Energy Services

Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Williams

Union Thinks Trump Will be Good for Constitution Pipeline
January 27, 2017January 27, 2017

Labor unions, typically big Democrat supporters, are increasingly in love with Donald J. Trump. Why? Because Trump (unlike Barack Obama) is actually pushing ahead with major infrastructure project improvements. He has a list of 50 such high-priority projects (see Hope: Atlantic Coast Pipe on Trump List of High Priority Projects). As we previously reported, Trump signed executive orders earlier this week to restart the momentum on two important pipeline projects: Keystone XL and Dakota Access Pipeline (see Trump Signs Executives Orders to Restart DAPL, Keystone XL Pipes). Unions love it because projects like those two pipelines use union workers. Which has union workers in our neighborhood excited. Laborers’ Local 157 in Schenectady, NY believes Trump’s emphasis on pipeline projects will (hopefully) bleed over to the stalled Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. Not to douse their enthusiasm for Trump and the Constitution project, but the issue is in court and Trump won’t, according to a Constitution spokesman, be able to magically clear a way for the project to get started…
Read More “Union Thinks Trump Will be Good for Constitution Pipeline”
Delaware County (PA) | Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Sunoco Logistics

Middletown PA Decides to Blow $45K (not $100K) on Mariner 2 Study
January 27, 2017January 27, 2017

Rabidly anti-drilling organizations like the Philadelphia-based Clean Air Council (CAC) have been using the deep pockets of their contributors to stir up dissent against Sunoco’s Mariner East 2 NGL pipeline, particularly in towns in the Philly orbit (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?). CAC has towns like Middletown (Delaware County) so agitated, Middletown’s town council foolishly voted to allocate $100,000 out of $1.8 million the town received for leasing rights-of-way for the pipeline to assess risks and create an emergency response plan for the pipeline (see Mariner East 2 Tells PA Town: You’re Flushing $100K Down Toilet). Sunoco politely told Middletown they’re flushing 100 grand down the toilet. Federal guidelines already provide most if not all of the information (and planning) required to protect the good citizens of Middletown. So instead of blowing $100K, the town council voted this week to blow $44,500 instead…
Read More “Middletown PA Decides to Blow $45K (not $100K) on Mariner 2 Study”
Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

FERC Approves Atlantic Bridge Project for New England/Canada
January 26, 2017January 26, 2017

Although antis have tried to block major pipeline upgrades in the northeast/New England region, Spectra Energy continues to have success with building and completing its projects. Recently Spectra’s Algonquin Incremental Market (AIM) project, which built ~37 miles of new pipeline and half a dozen new compressor stations along the Alogonquin Gas Transmission pipeline, went into service (see New England Gets Small Increase in NatGas Pipeline Capacity). AIM is now delivering an extra 342 million cubic feet per day (MMcf/d) of Marcellus/Utica natural gas to New England. AIM is part of a larger plan from Spectra called the Access Northeast project to combine several pipeline systems to send gas into New England and all the way to Nova Scotia, Canada. Access Northeast has been frustrated by regulators in New England (see Spectra Energy Puts Access Northeast Pipe to New England on Hold). However, another important piece of the larger puzzle has now fallen into place. The Federal Energy Regulatory Commission (FERC) has just approved another piece of Access Northeast, called Atlantic Bridge. FERC previously granted the project a favorable Environmental Assessment last May (see Critical Project for Canadian LNG Exports Gets Favorable FERC Review). With certificates in hand, Spectra Energy can now start the bulldozers and begin construction. What does Atlantic Bridge entail? It beefs up capacity along the Algonquin and Spectra’s Maritimes & Northeast pipeline to carry more Marcellus/Utica gas into New England and now all the way to Nova Scotia…
Read More “FERC Approves Atlantic Bridge Project for New England/Canada”
Empire Pipeline | Energy Companies | Energy Services | Industrywide Issues | Pipelines | Regulation | Seneca Resources

