Energy Services

Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline | Tallgrass Energy

REX Pipe Completes Expansion Today, 2.6 Bcf/d Flowing East-to-West
January 6, 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). Beginning today, the final 350 MMcf/d is coming online. REX is now flowing 2.6 Bcf/d of Utica/Marcellus gas to Chicagoland and beyond…
Read More “REX Pipe Completes Expansion Today, 2.6 Bcf/d Flowing East-to-West”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

Residents Pack County Bd Mtg re Atlantic Coast Compressor Stn
January 6, 2017January 6, 2017

As MDN reported earlier this week, on the last business day of 2016 the Federal Energy Regulatory Commission (FERC) issued a favorable draft (not final, but draft) environmental impact statement (EIS) for the $5 billion, 594-mile Dominion Atlantic Coast Pipeline project (see FERC Gives Atlantic Coast Pipeline Thumbs Up, Antis Pitch a Fit). Atlantic Coast is a natural gas pipeline being built by Dominion that will stretch from West Virginia through Virginia and into North Carolina. As part of the project, the pipeline will need several large compressor stations–one of them in Buckingham County, VA. Area residents packed a small meeting room last night to express their concerns over the compressor station. We have a few thoughts about that meeting and what was said…
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CNG/LNG | Energy Services | Industrywide Issues | NG Advantage

NG Advantage’s “Virtual” NatGas Pipeline to Maine Begins Flowing
January 6, 2017July 1, 2017

In Oct. 2015 MDN reported a story about International Paper’s Ticonderoga mill in northern New York, near the Vermont border (see NY Paper Plant Opts for “Virtual” NatGas Pipeline Over Real One). The plant had converted to using natural gas–yet there are no natgas pipelines to be found in the region. International Paper planned to build a pipeline from Vermont to feed the plant as a permanent solution. In the meantime, it was using a “virtual pipeline” of a constant stream of trucks delivering compressed natural gas (CNG) from NG Advantage (subsidiary of Clean Energy Fuels Corp.), trucking CNG to the plant 24/7. International liked the CNG trucking operation so much, and disliked the regulatory hassles of building a pipeline so much, they decided to keep the virtual pipeline over a real one as a permanent solution. Cool story. NG Advantage, the hero in this story, continues to expand. Last November they picked up a new CEO, and at the tail end of last year, the company expanded beyond Vermont, New York, New Hampshire and Massachusetts, and began delivering CNG via their virtual pipeline trucks to customers in the state of Maine…
Read More “NG Advantage’s “Virtual” NatGas Pipeline to Maine Begins Flowing”
Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Would Williams Sell Its “Crown Jewel” (Transco)? You Bet Your Shoes!
January 5, 2017January 5, 2017

To say that it was a roller coaster ride for Williams in 2016 doesn’t even come close to reality. The company received no less than two takeover/merger attempts. Energy Transfer Equity’s (ETE) billionaire CEO Kelsy Warren propositioned Williams for over six months before going public with his overtures last year (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams resisted, but eventually they caved and agreed to the deal, although the deal price went down by $10 billion (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Warren claims he got snookered and got cold feet, eventually bailing (see Dead as a Doornail: ETE Terminates Merger with Williams). The ink on the flurry of lawsuits filed hadn’t even dried and Enterprise Products Partners, another huge midstream company, began making overtures to Williams (see Here We Go Again: Enterprise Products Wants to Buy Williams). A month later Enterprise released a statement saying they’re finished with Williams, throwing in the towel, no longer interested (see Drama: Enterprise Bails on Williams Merger, No Longer Interested). What’s going on with all of this drama? At its core, Williams owns a “trophy asset,” what some call the “crown jewel.” That asset? The mighty, 10,500-mile Transcontinental Gas Pipe Line Co (Transco). Everyone wants Transco in part because of its geography in the Marcellus/Utica. So far Williams has resisted selling either Transco or the entire Williams company. But CEO Alan Armstrong–perhaps the guy most responsible for building the Transco–said this response to a question asking whether or not the company would ever sell the Transco: “I bring an extra pair of shoes to the office every day, just in case somebody offers me enough for the pair I’m wearing.” Meaning yes, if the price is right, he would sell it…
Read More “Would Williams Sell Its “Crown Jewel” (Transco)? You Bet Your Shoes!”
Energy Services | Patterson-UTI

