Marathon Petroleum

Energy Services | Enterprise Products Partners | Industrywide Issues | Marathon Petroleum | NGLs | Pipelines

Centennial Pipeline Reversal “a Go” to Send NE NGLs to Gulf Coast
October 26, 2016October 26, 2016

In September 2015 MDN brought you the news that two joint venture partners, MPLX (Marathon Petroleum) and Enterprise Products Partners, were actively evaluating a plan to reverse the flow of the 795-mile Centennial Pipeline to send natural gas liquids (NGLs) from the Utica/Marcellus to the Gulf Coast (see Centennial Pipeline May Reverse, Sending NE NGLs to the Gulf). The Centennial began operation in 2002 after a 26-inch diameter natural gas line from Longville, LA into Bourbon was converted to refined light product service. At the same time, a new 24-inch diameter line was constructed from Beaumont, TX to connect to the existing 26-inch diameter line at Longville, TX. Since last year we had not heard any concrete plans–until now. Yesterday at the S&P Global/Platts ninth annual Appalachian Oil & Gas Conference in Pittsburgh, Enterprise announced it is “a go” to reverse the Centennial…
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Energy Services | Marathon Petroleum | MarkWest Energy | Pennsylvania | Washington County

MarkWest Building New Processing Plant in Washington County, PA
October 26, 2016October 26, 2016

Last week MDN reported that electric company FirstEnergy has begun construction of a new electric substation in Washington County, PA to provide electricity to “support two natural gas processing facilities being developed in the area” (see Work Begins on $40M Electric Substation in W PA to Help Marcellus). We speculated that at least one of the beneficiaries would be MPLX’s MarkWest Energy subsidiary. We were right. NGI’s Shale Daily is reporting that one of the projects to be served by FirstEnergy’s new substation will be the MarkWest Harmon Creek Complex, a new processing plant being built to process natgas for Range Resources…
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Energy Services | Marathon Petroleum | MarkWest Energy | Ohio | Statewide OH

Marathon’s Billion Dollar Bet on the Utica Shale
October 13, 2016October 13, 2016

Marathon Petroleum, which purchased midstream company MarkWest Energy last year, continues to grow and expand–because of the Utica Shale. Marathon operates a refinery in Canton, OH that processes crude oil. Question: Did you know that 25% of the crude oil being processed at the Marathon refinery comes from the Utica Shale? No, we didn’t know that either! Marathon has made some big bets on the Utica. In fact, over the past two years, they’ve bet more than $1 billion on the Utica…
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Energy Services | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines | Statewide OH

Cornerstone Pipe Now Flowing, “Backbone” of MPLX Utica Strategy
October 12, 2016October 12, 2016

Click for larger version

In September MDN reported that part of Marathon Petroleum’s Cornerstone Pipeline began to flow condensate (see Utica Condensate Begins Flowing Through Cornerstone Pipeline). The approximately 50-mile pipeline was built to flow natural gas liquids (NGLs) from the MarkWest cryogenic processing plant in Cadiz, OH northwest connecting to M3’s fractionator plant in Scio and M3’s cryogenic processing plant in Leesville before terminating at Marathon’s refinery in Canton, OH. In September condensate was flowing from Cadiz to East Sparta. Good news! The entire pipeline is now up and running. In a surprising statement announcing full operations for the pipeline, Marathon CEO Gary Heminger said, “Cornerstone is the backbone of our Utica shale strategy.” That shows the immense importance the company places on this new pipeline…
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Energy Services | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines | Statewide OH | Trucking