FERC Delay Pushes Back NFG’s Northern Access Pipeline Project
January 26, 2017January 26, 2017

National Fuel Gas Company (NFG), the Buffalo-based utility giant with both a drilling subsidiary (Seneca Resources) and a midstream/pipeline subsidiary (Empire Pipeline) filed an application with the Federal Energy Regulatory Commission (FERC) in March 2015 for a pipeline project they call Northern Access 2016 (later renamed to simply Northern Access Project, dropping the “2016” part). 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 (see NFG’s Marcellus Pipeline from NWPA to NY Hits Resistence). In July 2016, FERC issued a favorable Environmental Assessment, paving the path for full approval (see NFG’s Northern Access Pipeline Gets Favorable FERC Review). NFG had hoped to have the project done and in-service by November of this year. However, due to foot-dragging by FERC, NFG has just announced a revision. They now say the project can’t get completed until “the second quarter of the Company’s 2018 fiscal year.” NFG doesn’t operate on a calendar year for reporting, they’re a quarter ahead. So the Company’s 2Q18 means 1Q18 for everyone else. Translation: NFG hopes to have it built and in-service by March 2018. In addition to the “bad news” of the delay, NFG sprinkled in some good news about production in 4Q16: due to an increase in Marcellus production, NFG’s calendar 4Q16 production (for subsidiary Seneca Resources) was up 16% over the same period in 2015…
Read More “FERC Delay Pushes Back NFG’s Northern Access Pipeline Project”
Energy Services | Industrywide Issues | M&A | WGL Holdings

Wash DC Utility Selling Itself to Canadians, Marcellus Connection
January 26, 2017January 26, 2017

In November rumors swirled that WGL Holdings, the umbrella company that owns Washington (DC) Gas Light Company and WGL Midstream, is considering selling itself to utility giant (and Spanish-based) Iberdrola (see DC NatGas Utility WGL Considers Selling Itself to Spanish Company). Although Iberdrola was sniffing around, apparently they didn’t offer enough money. WGL announced yesterday that instead of selling itself to Ibedrola, it is selling itself to Canadian-based AltaGas Ltd.–for US$6.4 billion. OK, so what does that have to do with the Marcellus/Utica? Plenty. For one, WGL’s midstream (pipeline) subsidiary will be one of the important ways nearly half a billion cubic feet of Marcellus gas will get to the Cove Point LNG facility in Maryland when that facility goes online later this year (see WGL & Antero to Provide Marcellus Gas to India via Cove Point). Second, WGL is the owner of 10% of the Mountain Valley Pipeline project, a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA (see WGL Midstream Buys More of Mountain Valley Pipeline). And third, WGL (the utility) is buying and using Marcellus gas for its customers in the Washington, DC area. At one point the utility tried to buy 25 of its own Marcellus wells, a plan rejected by Virginia regulators (see Virginia Rejects Deal for DC-based Utility to Buy Marcellus Wells). So yeah, this is a big deal with implications for the Marcellus…
Read More “Wash DC Utility Selling Itself to Canadians, Marcellus Connection”
Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Pipelines | Public Opinion | Statewide VA | Virginia | WGL Holdings

New Poll: 62% of Virginians Support Mountain Valley Pipeline
January 26, 2017January 26, 2017

The Mountain Valley Pipeline (MVP) 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 including WGL (see today’s companion story). The project has faced stiff opposition from landowners in West Virginia (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). The project has also faced opposition from landowners in Virginia (see Mountain Valley Pipeline Wins Right to Survey in VA w/o Permission). Fortunately the Federal Energy Regulatory Commission (FERC) is signaling its favor for the project (see FERC Gives WV to VA Mountain Valley Pipeline Provisional Thumbs Up). However, that doesn’t stop rabidly radical organizations like the Sierra Club from spreading lies (see Sierra Club Attacks Mountain Valley Pipeline with Sham Report). Mason-Dixon Polling & Research conducted a public opinion poll of Virginians, to see what residents think of the project. The results are in. The question asked was this: “The proposed Mountain Valley Pipeline would transport natural gas underground from West Virginia to Virginia to help meet the demand for energy in homes and businesses in various regions of Virginia and the southeastern United States. Do you support or oppose construction and operation of the Mountain Valley Pipeline?” The response? Some 62% of Virginians support the pipeline, while only 26% oppose it (and 12% are clueless)…
Read More “New Poll: 62% of Virginians Support Mountain Valley Pipeline”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

