Energy Services

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    Spectra Ready to Open Valve on Expanded Pipeline from NE to Gulf

    Spectra Energy logoFantastic news for overabundant supplies of Marcellus and Utica Shale gas: Spectra Energy has asked the Federal Energy Regulatory Commission to open the valves on their Texas Eastern Transmission Gulf Markets Expansion Project. The project will shuttle supplies of natural gas from the northeast, along with supplies from Texas, to “meet the needs of demand growth in the power, industrial and LNG export sectors particularly in the Gulf Coast region of Louisiana and Texas.” Spectra began construction for the Gulf Markets Expansion Project in February. Construction will come in two stages, with the first stage targeted to go online in November. Spectra got done early and has asked for permission to begin operations at several compressor stations. More than half of the eventual 650,000 decatherms per day of new capacity along the Texas Eastern pipeline will come in the northeast, moving Marcellus/Utica gas to the Gulf Coast. Marcellus drillers EQT and Range Resources are signed up to ship gas along the expanded-capacity pipeline. Facilities along the pipeline have been or are being upgraded in Texas, Louisiana, Mississippi, Tennessee, Kentucky, Ohio and Pennsylvania. Here’s more about the project…
    Read More “Spectra Ready to Open Valve on Expanded Pipeline from NE to Gulf”

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    Dominion Lockout of Union Workers Ends, New Labor Talks Begin

    lockoutOne week ago Dominion Transmission locked out over 900 union workers, many of them in West Virginia (and others in Pennsylvania, Ohio and Maryland), preventing them from working (see Dominion Locks Out Labor Union Workers in WV-PA-OH-NY-VA-MD). Dominion has a contract with Local 69 of the Utility Workers Union of America (UWUA) that expired on April 1st and a new contract is nowhere near done being negotiated. Dominion said they didn’t want to run the risk of a strike or work slowdown during the winter months, so they locked out union members, including those that work at compressor stations and along pipelines (see Dominion Locks Out Union Workers at Compressor Stations/Pipelines). The dispute revolves around pension and health care. The union wants to keep the pension plan and health benefits it has now. Dominion wants to end paying full health benefits for new hires after they retire, and also wants to change their pension to a 401(k), shifting the risk of the pension to the individual and not the company. Although a new contract is still nowhere near ready, the lockout is over. Local 69 agreed to not strike or engage in work slowdowns, and in return Dominion will pay workers for their one week vacation/protest. Now they go back to the negotiating table and the new deadline is April 1, 2017–one year after the old contract expired…
    Read More “Dominion Lockout of Union Workers Ends, New Labor Talks Begin”

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    NEXUS Pipe Aims at Local Utilities, Signs Columbia Gas of Ohio

    exclusiveSpectra Energy’s NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, continues to build support and a good head of steam. In July the Federal Energy Regulatory Commission (FERC) issued a favorable draft Environmental Impact Statement for the project, a sure sign that FERC intends to approve it (see Spectra’s NEXUS Pipeline Gets Favorable Draft EIS from FERC). Earlier this week MDN reported the Ohio Environmental Protection Agency has granted air emissions permits to NEXUS so they can build five compressor stations (see OH EPA Grants Permits for 5 NEXUS Pipeline Compressor Stations). Even more good news: MDN has exclusively learned that Columbia Gas of Ohio (CGO) has signed a long-term contract to ship 50,000 decatherms per day (50 million cubic feet per day) of natural gas along the NEXUS from two points in Ohio and Pennsylvania to a point in Sandusky County, OH. This new agreement appears to be a shift in strategy by Spectra. How? CGO is a natural gas utility company–delivering gas to end users like residences and businesses. In industry parlance CGO is an LDC, or “local distribution company.” Much of the focus by the media on NEXUS has been that gas flowing through the pipeline will end up exported to Canada. This newest agreement shows that at least some of the gas flowing through NEXUS will stay in the region, distributed by LDCs. Cheap Utica (and Marcellus) gas will benefit Ohio residents and residents in surrounding states. Here’s the details of the CGO/NEXUS agreement…
    Read More “NEXUS Pipe Aims at Local Utilities, Signs Columbia Gas of Ohio”

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    Obama EPA, National Park Service Try to Rain on PennEast Parade

    rain-on-my-paradeVarious government agencies populated with liberal Democrats, including the Obama Environmental Protection Agency, the Obama National Park Service, the Obama Fish & Wildlife Service, and the New Jersey Environmental Protection Agency, filed negative comments about the PennEast Pipeline with the Federal Energy Regulatory Commission (FERC) on Monday. The last day to file public comments on PennEast was this past Monday, Sept. 12. In what almost seems like a coordinated attack, various agencies all filed their highly inflammatory and negative comments at the eleventh hour. The Obama EPA’s comments were particular egregious, making fantastically wild claims like building PennEast “may” end up causing arsenic in groundwater supplies. Talk about bogus B.S. (Barbara Streisand). The question is, will this unwarranted assault by federal and state agencies cause further delays in the already-delayed PennEast project?…
    Read More “Obama EPA, National Park Service Try to Rain on PennEast Parade”

