Energy Services

Dominion Energy | Energy Services

New Head of NatGas at Dominion, Other Reshuffling
November 22, 2016November 22, 2016

Diane Leopold – President & CEO – Dominion Energy

Dominion is, we’re not quite sure–rearranging a few seats at the table? Firming up reporting lines? Consolidating power in its subsidiaries? Perhaps all of the above?! Yesterday the company announced it is making Diane Leopold, currently president of Dominion Energy, the president and CEO of Dominion Energy. As part of the upgraded role Leopold will be responsible for all of Dominion’s natural gas businesses–so she’s an important person to the Marcellus/Utica region. Also in the announcement: Robert Blue, who currently serves in a dual role as both senior vice president for their Law, Regulation and Policy division and as president of the Dominion Virginia Power business unit will become president and CEO of Dominion Virginia Power, giving up his role overseeing the Law division. There’s a few more changes in personnel too…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

Spectra: All 4 TETCO Pipes in SWPA Now in Service After Explosion
November 21, 2016November 21, 2016

On April 29, Spectra Energy’s Texas Eastern Transmission (TETCO) “Delmont Line 27” pipeline exploded in Westmoreland County, PA, seriously injuring one resident who was burned over much of his body (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The reason for the explosion and fire was corrosion on welds covered with a particular kind of pipe tape no longer in use (see Spectra Says PA Pipeline Explosion “Unacceptable,” Blames Pipe Tape). In September we brought you the disturbing news that an investigation four years ago (in 2012) discovered corrosion in the very area where the pipe would eventually explode (see Spectra Admits Detecting Corrision in Exploded TETCO Pipe 4 Yrs Ago). It’s been a long road back, but finally, after more than six months, Spectra reports all four lines are now back in service…
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Anti-Drilling/Fossil Fuel | DTE Energy | Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Pipelines

Sierra Club Radicals Sue DTE Energy over NEXUS Pipeline
November 21, 2016November 21, 2016

The radicals at the Sierra Club are at it again. Causing private companies to expend big money to defend their Constitutional, capitalistic rights. The NEXUS Pipeline is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. It is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. The Sierra Club has just sued DTE Energy, one of the sponsors of the project, falsely claiming DTE’s electric customers will end up paying more for electricity because of the pipeline…
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Crestwood Midstream | Energy Services

Crestwood 3Q16: Turnaround Success, No Word on Finger Lakes LPG
November 21, 2016November 21, 2016

Crestwood Equity Partners (nee Crestwood Midstream) recently issued its third quarter 2016 update. In April Crestwood announced that New York City utility giant Consolidated Edison Inc. has formed a 50/50 joint venture to purchase ownership of pipelines and storage facilities in the PA and NY Marcellus region (see Utility Giant ConEdison Buys a Piece of the Marcellus Midstream). The newly formed jv, called Stagecoach Gas Services, became official in June (see Con Ed & Crestwood Seal the Deal on Marcellus Pipeline/Storage JV). Perhaps the biggest news is that Crestwood has turned things around financially. In 3Q15 they lost $634 million. In 3Q16 they made $3 million. That’s a huge turnaround year over year (2/3 of a BILLION dollars!). Stagecoach and other projects in the Marcellus/Utica get an update in this latest quarterly report from Crestwood. We also spotted a few interesting slides from the latest PowerPoint deck…
Read More “Crestwood 3Q16: Turnaround Success, No Word on Finger Lakes LPG”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | North Carolina | Pipelines

NC Antis Go on a “Prayer Walk” to Protest Atlantic Coast Pipe
November 21, 2016November 21, 2016

Atlantic Coast Pipeline in NC – click for larger version

As we get closer to deliverance from eight years of nightmarish hell under Barack Hussein Obama, anti-fossil fuel radicals are getting funnier. Small groups of “protesters” marched over the weekend in North Carolina to voice their opposition to Dominion’s Atlantic Coast Pipeline, a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The marchers were the usual collection of old hippies and young, impressionable know-nothings, spewing trite and meaningless phrases like “water is life.” The march was billed as “prayer walk,” although there wasn’t anything close to praying going on–at least not praying like you and I define it…
Read More “NC Antis Go on a “Prayer Walk” to Protest Atlantic Coast Pipe”
Antero Resources | Energy Companies | Energy Services | Gulfport Energy | Industrywide Issues | Pipelines | Rice Energy | TC Energy/TransCanada

3 M-U Drillers Benefit from TransCanada’s Failed Pipeline Plan
November 18, 2016November 18, 2016

Earlier this week we ran the news that Canadian pipeline giant TransCanada’s plan to radically lower the cost to pipe natural gas from the western regions of Canada to the eastern part of the country, in an effort to undercut Marcellus/Utica gas from flooding into the region, failed (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). As we have pointed out, the plan had the potential to suppress an important new market for our gas, and the pipelines that will supply it (see Will TransCanada’s Lower Pipeline Rates Jeopardize Nexus/Rover?). TransCanada’s plan falling apart is good news for the Marcellus/Utica. The Bloomberg news agency agrees and ran a story that says three M-U drillers in particular will benefit from TransCanada’s decision to abandon their lowball pipeline plan…
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Energy Services | Weatherford Intl