Columbia Pipeline Launches Open Season for New M-U Project
January 25, 2017January 25, 2017

Last week the Federal Energy Regulatory Commission (FERC) approved Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects (see FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects). The two projects together will flow an additional 1.5 billion cubic feet (Bcf) of Marcellus/Utica gas to the Gulf Coast. With those two successes in hand, Columbia Pipeline Group (now owned by TransCanada) is floating another project, called Buckeye XPress. As you can guess from the name, this new project will beef up service along the Columbia Gas Transmission pipeline from Ohio (and PA and WV) to send even more Marcellus/Utica gas to the Gulf via the interconnection at Leach, Kentucky. Columbia launched a non-binding open season to gauge interest in the project, which will use looping and beefed up compressor stations to increase capacity another 700 million cubic feet (MMcf) per day along the existing pipeline Columbia pipeline system, which is abbreviated TCO…
Read More “Columbia Pipeline Launches Open Season for New M-U Project”
CNG/LNG | Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Speculation: Transco Sending M-U Gas to Louisiana LNG Terminal
January 25, 2017January 25, 2017

Over a year ago the mighty Transco turned bidirectional, sometimes sending gas northward from the Gulf (as it’s done for 50 years), and now, sometimes sending gas from the Marcellus/Utica southward, to the Gulf. Much more gas will head south once the Atlantic Sunrise Pipeline project gets built (see FERC Approves Atlantic Sunrise Pipeline! Cabot Grabs More Capacity). However, from various stories we’ve read, and from our speculation, we’ve assumed that at least some Marcellus/Utica gas now flows far enough south that perhaps some of it reaches the Cheniere Energy LNG export facility in Sabine Pass, Louisiana (see LNG Slowly Changing the NatGas Game in the Marcellus/Utica). Until now, the gas traveling from north to south has only made it as far as the Creole Trail pipeline and from there Creole Trail would conduct the gas to Cheniere’s LNG plant in Sabine Pass. But beginning yesterday Transco is now connected directly to the Sabine Pass facility. We have to confess this is speculation on our part, but we don’t think it’s much of a stretch to say that Marcellus/Utica gas is now flowing to Sabine Pass for export. And if our gas is not now flowing to Sabine Pass, it soon will be. Here’s our evidence…
Read More “Speculation: Transco Sending M-U Gas to Louisiana LNG Terminal”
Energy Services | Industrywide Issues | M&A | Patterson-UTI | Seventy Seven Energy

Patterson-UTI Floats $418M of New Stock to Pay Off SSE’s Debts
January 25, 2017January 25, 2017

As MDN told you in November, Patterson-UTI Energy, an oilfield services company with major operations in the northeast, is buying out and merging in Seventy Seven Energy (SSE) in an all-stock deal worth $1.76 billion (see Seventy Seven Energy Throws in the Towel, Sells to Paterson-UTI). SSE is the former Chesapeake Oilfield Operating company, the oilfield services subsidiary of Chesapeake Energy that Chessy spun out into its own company in July 2014 after it couldn’t find anyone to buy it (see Long Labor & Delivery: Seventy Seven Energy Born Yesterday). It was an ill-fated venture from the beginning. SSE never turned a profit after becoming its own company. In June of this year, SSE, which has major operations in the Marcellus/Utica, filed for bankruptcy, then emerged from bankruptcy two months later borrowing $100 million (see Seventy Seven Energy Pops Out of Chapter 11 Bankruptcy in 2 Mos.). In the third quarter of this year, the red ink continued to flow, with SSE losing $36.5 million. Now that Patterson is buying it, they are on the hook for SSE’s debts. So even though the deal to buy SSE is a no-cash stock swap, Patterson still needs a boatload of cash to pay off SSE’s debts. So Patterson is floating 15,800,000 shares of stock at $26.45 per share to raise $418 million. The stated reason? “To fund the repayment of the outstanding indebtedness of Seventy Seven Energy Inc.”…
Read More “Patterson-UTI Floats $418M of New Stock to Pay Off SSE’s Debts”
Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