130 Tanker Trucks/Day in Ohio End as Cornerstone Pipe Begins
October 3, 2016October 3, 2016

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Last week MDN shared the good news that Utica Shale condensate (very light oil) had begun flowing through the new Marathon Petroleum Cornerstone Pipeline (see Utica Condensate Begins Flowing Through Cornerstone Pipeline). The Cleveland Plain Dealer published an interesting story about the pipeline on Saturday, explaining in depth what condensate is and how/why Marathon upgraded its refinery in Canton to handle it. However, it was another point made in the story that caught our attention. The MarkWest Energy (now a part of Marathon) processing plant in Cadiz, Ohio cleans and separates out condensate from other natural gas liquids (like ethane and propane) before sending the condensate to the Canton refinery. Until the Cornerstone went online, it took 130 tanker trunk trips PER DAY, operating around the clock, to cart the condensate from Cadiz some 60 miles to Canton (and then back for another pickup). While the trucks are still operating, for now, once the pipeline is fully operational and pumping at full capacity, it will end those truck trips…
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Energy Services | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines | Statewide OH

Utica Condensate Begins Flowing Through Cornerstone Pipeline
September 30, 2016October 3, 2016

Cornerstone Pipeline Route Map – click for larger version

In December 2013 MDN first reported a new $250 million pipeline on the way in the Utica Shale from Marathon Petroleum Corporation, the largest refiner in the Utica Shale region (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The Cornerstone pipeline will stretch nearly 50 miles from the MarkWest cryogenic processing plant in Cadiz, OH northwest connecting to M3’s fractionator plant in Scio and M3’s cryogenic processing plant in Leesville along the way as it terminates and connects to Marathon’s refinery in Canton, OH. The pipeline will carry, at various times, crude oil, condensate and natural gasoline. From Canton, Marathon plans to move condensate and NGLs to Midwest refining centers and into Canada. In July the company said Cornerstone would be online by the end of this year (see MPLX Cornerstone NGL Pipe Done by End 2016, New Projects Coming). Yesterday the pipeline went online–at least part of it did–when Cornerstone flowed condensate from Cadiz to East Sparta…
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Energy Services | Industrywide Issues | Marathon Petroleum | MarkWest Energy | NGLs | Pipelines

MPLX/MarkWest Working to Send NGLs to Canada, Gulf Coast
September 28, 2016September 27, 2016

Cornerstone Pipeline Route Map – click for larger version

MPLX (i.e. Marathon Petroleum) has not just been sitting on its hands after buying MarkWest Energy last year for $15 billion (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). One of the plans from the beginning of the merger was/is to ship natural gas liquids (NGLs) produced in the Marcellus/Utica out of the region, particularly to the Gulf Coast where there are numerous processing plants that would pay a good price for it (see Marathon Hints MarkWest Merger Plan May Include NGLs to Gulf). Those plans, according to MPLX’s Executive Vice President of Corporate Planning and Strategy Pamela Beall, who spoke last week at the Shale Insight conference in Pittsburgh, are beginning to come together…
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Energy Services | Marathon Petroleum | MarkWest Energy

Senior Management Change at Marathon’s MarkWest Subsidiary
August 31, 2016August 31, 2016

In December of last year, one of the biggest and brightest stars in the midstream firmament for the Marcellus/Utica, MarkWest Energy, sold itself to Marathon Petroleum (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). As we pointed out at the time, the sale lined the pockets of investors and MarkWest’s top management (see Golden Parachutes Pop Open for MarkWest Top Management/Board). Two of the people in top management who benefited were John Mollenkopf, who was named executive vice president and chief operating officer for the new MarkWest unit (essentially taking over running MarkWest) and Gregory Floerke, who was named executive vice president and chief commercial officer of the new MarkWest unit. Last week Marathon announced that Mollenkopf is now riding off into the sunset (a very rich man), and Floerke will take has place running the MarkWest unit…
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Energy Services | Industrywide Issues | Marathon Petroleum | NGLs | Pipelines

MPLX Cornerstone NGL Pipe Done by End 2016, New Projects Coming
July 29, 2016July 29, 2016

