Blue Racer Midstream

Accidents | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia

Blueracer Natrium Wet Gas Plant Remains Offline, How Much Longer?
January 13, 2014January 13, 2014

Last September there was an explosion and a fire “isolated to a small area” at the Blueracer Natrium processing and fractionation facility in Marshall County, WV (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). The fire, which “burned itself out,” knocked the plant offline until this January. Because of the outage, at least two (and perhaps more) companies found other sources to process their wet gas (see Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014). However, not all drillers have had success in finding other sources to process their wet gas and are stuck, waiting for the Blueracer Natrium plant to re-open.

The latest word from Blueracer on when they will reopen the plant, which doesn’t seem encouraging…
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Accidents | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014
November 19, 2013November 19, 2013

Blue Racer Midstream, a joint venture between Dominion Resources and Caiman Energy II, had an explosion and fire at its Natrium, WV processing plant/fractionation facility in September (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). Since then, at least two Blue Racer customers have found alternatives to using the Natrium facility: Rex Energy and Atlas Resources. More drillers adversely affected by the facility being offline (some of whom complained about the plant closure last week at the DUG East conference in Pittsburgh) may also be in the hunt for alternatives, especially with the announcement the plant will remain offline until “at least January” of 2014. That’s bad news for drillers and for Blue Racer, although they obviously have to repair the facility and ensure whatever caused the explosion/fire does not happen again.

As part of upgrades at the facility, Blue Racer is installing an emergency siren system in the neighboring community of Kent–to warn them of any problems at the plant. The latest on the closed facility and its prospects for re-opening:

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Atlas Energy | Blue Racer Midstream | Energy Companies | Energy Services | Harrison County | Lycoming County | Marshall County | Ohio | Pennsylvania | West Virginia

Atlas Update: Finding Alternatives to Blue Racer Natrium Plant
October 17, 2013October 17, 2013

Atlas Resource Partners (ARP), a driller working in several plays–including the Marcellus and the Utica–issued a financial and operations update yesterday. Included in the update are details of Atlas’ recent activities in the northeast–number of wells drilled, etc. Pretty standard stuff–the “normal” kind of periodic press release issued by drillers, except…

It’s interesting to MDN that in Atlas’ update they mention, rather prominently, the ongoing issue that Blue Racer Midstream’s Natrium processing plant has been shut down since an explosion and fire occurred on Sept. 21st (see Natrium, WV Fractionation Plant Still Closed After Explosion/Fire). The shut-down is having a significant negative affect on Atlas’ ability to get gas to market. So Atlas, like other drillers in the Ohio Valley area, is seeking alternative sources to process their gas. They’ve located a partial solution and continue to look.

Blue Racer has a growing problem on their hands with the continued shut-down of Natrium if their customers continue to find other solutions…
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Blue Racer Midstream | CNX Resources | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines

CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream
October 16, 2013October 16, 2013

CONSOL Energy issued an extensive operations update yesterday, for the quarter ending Sept. 30. The company says they sold more natural gas (and coal) than they had expected to during the quarter. They also said they have just signed an agreement with Blue Racer Midstream to ramp up infrastructure buildout for CONSOL’s drilling in Ohio’s wet gas area–specifically in Noble County, OH.

During 3Q13 CONSOL drilled 15 horizontal wells–12 of them targeting the Marcellus Shale, 3 of them in the Utica Shale. Here’s everything you ever wanted to know about CONSOL’s northeast drilling for 3Q13…
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Accidents | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Companies | Energy Services | Industrywide Issues | Marshall County | Processing Plants | Rex Energy | West Virginia

Natrium, WV Fractionation Plant Still Closed After Explosion/Fire
October 2, 2013October 2, 2013

As MDN previously reported, an explosion and fire was reported at the Blue Racer Midstream’s Natrium, WV natural gas processing plant early Saturday on Sept. 21 (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). It’s a week and a half later and the plant, which both processes or separates wet gas and further fractionates it into its component compounds remains closed while an investigation continues. WV officials and the plant’s owners (Blue Racer is owned by Dominion and Caiman Energy II) still don’t know what caused the explosion and fire.

Meanwhile, at least one Natrium customer has found an alternative source to process their wet gas…
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Accidents | Blue Racer Midstream | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant
September 23, 2013September 23, 2013

An explosion and fire was reported at Blue Racer Midstream’s Natrium, WV natural gas processing plant early Saturday morning. Area residents, some of whom were evacuated for several hours, reported an explosion that rattled homes miles away and the night sky lit up with an orange hue.