FERC Delays PennEast Pipe 3rd Time, PennEast Spins as ‘Good News’
January 24, 2017January 24, 2017

PennEast Pipeline is a very important $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. It will feed local utilities and power generation plants along its route. In April 2016 the Federal Energy Regulatory Commission (FERC), which oversees permitting for the pipeline, told PennEast the agency would extend the amount of time they are taking until December 2016, rather than the original target of August, to complete their environmental review (see PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?). It was (for us) a small red flag. Hey, it happens. Projects get delayed because regulatory agencies get bogged down. But then it happened again: FERC told PennEast they would once again move the goal posts and delay the final environmental review from December 2016 to February 2017 (see FERC Delays PennEast Pipeline Final Review – Again). Hmmm. Bigger red flag. Now FERC is doing it for a third time, which is a huge red flag in our book. FERC issued a statement on Friday to say the final environmental review now won’t happen until April. What’s going on? And why is PennEast once again spinning this as some sort of “good news”?…
Read More “FERC Delays PennEast Pipe 3rd Time, PennEast Spins as ‘Good News’”
Energy Services | Halliburton

Halliburton 4Q & 2016 Update – Net Loss of $153M in 2016
January 24, 2017January 24, 2017

Last week Schlumberger, the world’s largest oilfield services (OFS) company, reported their numbers for fourth quarter and full year 2016. As we highlighted, the company experienced a net loss last year (see Schlumberger 4Q16 & Full Year 2016 Results – Swings to Net Loss). Yesterday Halliburton, the world’s second largest OFS company, reported their numbers for last year. Like Schlumberger, Halliburton also had a net loss–of $153 million. And like Schlumberger, Halliburton said in 2017 prices for drillers are going up. Halliburton is a global company. Various regions were profitable or unprofitable. North America was unprofitable in 2016. Let’s dig into the details…
Read More “Halliburton 4Q & 2016 Update – Net Loss of $153M in 2016”
Allegheny County | Dominion Energy | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Supply Chain

US Steel Plant in PA Re-Opening – Manufacture Atlantic Coast Pipe?
January 23, 2017January 23, 2017

A former U.S. Steel pipe manufacturing plant near Pittsburgh (in McKeesport) has been leased to Dura-Bond Industries and will re-open in the next 6-9 months, according to the president of Dura-Bond. The plant will hire around 100 people (fantastic news for Pittsburgh). According to the Pittsburgh Business Times, Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina–will use Dura-Bond pipe. Our conclusion: One of the reasons (perhaps THE reason) for the McKeesport facility re-opening is to produce Atlantic Coast Pipeline pipes…
Read More “US Steel Plant in PA Re-Opening – Manufacture Atlantic Coast Pipe?”
Electrical Generation | Energy Services | Industrywide Issues | Litigation | Millennium Pipeline | New York | Orange County | Pipelines | Regulation

Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay
January 23, 2017January 23, 2017

