Dominion Energy

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    Dominion Bid to Buy SCANA in Trouble Following Passage of SC Bill

    In January Dominion Energy announced a deal to buy out and merge in South Carolina-based SCANA Corporation (see Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC). SCANA is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. In other words, the local electric and gas company for much of South Carolina. Dominion is a big company with many operations–they are a pipeline company, an electric generating company, and a utility company (like SCANA). The merger makes sense. Dominion gets to grow and add more customers to its utility business. We didn’t think there was any tie-in with the Marcellus/Utica, but turns out there is. We brought you news in early December that Dominion and their partner in the Atlantic Coast Pipeline (ACP) project, Duke Energy, are considering expanding the original ACP to more locations in North Carolina, AND expanding the pipeline into South Carolina (see Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC). Dominion openly says that the SCANA purchase makes it more likely they will push to expand ACP into SC–meaning even more Marcellus/Utica gas could be flowing to Dixie. But now there’s a big, fat wrinkle. SCANA is in trouble because they began to build, and later abandoned, a nuclear plant project–costing ratepayers millions of dollars. SC politicians want to rebate some of the money that was paid for the project back to ratepayers. They passed a bill on Wednesday (now on the governor’s desk) that will slash rates for customers by 15%. Dominion reacted strongly, implying they may pull out of the deal if the bill is signed by the governor…
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    Dominion Energy Launches New Debt Financing Program with a Twist

    Dominion Energy, a huge company that not only is a “local” utility providing gas and electric through much of the Marcellus/Utica region, but also a midstream (pipeline) company and the builder/operator of the Cove Point LNG export facility, is launching what looks to be a slightly different twist on using OPM–other people’s money–to finance operations. Disclaimer: We’re not high finance experts. It seems to us that Dominion’s new debt financing program, called “Dominion Energy Reliability Investment,” is not the typical way of selling a bunch of notes (IOUs) as others have done. With Dominion’s program, just launched, investors can invest from $1,000 up to $1.25 million at any time, buying and selling their notes whenever. There are no maintenance fees for investing in the notes program, nor any charges for redemption checks. However, these notes/investments are not insured by the FDIC. Buying these notes is not like investing in a money market fund where your investment is insured. However, we seriously doubt there’s any risk of Dominion defaulting. Here’s what Dominion says about their new debt financing program…
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    Despite Court Ruling, Atlantic Coast Pipeline Continues Construction

    In May MDN told you that the U.S. Fourth Circuit Court of Appeals had invalidated (vacated) a permit issued by the U.S. Fish and Wildlife Service that allows Dominion Energy’s Atlantic Coast Pipeline (ACP) to accidentally kill a few bats and bumble bees (classified as endangered) as it builds the massive $6.5 billion, 600-mile project from West Virginia to North Carolina (see U.S. Fourth Circuit Court Vacates Key Permit for Atlantic Coast Pipe). The Sierra Club and several other radical, far-left groups were behind the court case that led to the decision. However, as it turns out, the decision doesn’t really hurt the project all that much. The vacated permit isn’t so “key” after all. Of the 600 or so miles of pipeline getting built, the vacated permit from Fish and Wildlife only affects about 10 miles of pipeline (see Only 10 Miles of Atlantic Coast Pipeline Affected by Court Ruling). The radicals are back, not happy that only 10 miles of pipeline is idled for now. In a “but, but, but, but, but” request to the Federal Energy Regulatory Commission (FERC), the antis argue FERC should shut down the whole enchilada–because they don’t like having just 10 miles shut down. Meanwhile, Dominion keeps up steady-and-sure construction of the project. It’s getting built, even as you read this…
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    Cove Point LNG Shutting Down for Maintenance This Fall

    Cove Point LNG, built by Dominion Energy, began exporting Marcellus Shale gas in April (see First-Ever Shipment of Marcellus LNG Leaves Cove Point, Maryland). Even though it’s only been up and running for about two months, there’s already talk of shutting Cove Point down. You may recall that two countries have contracted for all of the exported LNG coming from Cove Point: India and Japan (see Dominion’s Cove Point LNG Facility Achieves Important Milestones). Dominion Energy CEO Tom Farrell is currently visiting Japan to commemorate the first two shipments of Marcellus LNG arriving there. Yesterday Farrell shared that although Cove Point is doing just fine, the plant will undergo “brief maintenance” of “a few weeks” in the autumn. Scheduled downtime. Does that mean LNG will quit flowing out of the facility each day? According to Farrell, it “depends” on how full the storage tanks are ahead of the planned downtime…
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    Only 10 Miles of Atlantic Coast Pipeline Affected by Court Ruling

