Energy Services

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    FERC Launches Review for for Transco “Gateway Expansion Project”

    In November Williams filed an application with the Federal Energy Regulatory Commission (FERC) to upgrade certain facilities in New Jersey along Williams’ mighty Transco Pipeline (see Williams Files FERC Appl for Transco “Gateway Expansion Project”). The $85 million project, called the Transco “Gateway Expansion Project,” will flow an extra 65,000 dekatherms per day (or 65 million cubic feet) of natural gas to a couple of utility companies that have already signed on the dotted line as customers. The upgrades include a new compressor unit at Transco’s existing Compressor Station 303 in Essex County, NJ, a new valve and electric transformer also in Essex County, and equipment upgrades at a metering station in Passaic County, NJ. Both PSEG Power and UGI Energy Services have signed up to receive the extra gas–to be distributed to their customers in the region. On Tuesday FERC announced it has launched an environmental review of the project–the first step in approving such a project. FERC is accepting comments on the project through February 2nd…
    Read More “FERC Launches Review for for Transco “Gateway Expansion Project””

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    Dominion, MVP File to Dismiss VA-WV Lawsuit Against Pipe Projects

    In September a group of 57 gentry landowners in Virginia and West Virginia, backed by an out-of-state Big Green group, sued the Federal Energy Regulatory Commission (FERC) in an attempt to gut the 80-year old Natural Gas Act that gives FERC the right to grant eminent domain for pipeline projects (see VA, WV Landowners Sue FERC re Pipelines, Seek to Gut Natural Gas Act). Specifically, the colluding landowners oppose Dominion’s $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, and EQT’s $3.5 billion Mountain Valley Pipeline project, a 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The frivolous lawsuit, titled BOLD ALLIANCE, et al. v. FEDERAL ENERGY REGULATORY COMMISSION, et al., was filed in the U.S. District Court for the District of Columbia. It claims the landowners’ property is a “taking” not properly compensated under the U.S. Constitution. Yesterday two important parties to the lawsuit–Dominion (representing Atlantic Coast Pipeline) and Mountain Valley Pipeline–filed a motion to dismiss the case. They have a strong argument. Why dismiss? Because the gentry landowners filing the lawsuit have ignored United State laws, which specifically state that (a) ONLY FERC has jurisdiction over the projects and decisions about whether or not they can get built, (b) if a supposedly aggrieved party disagrees with FERC’s decisions, they must first file for a rehearing, and if FERC still refuses, then (c) the supposedly aggrieved party can file a lawsuit ONLY with the U.S. Court of Appeals for the District of Columbia. The suers (Bold Alliance) did file for a rehearing and FERC has not yet ruled on the rehearing. Bold Alliance tried to sidestep the law by moving forward with a lawsuit prematurely. However, the really big no-no is that they filed in U.S. District Court for DC, NOT the Court of Appeals for DC. Big difference. We see no other choice for the judges in U.S. District Court but to dismiss the case since Bold Alliance should not have brought the case in their court in the first place…
    Read More “Dominion, MVP File to Dismiss VA-WV Lawsuit Against Pipe Projects”

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    Leach XPress Goes Online; FERC Approves Mountaineer & Gulf XPress

    In mid-December MDN told you that the Leach XPress project–some ~160 miles of new natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle which will flow 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name)–would go online January 1st (see Leach XPress Starting Up Jan 1 – Marc/Utica Gas Heading to the Gulf!). And indeed it did! TransCanada, the owner of the project, announced Leach XPress is now online and flowing Marcellus/Utica gas to Kentucky. And from Kentucky, the gas flows south–some it all the way to the Gulf Coast via the Rayne pipeline. TransCanada also announced that the Federal Energy Regulatory Commission (FERC) has just issued final approvals for two more Columbia Pipeline-related projects: Mountaineer XPress and Gulf Xpress. Both projects will carry significant volumes of Marcellus/Utica gas to new markets. Mountaineer XPress will build 170 miles of new pipeline to flow 2.7 billion cubic feet (Bcf) per day of natural gas from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). At 2.7 Bcf/d, Mountaineer XPress is the second largest (by volume) new pipeline project for the Marcellus/Utica region–second only to Rover’s 3.25 Bcf/d pipeline. Gulf XPress consists of building seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region. Here’s the details, along with a copy of the FERC approval, for these two important projects…
    Read More “Leach XPress Goes Online; FERC Approves Mountaineer & Gulf XPress”