Is Weatherford Intl the “Bernie Madoff” of Oilfield Services Cos?
November 18, 2016November 18, 2016

Last week 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. That same writer is back with a new article–this one comparing Weatherford to fraudster and scam artist Bernie Madoff–seeking new money from investors to pay off previous investors. Strong words…
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Economic Impact | Electrical Generation | Energy Services | Industrywide Issues | Lycoming County | Panda Power Funds | Pennsylvania

Panda’s 2nd Marcellus-Powered Electric Plant Goes Online in PA
November 17, 2016November 17, 2016

Panda Power Patriot Plant – Montgomery, PA

Last month Panda Power Funds held the official commissioning ceremony to launch the operation of Panda Liberty, a 829-megawatt Marcellus gas-fired electric generating plant in Asylum Township, Bradford County, PA (see First NatGas Power Plant in Marcellus, Panda Liberty, Goes Online). It was the world’s first built-from-scratch electric generating plant built specifically to use Marcellus Shale gas. Yesterday Panda Power commissioned the world’s second built-from-scratch-to-use-Marcellus-gas electric generating plant: Panda Patriot. Officials from across Pennsylvania joined Panda Power for the ceremony of their second 829-megawatt plant, this one in Lycoming County. One person attending described the reaction of those at the ceremony: “They were in awe.” As well they should be! This one plant is expected to contribute around $5.85 BILLION to the local economy. The economic impact will be staggering. (You see why these natgas-fired electric plants are such a big deal?) Here’s what went down yesterday at the Panda Patriot party…
Read More “Panda’s 2nd Marcellus-Powered Electric Plant Goes Online in PA”
CONE Gathering | CONE Midstream | CONSOL Energy | Energy Companies | Energy Services | Noble Energy

Assets Reshuffled at CONE Midstream/CONE Gathering
November 17, 2016November 17, 2016

Companies in the oil and gas sector often split the ownership of assets into different companies (on paper) for various reasons: tax purposes…to attract investment…to give us laypeople headaches. CONE Midstream, a joint venture between CONSOL Energy and Noble Energy (CO from CONSOL and NE from Noble Energy) was formed in summer 2014 (see CONSOL & Noble Energy Form New Marcellus Midstream Company). CONE Midstream has been a small but stellar performer in the midstream (pipeline) sector, as evidenced by their most recent quarterly update (see CONE Midstream 3Q16: Success Story Continues). But before there was CONE Midstream, there was CONE Gathering (see New Pipeline, Wells Coming to Upshur & Barbour Counties in WV). There is also CONE Midstream DevCo, yet another entity on paper. Is your head spinning yet? CONSOL and Noble yesterday announced that, well, we’re not quite sure what was announced! It appears that the two CONE Midstreams and CONE Gathering are reshuffling the deck once again–transferring some of the assets held between them to the other entities. If you can figure it out, please let us know. Here’s what CONSOL and Noble said in a joint announcement yesterday…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines

Update on Two Important ETE Projects: Rover and DAPL
November 17, 2016November 17, 2016

Somehow or other MDN wound up on the distribution list for Deutsche Bank’s Equity Research (North America) updates. Which we like! Germany-based Deutsche Bank (DB) is the world’s 11th largest bank. They have some sharp analysts who keep tabs on multiple industries, one of those industries being oil and gas. Given the recent happenings with the Dakota Access Pipeline (DAPL), and the happenings with the Ohio Rover pipeline–both pipelines projects of Energy Transfer Equity–DB decided to do a quick update on both projects, giving us the investor/trader view of what will happen over the next 2-3 months. We found the update interesting and think you will too…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | Pipelines | Regulation | Sunoco Logistics

War: ETE Asks Fed Court to Overrule Corps of Politicized Engineers
November 16, 2016November 16, 2016

Yesterday MDN told you that a war of words has broken out between the Obama U.S. Army Corps of Politicized Engineers and Energy Transfer Equity (ETE) over the Dakota Access Pipeline (see It’s War: ETE vs. Obama’s Army Corps of (Politicized) Engineers). The war has quickly gone from words to litigation. ETE has filed a lawsuit in U.S. federal district court in Washington, D.C. asking the court to recognize the pipeline’s right to complete the project–a project now 90% complete–apart from final written approvals from the Corps of Engineers. ETE argues that the Obama Administration is politically interfering with the Corps, which had previously approved the project. ETE says: “…the Corps has never before declined to provide written documentation of the granting of an easement, a perfunctory ministerial act, to use federally owned land after granting regulatory permission for work on the very same land.” In other words, the Corps is using withheld paperwork to stop the project. Therefore, the lawsuit seeks the courts permission (called a declaratory judgment) to finish the pipeline apart from the politicized Corps’ written permission/paperwork. ETE wants to do what the Corps previously approved. They have a strong case…
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Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Litigation | Pipelines | Statewide WV | West Virginia

