Energy Services

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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…
    Read More “1st Cove Point Marcellus Shipment to Japan Goes Thru Panama Canal”

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    List of 6 NatGas-Fired Electric Plants Coming to Michigan

    Last June DTE Energy filed paperwork in Michigan to build a new “state-of-the-art” natural gas-fired power plant in St. Clair County (see DTE Energy Files to Build New Natgas-Fired Elec Plant in Michigan). The gas-fired plant will produce 1,100 megawatts of electricity, enough to power 850,000 homes. If all goes according to plan, the new $1 billion plant will go online in 2022, helping to offset three coal-fired plants set to retire by 2023. Although environmental groups launched a campaign against the project (see Michigan Anti Fossil Fuelers Oppose DTE Gas-Fired Plant Proposal), their efforts were too little too late. Last week the Michigan Public Service Commission approved the project! In addition, we spotted an article about five more natgas-fired plants planned for Michigan (full list below). As we always point out, there is a considerable amount of Utica/Marcellus gas heading into Michigan via the Rover and NEXUS pipelines. These plants are all potential customers for our gas supplies…
    Read More “List of 6 NatGas-Fired Electric Plants Coming to Michigan”

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    Philly Dem Senator Tries to Shut Down ME2 Pipe Construction

    PA State Senator Andy Dinniman

    A Chester County, PA (Philadelphia area) Democrat State Senator by the name of Andy Dinniman (who we think looks like Tony Soprano) continues his mission to stop the Mariner East 2 (ME2) project. This is nothing new for Dinniman. He’s been agitating and lobbying and demanding and pouting for over a year in his quest to shut down ME2 (see our Dinniman stories here). According to a press release from Dinniman issued last Thursday, the Senator has filed “a formal legal complaint and a petition for interim emergency relief with the Pennsylvania Public Utility Commission (PUC) to prohibit construction of the Mariner East 2 (ME2) and Mariner East 2X (ME2X) pipelines in West Whiteland Township.” Dinniman claims Sunoco Logistics Partners (builder of ME2) has 20 days to respond to the complaint. No doubt Sunoco will respond, and there’s little doubt the PUC will not do anything about Dinniman’s request…
    Read More “Philly Dem Senator Tries to Shut Down ME2 Pipe Construction”

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    EQT Midstream Consolidates, Buys Gulfport JV Share for $175M

    As EQT gets ready to split the company into two companies later this year, the midstream (pipeline & processing plants) portion of the company yesterday announced a complicated “drop down” deal to streamline the midstream operation. The short version is this: EQT has midstream assets spread throughout three companies on paper–EQT Midstream Partners, EQT GP Holdings, and Rice Midstream Partners. Yesterday the company announced all three are being merged under one umbrella–EQT Midstream Partners. As you’ll read in the EQT announcement, the entire deal is complex–with various entities buying assets from the others. One of the more interesting aspects of the deal is that EQT Midstream is buying EQT’s (the driller’s) Olympus Gathering System and EQT’s 75% interest in the Strike Force Gathering System. EQT Midstream is also buying out Gulfport Energy’s 25% interest in Strike Force, meaning EQT Midstream will now own 100% of Strike Force–a gathering pipeline system in the dry gas Utica covering 98,000 acres in Belmont and Monroe counties, in Ohio. Here’s the news that EQT is getting its midstream ducks in a row…
    Read More “EQT Midstream Consolidates, Buys Gulfport JV Share for $175M”

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    PA PUC Asks Sunoco to Drill Holes, Pour Concrete to Firm Up ME1

    For more than a year, Marcellus/Utica ethane and propane have been flowing through the converted Mariner East 1 (ME1) pipeline safely, hauling the two natural gas liquids (NGLs) from southwest PA all the way to the Marcus Hook refinery near Philadelphia. The primary shipper using ME1 has been Range Resources, although other companies like CNX Resources use it too. However, ME1 was suddenly switched off on March 3 by order of the Pennsylvania Public Utility Commission (PUC) after a sinkhole opened up under the pipeline in Chester County, exposing some of the bare steel to the open air (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). Sunoco Logistics Partners, the owner of ME1, is building a new set of pipelines called Mariner East 2 (ME2) close to the existing ME1. Construction work in the area on ME2 led to the sinkhole that exposed ME1. The PUC shut down ME1 until further notice, requiring Sunoco to conduct a study of the area and provide the PUC with evidence to reassure them that ME1 is OK and will not leak or explode. Sunoco conducted the study, provided its results, and told the PUC it’s time to restart ME1–but the PUC is dragging its feet (see Sunoco Says ME1 Ready to Restart, but PUC is Dragging its Feet). The new news is that the PUC recently told Sunoco that before ME1 can restart, the company must first drill 10 new holes in the area of the sinkholes and pour in concrete (“grout”) in an effort to ensure ME1 doesn’t move around and break open…
    Read More “PA PUC Asks Sunoco to Drill Holes, Pour Concrete to Firm Up ME1”