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    Mountaineer NGL Wants to be THE Appalachian Storage Hub

    When the topic of NGL (natural gas liquids) storage comes up with respect to the Marcellus/Utica region, there are two separate and distinct projects mentioned: A massive, $10 billion ethane/NGL storage hub with no specific location identified as yet (but West Virginia often named), and the much smaller Mountaineer NGL storage hub proposed for Monroe County, OH. Recently none other than the U.S. Dept. of Energy issued an NGL primer to call attention to the need for a large NGL storage hub (see DOE Publishes NGL Primer for Marcellus/Utica, Pushes NGL Storage). The Mountaineer project was mentioned in the DOE report. We’ve written plenty about Mountaineer NGL, located just across the river (and border) from West Virginia (see our Mountaineer NGL Storage stories here). What do we know about the proposed Mountaineer NGL Storage project? The Colorado company behind the project plans to spend up to $500 million to build it; some 20 drillers have expressed interest in contracting with the facility to store ethane; and both the nearby PTT Global cracker plant project (if it gets built) and the under-construction Shell cracker plant are both interested in connections to the facility. In November, we learned there is a construction delay until mid-this year (see Yet Another Update on Stalled Mountaineer NGL Storage Proj in OH). We are on record having previously said this: “Could the Mountaineer NGL Storage project end up being THE main NGL project for the entire region, being touted by so many? No. But it is an important project–one of the key pieces of the NGL storage puzzle that will serve our region.” It appears Mountaineer may not agree with our take. In an interview with the Pittsburgh Business Times, Mountaineer makes it clear they want to be THE NGL storage hub for the Marcellus/Utica region. Instead of building a huge $10B project from the start, Mountaineer’s strategy is to grow slow but steady–responding to market conditions along the way. Mountaineer says that’s how it was done in Texas, and that’s how they believe it can (and should) be done in our region…
    Read More “Mountaineer NGL Wants to be THE Appalachian Storage Hub”

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    Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat

    Sunoco Logistics Partners continues to feel the heat over their construction of the Mariner East 2 (ME2) natural gas liquids (NGL) pipeline project. Most of the heat comes from underground horizontal directional drilling (HDD)–drilling holes to install pipelines under structures like roads and streams, in places where you can’t just dig a trench. The problem is that sometimes the mud used to cool the drill bit for HDD work “leaks” or disappears into cracks and crevices, and sometimes the drilling mud ends up coming back to the surface. It’s called an “inadvertent return.” Bear in mind that drilling mud is otherwise known as bentonite–a nontoxic clay mixture. Bentonite is the same chemical compound used to make kitty litter, toothpaste and all sorts of cosmetics. It’s totally safe for the environment–unless you spill a lot of it and smother little critters like salamanders and fishies. Several Big Green groups sued to stop ME2’s HDD work last year. In August, Sunoco “settled” that lawsuit. The terms of the “settlement” called for Sunoco to reevaluate and resubmit plans for HDD drilling at 47 locations for review by the Dept. of Environmental Protection (DEP). Since that time more spills have occurred, and keep occurring (see Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations). Sometimes a spill is a few gallons–literally a nothing, but it must be reported anyway. Sometimes a few hundred gallons gets spilled–again, not a threat to the environment. But sometimes the spills are in the thousands of gallons–and that does begin to be a problem. Because of the ongoing spills, a Big Green group (part of the original lawsuit) is now demanding the PA DEP shut down all further HDD work. They admit their aim is to “shut down the entire project”–not just HDD drilling. While the DEP isn’t ready for such a drastic measure, the DEP is turning up the heat on Sunoco. Here’s an update…
    Read More “Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat”

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    Murrysville PA Approves Dominion Plan to Expand Compressor Stn