Patterson-UTI Dec Rig Count, Big 9% Jump Up from Nov
January 5, 2017January 5, 2017

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 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 December, saw the biggest month over month increase since the trend reversed. In December, Patterson’s rig count hit 71, up 6 from 65 in November. That’s a big 9% jump!…
Read More “Patterson-UTI Dec Rig Count, Big 9% Jump Up from Nov”
American Water Management | Energy Services | Industrywide Issues | Litigation | Ohio | Regulation | Trumbull County

OH Judge Orders ODNR to Allow Shuttered Injection Well to Reopen
January 5, 2017January 5, 2017

American Water Management Services (AWMS) owns a wastewater injection well in Trumbull County that supposedly caused a low-level earthquake (that nobody could feel) in 2014. Two wells located at the site, both operated by AWMS, were “temporarily” shut down by the Ohio Dept. of Natural Resources following the quake (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). One of the two injection wells was allowed to re-open, but not the other (see ODNR Clears Trumbull Co. Injection Well in August Quake). However, AWMS can’t open just the one well. They need to open both and operate both. The ODNR is supposedly crafting new regulations that will govern the offending well that may or may not have caused the low-level quake and a year-and-a-half later the ODNR has not released those new regs. Meanwhile, everyone at that operation is out of a job. AWMS appealed the closure and in December 2015, a county judge threw out the appeal (see Judge Tosses Appeal to Re-Open Trumbull, OH Injection Well). So AWMS appealed it to the next level up–the 10th District Court of Appeals–in January 2016 (see AWMS Appeals Decision Upholding Trumbull Injection Well Closure). We’re not sure where the Appeals Court case sits, but a county judge has just ordered ODNR and AWMS to submit paperwork that will allow the well to reopen. Soon. The judge is telling the ODNR, no more foot-dragging. Get it done, now…
Read More “OH Judge Orders ODNR to Allow Shuttered Injection Well to Reopen”
Dominion Energy | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Statewide VA | Virginia

FERC Grants Permission to Begin Leidy South Construction in PA/VA
January 5, 2017January 5, 2017

In August of 2016 the Federal Energy Regulatory Commission (FERC) finally granted a certificate to Dominion to build its Leidy South Project, a $210 million to build and/or upgrade six compressor stations along the DTI pipeline system in Pennsylvania, Maryland and Virginia (see FERC OKs 6 Dominion Compressor Station Upgrades in PA, MD, VA). The upgraded compressors would allow DTI to pump an additional 155,000 dekatherms per day of natural gas, providing that gas to new and expanding natgas-fired electric generating plants. But apparently “yes” doesn’t mean “yes you can begin construction.” Earlier this week FERC granted its permission to Dominion to begin actual construction on the compressor stations…
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Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines

SC Antis Fuss Over Pipeline to Carry Marcellus Gas to Charleston
January 4, 2017January 4, 2017

Click for larger version

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 pipeline will grab that 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…
Read More “SC Antis Fuss Over Pipeline to Carry Marcellus Gas to Charleston”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Pennsylvania | Pipelines | Regulation | Statewide PA | Williams

FERC Approves Atlantic Sunrise Pipeline! Cabot Grabs More Capacity
January 3, 2017January 4, 2017

1/4/17 Update: Williams finally issued its own press release about this, which we’ve included below.

On the last business day of 2016, the Federal Energy Regulatory Commission (FERC) issued a favorable final environmental impact statement (EIS) for one of the major pipeline projects in the Marcellus/Utica: the $3 billion Williams Atlantic Sunrise Pipeline project. The FERC EIS for Atlantic Sunrise (full copy embedded below) said that although there may be some adverse environmental effects from the project, those effects can be “reduced to less-than-significant levels” by Williams via the plans submitted. FERC considered five alternative routes and chose to stick with the preferred route proposed by Williams. However, FERC did ask Williams two make minor tweaks to four locations along the route of the pipeline. Cabot Oil & Gas, the main customer for the 1.7 billion cubic feet of capacity, was positively giddy with the announcement. Cabot released their own press release to say that although they previously gobbled up 850 million cubic feet (MMcf) of capacity along the new pipeline, they are adding another 150 MMcf to that number, giving the company a grand total of 1 billion cubic feet (out of 1.7 Bcf) of capacity along the pipe when it’s built. Holy moly! That will be 1 Bcf per day of Cabot’s gas going from Susquehanna County, PA to other states, outside the region. VERY smart move by Cabot. Below we have the news and feedback/analysis about the announcement…
Read More “FERC Approves Atlantic Sunrise Pipeline! Cabot Grabs More Capacity”
Dominion Energy | Energy Services | Industrywide Issues | North Carolina | Pipelines | Regulation | Statewide VA | Virginia | West Virginia | Wetzel County

