Mariner East 2 Pipeline Construction Shuts Down re COVID-19
As we told you last Friday, there was some confusion over whether or not construction of the Mariner East 2 (ME2) pipeline, which is nearing completion, is included under Pennsylvania Gov. Tom Wolf’s “stop work” order to prevent PA residents and workers from further spreading the COVID-19 coronavirus (see Is ME2 Pipe Construction Stopped Following Wolf COVID-19 Order?). Pipeline infrastructure and utilities are on the “life-sustaining” list, both in PA and as a directive from the federal government. However, “Utility Subsection Construction” was on the non-life-sustaining list–due to be temporarily shut down. ME2 construction continued after Wolf’s Thursday order. The confusion has now cleared, and yes, ME2 construction is in the process of ceasing.
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A worker hired to x-ray welds on sections of the Mariner East 2 pipeline in southwestern Pennsylvania has been charged falsifying records, indicating that he performed the work when he didn’t. That’s a felony. According to one news account the worker, from Westmoreland County, PA, is expected to plead guilty and faces up to five years in prison and a fine up to $250,000. The good news is that Energy Transfer, the builder, discovered the deception and immediately reported it. ET reinspected all of the welds supposedly inspected by this worker.
Yesterday Pennsylvania Gov. Tom Wolf issued an executive edict that all “Non-Life-Sustaining Businesses” will close as of 8 pm last night. Notwithstanding the sleazy attempt by State Sen. Andy Dinniman to shut down construction of the Mariner East 2 (ME2) pipeline project by using the virus as an excuse (see today’s companion story), there appears to be some confusion as to whether or not ME2 construction is subject to Wolf’s edict to stop construction. The Pennsylvania Public Utility Commission (PUC) refuses to tell ME2 to stop building. However, in Wolf’s list of what is “life-sustaining” and what isn’t, all construction, including “Utility Subsection Construction” is in the stop-work category. Is ME2 or isn’t it still actively under construction at this point?
Marathon Petroleum, the parent company of MPLX (formerly called MarkWest Energy) announced some big changes last November. Namely, they caved to “activist” investors (we still call them corporate raiders) and their demands to split the company in three and dump the current CEO (see
We continue to be impressed with New Fortress Energy and its aim to own as much of the LNG supply chain as possible. The company is building an LNG (liquefied natural gas) liquefaction plant in northeast Pennsylvania (see
And so it begins. We’ve seen it before during oil and gas “down cycles.” Some of the first companies to lay off workers are the oilfield services (OFS) companies. Companies like Halliburton. It’s a yo-yo. Lay off a bunch of people (hundreds or thousands), and in a few years when things turn around, hire back a bunch. Some pejoratively call it boom and bust. We’re entering another serious down cycle with impending layoffs. Yesterday Halliburton announced a new twist. Instead of laying off thousands, the company will “furlough” some 3,500 workers. Here’s how it works…
A number of Marcellus/Utica drillers and pipeline companies are taking action to slow and potentially stop the spread of the COVID-19 coronavirus. Several companies (so far) have instituted mandatory work-from-home orders. Those companies include the Pittsburgh-based companies CNX Resources, Equitrans, and EQT Corp. By the time this is published more may have joined the list.
Drilling, whirring, humming, thumping, grinding, engines running, hammering, back-up warning beeps, banging, clanging. Those are the sounds of progress happening in Chester County, PA. Contrary to the griping and moaning mainstream media reports about those who live near Mariner East 2 (ME2) pipeline construction, the sounds of ME2 construction are music for at least one local resident because he knows about the economic prosperity this project will bring to the region.
Mountaineer NGL Storage is planning to build an NGL (primarily ethane) storage operation in Monroe County, OH, located just across the river (and border) from West Virginia. Last summer David Hooker, president of Mountaineer and president of the parent company Energy Storage Ventures (located in Denver, Colo.) announced the project had received all necessary permits to begin construction, and that construction “could” begin by the end of March this year (see
The 600-mile Dominion Energy Atlantic Coast Pipeline (ACP) project has completed about 35 miles of the project and that’s it. Why? Lawsuits, brought by Big Green groups. The biggest challenge the project faces is a lawsuit that ruled ACP could not cross under the Appalachian Trail. Dominion appealed the decision to the U.S. Supreme Court where it now sits. By all accounts, the recent oral arguments before the Supremes went well for ACP (see
In January PennEast Pipeline, a $1.2 billion new greenfield pipeline project from Luzerne County, PA to Mercer County, NJ, asked the Federal Energy Regulatory Commission (FERC) for permission to break the project into two phases (see
We always take it as a good sign when board members and upper management decide to buy up shares of the companies they operate. One might colloquially say they “eat their own dog food.” That’s what’s happening with at least some shale oil companies. Board members and upper management are buying shares of company stock because those shares are currently at super low prices, given the Saudi-Russia oil war and COVID-19 coronavirus pandemic scare. These people know that sooner or later the economy will straighten out and their company’s share prices will zoom skyward again–making them wealthy.
In 2015 Kelsy Warren and his Energy Transfer Equity (now just Energy Transfer) company pursued Williams, wanting to merge Williams into its own operation. Williams initially fought ET tooth and nail, but in the end, cut a deal (see
Columbia Gas of Massachusetts (NiSource) never quite recovered (reputationally) from a series of explosions in September 2018 that occurred with its local delivery pipelines north of Boston (see