Fortunately no one was injured in the blast and the fire, which was “isolated to a small area of the plant” burned itself out. No word yet on what caused the explosion and fire…
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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

Blue Racer Gets $1B Line of Credit for More Utica Projects
August 23, 2013August 23, 2013

Blue Racer Midstream, a 50/50 midstream joint venture between Dominion and Caiman Energy II, was formed last December (see Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream). One of the assets that belongs to the Blue Racer jv is the newly online Natrium, WV NGL plant (see Dominion Sells $500M Natrium NGL Plant to… Itself).

In order to expand and fulfill their vision of becoming the leading midstream company in the Utica Shale, Blue Racer needs money to build things. They now have it. Blue Racer announced yesterday they’ve secured an $800 million line of credit with a group of banks–a line of credit which can be (under certain conditions) expanded to a whopping $1 billion. That kind of money will easily build you another couple of Natrium NGL plants…
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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Dominion Sells $500M Natrium NGL Plant to… Itself
August 13, 2013August 13, 2013

Dominion, a huge energy company that does everything from shale drilling to pipelines and processing plants to selling gas and electric as a utility, has just sold the newly built and operating $500 million NGL processing plant in Natrium, WV to…itself. The Natrium plant was due to go online late last year. Then it was forecast be online in the spring of this year. The plant, which separates natural gas liquids from methane in the Marcellus/Utica Shale, finally went online in late June (see Blue Racer Midstream’s Natrium, WV NGL Plant Now Up & Running).

Blue Racer Midstream officially took title to the Natrium plant as of August 9th. Blue Racer is a joint venture between Dominion and Caiman Energy II. Dominion essentially owns Blue Racer, ergo Dominion sold the plant to itself. These things happen on paper–no doubt for more favorable tax and accounting purposes for investors. Dominion’s announcement from yesterday:
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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia

Blue Racer Midstream’s Natrium, WV NGL Plant Now Up & Running
July 5, 2013

Blue Racer Midstream, a joint venture between Dominion and Caiman Energy, was supposed to have a new $500 million wet gas (natural gas liquids) processing plant online in Natrium, WV last December (see Dominion $500M NGL Processing Plant in WV to Open in December). The date was then changed to “late spring” (see Natrium, WV NGL Plant Behind Schedule, Will Open “Late Spring”). Blue Racer finally stopped predicting when the plant would open, but MDN told you in late May the signs were there for an “imminent” opening (see Natrium, WV NGL Processing Plant Start-up Close).

Strike up the band! Even though Blue Racer has decided not to make a public announcement, the Akron Beacon Journal is reporting the plant has been up and “quietly” operating for the past several weeks…
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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia

Natrium, WV NGL Processing Plant Start-up Close
May 28, 2013May 28, 2013

Processing plants in the Marcellus and Utica Shale region are a critical component of the drilling picture that frankly is holding up further development right now. Without the ability to separate “wet gas” (gas containing compounds in addition to methane, like ethane, butane, propane and pentane), drillers in wet gas areas are either drilling and capping their wells, or not drilling them in the first place. All eyes are on infrastructure projects like the processing plant in Natrium, WV being built by Blue Racer Midstream, a joint venture between Dominion and Caiman Energy.

The $500 million Natrium plant was due to be finished last December. Then the start-up date was changed to be “late spring” of this year (see Natrium, WV NGL Plant Behind Schedule, Will Open “Late Spring”). It’s almost summer and the plant is still not open. However, the signs point to an imminent start:
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Blue Racer Midstream | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Marshall County | Maryland | Processing Plants | Statewide MD | West Virginia

Will NatGas Processed at New Natrium, WV Plant End Up in Asia?
April 8, 2013April 8, 2013

Dominion, via it’s Blueracer Midstream joint venture with Caiman Energy, is building a $1.5 billion natural gas liquids processing plant in Natrium, WV. The plant is a bit behind schedule but due to go online later this spring (see Natrium, WV NGL Plant Behind Schedule, Will Open “Late Spring”). Dominion is also set to build a liquefied natural gas (LNG) export facility in Cove Point, MD as soon as certain government approvals are issued. They will invest a staggering $3.4-$3.8 billion to build it (see Dominion’s Cove Point LNG Facility Achieves Important Milestones).