    Last week MDN told you that the U.S. Fourth Circuit Court of Appeals had invalidated (vacated) a permit issued by the U.S. Fish and Wildlife Service that allows Dominion Energy’s Atlantic Coast Pipeline (ACP) to accidentally kill a few bats and bumble bees (classified as endangered) as it builds the massive $6.5 billion, 600-mile project from West Virginia to North Carolina (see U.S. Fourth Circuit Court Vacates Key Permit for Atlantic Coast Pipe). The Sierra Club and several other radical, far-left groups were behind the court case that led to the decision. However, as it turns out, the decision doesn’t really hurt the project all that much. The vacated permit isn’t so “key” after all. Of the 600 or so miles of pipeline getting built, the vacated permit from Fish and Wildlife only affects about 10 miles of pipeline. A nothingburger. Dominion continues to build ACP and the 10 miles of affected construction will get done after Fish and Wildlife redoes the paperwork to the court’s liking. Antis are furious (as they always are), claiming the court ruling shuts down all construction. Not so. Construction continues, despite antis’ moaning and groaning…
    Read More “Only 10 Miles of Atlantic Coast Pipeline Affected by Court Ruling”

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    First Marcellus Molecules from Cove Point Arrive in Japan

    On April 22, the LNG tanker Sakura left Dominion Energy’s Cove Point LNG export facility loaded with Marcellus molecules, heading for Japan (see Cove Point LNG Ships First Marcellus Cargo to Japan). It was the second-ever load of Marcellus molecules to depart the Cove Point facility. About a week later the ship transited the Panama Canal (see 1st Cove Point Marcellus Shipment to Japan Goes Thru Panama Canal). On Monday, the Sakura finally docked at the Negishi LNG terminal in Japan, closing the loop on the first of many such shipments of Marcellus gas that will go to the Land of the Rising Sun…
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    FERC Becomes Political as Seen in Rehearing Vote on NY Project

    Has someone “gotten” to FERC Commissioners Cheryl LaFleur and Richard Glick–told them, “You vote against these pipeline projects or you don’t have a future in the Democrat Party”? That’s the thought we increasingly have as we watch the two sitting Democrats on FERC repeatedly vote against projects that in some cases they previously voted to approve. What makes someone like LaFleur flip and change her vote on something that two years ago she was 100% on board with? Something has to explain it! Two and a half years ago LaFleur, then a member of FERC, voted to approve Dominion Energy’s $165 million New Market Project, a project that expands Dominion’s transmission pipeline from western New York across the state to the Capital Region of the state, near Albany (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). The radical leftist group Otsego 2000 challenged the project, asking FERC to reconsider its approval, using mythical man-made global warming as a new criteria to reject the project. Last Friday the three Republicans FERC commissioners voted “no” to reconsider the New Market Project, but LaFleur and Chuck Schumer-appointed Richard Glick (both Dems) voted to reconsider, citing global warming concerns. Again, we wonder if someone has gotten to them. A sad day that FERC is longer a non-partisan group…
    Read More “FERC Becomes Political as Seen in Rehearing Vote on NY Project”

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    U.S. Fourth Circuit Court Vacates Key Permit for Atlantic Coast Pipe

    Disgusting and frustrating. That’s our reaction to a decision by the U.S. Fourth Circuit Court of Appeals that invalidates (vacates) a permit issued by the U.S. Fish and Wildlife Service that allows Dominion Energy’s Atlantic Coast Pipeline (ACP) to accidentally kill a few bats and bumble bees (classified as endangered) as it builds the massive $6.5 billion, 600-mile project from West Virginia to North Carolina. The Sierra Club, Defenders of Wildlife and Virginia Wilderness Committee (all radical left organizations) previously sued in federal court asking the court to stop work on ACP until the Federal Energy Regulatory Commission makes a decision on whether or not to “rehear” their decision to approve the project in the first place. In March, the court declined to stop work on ACP (see Fed Court Dismisses Anti Lawsuit to Stop Atlantic Coast Pipeline). However, as part of the effort to stop ACP, Sierra Club, et al also asked the court to invalidate a key permit by the U.S. Fish and Wildlife Service, which the court did do on Tuesday. Sierra Club is now demanding that the court revisit its decision about whether to stop all work on the pipeline. In the meantime, work does continue. Dominion says while it’s disappointed in the decision and will have to get a new, more specific permit from Fish and Wildlife, in the meantime they’ll continue construction in those (many) places not under the now-invalid permit. That is, most construction will continue. This does not really hamper the project. Not yet anyway. As long as the Fourth Circuit doesn’t shut it all down…
    Read More “U.S. Fourth Circuit Court Vacates Key Permit for Atlantic Coast Pipe”

