Energy Services

Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco LP Building 2 Pipelines for Mariner East 2 Project
February 23, 2017February 23, 2017

We’ve known for the past couple of years that Sunoco Logistics Partners, owner and builder of the Mariner pipeline projects, wanted to build not one, but two Mariner East 2 pipelines–ME2 and ME2X. We wrote about their hope to build two pipelines back in June 2015 (see Mariner East 2 Giving Birth to Twin Pipelines). At the time, Sunoco said the plan to add two more Mariner 2s was still tentative–that they would need to conduct an open season to be sure they can sell contracts for the second pipeline before they would fully commit. True to their word, Sunoco ran an open season for the second Mariner East 2 pipe in September 2015 (see Sunoco LP Launches Open Season for Second Mariner East 2 Pipeline). Since that time, we’ve not head much about the second Mariner East 2 pipeline (2X). Last week the PA Dept. of Environmental Protection (DEP) issued the final permits needed to begin construction on the ME2 project (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). The new news is that on a conference call yesterday to discuss the latest earnings report, Sunoco’s top brass said that yes, they ARE building TWO pipes for Mariner East 2–and they’re doing it right now, from the beginning of construction…
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Energy Services | Sunoco Logistics

Sunoco LP 2016 Update: Revenue Nearly Doubles
February 23, 2017February 23, 2017

In addition to the great news that Sunoco Logistics Partners is building not one but two pipelines as part of the Mariner East 2 project (see today’s companion story, Sunoco LP Building 2 Pipelines for Mariner East 2 Project), we don’t want to overlook the other good work being done by Sunoco. The big news about two ME2 pipelines came as part of a Sunoco LP’s fourth quarter and full year 2016 update. The company reports making a $705 million profit in 2016, nearly doubling from the $393 million they made in 2015. Life is good in the midstream. They also report establishing a $1 billion line of credit in December, to help with cash flow during this year’s construction of ME2 and other projects. Below is the 4Q16 & full year 2016 update, along with the latest PowerPoint slide deck…
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Anti-Drilling/Fossil Fuel | Empire Pipeline | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY

Radicals Try to Pressure NY DEC into Delaying Northern Access Pipe
February 23, 2017February 23, 2017

About 150 individuals masquerading as “organizations” have sent a letter to the New York Dept. of Environmental Conservation (DEC) requesting the DEC add an extra couple of months to a comment period for National Fuel Gas Company’s Northern Access 2016 pipeline project. A few weeks ago the Federal Energy Regulatory Commission (FERC) approved the long-delayed project (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. Although FERC has now given permission to build it, the State of New York, specifically the DEC, must issue stream crossing permits. Sound familiar? The DEC faced a similar task with the FERC-approved Constitution Pipeline and ultimately, under political pressure from Gov. Andrew Cuomo, made the decision to refuse granting Williams the permits it needs to build the Constitution. Anti-drilling fruitcakes hope to get lightning to strike twice, repeating the process with this project as they did with the Constitution. So, right out of their playbook, a bunch of radicals pretending to represent thousands of people (in reality 153 people) have sent a letter to the DEC attempting to pressure the DEC into extending a one-month comment period by an extra 60 days…
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Crestwood Midstream | Energy Services | Industrywide Issues | New York | NGLs | Orange County

Crestwood Building Rail-to-Truck NGL Terminal in Orange County, NY
February 22, 2017February 22, 2017

Crestwood concept drawing for rail terminal in Orange County, NY – click for larger version

As MDN was reading through the latest quarterly/full year 2016 update for Crestwood Equity Partners (formerly known as Crestwood Midstream), we discovered something fairly innocuous, but in our book, a big deal. Crestwood said the company is “developing a greenfield rail-to-truck NGL terminal in Montgomery, NY that will increase propane supply reliability across the Northeast markets. The terminal, which is expected to be placed into service in the summer of 2017, will be supported by product controlled by Crestwood from multiple producers in the Marcellus and Utica regions.” What?! How did that one slip by? Crestwood is in the process of building, and will open, a terminal to distribute propane–in Orange County, NY (not far from New York City). This is good news indeed–and we wonder how and why the antis haven’t been bleating about this project, the way they have been about Crestwood’s long-delayed propane storage facility along the shoreline of Seneca Lake (near Watkins Glen). No matter–we’ll take our small victories where and when we can get them. Disappointingly Crestwood makes no mention of the Finger Lakes LPG storage facility in their update. But the Marcellus does get a few mentions. Below are what we gleaned from the latest update on Crestwood’s Marcellus operations, along with more background on the forthcoming propane terminal in Orange County…
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Delaware County (PA) | Energy Services | Huntingdon County (PA) | Industrywide Issues | Pennsylvania | Pipelines | Sunoco Logistics | Washington County