With Dominion building both the Natrium and Cove Point facilities, it only makes sense some of the Utica and Marcellus natural gas that flows through the Natrium facility for processing will end up at Cove Point, and then on to either Japan or India:

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Blue Racer Midstream | Caiman Energy | Crime | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia

2nd Bomb Threat Stops Construction at Natrium, WV NGL Plant
March 27, 2013March 27, 2013

Just two days ago MDN told you that the Blueracer Midstream natural gas liquids (NGLs) processing plant being built in Natrium, WV is now several months behind schedule and not due to go online until later this spring (see Natrium, WV NGL Plant Behind Schedule, Will Open “Late Spring”). Back in February, the same Natrium plant had a bomb threat that stopped construction and caused an evacuation of 500 workers for several hours (see Bomb Threat at Natrium, WV NGL Plant Doesn’t Slow Construction). At the time, it was thought perhaps the bomb threat did not specifically target the NGL plant because the previous day a bomb threat was called at a different nearby WV Route 2 location, not related to the natural gas industry.

But now? We’re not so sure. Yesterday a second bomb threat was made against the Natirum facility, causing the evacuation of 700 construction workers, shutting down work for another several hours. The head of the WV Oil and Natural Gas Association is calling it a case of “domestic terrorism” and a crime:

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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia

Natrium, WV NGL Plant Behind Schedule, Will Open “Late Spring”
March 25, 2013March 25, 2013

A $500 million natural gas liquids processing plant in Natrium (Marshall County), WV was supposed to go online by the end of 2012 and didn’t (see Dominion $500M NGL Processing Plant in WV to Open in December). It was then supposed to be online “in a few weeks,” as of the middle of February (see Bomb Threat at Natrium, WV NGL Plant Doesn’t Slow Construction). It’s now the end of March and the facility is still not online. Blue Racer Midstream, the joint venture owner of the plant, is now saying it will go online “later this spring.”

An update on progress at the facility:

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Access Midstream Partners | Blue Racer Midstream | Commodity Price | Dominion Energy | Energy Services | Ethane | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH

Live from Columbus, OH… Utica Shale Confab – Day 1
February 27, 2013February 27, 2013

MDN editor Jim Willis is in Columbus, Ohio attending the 2nd Utica Shale Development & Growth Forum. Jim is moderating a panel today (Wednesday) called “Utica from the Media’s Perspective.” On the panel with me are Bob Downing, staff writer with the Akron Beacon Journal, Rick Stouffer, editor of Platts Gas Business Briefing, and Peter Behr, reporter with EnergyWire. All top notch writers from premier publications. I feel honored to sit on a panel with them!

Yesterday (Tuesday) was the first day of the main program and speakers tackled the Utica Shale from their unique perspectives. We heard from the relatively new Access Midstream (formerly Chesapeake Midstream); a geologist; Blue Racer Midstream; and an economist who is head of the Ohio State University’s Sub Surface Energy Resource Center (“Utica Shale Center” for short). Since most MDN readers couldn’t be here, I took good notes to pass along. Below are highlights and interesting tidbits from Day One…

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Belmont County | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Ohio | Pipelines | Processing Plants | West Virginia

Bomb Threat at Natrium, WV NGL Plant Doesn’t Slow Construction
February 19, 2013February 19, 2013

A $500 million natural gas liquids processing plant in Natrium (Marshall County), WV will go online in the next few weeks—even with a temporary stoppage of construction last Saturday due to a bomb threat (no word on who made the threat or why). The Natrium plant is part of Blue Racer Midstream, a $1.5 billion joint venture between Dominion and Caiman Energy (see Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream). The new plant was originally scheduled to go online by end of 2012.

Some of the construction for the plant is happening across the border in Belmont County, Ohio:

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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | Utica Shale | West Virginia | Williams

Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream
December 21, 2012December 21, 2012

Two large midstream (pipeline & processing plant) companies, Dominion and Caiman Energy II, announced a new $1.5 billion, 50/50 joint venture to form a new midstream services company to service the Utica Shale in Ohio and Pennsylvania. The name of the new company is Blue Racer Midstream. Sound familiar? It should. Yesterday MDN brought you the news that Williams is investing $380 million in Caiman Energy/Blue Racer (see this MDN story).Williams owns nearly half of Caiman Energy II (47.5%).

One of the core assets of the new Blue Racer Midstream company will be Dominion’s previously announced $500 million natural gas liquids processing plant in Natrium, WV (see this MDN story). The Natrium plant was scheduled to go online by Dec. 31—a deadline that won’t be met. However, work on the new NGL plant continues at a “furious pace” and the plant will be online in early 2013. Dominion’s extensive gathering pipeline system in eastern Ohio is also part of the deal.

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