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    Still No Deal on Property Next to PTT OH Ethane Cracker Site

    Homeowners who live near the location of a possible ethane cracker plant in Belmont County, OH are running out of time to negotiate a deal to sell their properties. Living next door to a cracker plant is not anyone’s idea of paradise. There will be noise, and smells and (yes) some air pollution coming from the plant. Best to sell now before the plant begins construction. However, representatives for PTT Global Chemical which will build the plant (IF it gets built), say they already have all the land they need for the facility (see PTT Global Buys Land for Belmont, OH Ethane Cracker Plant). Not needing the land puts PTT in a good negotiating position. There are 10 homes in the general vicinity of the proposed cracker plant whose owners want to sell. PTT says they’ve offered the homeowners 125% of fair market value for their homes. The lawyer representing the homeowners says the valuations are not accurate. However, it’s far from being a stand-off. There is no malice or vitriol. It sounds to us like both sides think a deal will get done. It just boils down to finalizing numbers. Here’s the latest on real estate for the proposed Belmont cracker plant…
    Read More “Still No Deal on Property Next to PTT OH Ethane Cracker Site”

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    ME2 Pipe Work in Chester County Shut Down (Again) Following Leaks

    Hypersensitive: excessively or abnormally sensitive. That’s the word we would use to describe what’s happening in Chester County, PA–a suburb of Philadelphia–with regard to underground horizontal directional drilling work (HDD) being performed by Sunoco Logisitics Partners on the Mariner East 2 pipeline project. The company keeps having “inadvertent returns”–which we call leaks. Drilling mud (bentonite) used to cool the drill bit goes down the hole, and sometimes it pops back up on the surface in a different place from where it went down. Since the drilling mud is non-toxic clay and water (same stuff used to make kitty litter, toothpaste and lipstick), it’s no big deal. Unless there’s thousands of gallons of it turning up in a creek where it can smother fish and aquatic life. There’s cracks in the ground near the surface and sometimes the mud leaks out of those cracks. Sunoco must track leaks of down to less than one gallon. Antis look at the numbers and make wild claims that the pipeline has leaked “over 100 times” since drilling began. While technically true, many of those leaks are nothingburgers–not worth tracking or talking about (a few gallons at most). However, some of the leaks are big and yes, those do need talking about. Over the past week or so another four leaks have occurred in Chester County, totaling 8,000 gallons. Fortunately none of it ended up in a creek. Because of the leaks, the state Dept. of Environmental Protection (DEP) has, once again, shut down any further HDD work in Chester County…
    Read More “ME2 Pipe Work in Chester County Shut Down (Again) Following Leaks”

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    MarkWest Energy Settles EPA Air Pollution Case for $5.6 Million

    NOTE: A previous version of this post reported a total price of $3.2 million, now changed to account for the addition of an extra $2.4M for required SEPs. See below.

    Two MarkWest Energy subsidiaries, MarkWest Liberty Midstream Resources and Ohio Gathering Co., have been forced into signing a settlement of claims brought by the U.S. Dept. of Justice, Environmental Protection Agency, and the Pennsylvania Dept. of Environmental Protection over charges of releasing too much air pollution from facilities they operate throughout eastern Ohio and western Pennsylvania in the Utica and Marcellus shale. The agreement signed yesterday by MarkWest calls for the company to spend $2.6 million to install and operate new technologies to minimize VOC (volatile organic compounds) emissions at their facilities–19 major, standalone facilities and 273 smaller facilities. The company will also implement three supplemental environmental projects (SEPs) for an additional $2.4 million. In addition, MarkWest will pay the government a $610,000 fine (i.e. shakedown). Total cost to get the government of out their hair: over $5.6 million. The government claimed MarkWest had not applied for nor complied with necessary permits. But the real disaster, the thing that sent government bureaucrats into fits, is that MarkWest failed to file proper paperwork required under the Clean Air Act. However, the settlement didn’t all go the government’s way. In agreeing to the settlement, MarkWest “expressly denies and does not admit any liability to the United States or PADEP arising out of the conduct, transactions or occurrences alleged in the complaint,” which means antis can’t file frivolous lawsuits against MarkWest over air pollution…
    Read More “MarkWest Energy Settles EPA Air Pollution Case for $5.6 Million”