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    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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    Atlantic Coast Pipe Radicals Threaten Duke Energy CEO at Her Home

    Protesting something like a pipeline is one thing. March around, show your signs, talk to the press, make a horse’s rear-end of yourself. Whatever. But showing up at someone’s home and blocking their driveway and erecting a 20-foot tall tower and refusing to move until arrested? That’s something else. That kind of “protest” is threatening, menacing behavior. Bullying. And it’s all too easy for people who have crossed that line to tip over into outright violence. A group of criminal protesters did just what we described–blocked the driveway and erected a wall in the driveway–of Duke Energy CEO Lynn Good at her home in Charlotte, NC on Wednesday. Duke is partners with Dominion Energy in the $6.5 billion Atlantic Coast Pipeline (ACP) project, a natural gas pipeline from West Virginia through Virginia and into North Carolina. The criminal protesters showed up at Good’s home to oppose the project. The signs they carried revealed their irrational hatred of fossil fuels, which is what motivated them to protest in the first place. Wackos. Here’s how it went down at Good’s home earlier this week…
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    FERC Rejects Rehearing Request from Antis re MVP, ACP Projects

    Last September a group of 57 gentry landowners in Virginia and West Virginia, backed by an out-of-state Big Green group, sued the Federal Energy Regulatory Commission (FERC) in an attempt to gut the 80-year old Natural Gas Act that gives FERC the right to grant eminent domain for pipeline projects (see VA, WV Landowners Sue FERC re Pipelines, Seek to Gut Natural Gas Act). Specifically, the colluding landowners oppose Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP) that will stretch from West Virginia through Virginia and into North Carolina, and EQT’s $3.5 billion Mountain Valley Pipeline project, a 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The frivolous lawsuit, titled BOLD ALLIANCE, et al. v. FEDERAL ENERGY REGULATORY COMMISSION, et al., was filed in the U.S. District Court for the District of Columbia, which was the wrong court. Only FERC has jurisdiction over the projects and decisions about whether or not they can get built. If a supposedly aggrieved party disagrees with FERC’s decisions, they must first file for a rehearing, and if FERC still refuses, THEN the supposedly aggrieved party can file a lawsuit ONLY with the U.S. Court of Appeals for the District of Columbia. The suers, Big Green group Bold Alliance, filed for a rehearing with FERC. Bold Alliance tried to sidestep the law by moving forward with a lawsuit prematurely. However, the really big no-no is that they filed in U.S. District Court for DC, NOT the Court of Appeals for DC. Big difference. Here’s “the rest of the story”…last Friday FERC rejected Bold Alliance’s request for a rehearing for both MVP and ACP. So we expect the next step is that Bold Alliance will now file an appeal with the correct court, the DC Court of Appeals…
    Read More “FERC Rejects Rehearing Request from Antis re MVP, ACP Projects”

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    Dominion Energy 1Q18: Important Updates on Key Projects

    Late last week Dominion Energy issued its first quarter 2018 financial and operational update. Dominion is not only a large utility company (electric and gas), but also a huge pipeline company. Dominion has it’s fingers in a lot of Marcellus/Utica pies, so we like to keep track of the company and what it says about various critical projects for our region. Dominion CEO Tom Farrell had a lot of interesting updates, including updates for: Atlantic Coast Pipeline, a $6.5 billion Dominion pipeline from West Virginia through Virginia and into North Carolina; Cove Point, the $4 billion LNG export facility that began commercial operations in April; Greensville County (VA) Power Station, a $1.3 billion natural gas-fired combined cycle power plant; and the proposed merger with SCANA Corporation, the main electric and gas company for much of South Carolina. Buckle up, there’s lots of news here…
    Read More “Dominion Energy 1Q18: Important Updates on Key Projects”

