Dominion Energy 3Q18: Atlantic Coast Pipeline Delayed to 2020
Dominion Energy shared two bits of big news yesterday during their third quarter 2018 update. The first is that they’ve agreed to sell their 50% stake in Blue Racer Midstream (see Dominion Sells Its 50% Share in Blue Racer Midstream for $1.5B). The second bit of news, big news (for us), is that Atlantic Coast Pipeline (ACP) is now officially delayed–from late 2019 to “mid-2020” for a full startup. The price tag for ACP is going up too: $7 billion (up from $6.5 billion). But it’s not all bad news for ACP. Some pieces of the project will still go online in 2019, just not all of it. Dominion is taking a “phased in-service approach” to bringing the project online. The delays are due to the “FERC stop work order and delays obtaining permits necessary for construction.” We put it this way: The delays due to a myriad of frivolous lawsuits from Big Green groups means everyone will now pay more. Thanks Big Green.
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Transcontinental Gas Pipe Line Co. (Transco) is the crown jewel of Williams. Transco is a 10,200-mile pipeline system with 53 compressor stations extending from South Texas to New York City. The recent Atlantic Sunrise Pipeline project in northeast PA that went online Oct. 6 is part of Transco, feeding more Marcellus gas into the Transco system to flow that gas south. During yesterday’s Williams third quarter update, CEO Alan Armstrong hinted that yet another new Transco project, “Project #1,” is in the works and will be announced during 4Q18. Project #1 will expand Transco’s capacity in Zones 3-6, allowing more Marcellus/Utica gas to flow south–perhaps all the way to the Gulf Coast.
Williams’ Transco Pipeline has just won a major eminent domain court case for its Atlantic Sunrise Pipeline project that will have implications for all pipelines. Yes, Atlantic Sunrise is now in the ground and flowing natural gas (see 
The Laborers’ International Union of North America (LIUNA) is ramping up to begin training local Virginia residents as construction workers for Dominion Energy’s Atlantic Coast Pipeline (ACP). The initial training will start in Buckingham County. LIUNA’s training includes both classroom and hands-on training. Folks have been pestering LIUNA for months, asking why they have not already begun training. The reason is simple: You don’t begin training until you’re ready to put people into the field to use that training. You don’t train them and then wait for months on end–while they forget what they just learned. LIUNA’s training program launch means that construction on ACP in Virginia is about to ramp up in a big way.
EQT Midstream, which is about to be renamed to Equitrans Midstream Corp. in a few weeks, recently issued its third quarter 2018 update (same day that EQT the driller issued its update). As you know, the two are about to split and become two independent companies. As part of the EQT Midstream update, the new midstream company leaders spoke about Mountain Valley Pipeline (MVP), a 303-mile pipeline from West Virginia into southern Virginia. MVP has experienced a lot of setbacks, most of them from a campaign of lawsuits filed by Big Green organizations (like the odious Sierra Club). A new pipeline project related to MVP was mentioned prominently in this week’s quarterly update. The pipeline is called Hammerhead.
On Sept. 10, Energy Transfer’s 24-inch gathering pipeline in Beaver County, PA, called the Revolution Pipeline, caught fire and exploded during testing (see 
Moody’s Investor Service is sounding the alarm with respect to oilfield services (OFS) companies and debt. In a publication for Moody’s clients issued earlier this week, analysts said OFS companies don’t have the means to pay back towering debt in the short term, and “limited options” when it comes to raising equity to improve liquidity. What it means is this: Companies like Schlumberger, Halliburton, and Baker Hughes a GE Company are heading for rough waters. However, the biggies, like the three we’ve mentioned, will probably be OK. But their smaller competitors, according to Moody’s, may not be OK.
A group of 13 landowners in Virginia whose property was force taken by Mountain Valley Pipeline (MVP) using eminent domain is appealing a case they already lost in federal court to the U.S. Supreme Court. The landowners claim MVP has taken private land–their land–to use for private/corporate gain and not (as the law requires) taken for a “public” benefit. Eminent domain allows the taking of private land for public benefit, but not taking private land for private benefit. The issue really revolves around the question of, What is a public benefit? Can a private company use government powers because what they provide benefits the public? The big question is, will the Supreme Court, which gets some 8,000 such appeals each year, make this appeal one of the 80 or so they consider?
Columbia Gas of Massachusetts (NiSource) continues to try and recover (physically and reputationally) from a series of explosions in its local delivery pipelines north of Boston in mid-September (see 
In early October NEXUS Pipeline, a $2.6 billion, 255-mile interstate pipeline that runs from Ohio into Michigan, received permission from the Federal Energy Regulatory Commission to begin partial operation (see 
Although EQT Midstream’s 303-mile Mountain Valley Pipeline (MVP) project has experienced a number of legal and regulatory setbacks and is currently blocked from constructing pipeline across/under/near any river, stream, or wetland in all of West Virginia and all of Virginia (some 1,100 different locations), believe it or not there are still many places where MVP can and is still installing pipeline (see 
Two weeks ago Enbridge, owner of the Texas Eastern Transmission Company (Tetco) Pipeline, announced it had put part of its Texas Eastern Appalachian Lease (TEAL) natural gas pipeline project in Ohio into service (see 
We now have a date for when EQT (the driller) and EQT Midstream (the pipeline company) will split and become two separate, independent companies that will no doubt continue to work together, but will in fact be two companies. That date is November 12. In a pair of press releases issued yesterday, EQT outlined how the transition to two publicly traded companies, EQT Corporation (stock ticker EQT) and Equitrans Midstream Corporation (ticker ETRN) will happen. One of the releases names four new members for the EQT board once the split occurs, and reaffirms that current EQT CFO Robert McNally will stop “Acting” and become the full, official President & CEO of EQT.
Dominion’s 600-mile Atlantic Coast Pipeline (ACP) from West Virginia to North Carolina has had its share of setbacks. But these days, it appears the project is building momentum and government/regulatory decisions are breaking in ACP’s favor. The project is on track to finish by the end of 2019, so says Dominion. The latest win for ACP came yesterday when the Federal Energy Regulatory Commission (FERC) granted permission for ACP to begin construction pretty much in all locations in West Virginia. The only prohibitions are small areas in National Park Service land and a few locations where there may be Indiana bats.
Aqua America, the nation’s second largest water/wastewater utility company headquartered near Philadelphia, announced it is buying Peoples Gas, the nation’s fifth largest natural gas utility company headquartered in Pittsburgh, for $4.275 billion. This story interests us because the buyer, Aqua America, provides services to Marcellus/Utica shale drillers, and because Peoples Gas is a buyer of Marcellus/Utica gas. The combined company will both serve the shale industry as part of the supply chain, and buy the output of the shale industry as a customer. How cool is that? What made Aqua interested in Peoples? It has to do with old pipes in the ground. And similar natures.