Cornerstone Pipeline Route Map – click for larger version

Marathon Petroleum Corporation’s MPLX midstream/pipeline division, which includes what used to be called MarkWest Energy, issued its second quarter 2016 update yesterday. Among the important bits of news, MPLX’s Cornerstone Pipeline is currently under construction and will be completed by the end of this year. Cornerstone is a $250 million, 50-mile natural gas liquids pipeline being built by Marathon from the MarkWest cryogenic processing plant in Cadiz (Harrison County, now owned by Marathon), northwest connecting to M3’s fractionator plant in Scio (also in Harrison County) and M3’s cryogenic processing plant in Leesville (Carroll County) before terminating and connecting to Marathon’s refinery in Canton, OH (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The pipeline will carry, at various times, crude oil, condensate and natural gasoline. From Canton, Marathon plans to move condensate and NGLs to Midwest refining centers and into Canada. Other exciting news: Marathon’s engineering teams continue to “evaluate synergistic projects” for the Marcellus/Utica, including “a butane-to-alkylate facility, a regional NGL export solution in the Northeast, and a long-haul pipeline to the Gulf Coast, such as a reversal of the Centennial Pipeline.” Very cool. Here’s the MPLX update…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Marathon Petroleum | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH

Updates on 3 Major OH Pipelines at Utica Midstream Seminar
June 9, 2016June 9, 2016

Some 160 people showed up for the Utica Midstream Seminar held yesterday at the National Football Hall of Fame in Canton, OH. The event, sponsored by the Canton Regional Chamber of Commerce and ShaleDirectories.com, provided updates on three major pipeline projects either under construction or soon to be under construction in the Buckeye State: Marathon Petroleum’s Cornerstone Pipeline, Spectra Energy’s NEXUS pipeline project, and Energy Transfer’s Rover pipeline project. Here’s what reps from each organization had to say about their respective projects…
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Energy Services | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines | Statewide OH

More on Cornerstone Pipeline – Batched Fluids, Connecting WV?
April 12, 2016April 13, 2016

Last week MDN updated you on progress (or lack thereof) for Marathon’s Cornerstone Pipeline project–a 50-mile liquids pipeline connecting several processing plants in Ohio to Marathon’s refinery in Canton (see Cornerstone Pipeline Slightly Delayed, Construction Begins in May). We now have even more details about the project after Marathon officials briefed area reporters. Among the interesting tidbits: at various times during the day the pipeline will batch fluids and flow either natural gasoline or condensate. Also, after the current plan is done and the pipeline is operational (this fall), Marathon hopes to explore connecting a couple of WV processing facilities to the pipeline–one in Moundsville and another in Natrium…
Read More “More on Cornerstone Pipeline – Batched Fluids, Connecting WV?”
Carroll County | Energy Services | Harrison County | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines

Cornerstone Pipeline Slightly Delayed, Construction Begins in May
April 6, 2016April 6, 2016

In the middle of March MDN brought you the news that Marathon Petroleum was saying they would begin construction on the Cornerstone Pipeline “in the next several weeks”–meaning by the beginning of April (see Cornerstone Liquids Pipeline Set to Begin Construction in E Ohio). The timeline has been moved back a month. Marathon officials are now saying construction won’t begin until May. Cornerstone is a $250 million, 50-mile liquids pipeline being built by Marathon from the MarkWest cryogenic processing plant in Cadiz (Harrison County, now owned by Marathon), northwest connecting to M3’s fractionator plant in Scio (also in Harrison County) and M3’s cryogenic processing plant in Leesville (Carroll County) before terminating and connecting to Marathon’s refinery in Canton, OH (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The pipeline will carry, at various times, crude oil, condensate and natural gasoline. No reason was given for the delay…
Read More “Cornerstone Pipeline Slightly Delayed, Construction Begins in May”
Carroll County | Energy Services | Harrison County | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines

Cornerstone Liquids Pipeline Set to Begin Construction in E Ohio
March 14, 2016March 14, 2016

