cracker on schedule, budget; Environmentalists causing delays for midstream pipeline companies; For environmentalists fighting natural gas, safety issue comes to the forefront; Natural gas surges past $3 as traders focus on low storage levels; Houston energy co.’s unsolicited acquisition offer rejected; LNG shipping rates spike, no end in sight; OPEC sees competition with U.S. shale oil subsiding after 2023; Oil giants use size to overcome fracking challenges.