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Columbia Pipeline Launches Open Season for New M-U Project

Last week the Federal Energy Regulatory Commission (FERC) approved Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects (see FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects). The two projects together will flow an additional 1.5 billion cubic feet (Bcf) of Marcellus/Utica gas to the Gulf Coast. With those two successes in hand, Columbia Pipeline Group (now owned by TransCanada) is floating another project, called Buckeye XPress. As you can guess from the name, this new project will beef up service along the Columbia Gas Transmission pipeline from Ohio (and PA and WV) to send even more Marcellus/Utica gas to the Gulf via the interconnection at Leach, Kentucky. Columbia launched a non-binding open season to gauge interest in the project, which will use looping and beefed up compressor stations to increase capacity another 700 million cubic feet (MMcf) per day along the existing pipeline Columbia pipeline system, which is abbreviated TCO…
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FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects

Yesterday the Federal Energy Regulatory Commission (FERC) voted to approve and issue a certificate to Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects. This is fantastic news for the Marcellus/Utica region. MDN has covered these projects from their beginning. In August 2014 Columbia, then a subsidiary of Nisource, committed to building the two projects that will flow Marcellus/Utica gas to the Gulf Coast (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). The Leach XPress project involves construction of approximately 160 miles of natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle, flowing 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name). Rayne XPress works hand in glove with Leach. There is an existing natgas pipeline from Leach, KY all the way to the Louisiana Gulf Coast. That pipeline is called the Rayne, for Rayne, LA. The Rayne Xpress project will beef up the Rayne pipeline with new compressor stations to add an additional 1 Bcf per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast. It wouldn’t make sense to approve one without the other, and yesterday FERC approved both…
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FERC Delays EIS for Mountaineer XPress & Gulf XPress Pipelines

delayedThe Federal Energy Regulatory Commission (FERC) has just thrown a little cold water on two important pipeline upgrades to carry more Marcellus/Utica gas to southern markets. A final environmental impact statement (EIS) was due from FERC for both the Mountaineer XPress and Gulf XPress projects no later than April 28, 2017. FERC says that deadline is going to slip by three months due to reroutes and additional environment information requested. MDN has previously reported on Mountaineer XPress, which includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). We have not, however, reported on Gulf XPress, which seems to be a project different from other Columbia projects we’ve highlighted, including Rayne XPress and Leach XPress. The Gulf XPress project does not appear to be either of those projects renamed (or original thought). Gulf XPress consists of constructing seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region…
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TransCanada Raising Money Hand Over Fist to Pay for Columbia Pipe

TransCanadaIn early November Canadian midstream giant TransCanada announced they were going on a fundraising bender to get money to pay for their recent $10 billion acquisition of Columbia Pipeline (see TransCanada Raising Big $ to Complete Buyout of Columbia Pipeline). At the time, TransCanada announced the company would float another $3.2 billion (Canadian) in new stock and sell off their electric power assets in New England (mostly hydropower) for $3.7 billion (U.S.). In just the past couple of weeks, the company has floated new common stock, raising $3.5 billion (Canadian), and preferred stock, raising an additional $1 billion (Canadian). Here’s the latest on how to raise money fast to buy a big pipeline company…
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TransCanada Raising Big $ to Complete Buyout of Columbia Pipeline

TransCanadaTransCanada wants all of Columbia Pipeline–and they want it real bad. Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast, didn’t want to be left out of the most important midstream story of the century, so they bought Columbia Pipeline Group–closing on the sale in July (see TransCanada and Columbia Pipeline Tie the Knot Today). At least, that’s what everyone thought. Little known fact: third party investors still own a piece of Columbia. In September TransCanada made an offer to those third party investors to buy them out–so TransCanada can own 100% of the Columbia (see TransCanada Makes Play to Buy “the Rest” of Columbia Pipeline). The original deal cost TransCanada $10 billion (U.S. dollars). The offer made to the investors to buy out the rest was for $848 million U.S. The offer to buy out the third party investors has gone up–to $915 million. In order to pay for everything, both the original purchase and buying out the rest of Columbia, TransCanada announced on Tuesday the company would float another $3.2 billion (Canadian) in new stock and sell off their electric power assets in New England (mostly hydropower) for $3.7 billion (U.S.). TransCanada also announced they now intend to keep full ownership of their Mexico pipelines…
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FERC Settles Investigations into 3 NE Pipelines Overcharging