FERC Gives Atlantic Coast Pipeline Thumbs Up, Antis Pitch a Fit
January 3, 2017January 3, 2017

On the last business day of 2016, the Federal Energy Regulatory Commission (FERC) issued a favorable final environmental impact statement (EIS) for the Williams Atlantic Sunrise Pipeline (see today’s companion story). Not to be confused with that project, also on the last business day of the year, FERC issued a favorable draft (not final, but draft) EIS for the $5 billion, 594-mile Dominion Atlantic Coast Pipeline project. This is a huge milestone and an indication that FERC will later issue a favorable final EIS, and then a certificate to allow the project to get built. FERC cautioned there is still more work to be done by Dominion to complete field surveys and submit proposals on certain issues that need to get resolved. However, the draft EIS says based on what they see so far, FERC has confidence that Dominion can minimize damage to the environment in building the pipeline. Of course the childish antis came out of the woodwork to begin bleating and blatting, as they so often do, that they pipeline will kill everyone and everything in its path. Typical…
Read More “FERC Gives Atlantic Coast Pipeline Thumbs Up, Antis Pitch a Fit”
Energy Services | Industrywide Issues | Litigation | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Antis’ Hail Mary to Stop Mariner East 2 Fails, Pipeline Rolls On
January 3, 2017January 3, 2017

In December MDN told you that anti-fossil fuelers who oppose Sunoco Logistics Partners’ Mariner East 2 Pipeline were making a last, desperate attempt to stop the project by appealing an eminent domain case to the Pennsylvania Supreme Court (see Desperate Antis Try One Last Legal Maneuver to Stop Mariner East 2). Their “Hail Mary” play to get the Supremes to hear the case hinged on getting the high court to overturn established case law that allows Mariner East 2 status to use eminent domain, which would doom the project. The antis have now flamed out with this latest attempt. The PA Supreme Court has refused to hear the appeal and will let the lower court ruling stand that finds yes, Mariner East 2 does have the right to use eminent domain…
Read More “Antis’ Hail Mary to Stop Mariner East 2 Fails, Pipeline Rolls On”
Baker Hughes | Energy Services | Hydraulic Fracturing | Industrywide Issues

3 Parents Give Birth to New Fracking Co: BJ Services
January 3, 2017July 22, 2020

Update: MDN’s headline and opening graf below are a tad confusing. As we pointed out in our previous story (here) BJ Services used to exist as a standalone company before it was purchased by, and merged into, Baker Hughes in 2009–for $5.5 billion. Now BH is spinning what is left of the company–an internal division–back into a standalone company once again. So perhaps our tongue-in-cheek analogy of a new company being “born” with “3 parents” is confusing. Our apologies! And our thanks to a sharp MDN reader for pointing out the confusion.

A quick post to note the birth of a new fracking company. As we noted in November, Baker Hughes, Goldman Sachs, and CSL Capital Management pledged to combine investments and assets to form BJ Services, a “pressure pumping” (i.e. fracking) company (see Baker Hughes, CSL & GS Form New US Fracking Co: BJ Services). Baby BJ has officially arrived and is now open for business. Yes, baby BJ has three parents. Hey, if three parents worked for Bridget Jones’s Baby, it can work for a fracker…
Read More “3 Parents Give Birth to New Fracking Co: BJ Services”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Snyder County | UGI Energy Services

UGI Ready to Begin Flowing Gas via $150M Sunbury Pipeline in PA
December 23, 2016December 23, 2016