WV Supreme Court: Mountain Valley Pipe Can’t Survey w/o Permission
November 16, 2016November 16, 2016

Mountain Valley Pipeline route – click for larger version

The Mountain Valley Pipeline is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission in October 2015, is being built by EQT, NextEra Energy and several other partners (see Mountain Valley Pipeline Files FERC Appl, Now Just Matter of Time). In order to build the pipeline, you first have to survey the route. Landowners in both West Virginia and Virginia have resisted, forcing the project to go to court to try and force recalcitrant landowners to allow a survey. In April 2015 Mountain Valley sued WV landowners (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). In March 2016, Mountain Valley won a lawsuit in Virginia (see Mountain Valley Pipeline Wins Right to Survey in VA w/o Permission). However, the WV lawsuit has ground on with appeals. Finally it reached the WV Supreme Court and yesterday the court ruled–in favor of landowners, disallowing survey access for the project (see a copy of the 31-page opinion below). Which is interesting. This decision sets up a potential Constitutional crises…
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Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust
November 16, 2016November 16, 2016

You may recall that TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. In October TransCanada launched an open season to lock up customers for the new, lower-priced option (see TransCanada Launches Open Season to Lowball Marcellus/Utica Gas). Yesterday TransCanada announced the open season is over and it was a bust–not enough takers to move forward with the plan…
Read More “TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust”
Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation

Tit for Tat: NJDRC Responds to PennEast’s Devastating Refutation
November 16, 2016November 16, 2016

The New Jersey Division of the Rate Counsel (NJDRC) is a state government agency responsible for representing the interests of residents, businesses and other rate payers in dealing with regulated public utilities and insurance firms. In September the NJDRC filed a so-called analysis with the Federal Energy Regulatory Commission (FERC) slamming the need and cost recovery plan for the PennEast Pipeline–a $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. PennEast responded to the NJDRC’s analysis with an independent report written by Concentric Energy Advisors, rippping to shreds the arguments put forward by NJDRC (see PennEast Responds to NJDRC with Study Proving Pipeline is Needed). The humiliated NJDRC has responded, yet again, by filing a response to PennEast’s obliteration of their arguments with the Federal Energy Regulatory Commission…
Read More “Tit for Tat: NJDRC Responds to PennEast’s Devastating Refutation”
Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines | Regulation | Sunoco Logistics

It’s War: ETE vs. Obama’s Army Corps of (Politicized) Engineers
November 15, 2016November 15, 2016

As we pointed out last week, the U.S. Army Corps of Engineers (USACE)–which is supposed to be an organization of, well, engineers–has gone hard-left political, no doubt under the direction of Lord Obama (see Army Corps of Engineers Turns Political in Dakota Access Fight). The USACE has taken to leveraging a sycophantic media to boost its message that Energy Transfer Equity, the company building the Dakota Access Pipeline, should stop building the pipeline (which is already 90% built) because it might hurt the feelings of paid mobsters who are protesting it. Our concern with the project is that the same mobsters protesting the Dakota Access Pipeline have promised to come to the Marcellus/Utica next (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). In addition to using the media to rally its cause, the USACE has just announced it will not, for now, grant a permit to cross under Lake Oahe in North Dakota. ETE is firing back with a caustic press release calling out the USACE as unjust lawbreakers. Yeah, it’s open war now–and Trump can’t assume office fast enough to put an end to the horse manure being pedaled by the Army Corps of Politicized Engineers…
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Earthquakes | Energy Services | Fairmont Brine Processing | Industrywide Issues | Wastewater

WV Wastewater Co Grabs Nat’l Headlines re OK Earthquakes
November 15, 2016November 15, 2016

For a number of years we’ve had our eye on Fairmont Brine Processing, headquartered in Fairmont, WV. We originally started writing about the company in 2010 when it was AOP Clearwater (see AOP Clearwater Plant in WV a Big Success in Treating Marcellus Shale Wastewater). New owners expanded the operation in 2014 (see New Brine Processing Plant Coming to Panhandle of WV). Earlier this year Fairmont secured a $90 million line of credit to build a new wastewater processing plant in southwest PA (see Fairmont Brine Gets $90M to Build New Wastewater Recycling Plant). Imagine our surprise at seeing the company’s name in a major Bloomberg article about Oklahoma earthquakes! Brian Kalt, CEO of Fairmont Brine, is floating an idea that will settle the man-induced earthquakes in Oklahoma, which come from injecting shale wastewater deep underground: Don’t inject it anymore. Instead, using Fairmont’s recycling technology to separate out the salty minerals and then release purified water into streams and rivers. That Bloomberg article actually made the Drudge Report for a while yesterday! Kudos to Fairmont and Brian Kalt…
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