The Cornerstone Pipeline, announced at the end of 2013, is a 50-mile liquids pipeline being built by Marathon Petroleum from the MarkWest cryogenic processing plant in Cadiz (Harrison County), OH northwest connecting to M3’s fractionator plant in Scio (also in Harrison County) and M3’s cryogenic processing plant in Leesville (Carroll County) before terminating and connecting to Marathon’s refinery in Canton, OH (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The pipeline will carry, at various times, crude oil, condensate and natural gasoline. Last fall Price Gregory, the company hired to build the Cornerstone, advertised for 400 workers (see Price Gregory Hiring 400 People in OH to Build Cornerstone Pipeline). Seems like it’s taken a long time, but construction of the pipeline is set to begin “in the next several weeks”…
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Chesapeake Energy | Columbia Pipeline Group | Energy Companies | Energy Services | Energy Transfer Partners | Industrywide Issues | Marathon Petroleum | Pipelines | Spectra Energy | Williams

Pipeline Companies May Lose Big-Time if Chessy “Restructures”
February 9, 2016February 9, 2016

Yesterday’s free fall of Chesapeake Energy’s stock based on rumors that the company may be considering bankruptcy (see today’s lead story) is not only affecting Chesapeake’s stock price. It’s also affecting the stock price of Energy Transfer Equity and Williams, two huge midstream companies. Why? ETE, you may recall, is in the process of buying Williams for $37.7 billion (see Looks Like a March 2016 Wedding for ETE & Williams). The main reason ETE is buying Williams, with its major presence in the Marcellus/Utica, is because of long-term contracts to use its pipelines in the northeast. One of Williams’ main customers with those long-term contracts is (yes) Chesapeake Energy. What if Chessy is forced to renegotiate or cancel or otherwise can’t honor those contracts? Whoops. There goes one of the big reasons for the deal in the first place. Which may explain why ETE’s stock went from $7.01 on Friday to closing at $4.09 yesterday (down 42%), and why Williams’ stock went from $17.11 on Friday to closing at $11.16 yesterday (down 35%). Here’s how/why Chesapeake’s troubles will not only affect ETE and Williams, but other midstream companies like Spectra Energy, Columbia Pipeline Partners and Marathon Petroleum as well…
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Energy Services | Industrywide Issues | Marathon Petroleum | MarkWest Energy | Processing Plants

MarkWest Completed 3 Processing Plants in ’15, 5 More Coming in ’16
February 4, 2016February 4, 2016

MarkWest Energy, now a subsidiary of Marathon Petroleum, reported its fourth quarter and full year 2015 results yesterday. Net income–revenue less expenses–was down for MarkWest in 2015, but at least the company is still in the black. MarkWest had $178 million in net income for 2014, and $157 million for 2015. Not too shabby considering the disastrous results many other companies have had. Net income for 4Q15 for MarkWest was a paltry $18 million, vs. $37 million in 4Q14. Among the operational highlights for MarkWest for 2015: The company commenced operation of one processing plant and two fractionation facilities in the Marcellus shale, increasing their total processing capacity by 200 million cubic feet per day and fractionation capacity by 73,000 barrels per day. Looking ahead to 2016, MarkWest says they have 10 major processing and fractionation projects currently under construction on a just-in-time basis, with five of the 10 expected to be completed in 2016. They expect to spend $1-$1.5 billion on capital expenditures in 2016. Here’s the update…
Read More “MarkWest Completed 3 Processing Plants in ’15, 5 More Coming in ’16”
Energy Services | Industrywide Issues | M&A | Marathon Petroleum | MarkWest Energy

Golden Parachutes Pop Open for MarkWest Top Management/Board
December 7, 2015December 7, 2015

Last week MarkWest Energy Partners ceased to exist as an independent company (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). MarkWest “units” (equivalent to shares of stock) stopped trading on the New York Stock Exchange on Friday. The company became part of Marathon Petroleum. And when it did, high level executives at MarkWest, at least some of them, got new positions with Marathon. That is, according to the prediction of former MarkWest CEO and co-founder John Fox, MarkWest’s upper management and board members got golden parachutes (i.e. they personally benefited) from the sale of MarkWest. Here’s how they did…
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