    Dominion recently received an important approval from Murrysville, PA (Westmoreland County) Council to expand the existing JB Tonkin compressor station. The expansion is part of Dominion’s Supply Header Project, a $500 million project of approximately 38 miles of natural gas pipeline and modified existing compression facilities in West Virginia and Pennsylvania. The project will provide natural gas supplies to various customers, including (most importantly) the $5 billion Atlantic Coast Pipeline (ACP) Dominion plans to begin building this year. Some residents resisted the approval voicing concerns about noise. As part of the approval, Dominion agreed to conduct a post-construction noise survey, even though technically they don’t have to. Here’s an update on the Murrysville approval of this important piece of what ultimately will feed ACP…
    Read More “Murrysville PA Approves Dominion Plan to Expand Compressor Stn”

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    Weatherford Sells U.S. Fracking Business to Schlumberger for $430M

    Schlumberger is the world’s largest oilfield services (OFS) company. Weatherford International is the world’s fourth largest OFS company. They both have operations in the Marcellus/Utica region. We’ve posted a number of stories about Weatherford’s financial troubles–and seemingly inevitable march toward bankruptcy (see our stories here). However, Weatherford got a reprieve from its much larger competitor. In March 2017, Schlumberger and Weatherford announced they had formed a joint venture called OneStim, “to deliver completions products and services for the development of unconventional resource plays in the United States and Canada land markets. The joint venture will offer one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry” (see Schlumberger Throws Weatherford a Lifeline, Challenges Halliburton). However, in December, Weatherford signaled they want to/need to sell off parts of the company in order to claw their way out of a $7.9 billion debt hole (see Weatherford Looks to Sell Off Pieces of the Business). First on the chopping block? The JV with Schlumberger. Weatherford announced in late December that instead of a joint venture with Schlumberger, they’re just going to sell their U.S. pressure pumping and pump-down perforating assets to Schlumberger for $430 million in cold, hard cash. In other words, Weatherford has just exited the fracking business in the U.S….
    Read More “Weatherford Sells U.S. Fracking Business to Schlumberger for $430M”

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    Atlantic Sunrise Pipeline Dismantles Old Barn in Pipeline’s Path

    STOP PRESS! 1/2/18 – 2:00 pm – Below is the full, original post MDN issued two hours ago. Our reporting was based on an article in the very biased Citizens’ Voice, a daily newspaper published in Wilkes-Barre, PA by the same rabidly biased, anti-drilling owners of the Scranton Times-Tribune. We should have known–the article published by the Citizens’ Voice was egregiously WRONG. It left out important facts that completely change the story. Williams reached out to MDN to set the record straight. In a nutshell, Williams’ original route for the Atlantic Sunrise Pipeline through Luzerne County totally missed a barn on the property of Dale Wilkie. Wilkie asked Williams to reroute the pipeline across his property–through his barn! Williams obliged, offering him a generous amount for the easement PLUS Williams offered to build Wilke a brand, spanking new barn to replace the old one! Wilke got estimates to rebuild the 100-year old barn as it is, using chestnut wood, making the estimate astronomically high ($400,000). This puts the entire story in a new light. We have more below from Williams responding to the Citizens’ Voice journalistic malpractice…

    Read More “Atlantic Sunrise Pipeline Dismantles Old Barn in Pipeline’s Path”

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    PTT Global Chemical Officially Delays Cracker Decision Until 2018

    PTT Global Chemical, based in Thailand, continues to delay a final investment decision (FID) regarding their much-ballyhooed ethane cracker project in Belmont County, OH. In April 2015, PTT announced they are interested in building a ~$5 billion ethane cracker plant complex in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). In May 2016, a story in the Bangkok Post said the final investment decision (FID) will definitely come in 2017. In December 2016, Belmont County officials said the FID would come by the end of March this year (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). But in February, PTT said the FID won’t come until “late 2017,” which is “several months later than we originally announced” (see PTT Global Delays Final Investment Decision for OH Ethane Cracker). Two weeks ago a PTT representative said the company will make some sort of an announcement “by the end of the year” (see PTT Global Final Decision re Belmont Cracker Plant Late Again). We now have the announcement: “PTTGC America will have a significant update that will demonstrate momentum for this project early in 2018. We thank all Ohio and Belmont County partners for their support, and we wish you a happy holiday season.” So the big announcement is that there will be another big announcement in “early 2018.” Yeah, we’re becoming irritated at being teased that the decision is just around the corner…
    Read More “PTT Global Chemical Officially Delays Cracker Decision Until 2018”

