Crestwood Midstream, which merged with (took over) Inergy Midstream last year, issued its second quarter 2014 financial and operational update yesterday. Crestwood/Inergy has a meaningful and growing presence in both the dry gas northeastern PA Marcellus and wet gas southwestern PA Marcellus region. Overall Crestwood reports Marcellus shale volumes flowing through their pipelines increased 10% in 2Q14 over 2Q13, resulting in higher revenues and smiling faces. Here’s a few select portions of yesterday’s update that touch on the Marcellus… Continue reading
For years MDN has told you about the proposed Inergy (now Crestwood Midstream) plan to open a badly needed underground propane storage facility along the shore of Seneca Lake in New York–in an already depleted salt mining cavern. In March 2013, 12 virulent anti-drilling protesters were arrested for blocking access to the facility–a facility that hasn’t yet been fitted for propane (see NY Protesters Arrested for Blocking NatGas Storage Facility). We’ve also pointed out New Yorkers pay nosebleed rates for propane because our governor refuses to permit the facility (see Northeast Propane Shortage – Andrew Cuomo Partially to Blame). There is a new effort under way to get some action on the Seneca propane storage facility from the 70,000-member Joint Landowners Coalition of New York… Continue reading
MDN has long chronicled the struggle for Inergy (now a part of Crestwood Midstream) to turn a depleted salt cavern along Seneca Lake, NY into a critically important underground propane storage facility–the only such new facility planned for the northeast. We’ve also told you about nutty protesters, like so-called “distinguished scholar in residence” at Ithaca College, Sandra Steingraber, who was arrested for blocking the entrance to the facility last year (see NY Protesters Arrested for Blocking NatGas Storage Facility). We even told you which businesses you should consider boycotting for their agitation against the facility (see Inergy: Boycott NY Businesses that Support ‘Gas Free Seneca’). One of the businesses in the list stands out: Pompous Ass Winery, run by…well, you can imagine.
As MDN noted not long ago, the delay in allowing Inergy/Crestwood to begin using the facility to store propane is partially to blame for why northeasterners are now paying propane rates out the nose (see Northeast Propane Shortage – Andrew Cuomo Partially to Blame). Enough dithering by Can’t-Make-a-Decision Cuomo. NY State Senate Energy Committee Chairman George Maziarz, R-Lockport, has introduced a bill that requires the recalcitrant state Dept. of Environmental Conservation to get off the pot and permit the facility… Continue reading
Propane is one of the natural gas liquids (NGLs) that comes out of the ground along with methane (natural gas) in places like southwest PA and eastern OH–otherwise known as “wet gas” areas of the Marcellus and Utica Shale region. There’s been a number of stories recently in the national media about supply shortages of propane. The Pennsylvania Propane Gas Association issued a press release yesterday addressing those concerns–to layout the reasons why propane is in short supply and why prices for it have jumped.
When you read beyond the headlines, you’ll find there’s a pretty simple reason why propane prices have skyrocketed in the northeast and New England–it’s because of New York’s anti-fracking governor Andrew “the ditherer” Cuomo. He’s not only dithering about whether or not to allow fracking, he’s also dithering on whether or not to approve a new propane underground storage facility near Seneca Lake–what the industry terms a “critical” need to relieve propane supply issues in this part of the country. Here’s a good rundown on the current propane supply issues plaguing the U.S., including Cuomo’s hand in it… Continue reading
It’s interesting to MDN that when anti-fracking protesters call for boycotts of businesses that either support or (gasp) are part of the shale drilling industry, such a boycott is considered brave and courageous and a-OK. But when someone on the pro-drilling side suggests those who support fracking and the natural gas industry may want to boycott the businesses donating money and time to fight the natural gas industry, that’s “bullying” and mean and evil. Anyone else smell a hypocritical rat? We’re referring to a recent brouhaha over Inergy Midstream’s (now part of Crestwood Midstream) plan to develop a liquid propane storage facility using depleted salt caverns along the edge of Seneca Lake near Watkins Glen, NY. MDN has long covered the fight by Inergy to bring the only new storage facility proposed in the northeast (badly needed), and the people who want to stop it (see NY Protesters Arrested for Blocking NatGas Storage Facility).
In June, a VP for Inergy sent an email to 25 people suggesting they may want to boycott the businesses using their time and money to actively oppose the Inergy facility. Those businesses are part of the “Business Coalition” of the organization called Gas Free Seneca (GFS). The email sent by the Inergy VP–now six months old but but just coming to light–has GFS in a tizzy. GFS has responded with their own email that they are “extremely disturbed” by this “bullying” from Inergy. That is, GFS doesn’t like the shoe being on the other foot for a change (poor babies). We have the story of the email, and the list of the (current) 181 NY businesses that Inergy (and you) may want to consider boycotting… Continue reading
In early October, Crestwood Midstream and Inergy Midstream completed their mega-billion-dollar merger (see Crestwood/Inergy Complete Their Merger Today, Worth $8B). Yesterday the newly merged company which kept the Crestwood Midstream name, issued their third quarter operations and financial update. Robert G. Phillips, Chairman, President and CEO said with the merger now behind them, it’s (our words) pedal to the metal, full speed ahead. Phillips is really excited about the company’s prospects for growth in the Marcellus Shale and said so yesterday.