Sunbury Pipeline map – click for larger version

In December 2014 Pennsylvania utility company UGI pre-filed an application to build a new 35-mile, 20-inch pipeline to feed a natgas-powered electric generating plant being built in Snyder County, PA (see UGI Pre-Files with FERC for New Marcellus Pipeline in Central PA and UGI Building 35-Mile Pipeline for Panda Power Electric Plant). The project, called the Sunbury Pipeline, was estimated to cost $150 million–money that goes into the local economy. It took long enough, but in May 2016 the Federal Energy Regulatory Commission (FERC) finally approved the project (see UGI Sunbury Pipeline Gets FERC Approval, Built by November?). UGI broke ground on the project in August (see UGI Breaks Ground on Sunbury Pipeline for NEPA Electric Plant). Here it is December, and the Sunbury Pipeline is done and expected to go live in January…
Read More “UGI Ready to Begin Flowing Gas via $150M Sunbury Pipeline in PA”
Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Spectra Energy | Statewide OH | Statewide PA

FERC Issues Certificates for 3 Spectra Energy Pipe Projects in M-U
December 23, 2016December 23, 2016

In August, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express (see FERC Approves 3 Spectra Energy Pipe Projects in Marcellus/Utica). The three are part of an expansion of the Texas Eastern Transmission (Tetco) pipeline, owned by Spectra Energy. The combined projects will transport an additional 662,000 dekatherms per day (or 662 million cubic feet) of Marcellus and Utica Shale gas from Pennsylvania to Ohio, Kentucky and Mississippi. Once a favorable EA is issued, the final step is for the fat lady to sign–that is, for FERC to issue the final, actual certificate that says a company can begin building. That just happened. FERC has just issued the final certificate for the three projects, meaning compressor station upgrades will now begin, and new pipeline will get built through eastern Ohio…
Read More “FERC Issues Certificates for 3 Spectra Energy Pipe Projects in M-U”
Energy Services | Pennsylvania | Philadelphia Energy Solutions | Statewide PA

Gov. Wolf’s $300 Million Philadelphia Boondoggle Begins
December 23, 2016December 23, 2016

Pennsylvania Gov. Tom Wolf is stealing $300 million from PA taxpayers and giving it to union bosses in Philadelphia–and everyone is celebrating like it’s some great thing. As we previously reported, over the past two years Philadelphia Energy Solutions (PES) has been on a mission to expand their operation at the Southport Marine site in Philadelphia by leasing an additional 200 acres to build a terminal for shale oil imports and exports (see Marcellus Caught in Crossfire of Philly Port Leasing Controversy). PES was willing to invest its own money in the project. But last month Gov. Tom Wolf canceled PES’ plans by giving a $300 million bribe, er a, “investment” of taxpayer’s money to turn that 200 acres into a big parking lot to park incoming cars arriving by container ships from Japan (see PA Gov Wolf Kills Plan for PES Refinery Expansion in Philadelphia). A bunch of (sleazy) politicians and union officials had a big Christmas party on Wednesday to celebrate the theft of taxpayer money for the project, and to pay Wolf on the back for being the thief…
Read More “Gov. Wolf’s $300 Million Philadelphia Boondoggle Begins”
Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

Spectra Energy Puts Access Northeast Pipe to New England on Hold
December 22, 2016December 22, 2016

Spectra Energy’s Access Northeast Pipeline project, a roughly $3 billion project to connect four existing pipeline systems (with enhancements): Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast, has suffered a string of setbacks this year. Spectra’s original strategy was to bring natural gas to New England by cutting deals with electric companies who need the gas to produce cheaper electricity at their natgas-fired power generation plants. However, the green environmental Nazis came out in force against the plan, (sadly) aided and abetted by Spectra’s competitors, and those plans are now in ruins with three states blocking any such plans (see MA Supreme Court Ruling Endangers New England Gas Pipelines; NH Regulators Veto Access Northeast Pipeline Contract; and CT Latest New England State to Give Up on NatGas Cooperation). Last month we reported that Spectra is not yet ready to give up. They’re changing strategies. Spectra says there are still some electric power generators on board (those that don’t need regulatory approval), and to make up the difference, Spectra is now targeting local natural gas distribution companies (LDCs) as potential customers (see Spectra Energy Changes Strategy re New England Pipeline). Spectra needs customers to sign on the dotted line–committing to long-term contracts–before they can raise the funding and build the project. This change in strategy means the project now won’t go online until 2019, at the earliest. In keeping with the revised schedule, Spectra, via their Algonquin Gas Transmission subsidiary, has just filed an update with the Federal Energy Regulatory Commission (FERC) to say things are officially now on pause while they “solidify the commercial foundation” (i.e. find new customers). How long will it be on pause?…
Read More “Spectra Energy Puts Access Northeast Pipe to New England on Hold”