Mariner East 2 Pipeline Constructions Begins Across PA
February 21, 2017February 21, 2017

Pop the cork on the champagne bottle! Sunoco Logistics Partners has begun construction of the Mariner East 2–a $2.5 billion, 306-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. Last week the Pennsylvania Dept. of Environmental Protection (DEP) gave its final approval for the project (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). It didn’t take long for a coordinated attack from the the enviro left–THE Delaware Riverkeeper, the Philadelphia-based Clean Air Council and the Mountain Watershed Association (see Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe). However, their efforts have (so far) failed, as we observed yesterday (see Last Minute Attacks Fail to Stop Mariner East 2 Pipeline Progress). Although you can’t discount a liberal judge throwing up roadblocks, the very good news is that construction has begun across PA–in Delaware County in the east, Huntingdon County in central PA, and Washington County in the west…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Washington County

Dealing with Pipeline Cos. – Lessons re Rover’s Eminent Domain
February 20, 2017February 20, 2017

Two weeks ago MDN ran a story about the fact that time has run out on recalcitrant landowners in Ohio who have refused to negotiate with Rover Pipeline–and are now being sued using eminent domain (see Time’s Up – Rover Pipe Uses Eminent Domain on Holdout OH Landowners). Because of our nutty (or should we say batty) environmental regulations that require pipeline companies to clear trees only from Oct. 1 to Mar. 31 due to U.S. Fish and Wildlife regulations against disturbing nesting bats, and because the Federal Energy Regulatory Commission (FERC) was slow off the mark in approving the Rover project, the company must now clear trees in double time. There is no time left to negotiate–even though landowners have had two years to do so. As a last resort, Rover is using eminent domain procedures in court to (yes) force their way onto property and get it ready for construction this summer. Perhaps a little-known fact: Rover also runs through portions of Washington County, PA. The Pittsburgh Post-Gazette found a couple of landowners with sad stories about the big bully Rover using eminent domain against them. Look, we’re not unsympathetic. If we owned a farm (as one of the interviewees does) and they want to run the pipeline through a prized hay field, we’d likely be opposed too. However, the story highlights the fact that others in similar circumstances worked hard early on with Rover to reroute the pipeline through their property–and were successful. The moral of the story is this: the pipeline WILL come, your best chance of influencing WHERE it comes happens EARLY in the process…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Last Minute Attacks Fail to Stop Mariner East 2 Pipeline Progress
February 20, 2017February 20, 2017

We appear to be in the final death throes of radical environmental efforts to block the construction of Mariner East 2–a $2.5 billion, 306-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. Last week the Pennsylvania Dept. of Environmental Protection (DEP) gave its final approval for the project (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). It didn’t take long for a coordinated attack from the the enviro left–THE Delaware Riverkeeper, the Philadelphia-based Clean Air Council and the Mountain Watershed Association (see Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe). On Thursday they asked the PA Environmental Hearing Board to block construction until they can figure out a new way to try and stop the project, claiming “irreparable harm” will happen if construction proceeds. On Friday a judge refused their request. They asked the judge to reconsider a few hours later, after they had manufactured new “evidence” for the judge. Meanwhile, supervisors in West Goshen (a Philly suburb) filed a complaint against Mariner East 1 and 2 with the PA Public Utility Commission, in a apparent effort to stop any new construction there. Try as they might to stop it, this pipeline is about to get built…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

Small Group Begins Sleepover to Block Atlantic Sunrise Pipeline
February 20, 2017February 20, 2017

As we reported last week, a small group of anti-fossil fuelers were planning on grabbing their sleeping bags and heading to Amish country for a sleepover at the Magic Tree House (see Antis Plan a Weekend Campout to Protest Atlantic Sunrise Pipeline). Beginning Friday night, a group of about 50 launched their “encampment,” calling it The Stand. Supposedly this is a “peaceful” protest to prevent Williams from digging a trench across the property where the flimsy tree house shack is built. Organizers claim they don’t want any violence, like that in North Dakota (similar “peaceful” protest). They also claim someone would be present at the location from now until they are forcibly removed by law enforcement, in an illegal attempt to block construction of the pipeline. It’s a good thing the ~2.4 million miles of underground pipelines in the U.S. got in the ground before leftist enviro-nutters decided to make an issue out of it…
Read More “Small Group Begins Sleepover to Block Atlantic Sunrise Pipeline”
Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy Still Committed to Building New England Pipeline
February 20, 2017February 20, 2017

