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FirstEnergy Finds Buyer for 4 PA NatGas-Fired Power Plants

FirstEnergy, based in Akron, OH, is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy owns a variety of regulated and non-regulated power generation plants. In November the company announced it wants to sell six power generating plants in PA, four of them natural gas-fired plants (see FirstEnergy Selling 4 NatGas-Fired Electric Plants in PA). The plants being sold are non-regulated–part of FirstEnergy’s strategy to become a 100% “regulated” utility in the next 18 months. Good news: FirstEnergy found a buyer willing to pay $885 million for the four natgas plants in PA…
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GTL Vendor Velocys Releases Plan to Jump-Start the Company

When it comes to gas-to-liquids (GTL), MDN has observed (as we stated in a story yesterday, see Somerset KY Attempting to Land $70M Gas-to-Liquids Plant), that there’s a lot of thunder, a lot of smoke, a lot of sizzle–but no lightening, fire or steak. That is, GTL projects get rumored, even announced–but seem to never get built. With certain exceptions. One of those exceptions is a pilot project built by Velocys in Oklahoma. We’ve written a fair bit about Velocys, a UK-based company, over the past several years (see our stories here). Velocys previously purchased a GTL project planned for Ashtabula, OH, receiving all necessary permits to begin construction, but then put the project on indefinite hold this past August (see Ashtabula, OH GTL Plant on Hold “Indefinitely”). GTL plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and waxes. They are a potential new market for an overabundance of supply in the Marcellus/Utica. Velocys is one of the vendors that builds GTL plants–or at least wants to build them. The company has just released a new strategy plan to turn things around and actually begin building GTL plants. Will it be different this time?…
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Landowners in Ohio Vow to Continue Fight Against NEXUS Pipeline

Some holdout landowners in Medina County, OH continue to oppose the coming NEXUS Pipeline, even after their suggested alternative routes (around their county) have been rejected by the Federal Energy Regulatory Commission (FERC). A few holdouts are vowing to continue the fight “until all of our resources and options are exhausted,” which may be very soon. Earlier this month FERC issued a positive Final Environmental Impact Statement (see FERC Approves NEXUS Pipeline, Project on Track for 2017). A positive FEIS almost always means it’s over–the project will get approved. Spectra Energy, the builder of NEXUS, expects a final certificate allowing the backhoes and bulldozers to begin sometime in the first quarter of 2017. Until that happens, there are some who will continue to fight…
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FERC Allows KM to Begin Broad Run Expansion Project in KY

Last week MDN brought you news about Kinder Morgan’s Broad Run Expansion Project will expand transportation capacity of natural gas on the existing Tennessee Gas Pipeline system. Antis tried to stop the project, but FERC rejected their pleas (see FERC Denies Anti Request to Stop KM’s Broad Run Expansion Project). The Broad Run Expansion includes the construction of two new compressor stations in Kanawha County, WV, one new compressor station in Davidson County, TN, and one new compressor station in Madison County, KY. Tennessee Gas also expects to increase compression capacity by modifying two of its existing compressor stations in Powell and Boyd counties in KY by replacing existing capacity with new, higher-rated horsepower compression units. The project will provide an extra 200,000 dekatherms per day (Dth/d) of transportation capacity along the same capacity path as the Broad Run Flexibility project, which was placed in service on Nov. 1, 2015. All of the additional gas will come from Antero Resources and their Marcellus/Utica program. On Wednesday FERC gave Kinder Morgan permission to upgrade the two existing compressor stations in KY, but (for now) that’s all–something called a “partial notice to proceed”…
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PES’ Phil Rinaldi Stepping Down; Will Philly Energy Hub Die?

Phil Rinaldi

“Fossil Phil,” Philip L. Rinaldi, is stepping down as CEO of Philadelphia Energy Solutions. In 2012 Sunoco and the Carlyle Group formed a joint venture to operate the troubled Sunoco refinery in South Philadelphia (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). They put Phil Rinaldi in charge. The deal saved 850 jobs from disappearing and led to adding even more jobs as the refinery, under the leadership of Rinaldi, began processing shale oil. Since then the price of oil has dropped, a lot. But the facility still chugs along. Phil is turning 71 and didn’t offer a reason for why he’s leaving the post (although retirement is the apparent reason). Phil does intend to continue on as Chairman of the Greater Philadelphia Chamber of Commerce’s Energy Action Team–a group dedicated to turning Philadelphia into an “energy hub” by building more pipelines to the city from the Marcellus. Some antis have intimated that Phil leaving his post spells the end of the dream to turn Philly into an energy hub, which is, of course, nonsense…
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Baker Hughes Nov US Rig Count Up by 36; M-U Count Up 4