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    Atlantic Coast Pipe Asks FERC to Begin Tree Cutting in WV, VA, NC

    Dominion’s $5 billion Atlantic Coast Pipeline (ACP) project recently asked the Federal Energy Regulatory Commission (FERC) for permission to begin clearing trees along the path of the pipeline in all three states where the pipeline will run: West Virginia, Virginia, and North Carolina. FERC approved the project in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). However, two of the three states–Virginia and North Carolina–have not yet given final water crossing permits for the project (see Atlantic Coast Pipeline Delayed in Virginia by Water Board Vote and NC Plays “Death by a Thousand Questions” with Atlantic Coast Pipe). ACP isn’t letting state agencies put a damper on the project. Just a few weeks ago ACP announced it had signed contracts with four labor unions to do the construction work, and had filed eminent domain lawsuits against holdout landowners who have refused to negotiate leases (see Atlantic Coast Pipe Gets Ready to Build: Union Help, Eminent Domain). And now ACP is asking FERC for permission to begin clearing trees, giving antis apoplexy…
    Read More “Atlantic Coast Pipe Asks FERC to Begin Tree Cutting in WV, VA, NC”

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    PA PUC Votes to Let ME2 Pipe Restart Construction in West Goshen

    In July, West Goshen Township, in the Philadelphia suburb of Chester County, won a temporary victory in their efforts to stop Sunoco Logistics’ Mariner East 2 (ME2) NGL pipeline in their community (see Judge Temporarily Stops ME2 Valve Station in West Goshen). West Goshen objected to Sunoco building a new valve station. West Goshen wanted the valve station built next to an existing Mariner East 1 valve station, but Sunoco wanted to build the new station across the street from that location, citing safety concerns. West Goshen appealed a decision by the state Public Utility Commission (PUC) allowing Sunoco to build the valve station where they wanted to build it. In July an administrative law judge agreed with West Goshen, stopping not only construction of the valve station, but also construction of the ME2 pipeline itself through the township. Fast forward to today. Sunoco has given up the fight to build the West Goshen valve station, so yesterday the PUC voted 3-2 to allow Sunoco to restart construction of the pipeline in West Goshen. Of course the antis who run West Goshen like a private fiefdom are objecting because Sunoco hasn’t said what their alternative to building the valve station (a safety feature) will be. Hey, West Goshen’s “leaders” were the ones who didn’t want the valve station in the first place! West Goshen’s “leaders” are the ones who have made the pipeline through their community “less safe” because they didn’t want the valve station. Now they need to live with their bone-headed actions–and answer to their voting constituents…
    Read More “PA PUC Votes to Let ME2 Pipe Restart Construction in West Goshen”

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    Ridgetop Energy Services Expands Again – in Southern Marcellus

    Ridgetop Energy Services, headquartered in Canonsburg, PA, was started in early 2016 by Ridgetop Capital Partners. Ridgetop Capital is an energy and real estate investment firm. Since 2007, Ridgetop Capital has purchased 30,000 acres in the PA, WV and OH, and has invested $130 million in the region (often partnering with big drillers like EQT, Antero, Chesapeake, Range Resources and others). In addition to investing in acreage, Ridgetop also wanted in on some of the drilling action, so the company formed Ridgetop Energy Services in 2016 to buy up service companies that work in the shale space. In June, Ridgetop Energy bought Keystone Wireline (see Ridgetop Energy Services Buys Keystone Wireline Inc.). Ridgetop Energy is expanding again–by purchasing “two service rigs and a swabbing unit stationed in northern West Virginia” from C&J Energy Services…
    Read More “Ridgetop Energy Services Expands Again – in Southern Marcellus”

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    Antis Meet with PA Gov. Wolf, Ask Him to Illegally Block ME2 Pipe