On Friday midstream (pipeline) company Spectra Energy issued its fourth quarter and full year 2016 update. At the end of update, Spectra provides details on projects it will complete in 2017, those in development to be completed in 2018, and the final category of projects “in development.” It is that last one that caught our eye, because there is one project listed: Access Northeast, the pipeline project Spectra wants to build to bring more Marcellus/Utica shale gas to New England. Our quick take of what Spectra said: When the New England states get their heads out of their…lobster brisket…and pass laws and regulations getting on the same page, we’ll be here ready to build the project and make it happen. That is, Spectra has not given up on Access Northeast–and neither should we. Here’s the expansion projects update section, which includes not only the update for Access Northeast, but details for other projects located in the Marcellus/Utica region…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

NJ Sierra Club Tries to Pedal More Lies About PennEast Pipeline
February 20, 2017February 20, 2017

PennEast Pipeline, to their credit, is done being silent when it comes to the lies and distortions of groups like the radical (and lying) New Jersey Sierra Club. Recently PennEast called out the Sierra Club (and THE Delaware Riverkeeper) for their lying ways, without using the word “liar” (see PennEast Pipeline Calls THE Dela. Riverkeeper & Sierra Club Liars). Now the word liar IS used, with respect to the Sierra Club’s latest 100% false claims that PennEast threatens drinking water and is somehow comparable to the Oroville Dam debacle in California. It is a scurrilous accusation, being strongly refuted by PennEast…
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Columbia County | Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Litigation | Northumberland County | Pennsylvania | Pipelines | Schuylkill County | Transco | Williams

Eminent Domain Begins for Landowners in Path of Atlantic Sunrise
February 17, 2017February 17, 2017

You beg and plead and beg and plead. You come with your hat in your hand. You try to explain that no, the pipeline isn’t going to avoid your property, Mr. or Ms. Landowner. But some landowners refuse to negotiate. So the last resort option must be exercised. That’s the situation with Williams’ Atlantic Sunrise Pipeline in several counties in Pennsylvania–including Lancaster, Lebanon, Columbia, Northumberland and Schuylkill. The Federal Energy Regulatory Commission (FERC) issued a final certificate for Atlantic Sunrise, allowing construction to begin, just two weeks ago today (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). Although the project is still waiting on an approvals from the Army Corps of Engineers, the U.S. Fish and Wildlife Service and the State Historic Preservation Office, Williams expects to begin construction soon. Very soon. Landowners who either oppose the pipeline because they hate fossil fuels, or because they thought they might get a higher offer, or because they thought they could just make it go away by singing, “La la la la, I don’t hear you!”–are now out of time. Atlantic Sunrise is taking recalcitrant landowners to court and will soon have a court order allowing them to proceed with construction…
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Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline | Tallgrass Energy

REX Pulls Rabbit Out of Pipeline – Adding Another 150 MMcf/d
February 17, 2017February 17, 2017

The Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, last year reversed the flow for a large and important section of the pipeline. On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. REX has been hard at work on plans to expand capacity even more by beefing up compressor stations along portions of the pipeline. REX filed a plan with FERC to add another 800 million cubic feet per day (MMcf/d) of capacity along the same portion of the reversed pipeline–for a grand total of 2.6 billion cubic feet per day (Bcf/d). In mid-December, the first 200 MMcf/d of capacity came online (see Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf). A week later another 250 MMcf/d was brought online (see REX Pipeline Adds Yet More Capacity, Now Flowing Extra 450 MMcf/d). In January, the final 350 MMcf/d went online, and REX is now flowing 2.6 Bcf/d of Utica/Marcellus gas to Chicagoland and beyond (see REX Pipe Completes Expansion Today, 2.6 Bcf/d Flowing East-to-West). Expansion complete. Except–Tallgrass says they can squeeze another 150 MMcf/d out of the reversed pipeline! Next month they’re going to run a new open season to sell yet more capacity, which would bump what had been 2.6 Bcf/d to 2.75 Bcf/d…
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Dominion Energy | Energy Services | Industrywide Issues | Maryland | Pipelines | Regulation | Statewide MD | Statewide VA | Virginia

FERC Actively Reviewing VA/MD/DC Pipeline, Public Hearing March 2
February 17, 2017February 17, 2017

Dominion Eastern Market Access Project

Last October Dominion announced a new pipeline project called Eastern Market Access Project (see Dominion Announces $145M Project to Expand Gas Supply to DC & MD). The project will beef up two compressor stations in Virginia, build a new compressor station in Maryland, and add a couple of pipeline taps near Washington, D.C. The purpose of the $145 million project is to deliver more gas to Washington Gas (and its customers), and to deliver gas to a new gas-fired electric power plant being built in Maryland. A Dominion spokesman confirmed to MDN that the gas will come from either the Marcellus or Utica plays. We have an update on that project. Even though the Federal Energy Regulatory Commission (FERC), the agency in charge of reviewing and certifying the project does not have enough Commissioners to vote on anything, they still are fully staffed and FERC personnel are actively working on an environmental assessment for the project…
Read More “FERC Actively Reviewing VA/MD/DC Pipeline, Public Hearing March 2”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Processing Plants | Statewide MD

Cove Point LNG Progress Report for FERC – Now 84% Complete
February 17, 2017February 17, 2017

Fossil fuel haters did their best to stop Dominion’s Cove Point LNG export facility in Lusby, Maryland. They sued (see Radicalized Sierra Club Files Cove Point Appeal in DC Court). They protested (see Cove Point Protesters Disrupt Monday Night Football Game on TV). They screamed and hollered and lied (see Cove Point Protester Sentenced to Jail, Lied About Police Assault). But in the end, it didn’t matter. The project has gone forward, and according to Dominion CEO Thomas Farrell, Cove Point is now 84% complete and will go online later this year…
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Anti-Drilling/Fossil Fuel | Crime | Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines

Energy Transfer Breaks Silence on ND Criminal Protesters, Obama
February 17, 2017February 17, 2017

We have, for some months, reported on the so-called protesters in North Dakota protesting the Dakota Access Pipeline. They are in actuality paid thugs and criminals (see Police Remove Pipeline Protesting THUGS from Private Land in ND). It is not, as the media has lied, some small band of Indians who object to a pipeline crossing ancient burial grounds. That is 100% false. The reason we have warned you about them is because the very same paid thugs have threatened to come to the Marcellus/Utica region next (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). In fact, it has already begun (see Dakota Access Pipeline Radicals Protest in…Scranton?). Energy Transfer, the company building the pipeline, has been extremely restrained in their public comments about these thugs. Until now. On Wednesday the U.S. House of Representatives’ Energy and Commerce Committee held a hearing titled, “Modernizing Energy and Electricity Delivery Systems: Challenges and Opportunities to Promote Infrastructure Improvement and Expansion.” One of the speakers was Joey Mahmoud, Project Director for the Dakota Access Pipeline. His testimony (full copy below) lays bear the truth of what has been happening. Did you know that the so-called protesters attacked pipeline personnel–putting one person in the hospital? Did you know they stole or damaged MILLIONS of dollars worth of equipment? That they tried to bomb a bridge and that a bomb did go off, ripping the arm off one of the protesters (i.e. eco-terrorits)? And did you know that of the 660 protesters who have been arrested, 94% of them were not from North Dakota? Mahmoud lays it all out in his compelling testimony. Folks, this is what we may be up against in the near future here in our neighborhood–a well-financed attempt to overthrow our peaceful government with eco-violence…
Read More “Energy Transfer Breaks Silence on ND Criminal Protesters, Obama”
Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

PTT Global Delays Final Investment Decision for OH Ethane Cracker
February 16, 2017February 16, 2017

PTT Global Chemical, based in Thailand, announced in April 2015 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). Last May a story in the Bangkok Post said the final investment decision (FID) will definitely come in 2017, but they called the decision “delayed.” PTT disagreed with that assessment (see PTT Global Says Belmont, OH Ethane Cracker NOT Delayed). Last December Belmont County officials said the FID would come by the end of March (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). The disappointing news is that PTT now says the FID won’t come until “late 2017,” which is “several months later than we originally announced.” So yes, it appears the Bangkok Post story was right after all. PTT vice president Toasaporn Boonyapipat, head of the company’s North American operations, released a statement on Tuesday to update everyone on the project timeline. State and local officials were quick to try and tamp down speculation that PTT is having second thoughts about the Belmont cracker…
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