case closedIn January of this year, the Federal Energy Regulatory Commission (FERC) launched five investigations into four pipelines, three of which operate in the northeast, to determine whether or not those pipelines have been “substantially” overcharging their customers with the excuse of “we have to recover our costs” (see FERC Investigates 3 Northeast Pipelines for Overcharging). Although you might think the free market would govern what pipelines charge, pipelines, like other utilities, don’t operate in a totally free market. You can’t just up and leave one pipeline and take your gas to another. The government grants permission to operate, and the government keeps an eye on the rates charged–just like they do with your local gas and electric company. In the case of interstate pipelines, the government agency monitoring how much they charge is FERC. Apparently someone complained and FERC is now on the case. The three pipelines in the northeast were put under the microscope: Empire Pipeline, Iroquois Gas Transmission System and Columbia Gulf Transmission. The case is now closed for all three…
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Warning: EPA Attempting to Take Over FERC’s Job in Pipe Approvals

Make Him an Offer He Can't RefuseWe have, as long as we’ve been writing the MDN website, warned that the federal Environmental Protection Agency, particularly under B.H. Obama, is an out-of-control, lawless, aggressive cancer on the country. The EPA has repeatedly attempted to UNCONSTITUTIONALLY control oil and gas drilling–something only state governments have the right to regulate. The EPA has repeatedly sought to influence (i.e. control) o&g development via other means–like expanding the Clean Water Act, the Clean Air Act, and Waters of the United States (WOTUS). The latest evidence of EPA’s illegal overreach comes with EPA’s bullying of the Federal Energy Regulatory Commission (FERC). EPA is telling FERC to get its head screwed on straight with respect to an approval for two Marcellus/Utica projects–Leach Xpress and Rayne Xpress Expansion projects. EPA says FERC is ignoring mythological man-made global warming bullcrap in their review of the projects, and EPA is demanding a meeting with the top brass at FERC to bully them into submission…
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FERC Tells Columbia to Open Valves on Utica Access Pipeline in WV

Proposed_Utica_Access_Pipeline-20150212
Click for larger version

In January 2016 the Federal Energy Regulatory Commission (FERC) approved a plan by Columbia Pipeline to build five miles of new pipeline and an upgrade to a compressor station in Kanawha County, WV (see Columbia Pipeline Gets FERC Approval for WV Utica Access Project). The $45 million “Utica Access” project will transport 205 million cubic feet per day (MMcf/d) of Utica Shale gas for Eclipse Resources Corporation to trading points on the Columbia Gas Transmission interstate pipeline system. Last Thursday FERC gave Columbia (now owned by TransCanada) the green light to open the valves on the new pipeline…
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TransCanada Makes Play to Buy “the Rest” of Columbia Pipeline

i-want-it-allLast July Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast (a plan that Obama obliterated), didn’t want to be left out of the most important midstream story of the century, so they bought Columbia Pipeline Group this year, closing on the sale in July (see TransCanada and Columbia Pipeline Tie the Knot Today). At least, that’s what everyone thought. Little known fact: third party investors still own a piece of Columbia. TransCanada has just made an offer to those third party investors to buy them out–so TransCanada can own 100% of the Columbia. The original deal cost TransCanada $10 billion (U.S. dollars). The offer just made to the investors to buy out the rest is for $848 million U.S….
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Rover, Leach XPress Pipelines Become BFFs to Fix FERC Objection