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    Cuomo-Corrupted DEC Denies Permit for Williams NESE Pipe Project

    A new fight is shaping up in the (crumbling) Empire State. Once again Andrew Cuomo, at the prompting of Big Green groups (corrupted by their big donations to his campaign war chest) has instructed his lackeys who run the Dept. of Environment Conservation (DEC) to reject a modest pipeline expansion proposal by Williams’ Transco Pipeline subsidiary. The project, which we’ve previously written about and are actively promoting, is called the Northeast Supply Enhancement (NESE) project (see Time to Support Transco’s Northeast Supply Enhancement Project). The project is meant to increase pipeline capacity and flows heading into northeastern markets. Transco wants to provide more Marcellus natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Long Island, Rhode Island and Massachusetts. There are a number of components to the project, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco offshore. In a pattern we’ve seen before, the DEC claims, falsely, that an application for a state water crossing permit is “incomplete.” The DEC, like Lucy with her football in the old Charlie Brown cartoons, offers the promise that “if only” the pipeline company will submit a “complete” application THEN they will approve it. But just like Lucy with the football, when the company gets close, the DEC pulls it away yet again. Fool me once… The DEC used this same tactic to defeat the Constitution Pipeline project. It sure feels to us like “here we go again”…
    Read More “Cuomo-Corrupted DEC Denies Permit for Williams NESE Pipe Project”

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    Blue Racer Midstream: The Veins at the Heart of the Utica Shale

    Blue Racer Midstream is a pipeline and processing plant company–a joint venture between Caiman Energy II and Dominion Energy–that owns several natural gas processing and fractionation plants, 570 miles of natgas gathering pipelines, and 151 miles of NGL and condensate pipelines in OH and WV. The company’s primary focus from the beginning has been on handling and processing “wet gas” in eastern OH, northern WV and western PA. Blue Racer processes and transports NGLs (natural gas liquids) to market by all means possible–pipeline, rail and yes, even barge (see Blue Racer Barges NGLs to Gulf Coast on the Ohio River). One of the NGLs, ethane, plays a big role for Blue Racer–present and future. It’s time for an update on Blue Racer Midstream, the veins at the heart of the Utica Shale…
    Read More “Blue Racer Midstream: The Veins at the Heart of the Utica Shale”

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    Mammoth Energy Wanders into Non-Shale Work in Puerto Rico

    Oilfield services company (OFS) Mammoth Energy Services, headquartered in Oklahoma City, OK, operates in both the Utica Shale and Permian Basin. Last time we checked in on the company was over a year ago. At that time MDN reported that Mammoth, a relatively new company formed in 2014, had bought itself a pair of sand mines (see OFS Mammoth Energy Buys Second Sand Co. to Keep on Frackin’). But something happened last year that escaped our notice. Mammoth is not only in the OFS line of work, they also do electrical transmission and distribution (“T&D”) work. Following last year’s disaster when Hurricane Maria devastated the Puerto Rico, Mammoth was hired to help rebuild the electric utility infrastructure on the island. The way we were alerted to Mammoth’s extracurricular activity in Puerto Rico was in spotting a Seeking Alpha investor article. The article (below) takes the approach that Mammoth’s stock value is overinflated by 50% due to the contract they have in Puerto Rico. The author says, rightly, that Mammoth is mainly an OFS company. He thinks when the Puerto Rico work is done, the underlying “weak” OFS customer base won’t be enough to keep Mammoth profitable. We don’t necessarily agree with his views about the company (although it wouldn’t hurt our feelings if Mammoth shed its T&D business). The author is an investor and is “short” on Mammoth, meaning he owns securities that bet on the price of Mammoth’s stock going down. The reason we bring you the following article is because it contains a lot of information about Mammoth–a still small but rapidly growing, and increasingly important, OFS company operating in our region…
    Read More “Mammoth Energy Wanders into Non-Shale Work in Puerto Rico”

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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…
    Read More “Cove Point LNG Ships First Marcellus Cargo to Japan”

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    Stolen Dynamite from Atlantic Sunrise Site Discovered in Creek

