Marcellus Drilling News

Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Pipelines | Statewide VA | Statewide WV | Virginia | West Virginia

Equitrans Says MVP Will Become One of Most Valuable Pipes in U.S.
November 1, 2023November 1, 2023

Equitrans Midstream issued its third quarter update yesterday. As you might expect, there was much talk about completing the nearly-done Mountain Valley Pipeline (MVP) project. Near the top of Equitrans’ 3Q official update is this comment from CEO Thomas Karam: “Once in-service, there is little doubt MVP will be one of the most valuable pipelines in the U.S., directly connecting our country’s largest and lowest-cost natural gas resource and the rapidly growing demand of the mid-Atlantic and southeast markets.” MVP remains on track to be completed and online in 1Q24. We learned a few new details about MVP from the update. However, MVP wasn’t the only hot topic during yesterday’s update. We have new info about the Rager Mountain Natural Gas Storage Field incident, Ohio Valley Connector Expansion Project, and MVP Southgate.
Read More “Equitrans Says MVP Will Become One of Most Valuable Pipes in U.S.”
Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Litigation

PA AG Files Criminal Charges Against Equitrans for Home Explosion
November 1, 2023November 1, 2023

In 2018, a man in Clarksville (Green County), PA, turned on his gas stove, and it exploded, catching fire and leveling the entire house (see Did Shale Well Methane Migration Cause SWPA Home to Explode?). The man, his girlfriend, and young child were helicoptered to a hospital burn unit. The early working theory/assumptions were (a) the man didn’t smell mercaptan, therefore the source of the gas that exploded was not from the stove or line into the house itself, and (b) because there is an EQT shale well “across the street” and a gathering pipeline (operated by Equitrans Midstream) that runs “next to the house,” methane “may have” migrated from the shale well into the home, or methane leaked from the gathering line into the home. After five years of investigations, Pennsylvania’s Democrat (anti-drilling) Attorney General is ready to lay the blame on Equitrans, but not for the gathering pipeline.
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Commodity Price | Industrywide Issues

Cold Weather to the Rescue! M-U Gas Prices Spike, Highest in Months
November 1, 2023November 1, 2023

Have you noticed the nice rise in the price of gas? Yesterday, the NYMEX Henry Hub price rose $0.22 to close at $3.58/MMBtu (up 6.24% in a single day). Cool! Better yet, the spot price of natural gas in the Marcellus/Utica region is on the march, too. According to Argus Media, spot natural gas prices across the northeastern U.S. surged to the highest levels in months. Why? Weather. Specifically, cold weather. Example: The Columbia Gas Appalachia index, a “key indicator” for the price of gas from the Marcellus shale in Pennsylvania and surrounding states, more than doubled to $2.37/mmBtu on Monday, the highest since March 2nd. How high will it go?
Read More “Cold Weather to the Rescue! M-U Gas Prices Spike, Highest in Months”
Chesapeake Energy | CNG/LNG | Energy Companies | Exporting | Industrywide Issues

Chesapeake Energy Signs Vitol to LNG Contract for 15 Years
November 1, 2023November 1, 2023

In March, Chesapeake Energy announced a 15-year deal to provide natural gas for LNG exports to Gunvor Singapore Pte (see Chesapeake Cuts Back on Marcellus, Signs Haynesville LNG Deal). In an interview with S&P Global Commodity Insights at the time, Chesapeake CEO Nick Dell’Osso expressed the view that over the next several years, as much as 20% or 25% of U.S. production will flow to international markets (see Chesapeake CEO Says 20-25% of U.S. Gas Production Will be Exported). Approximately 7% of Chesapeake’s natural gas production is liquefied and exported as LNG. Chessy Executive Vice President Josh Viets aims to increase that to 20% by locating more deals like Gunvor (see Chesapeake Seeks More LNG Deals, Wants 20% of Production Going Intl). Viets has just scored another LNG deal.
Read More “Chesapeake Energy Signs Vitol to LNG Contract for 15 Years”
Energy Companies | ESG | Gulfport Energy | Industrywide Issues

Gulfport Energy’s Entire M-U Operation Gets “A” on MiQ Report Card
November 1, 2023November 1, 2023

Gulfport Energy, the third-largest driller in the Ohio Utica Shale (by the number of wells drilled), is the latest Marcellus/Utica driller to have its gas certified by MiQ. After a thorough review, MiQ gave Gulfport’s operations and the natural gas it produces its highest grade of “A.” Gulfport, which drills in both the Ohio Utica and Oklahoma SCOOP shale plays, has drilled some of (perhaps THE) longest shale wells in the world at over four miles long (see Gulfport’s 4-Mile Utica Wells Producing 2.5+ Bcfe per 1,000 Ft).
Read More “Gulfport Energy’s Entire M-U Operation Gets “A” on MiQ Report Card”
CNG/LNG | Exporting | Industrywide Issues | NGLs

Drought Along Panama Canal Causing Delays in Propane, LNG Exports
November 1, 2023November 1, 2023

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In early October, we brought you the news that propane (C3H8) was the most-exported U.S. petroleum product in the first half of 2023, averaging 1.5 million barrels per day (b/d), continuing a trend that began in 2020 (see Propane #1 Most Exported U.S. Petroleum Product First Half 2023). U.S. propane exports have been driving increased U.S. petroleum product exports for the past four years. Part of the propane export success story is right here in the Marcellus/Utica (see Marcus Hook Propane Exports Heat Up). However, there is a problem with propane (and even LNG) exports. The Panama Canal, a key link between the U.S. and Japan where much of our propane is shipped, is facing the worst drought in the Canal’s 120-year history.
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CNG/LNG | Exporting | Industrywide Issues

Venture Global Gets FERC OK to Commission 3 Calcasieu Pass Trains
November 1, 2023November 1, 2023

Venture Global’s Calcasieu Pass LNG export facility received Federal Energy Regulatory Committee (FERC) authorization on October 26 to place the final three liquefaction blocks (7-9) into service. The other trains, 1-6, have been online but not officially in commercial service, even though it has shipped over 200 (!) cargoes, claiming it’s still working out the kinks. Venture’s contracted customers are frustrated that they aren’t getting any shipments and have sued (see Repsol Joins Shell, BP in Suing Venture Global for Missed LNG).
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Best of the Rest

Other Stories of Interest: Wed, Nov 1, 2023
November 1, 2023November 1, 2023

MARCELLUS/UTICA REGION: NY needs unprecedented increase in wind, solar to hit 2030 target; INTERNATIONAL: Russia uses new arctic LNG to dodge energy sanctions; Spain, Belgium increased Russian natgas imports up to 50%.
Read More “Other Stories of Interest: Wed, Nov 1, 2023”