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    1st Cove Point Marcellus Shipment to Japan Goes Thru Panama Canal

    LNG Sakura – now on its way to Japan

    A sharp MDN reader recently emailed us to ask about that first shipment of Marcellus Shale LNG exported from Cove Point that is heading to Japan, wondering if the ship would transit through the Panama Canal to get to Asia. We had to say we didn’t know! But now we do know. And the answer is “yes”–that ship is going through the Panama Canal. Last week MDN reported that the second shipment of Marcellus molecules from Cove Point had been loaded onto the LNG carrier Sakura, and that the Sakura is heading to Japan (see Cove Point LNG Ships First Marcellus Cargo to Japan). Before June 2016, large LNG carriers could not pass through the Panama Canal. In 2016 new locks were installed to make it possible for larger ships, like the Sakura, to transit through. By using the Panama Canal, ships save an extra 7,800 miles, bypassing a trip around the tip of South America. Since 2016 more than 300 LNG carriers have used the Canal. Here’s the news that the Sakura is already through the Canal and now in the Pacific Ocean, steaming toward Japan…
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    Cove Point LNG Ships First Marcellus Cargo to Japan

    LNG Sakura

    Last week MDN reported that a ship called Adam had departed the Cove Point LNG facility in Maryland with the very first shipment of Marcellus molecules (see First-Ever Shipment of Marcellus LNG Leaves Cove Point, Maryland). Although the first shipment of Marcellus LNG was/is owned by Japan, the destination for the cargo was/is still unknown. The second shipment, ever, of Marcellus LNG from Cove Point left port yesterday–also owned by Japan. However, the ship’s manifest indicates this second shipment IS heading to Japan…
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    Va. Water Bd Wants More Assurances re MVP & ACP Pipeline Projects

    In October 2017, the Federal Energy Regulatory Commission (FERC) approved two important Marcellus/Utica pipeline projects–Dominion Energy’s Atlantic Coast Pipeline (ACP), and EQT Midstream’s Mountain Valley Pipeline (MVP) (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). ACP is a $6.5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. MVP is a $3.5 billion, 303-mile natural gas pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. However, as we’ve all learned the hard way, federal approval by FERC is only the first step. Individual states get a very limited say in pipeline project siting by being given the power to issue federal Clean Water Act permits for stream crossings. Some states, like New York, abuse the power and attempt to shut down federal projects. Other states, like Virginia, waffle around. Here’s the latest from Virginia. The state Dept. of Environmental Quality (DEQ) decided last year to let the federal Army Corps of Engineers handle the water permitting for the two pipelines. But then the state Water Control Board (WCB) stepped in, claiming they have authority to help regulate the construction of these two federal projects (which they don’t, but that’s a story for another day). The WCB eventually approved MVP and conditionally approved ACP. However, under extreme pressure (bullying) from Big Green proponents, the WCB is rethinking their approvals and has “cracked the door open” to review the water crossings already approved by the Army Corps of Engineers. Yeah, it’s a hot mess in Virginia…
    Read More “Va. Water Bd Wants More Assurances re MVP & ACP Pipeline Projects”

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    Half of India’s Contracted US LNG Won’t End Up in India

    MDN brought you the great news earlier this week that late Sunday night the very first shipment of Marcellus LNG had left the dock at Cove Point, Maryland (see First-Ever Shipment of Marcellus LNG Leaves Cove Point, Maryland). We still don’t know where the first shipment will end up. In the world of Big Energy and LNG, sometimes the destination isn’t known until the ship is under way! The first shipment is owned by Japan. Between Japan and India, all of the Marcellus LNG produced at Cove Point is spoken for (i.e. contracted) for the next 20 years. However, that does not mean all of that LNG will end up in Japan or India. Far from it. Both countries are wheeler dealers, swapping LNG cargoes from around the world. Japan decided it could get LNG from a closer-to-home source and so has swapped/sold the first Marcellus Cove Point shipment to someone else (we’ll tell you who when we find out). It’s likely going to be the same for the first shipment owned by India. We recently spotted the following article from India which says HALF of India’s U.S. contracted LNG–from both Cheniere Energy along the Louisiana Gulf Coast, and from Dominion’s Cove Point facility–will NOT end up going to India but instead has already been swapped or sold, at least for the first year…
    Read More “Half of India’s Contracted US LNG Won’t End Up in India”