    Stolen dynamite looked like this

    As we’ve reported daily since the news broke, someone stole a bunch of dynamite and the blasting caps (used to ignite the dynamite) from a locked storage trailer sitting at an Atlantic Sunrise Pipeline construction site in Lancaster County, PA (see Dynamite Stolen from Atlantic Sunrise Pipe Site in Lancaster County, PA). As of last Thursday, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) had doubled the reward money to $20,000 and upped the estimated amount of explosives and blasting caps stolen (see ATF Doubles Reward re Stolen Dynamite; 40 Agents in Lancaster Co.). Someone walking across a bridge in Riverfront Park (East Donegal Township) last Friday peered into the creek and noticed a lot of something that didn’t look like it belonged–the missing dynamite and blasting caps. Except the amount recovered is only half of the amount the ATF previously said was stolen. A day after the discovery the ATF changed its story and now says it is “increasingly confident” that all of the stolen dynamite has been recovered. The ATF says the contractor botched the paperwork recording how much dynamite was actually in inventory. The ATF has still not awarded the $20,000 reward money–because a suspect has not yet been apprehended. The investigation is ongoing. So has the ATF recovered all of the dynamite, or not?…
    Read More “Stolen Dynamite from Atlantic Sunrise Site Discovered in Creek”

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    Arrest Warrant Issued for MVP Tree Sitting “Grandma Red”

    Enough is enough. It’s time to end the silly charade of a 61 year-old kook sitting 30 feet up in the top of a tree that needs to come down to make way for the Mountain Valley Pipeline. Mainstream media could no longer maintain the veneer of credibility and continue to intentionally conceal the identity of the woman who would only call herself “Red”–which they did for weeks. No more. Her name is Theresa Terry. She goes by the nickname “Red.” We call her Grandma Red because she’s older (no idea if she’s actually a grandmother or not). Red’s daughter, also named Theresa, is up the same tree with her. The two Theresas are illegally trespassing on property (the tree) that now belongs to MVP, via eminent domain. As we told you on Friday, a group of far-left, liberal Democrat Virginia lawmakers actually support Red’s illegal action (see Virginia Democrat Lawmakers Side with Lawbreakers in MVP Protest). Sometime in the past week or so police began to deny Red’s supporters from passing food and water up the tree. They also turn bright lights on the two Theresas during the night, in an effort to deny them sleep and force them down. As the police say: They are meeting the “non-violent protest action” with “non-violent police action.” Which the radicals, hilariously, claim is “police abuse.” You see, antis can do whatever the heck they want to do–even breaking the law–and it’s righteous and pure as the wind-driven snow. But when you use their own tactics against them, that’s brutal. That’s persecution. That’s police abuse. Here’s an update on Grandma Red and the quest to remove her from her magic tree house 30 feet up in the air…
    Read More “Arrest Warrant Issued for MVP Tree Sitting “Grandma Red””

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    Rover Pipeline Still Waiting on FERC to Start Up Michigan Segment

    Last Friday, Energy Transfer Partners asked the Federal Energy Regulatory Commission (FERC) for permission to start up service along another major chunk of it’s massive Rover Pipeline (see Rover Pipe Asks FERC for OK to Open New Segments in OH, MI). ET wants to begin service along a 100-mile segment of Rover in northwest Ohio and in Michigan. ET also asked for permission to start up a segment of Mainline B in Crawford and Wayne counties (OH). The 100-mile segment through Michigan, called the Market segment, completes the pipeline, connecting to the Vector Pipeline in Livingston County, Michigan, which will allow Utica/Marcellus gas to flow all the way to the Dawn Hub in Ontario, Canada via Vector. In last Friday’s request, ET asked FERC to hurry it up because customers are desperate (our words) to get their Utica/Marcellus gas to market. ET requested a starting date no later than April 25–next Wednesday. Unfortunately there’s been no word, as of today, from FERC. The silence is deafening…
    Read More “Rover Pipeline Still Waiting on FERC to Start Up Michigan Segment”

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    ATF Doubles Reward re Stolen Dynamite; 40 Agents in Lancaster Co.

    The stolen dynamite looks similar to this picture – click image for larger version

    We don’t want to belabor this issue too much, but once again we have more/new information about a serious situation in Lancaster County, PA. As we reported earlier this week, someone(s) has stolen a bunch of dynamite and the blasting caps (needed to detonate the dynamite) from a construction site for the Atlantic Sunrise Pipeline (see Dynamite Stolen from Atlantic Sunrise Pipe Site in Lancaster County, PA and More Dynamite Stolen from PA Pipe Site than Originally Reported). Investigators with the federal ATF–Bureau of Alcohol, Tobacco, Firearms and Explosives–are “moving with a sense of urgency” to locate the thieves. How urgent? ATF has just doubled the reward money, from $10,000 to $20,000 for information leading to an arrest. They also have “30-40 agents” swarming through Lancaster County working on the case. Make no mistake, they will find out who did it. The ATF also says it appears the contractor storing the dynamite violated federal storage standards, making it easier for someone to steal it…
    Read More “ATF Doubles Reward re Stolen Dynamite; 40 Agents in Lancaster Co.”