Energy Services

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    FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29

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    Last October MDN brought you details about the proposed $86 million Risberg Line pipeline project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. Two school districts in Ohio where the pipeline will traverse agreed to reduce the amount of property tax the pipeline would need to pay by 75% over a 15-year period, a huge vote of confidence (see Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio). We have an update on the project. On Tuesday, the Federal Energy Regulatory Commission (FERC) said it will issue an environmental assessment (EA) for the project on or by June 29th. Both the U.S. Army Corps of Engineers and the Pennsylvania Fish and Boat Commission are “cooperating agencies” and part of the EA review process. Following the EA, the clock will begin ticking and FERC will have until Sept. 27th to make a final decision about the project…
    Read More “FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29”

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    FERC Allows Rover Pipeline Startup in Michigan, Close to 100% Done

    An order from the Federal Energy Regulatory Commission (FERC) issued yesterday allows Energy Transfer (ET) to begin full operations along the North Market Segment of the Rover Pipeline–a $3.7 billion, 711-mile natural gas pipeline that runs from PA, WV and eastern OH through OH into Michigan and on to Canada via the Vector Pipeline. On April 13 ET asked 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 eagerly wants to begin service along a 100-mile segment of Rover in northwest Ohio on into Michigan. FERC has been approving ET’s April 13th request in dribs and drabs. With yesterday’s approval, the entire length of the Rover pipeline is now substantially operational. There are still a few places not yet in service, but ET says they are on track to have the project 100% operational by the end of June. When fully operational, Rover will flow 3.25 billion cubic feet per day (Bcf/d) of Marcellus/Utica gas, some it going all the way to the Dawn Hub in Ontario, Canada. Currently Rover is capable of flowing 1.7 Bcf/d. With this new addition, we expect that number will jump considerably…
    Read More “FERC Allows Rover Pipeline Startup in Michigan, Close to 100% Done”

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    Dominion Energy 1Q18: Important Updates on Key Projects

    Late last week Dominion Energy issued its first quarter 2018 financial and operational update. Dominion is not only a large utility company (electric and gas), but also a huge pipeline company. Dominion has it’s fingers in a lot of Marcellus/Utica pies, so we like to keep track of the company and what it says about various critical projects for our region. Dominion CEO Tom Farrell had a lot of interesting updates, including updates for: Atlantic Coast Pipeline, a $6.5 billion Dominion pipeline from West Virginia through Virginia and into North Carolina; Cove Point, the $4 billion LNG export facility that began commercial operations in April; Greensville County (VA) Power Station, a $1.3 billion natural gas-fired combined cycle power plant; and the proposed merger with SCANA Corporation, the main electric and gas company for much of South Carolina. Buckle up, there’s lots of news here…
    Read More “Dominion Energy 1Q18: Important Updates on Key Projects”

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    Supreme Court Rejects Constitution Pipe Request to Overrule NY

    In January 2018, Williams, builder of the proposed Constitution Pipeline–124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to move Marcellus gas into NY and New England–took their last, best shot at overturning a politically-based decision by the corrupt New York Dept. of Environmental Conservation (DEC) to deny the Constitution necessary water permits to build (see Constitution Pipeline Appeals NY Fight Directly to U.S. Supreme Court). Williams appealed an appeals court decision to the U.S. Supreme Court, hoping against hope that the high court would hear the case–and overturn the appeals court decision, thereby forcing NY to allow pipeline construction. Sadly, the attempt has failed. Yesterday the U.S. Supreme Court denied the petition to hear the case. Let’s be honest, it was a long shot to begin with–the Supremes only hear a handful of cases each year. But still, the decision is disappointing. Unlike antis, when our side loses a court case like this, we acknowledge and accept it. If it had gone the other way, antis would have claimed the court decision was illegitimate and launched illegal actions to block construction–like sitting in the tops of trees. They resort to anarchy, mob rule and bullying when they don’t win. We accept the rule of law and pledge to soldier on and fight another day. That’s the difference between unmoored radicals and people with their heads screwed on straight. So what happens now? Is this truly the end of the line for the Constitution? The project has one, possibly two very slim chances left…
    Read More “Supreme Court Rejects Constitution Pipe Request to Overrule NY”

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    ATF Cuts Back on Agents Hunting for Perps Who Stole Dynamite

    As we previously reported, someone(s) stole a bunch of dynamite and the blasting caps (used to ignite the dynamite) on the weekend of April 14-15 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). The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) immediately swung into action, offering $20,000 for information leading to an arrest and flooding the county with agents (see ATF Doubles Reward re Stolen Dynamite; 40 Agents in Lancaster Co.). Then last week, someone discovered some, perhaps all of the stolen dynamite (see Stolen Dynamite from Atlantic Sunrise Site Discovered in Creek). The ATF has still not found a suspect. They now believe the amount of dynamite recovered was all of it. Some 10 agents are left in the county, working their way through interviewing 900 workers who had access to the site…
    Read More “ATF Cuts Back on Agents Hunting for Perps Who Stole Dynamite”

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    Atlantic Sunrise Doles Out $264,300 in Grants to Schools, Towns

    Pipeline companies are known for their largess in showering local schools, towns and nonprofit agencies with money for worthy causes. Among those who engage in this civic practice is Williams’ Atlantic Sunrise Pipeline project. Atlantic Sunrise is a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County, PA. In 2015, the Atlantic Sunrise Community Grant Program was established to benefit community organizations in communities within the Atlantic Sunrise footprint. Since 2015, the Atlantic Sunrise has doled out more than $2 million across the 10-county project area in support of noteworthy projects. And they’ve just done it again. A total of 41 PA organizations have just received a total of $264,300 in contributions–more than a quarter of a million dollars! We have the full list below, along with information about how your organization can apply for the next round…
    Read More “Atlantic Sunrise Doles Out $264,300 in Grants to Schools, Towns”

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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”