BFFThis is how it works with adults, those who wear “big boy pants.” A few weeks ago the Federal Energy Regulatory Commission (FERC) told Energy Transfer that their Rover pipeline, a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, and Columbia Pipeline that their Leach XPress pipeline, running from Marshall County, WV through Ohio to Leach, KY, that a small section where the pipelines cross must be reworked or it’s a “no go” for both projects (see FERC Tells Rover, Leach XPress Pipes to Redesign Routes in SE OH). Faced with the prospect of not getting an approval, both companies got together in a conference room and figured out how to work together–fast. Both companies have just filed a detailed plan with FERC that says the two pipelines will co-locate their pipelines in the same trench for a 13-mile span in Monroe County, OH to avoid the problems outlined by FERC…
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Columbia Pipeline’s Top Leadership Quits After Sale to TransCanada

I QuitLast Friday MDN told you that TransCanada completed its $10 billion purchase of Columbia Pipeline Group (see TransCanada and Columbia Pipeline Tie the Knot Today). Promptly following the deal’s close, most of Columbia’s top management, including the CEO, president, executive vice president/chief financial officer and the company’s top lawyer quit. Although the announcement doesn’t say, we suspect they had golden parachutes of some kind. Given the timing of the announcement, immediately following the deal’s closing, it was no doubt in the works for months…
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TransCanada and Columbia Pipeline Tie the Knot Today

tie-the-knot.jpgIn March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica pipeline pie and decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). The deal is now done. As of today, Columbia Pipeline Group’s stock is officially de-listed from the New York Stock Exchange and trades no more. Columbia is now a wholly-owned subsidiary of Canadian midstream giant TransCanada…
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Columbia Pipeline Shareholders Approve July 1 TransCanada Buyout

Columbia Pipeline GroupThe July 1st merger (buyout) of Columbia Pipeline Group by TransCanada barrels on. In March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica pipeline pie and has decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). Last week 95% of Columbia’s shareholders voted to approve the merger. TransCanada says everything is on track for a July 1 closing…
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FERC Tells Rover, Leach XPress Pipes to Redesign Routes in SE OH

FERC logoTwo major pipeline projects have just received a big red light from the Federal Energy Regulatory Commission (FERC), pending changes to their plans. Energy Transfer’s Rover pipeline, a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, along with Columbia Pipeline’s Leach XPress, running from Marshall County, WV through Ohio to Leach, KY, got word from FERC that a small section where the pipelines cross must be reworked or it’s a “no go” for both projects…
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Federal EPA Throws Cold Water on Leach XPress, Rayne Xpress Pipes

Columbia Leach Express map
Columbia Leach Express map – click for larger version

In August 2014, MDN told you that Columbia Pipeline Group, a division of NiSource, had decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Rayne Xpress will beef up an existing pipeline from Leach, Kentucky that goes all the way to Rayne, Louisiana with new compressor stations and looping. The two projects together mean up to 2.7 billion cubic feet per day (Bcf/d) of natural gas can move through the entire system–from West Virginia to the Gulf Coast and all point in between. In April of this year, the Federal Energy Regulatory Commission (FERC) issued their draft Environmental Impact Statement (EIS), which was positive. Earlier this week the federal Environmental Protection Agency (EPA) came along with their comments and decided to throw cold water on both projects. Why are we not surprised?…
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TransCanada’s July 1 Merger with Columbia Pipeline Advances

TransCanadaIn March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica pipeline pie and has decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). Columbia Pipeline shareholders are due to vote on the deal in June (see Columbia Pipeline Shareholders to Vote on TransCanada Deal June 22). There are numerous regulatory hoops to jump through before the merger/purchase becomes official. TransCanada has announced another such hoop has been successfully jumped through. On Tuesday, TransCanada announced the waiting period under the Hart-Scott-Rodino Anti-Trust Improvements Act (HSR Act) was terminated early by the U.S. Federal Trade Commission. That means the FTC has taken a look and doesn’t object…
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