    A group of six radical Democrats who oppose the Mariner East 2 pipeline through southeast Pennsylvania met yesterday with Democrat Gov. Tom Wolf to gripe and moan–and to ask Wolf to illegally shut down construction of the pipeline (a pipeline which is now 91% done). Wolf politely listened–and then did nothing. Which is good. The radicals hold out hope that Wolf will change his mind and use his executive authority under Title 35 (dealing with health and safety) as an excuse to shut down all ME2 construction. Good luck with that. A statement issued later in the day by a Wolf spokesman seems to indicate the governor is punting any decisions about shutting down construction over to the Public Utility Commission. Yesterday the PUC vote to allow already-shut-down ME2 construction in one SE PA town to resume (see today’s story, PA PUC Votes to Let ME2 Pipeline Restart Construction in West Goshen). All of which says to us that Wolf won’t do a thing to stop completion of ME2, which angers the radicals all the more…
    Read More “Antis Meet with PA Gov. Wolf, Ask Him to Illegally Block ME2 Pipe”

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    DOE Publishes NGL Primer for Marcellus/Utica, Pushes NGL Storage

    The Trump Dept. of Energy is hopping on the natural gas liquids storage bandwagon. Yesterday the DOE published a 45-page report called, “Natural Gas Liquids Primer: With a Focus on the Appalachian Region” (full copy below). The DOE uses its own data along with data from the U.S. Energy Information Administration (our favorite government agency) to create an up-to-date picture of Appalachian NGL supply, demand, and infrastructure. What does that picture show? It shows we are in desperate need of our own regional NGL storage facilities. No doubt one of the reasons for the report is to goose China into investing in a proposed $10 billion NGL storage plan being pushed by many (see Tyler County, WV Mentioned as Candidate for $10B NGL Storage Hub). The report gives an important shout-out to the Mountaineer NGL Storage project. The report is a primer–it runs through the basics of NGLs (what they are, why they’re important). The DOE says this report is an important first step in preparing a more comprehensive report requested by Congress about the benefits of Marcellus/Utica NGLs. That comprehensive report will be ready sometime next year. In the meantime, this report will give you an important foundation of knowledge…
    Read More “DOE Publishes NGL Primer for Marcellus/Utica, Pushes NGL Storage”

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    Big Changes Coming in Randolph County, WV with Atlantic Coast Pipe

    Randolph County, WV is about to see some big changes in the coming months. Why? In “early spring” somewhere around 400-1,200 workers will descend on Randolph as work begins to build the mighty $5 billion Atlantic Coast Pipeline (ACP) being built by Dominion Energy. Members of the Rotary Club of Elkins heard a presentation earlier this week about what to expect when the pipeliners come a callin’. Some of those impacts include: higher traffic levels, more business for restaurants and convenience stores, an uptick in business at local laundromats, and higher occupancy for hotels and apartment buildings. According to Denise Campbell, community liaison for the ACP, “There’s a lot of opportunity.” Here’s a recap of Campbell’s comments to the Rotarians…
    Read More “Big Changes Coming in Randolph County, WV with Atlantic Coast Pipe”

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    SE PA Politicians Introduce Bills to Prevent Future Pipeline Development

    Weak-kneed, swamp-dwelling politicians from the Philadelphia area continue to ratchet up the noise on stopping all work for the Mariner East 2 Pipeline. State Sen. Andy Dinniman (Democrat from the 19th District) and State Sen. John Rafferty (RINO from the 44th District) say the impacts of ME2’s construction are “unacceptable.” A few of their loudmouthed constituents (mostly likely members of Big Green groups) are complaining to these weak-kneed politicians and in turn the politicians have introduced four new bills in the PA Senate that will not do a @#$% thing about ME2, but will potentially stop future pipeline projects in the state. The aim of the bills is to tie up pipeline projects with so much red tape in various reviews, and by paying new fees for so-called “safety” measures, as to make the pipelines unbuildable. Here’s the latest effort from the Philly area to derail the Marcellus miracle in PA…
    Read More “SE PA Politicians Introduce Bills to Prevent Future Pipeline Development”