MDN has previously reported on a $900 million natural gas-fired electric generating plant coming to Orange County, NY (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). The CPV (Competitive Power Ventures) Valley Energy Center project is being opposed by local anti-drilling ninny nannies, including Hollywood star James Cromwell. No matter. It’s already under construction. Unfortunately the very worthy project is marred by corruption inside the Cuomo Administration (see NY NatGas-Fired Electric Plant an Inside Job for Corrupt Cuomo Aide). However, construction continues and the plant will get built. The problem now is getting a 7.8 mile pipeline, an off-shoot pipeline from the mighty Millennium Pipeline, built to the plant to supply the natural gas it will need to run. In November the Federal Energy Regulatory Commission (FERC) approved the short pipeline (see FERC Approves Pipeline to Orange County, NY NatGas Power Plant). However, as with the Constitution Pipeline, the Cuomo Dept. of Environmental Conservation (DEC) is intentionally blocking this pipeline using delays–no doubt at Cuomo’s direction. Millennium is not, like Williams did with the Constitution, sitting on its hands waiting for the DEC. The Millennium is aggressively pushing the DEC to grant the necessary water crossing permits and has just sued the DEC to make it happen…
Read More “Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay”
Energy Services | Schlumberger

Schlumberger 4Q16 & Full Year 2016 Results – Swings to Net Loss
January 23, 2017January 23, 2017

The largest oilfield services (OFS) company in the world, Schlumberger, issued their fourth quarter and full year 2016 report on Friday. Schlumberger has major operations in the Marcellus/Utica. They drill and frack for many companies in our neck of the woods. (Other large OFS companies active in the M/U include Halliburton and Baker Hughes.) Schlumberger CEO Paal Kibsgaard said since the price of oil and gas is moving higher, his company will also increase the prices they charge E&Ps (exploration and production companies) in 2017. OFS companies have been hammered over the past couple of years to lower their prices. Such “price concessions” are now coming to an end. We can understand why. Revenue for Schlumberger in 2016 fell by 22% over 2015, and the company swung from making $2 billion in profit in 2015 to losing $1.7 billion in 2016. Ouch. Here’s the update…
Read More “Schlumberger 4Q16 & Full Year 2016 Results – Swings to Net Loss”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines | Regulation | TC Energy/TransCanada

FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects
January 20, 2017January 20, 2017

Yesterday the Federal Energy Regulatory Commission (FERC) voted to approve and issue a certificate to Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects. This is fantastic news for the Marcellus/Utica region. MDN has covered these projects from their beginning. In August 2014 Columbia, then a subsidiary of Nisource, committed to building the two projects that will flow Marcellus/Utica gas to the Gulf Coast (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). The Leach XPress project involves construction of approximately 160 miles of natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle, flowing 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name). Rayne XPress works hand in glove with Leach. There is an existing natgas pipeline from Leach, KY all the way to the Louisiana Gulf Coast. That pipeline is called the Rayne, for Rayne, LA. The Rayne Xpress project will beef up the Rayne pipeline with new compressor stations to add an additional 1 Bcf per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast. It wouldn’t make sense to approve one without the other, and yesterday FERC approved both…
Read More “FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects”
Electrical Generation | Energy Services | FirstEnergy | Industrywide Issues | Pennsylvania | Statewide PA

Buyer of FirstEnergy’s PA NatGas Power Plants Revealed
January 20, 2017January 20, 2017

FirstEnergy, based in Akron, OH, is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy owns a variety of regulated and non-regulated power generation plants. In November the company announced it wants to sell six power generating plants in PA, four of them natural gas-fired plants (see FirstEnergy Selling 4 NatGas-Fired Electric Plants in PA). The plants being sold are non-regulated–part of FirstEnergy’s strategy to become a 100% “regulated” utility in the next 18 months. In December FirstEnergy announced they found a buyer willing to pay $885 million for the four natgas plants in PA (see FirstEnergy Finds Buyer for 4 PA NatGas-Fired Power Plants). However, the buyer’s identity remained a secret–until now. LS Power Equity Partners III LP, a New York-based power developer, is the buyer of the four natgas-fired electric plants…
Read More “Buyer of FirstEnergy’s PA NatGas Power Plants Revealed”