The worldwide Baker Hughes rig count was up by 5 in November, from 920 in October to 925 in November. That reverses a brief slide back in October when rigs worldwide slide back by 14. However, the rig count in the U.S. went up for the fifth month in a row. The average U.S. rig count for November was 580, up 36 from the 544 counted in October. That’s a two month increase of 71! The Marcellus/Utica rig count was up for the fourth month running. In November the M/U rig count went up by 4 (second month in a row it’s gone up 4) with 2 additions in PA (now 27 rigs) and 2 in OH (now 16 rigs). WV stayed even running with an average of 10 rigs…
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Vendors & Workers: Sign Up to Help Build Atlantic Coast Pipeline

Calling all vendors (i.e. supply chain companies) and workers who want a piece of the action in building the Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Dominion is currently holding in-person “construction expos,” as well as hosting an online form for those where those with an interest in selling to or working for the project can register that interest. Yesterday Dominion held a construction expo in Bridgeport, WV. Today they’re holding one in Elkins, WV. And over the next week or so they will hold more construction expos–across Virginia and even in North Carolina. Dominion is looking for suppliers for things like gravel and concrete, vehicles, construction supplies, welding and more. Here’s the low-down on how you can sign up to help build the Atlantic Coast Pipeline…
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JobsOhio Picks Up the $17M Cost for Prepping OH Cracker Site

On Monday MDN reported that the future site for an ethane cracker in Belmont County, OH is now cleared and ready for construction to begin (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). Clearing the site, which once hosted the R.E. Burger coal-fired power plant, was no small task. The power plant site, owned and (until 2011) operated by FirstEnergy cost $14 million for demolition, remediation and general cleaning up. An adjacent site (not owned by FirstEnergy) cost another $3 million to tidy up. All told it took $17 million to clean up the site and get it ready to begin construction. FirstEnergy is reported to have said they were “excited” by the opportunity to spend $14 million to clean it up. Wait, what? They wanted to spend the money? Well actually, no, they didn’t. FirstEnergy spent the money to clean up the site because they have been/are being reimbursed for the cost by JobsOhio. So FirstEnergy (and PTT Global, the company that will build the cracker) doesn’t have to spend a dime to get the site ready to go. What is JobsOhio and where does it get all this money? Glad you asked! JobsOhio is a private, non-profit with a board appointed by Ohio Gov. John Kasich, which gets most of its operating revenue from taxes on liquor sales in Ohio. So raise a glass to the cracker, Ohioans. Your imbibing is helping to build it…
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New England Gets Small Increase in NatGas Pipeline Capacity

Click for larger version

For the first time in six years, New England’s natural gas supply coming from pipelines is increasing. Slightly. On November 1, Spectra Energy placed part of the Algonquin Incremental Market (AIM) project into service, following a late-October approval from the Federal Energy Regulatory Commission (FERC). The remainder of the project is expected to be completed in December. Spectra placed another pipeline project, the Salem Lateral, into service on November 1 as well, but it is not expected to be used until June 2017. The AIM project, when it is fully online later this month, will flow an extra 342 million cubic feet per day (MMcf/d) of Marcellus/Utica natural gas to New England. Cool! However, as we pointed out just yesterday, New England continues to balance on a razor’s edge. According to the regional electrical grid operator, ISO New England, given the supplies they now have (and expect to have via AIM), the region “should” (maybe, might, possibly, theoretically) have enough natgas to skate by this winter (see Lack of NatGas Pipelines Casts Doubt on NE Winter Electric Rates). But, if it turns really cold and snowy and stays cold and snowy in New England, all bets are off. Here’s the good news about the added capacity now (or soon will be) flowing to New England…
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Patterson-UTI Nov Rig Count, Up 6th Mo in a Row

6-in-a-rowAs we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the first time in over a year that Patterson’s rig count reversed and began to climb once again. Since June the count has steadily risen. The latest count, for November, once again shows an increase. It’s not much–Patterson added just two rigs over the October average. But hey, this is now the sixth month in a row the count has gone up, which is a good sign!…
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Bowling Green, OH Votes to Deny NEXUS Pipe Easement for City Land

unwiseAll seven members of the Bowling Green City Council (Wood County) unwisely voted to reject an offer from Spectra Energy’s NEXUS Pipeline to lease 4 acres of city-owned land for the pipeline. Why unwise? Because the project is close to receiving its final federal approval, which will give it the right to use eminent domain to use the land anyway (see FERC Approves NEXUS Pipeline, Project on Track for 2017). Spectra offered $151,000 for the easement and was willing to follow an existing easement already in place for power lines. When (not if) NEXUS gets built, Bowling Green can expect to receive far less in the way of a lease payment. Even though the fix was in before the vote was taken, one lawless resident–Joe DeMare, a Green Party candidate for U.S. Senate in the most recent election (loser)–wouldn’t shut his yap and had to be escorted out by security. Apparently he thought there should be more public comment (i.e. camera and microphone time for himself) before the vote was taken. Whatever. Big Green antis celebrated the vote. We predict it will be a short-lived celebration…
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Talen Puts Coal-to-Gas Powergen Conversion on Hold in Mountour, PA