Phillips said by the end of 2013 Crestwood gathering capacity in the Marcellus will hit 500 million cubic feet per day (Mmcf/d), which is a 25% increase from the end of 2012. By the end of 2014, he expects their Marcellus gathering capacity to grow to 750 Mmcf/d, up another 50%. Yes indeed, Crestwood is high on the Marcellus!… Continue reading
Saying that “every body of water has a spirit” and attempting to communicate with that spirit, later this week a small group of (wacko) anti-drillers intend to walk 80 miles around Seneca Lake, NY to pray to the lake spirit that no evil fracking comes to harm the little water nymphs that live in the lake. Or something like that.
A press release from Friday says today, Monday, the final paperwork will be filed and the two companies will officially be merged. The new company will take the name Crestwood Midstream Partners and starting tomorrow it will trade on the New York Stock Exchange with the ticker symbol of CMLP. The two companies together, contrary to previous estimates, will be worth $8 billion (not $7B previously reported), a true midstream giant… Continue reading
The companies remain at a 2/3 merger–at this stage. However, they have announced the composition of the boards of directors (plural) for Inergy. There is Inergy GP the parent/umbrella company, and Inergy Midstream GP, which will merge with Crestwood. Both boards of directors (see below) contain Crestwood people on them starting next week. So it appears the consummation of this merger marriage will happen soon… Continue reading
In early May, MDN told you that Crestwood Midstream (with pipelines and processing plants in the Marcellus) and Inergy Midstream will merge to form a $7 billion midstream behemoth (see M&A Mania: Crestwood Midstream & Inergy will Merge). Yesterday, the first step along the road to marital bliss was completed when Crestwood paid $80 million cash for Inergy, L.P. and both Crestwood and Inergy did a complicated stock swap. The third and final step on the merger road will happen in the third quarter when Crestwood Midstream will be formally merged into a subsidiary of Inergy Midstream.
The announcement from yesterday updating us on Crestwood and Inergy’s elaborate dance: Continue reading
Crestwood Midstream and Inergy Midstream announced this morning they are merging–a deal that will create a $7 billion midstream (pipelines & processing plants) behemoth. Both Crestwood and Inergy have operations and assets in the Marcellus and Utica Shale region.
Whose name goes on the door has yet to be decided. Here are the details about the deal as provided by the two companies: Continue reading
The Commonwealth Pipeline, a joint venture between Inergy, UGI and WGL Holdings, was suspended indefinitely just a few weeks ago (see PA’s Commonwealth Pipeline Project Suspended – Indefinitely). However, officials from Berks County, PA, in the southeastern part of the state and a county through which the Commonwealth Pipeline was slated to pass through, don’t buy it. They believe the project will come back to life and pass through their county, eventually… Continue reading
In December, MDN told you that work on the 120-mile Commonwealth Pipeline, a Marcellus Shale pipeline running from Lycoming County to the Philadelphia area was “on hold” (see Commonwealth Pipeline for Marcellus Region on Hold). You can now change that to work has been “suspended” on the pipeline—indefinitely. Did the anti-drillers win this particular skirmish in the fracking wars?
Twelve protesters, no doubt suffering from FDS (Fracking Derangement Syndrome), illegally blocked the entrance to a depleted salt cavern near Watkins Glen, NY yesterday. They were arrested by local police. Inergy plans to turn the salt cavern into storage for liquefied natural gas (i.e., propane). The protesters believe storing natural gas in the facility will encourage fracking in New York, so they locked arms to stop trucks from entering or leaving the facility. Among the protesters was anti-drilling author and Ithaca College “distinguished scholar in residence” Sandra Steingraber.
The Inergy storage facility is the only planned new storage for natural gas in the entire northeast—something desperately needed. Rather than limit fracking, the protesters’ actions (if successful in stopping the facility) would cause the price of natural gas to go up for everyone throughout the northeast. The protesters don’t seem to care (and frankly don’t have a clue)…
A 120-mile**, large (30-inch) Marcellus Shale pipeline from Lycoming County, in northeastern Pennsylvania, all the way to Rockland, Maryland was announced in March of this year. The three companies planning it—Inergy, UGI and WGL Holdings—dubbed it the Commonwealth Pipeline and said it will cost $1 billion to build it (see this MDN story for the original announcement). The three companies offered a non-binding “open season” (period of time when other companies commit to using capacity in the pipeline) and in June announced the open season went better than expected (see this MDN story).
However, the Commonwealth Pipeline is now on hold and work has stopped. What happened?
Anti-drilling protesters in New York are increasingly becoming unhinged. Midstream company Inergy is working on a gas storage project near Watkins Glen in the Finger Lakes region in New York. The $40 million project will create a storage and transfer station for natural gas and liquid petroleum in underground salt caverns near Seneca Lake. Are anti-drillers concerned that the facility will leak gas into the lake? Nope. They just hate fossil fuels period—and they think this facility will encourage more drilling and fracking in New York and Pennsylvania—so they oppose it.
Yesterday a couple of old hippies protesters handcuffed themselves to a fence at the facility. Here’s what happened: