FERC Approves SC Pipeline to Flow Marcellus Gas to Charleston
In March 2016, Dominion filed an official application with the Federal Energy Regulatory Commission (FERC) for a 55-mile pipeline project called the Transco to Charleston Project (see Dominion Files Application to Move Marcellus Gas to Charleston, SC). As the name implies, it will be a short pipeline to connect the Transco pipeline, which is in the process of reversing flows to bring Marcellus and Utica Shale gas south. This new pipeline will grab Transco’s Marcellus/Utica gas and send it to the Charleston, SC area. The projected in-service date is November of this year. However, this project, like every square inch of every pipeline project in the Eastern U.S., faces opposition from nutty anti-drilling radicals who vow to try and stop it even if it gets FERC approval (see SC Antis Fuss Over Pipeline to Carry Marcellus Gas to Charleston). The antis will now get their chance to deliver on their big boasts. In what is turning out to be a busy week at FERC, the three remaining Commissioners granted Dominion the certificate to build the Transco to Charleston pipeline. Great news indeed!…
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As 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 
Weatherford International is the fourth largest oilfield services company in the world, employing some 44,000 people. They have a branch office in Canonsburg, PA (Pittsburgh area) with major operations in the Marcellus/Utica. Since November we’ve highlighted the financial problems at the company (see 
National Fuel Gas Company (NFG) covers the full span of the oil and gas business–from upstream (with its wholly-owned drilling subsidiary Seneca Resources), to the midstream (with wholly-owned subsidiary Empire Pipeline) to downstream (NFG’s natural gas utility service to 740,000 customers in NY and PA). Big company. Diverse operations. Yesterday NFG issued what they call their first quarter update (everyone else’s fourth quarter update), covering October through December. The good news is that NGF swung from losing $189 million in the same period last year, to making an $89 million profit this year. Commenting on what matters most to MDN (the Marcellus/Utica), Ronald Tanski, NFG’s CEO, said this: “We expect to keep moving forward with our plans to build our Northern Access pipeline by the middle of next fiscal year. In the meantime, our efforts will remain focused on the efficient development of our Marcellus acreage to prepare for the Northern Access capacity while continuing to evaluate our opportunities in the Utica Shale on the very same acreage. Together, these stacked formations provide plenty of running room on our acreage and will fuel our growth for an extended period.” Plenty of running room. Sounds good to us! Here’s the update from yesterday…
Two of the most unfit Senators in the U.S. Senate are Ed Markey and the faux American Indian, Elizabeth Warren. Both radical extremists–both kind of loopy. So it is no surprise that they are calling on the Federal Energy Regulatory Commission (FERC) to reverse the decision FERC made just last week to authorize Spectra Energy’s Atlantic Bridge project (see 
An accident related to shale drilling is responsible for dumping some (not sure how much) acid mine drainage (AMD) from an abandoned coal mine into the Monongahela River last weekend. Which sounds worse than it actually is. Water that seeps into old coal mines mixes with pyrite (iron-sulfide) and oxidizes, turning the water an orange/brown color. The water becomes somewhat acidic. We previously talked at length about acid mine drainage coming from the Old Forge bore hole near Scranton, and about Marcellus money being used to help clean it up (see 
Kinder Morgan has proposed the UTOPIA (Utica To Ontario Pipeline Access) pipeline, a 12-inch ethane pipeline that will run ~240 miles across the state of Ohio where it will connect with another pipeline and (eventually) flow ethane all the way to a cracker plant in Canada. That is, if they can get some holdout landowners to allow them onto their land (see 
Midstream and utility giant Dominion issued their fourth quarter and full year 2016 update yesterday. Just to give you an idea of the depth and breadth of the company, Dominion has ~26,000 megawatts of power generation, 14,400 miles of natural gas transmission, gathering and storage pipeline, and some 6,500 miles of electric-transmission lines. They are “a producer and transporter of energy.” Among the key projects we keep an eye one: the Cove Point, Maryland LNG export facility (under construction), the Greensville Power Station (under construction), and the Atlantic Coast Pipeline (soon to be under construction). The numbers are looking good. Revenue for Dominion in 4Q16 was $457 million, up $100 from 4Q15. Full year revenues were $2.1 billion, up from $1.9 billion in 2015. Below we have yesterday’s update, along with select portions of a conference call by Dominion’s muckety mucks and their comments about projects like Cove Point and Atlantic Coast Pipeline…
Marathon Petroleum, the refiner and midstream company based in Ohio (owner of what used to be MarkWest Energy) reported their fourth quarter and full year 2016 numbers yesterday. Overall revenue was down a bit, from $2.85 billion in 2015 to $2.21 billion in 2016 due to “a challenging commodity price and margin environment.” However, Speedway gas station/convenience stores (many of which used to be Hess gas stations) had “exceptional performance” and “set multiple records for the full-year 2016.” Of particular note for MDN, Marathon plans to spend $1-$1.3 billion in 2017 on new infrastructure projects in the Marcellus region. Good news indeed! Below we have yesterday’s update, along with a PowerPoint presentation Marathon used at the recent Marcellus-Utica Midstream event in Pittsburgh. We love the slides in that presentation, full of useful information…
PennEast Pipeline has just released a list of 28 non-profit organizations receiving grants of “up to” $5,000 from the pipeline company. It’s not the first time (
Oilfield services company Baker Hughes, with major operations in the Marcellus/Utica, posted its fourth quarter and annual 2016 results last week. Financially speaking the numbers were a river of red. BH lost $2.7 billion in 2016 vs. losing $1.9 billion in 2015. However, when you look at the later half of the year, and the fourth quarter in particular, the numbers started to improve. BH lost $417 million in 4Q16 vs. losing $1 billion in 4Q15. The bleeding slowed. BH CEO Martin Craighead, in responding to a question about the company’s North American shale business, said, “So equipment goes where it’s loved the most, and not every basin in North America is created equal right now in terms of pricing.” Hmmm. We wonder if the Marcellus/Utica is loved? Below is the update…
As we inch closer to a final investment decision (FID) on the PTT Global Chemical ethane cracker in Belmont County, OH, and with President Trump’s emphasis on using steel manufactured here at home for pipeline projects like Keystone XL, some are asking whether the PTT project (if it gets approved) will use American steel–or cheap, imported steel. It’s a good question…
Hart Energy’s Marcellus-Utica Midstream Conference and Exhibition was held this week in Pittsburgh. Although MDN could not be there in person, there are plenty of reports about what was said. Perhaps the most interesting we’ve read are comments by keynoter Alan Armstrong, CEO of Williams. Among the startling remarks Armstrong made: He expects natural gas production in the Marcellus/Utica to grow by 65% over the next five years–from 23 to 38 billion cubic feet per day (Bcf/d). Yikes! He also said there are currently 60 rigs operating in the M-U, which is “not nearly enough.” In order to meet growing demand, Armstrong says some 100 rigs are needed. Double yikes! Here’s some more pickings from what was said at the conference…