on holdIn June Talen Energy announced that one of its coal-burning electric generating plants, located in Montour County, PA, will get an upgrade to burn natural gas in addition to burning coal (see Talen Energy Converting Moutour, PA Plant to Burn Coal AND NatGas). The Montour Power Plant went online in 1972/73 and generates 1,504 megawatts of electricity. The $70 million upgrade planned by Talen (requiring a 15-mile pipeline) will continue to produce the same amount of electricity, but will give the plant the option to power it with either natgas or coal, depending on which is cheaper. However, those plans are now on hold. Talen has just announced it will not, for now, move forward with the upgrade. Why? Talen says it wants to evaluate the results of a similar project already completed in York County, PA before moving forward with the project in Montour County…
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Technip, FMC Shareholders Approve Merger; Fat Lady Sings in Jan?

fat-lady-singsIn May, U.S.-based oilfield services company FMC Technologies announced they will merge with their much larger quasi-competitor, France-based Technip, in an all-stock deal that will create a new company called TechnipFMC worth $13 billion (see FMC Technologies & Technip to Merge, Create $13B Oilfield Giant). FMC had/has some operations in the Marcellus/Utica, hence the merger has implications for our region. The Obama Dept. of Justice approved the deal in June (see FMC Technologies/Technip Merger Approved by Obama DOJ/FTC). Apparently it’s A.O.K. for a French company to buy an American company, but when one American company (Halliburton) wanted to buy another (Baker Hughes), that wasn’t OK with the Obamadroids (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). But we digress. The European Union, like the Obama DOJ, also gave its blessing on the deal. The shareholders for the two companies voted yesterday to consummate the marriage. The only thing left now is for the fat lady to sing, which appears will happen early in 2017 (likely January). The date of the official merger will be known on Dec. 21…
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Weatherford Shutting Down US Fracking Operations in 2017

weatherfordRecently MDN brought you an article from the Seeking Alpha investors website, written by an analyst/investor pointing out the financial troubles at the world’s fourth largest oilfield services company, Weatherford (see Oilfield Srvs Co Weatherford in Financial Trouble). The investor writing the piece is “short” on Weatherford, meaning he’s invested money betting Weatherford’s stock price will go down–so there is a built-in conflict of interest in the article. But a few days after that article was published came the news that Weatherford’s CEO is suddenly gone (see Weatherford Fires CEO/Chairman, CFO Interim CEO), which seems to lend credibility to the Seeking Alpha writer’s thesis that the company is in trouble. Now comes word that Weatherford has suspended their U.S. “pressure pumping” (i.e. fracking) activities beginning next year. Oilfield services companies do more work than just fracking, but fracking is a a big part of what they do. According to the Upstream news service, a Weatherford official is saying the decision is a “temporary pull back”…
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Obama Blocks Dakota Pipeline Outright, “Abandoned Rule of Law”

anarchyIn one final, breathtaking rejection of the rule of law and poke in the eye of those who support fossil fuels, the U.S. Army Corps of Engineers, doing Lord Obama’s bidding, has rejected granting Energy Transfer (ET) an easement to complete the final leg of the Dakota Access Pipeline that crosses federal land. The out-of-state/paid protesters who have assembled at Standing Rock, ND were orgasmic with delight. Their euphoria, however, will be short-lived as ET expects the incoming Trump Administration to quickly reverse the policy and grant permission to complete the pipeline along its original route. Although this conflict is happening far outside the Marcellus/Utica, it is important for us nonetheless as this group of paid, out-of-state protesters, backed by Big Green money (using money from California billionaire and nut Tom Steyer, among others), has promised to leverage a win against the Keystone XL Pipeline and now the Dakota Access Pipeline by coming to the Marcellus/Utica in an attempt to defeat important pipeline projects in our region. Here’s the latest in the dust-up over the Dakota Access Pipeline…
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OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready

PTT Global logoThe future site of a $5 billion petrochemical complex, including an ethane cracker, in Belmont County, OH is now cleared and essentially ready to begin building on. It has taken nearly a year, but the old R.E. Burger power plant that used to sit along the Ohio River is now just a memory. Belmont County officials say they expect PTT Global Chemical, the company that will build and operate the cracker, will make a final (positive) investment decision by the end of March–in just a few months’ time. Although the project began after Shell’s cracker project in Beaver County, PA, the PTT Global project in Belmont County has almost caught up with the Shell cracker project with respect to site readiness and building the actual buildings that will house the mighty cracker…
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