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    Duke Energy Modifies/Scales Back Plan for SW OH Pipeline

    duke-energyDuke Energy Ohio, an LDC or “local distribution company” serves some half a million customers with natural gas in Ohio. The company has a ~12 mile pipeline to flow gas it needs to move from one point to another in Hamilton County, the southwest corner of the state. The Duke pipeline has been around and in service since the 1950s. Duke needs to replace that pipe or some of the half million Duke customers won’t get natural gas any more. Because anything to do with “fracking” or “pipelines” has been so thoroughly bastardized by the media and anti-drilling whack jobs, there was, of course, opposition to Duke’s plan. So Duke “listened” and has scaled back their plans. Instead of building a 30-inch gas pipeline running at 600 psi (pounds per square inch), the revised plan calls for a 20-inch pipeline running at 400 psi. Duke has proposed two potential routes (see the map below). Here’s the lowdown on Duke’s scaled-back, tiny pipeline project in Hamilton County called the Central Corridor Pipeline Extension Project…
    Read More “Duke Energy Modifies/Scales Back Plan for SW OH Pipeline”

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    OH Lets Dominion Boost Recoverable Spending on Pipe Replacement

    dominionDominion launched a $4 billion, 25-year Pipeline Infrastructure Replacement (PIR) program in mid-2008. The program involves replacing over 5,500 miles of Dominion’s 22,000-mile pipeline system. Most of the pipeline to be replaced was installed in the first half of the 1900s. Some of the pipeline (much?) is being done in Ohio. The pipelines Dominion wants to replace in Ohio are regulated by the Public Utilities Commission of Ohio (PUCO). If Dominion wants to do anything with or for the pipelines in Ohio, they first need PUCO permission. Dominion has sought, and now received, PUCO permission to expand the program in Ohio. Dominion currently spends $160 million per year on the program in Ohio. PUCO gave them permission to up that amount to $170 million next year and $200 in 2018. Why is that important? Because Dominion gets to “recover” the costs (i.e. charge the costs) to utility customers. Dominion customers in Ohio can expect to see a rate increase…
    Read More “OH Lets Dominion Boost Recoverable Spending on Pipe Replacement”

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    $4.4B Dominion-Questar Merger Happens Tomorrow

    M&AIn February MDN told you that Dominion, with a major presence in the Marcellus/Utica region, had floated a takover offer to Questar Corporation, offering to buy the company for $4.4 billion (see Dominion Resources Makes Play for Western NatGas Company Questar). Questar is a Rockies-based integrated natural gas company operating through three principal subsidiaries. The deal is an attempt by Dominion to diversify out of the northeast/Mid-Atlantic region. It’s also a deal to bump up Dominion’s natural gas footprint, lessening the company’s reliance on electric power generation which is not growing. Since that time the deal has progressed, and tomorrow the two companies will officially tie the knot…
    Read More “$4.4B Dominion-Questar Merger Happens Tomorrow”

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    PA DEP Tells Mariner East 2 to Correct “Significant Deficiencies”

    Mariner East 2
    Mariner East 2 – click for larger version

    John Hohenstein, the head honcho for dams, waterways and wetlands with the Pennsylvania Dept. of Environmental Protection (DEP) sent a strongly-worded missive (21 pages long, full copy below) to Matthew Gordon, principle engineer and project manager for Sunoco Logistics’ Mariner East 2 pipeline project last week. The letter was an assessment of Mariner East 2’s application with the state to cross numerous waterways and swamps as it is (mostly) built next to existing pipelines and stretches across 17 PA counties, spanning the state. In the letter Hohenstein tells Gordon there are “significant technical deficiencies” in the application, and unless those deficiencies are addressed by November 7, Sunoco can kiss stream-crossing approval goodbye…
    Read More “PA DEP Tells Mariner East 2 to Correct “Significant Deficiencies””

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    PA Town’s Angst Over Mariner East 2 Pipeline Near School, Park

    logo-transThere is no doubt Sunoco Logistics Partners has been pushing a boulder up a hill when it comes to the Mariner East 2 pipeline project–a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia, carting ethane, butane and propane to the facility from both the Utica and Marcellus region. For over a year the project was mired in legal challenges of whether or not it can claim public utility status, with a right to use eminent domain. In July, PA’s Commonwealth Court ruled it is a public utility with a right to use eminent domain (see Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline). But the fight continues–town by town. Nowhere is that more evident than Middletown Township in Delaware County, PA. Monday night the town council voted, unanimously, to put an ordinance on the docket for council members to vote on at the Sept. 26 meeting, an ordinance that if passed, will allow Sunoco LP to move forward with building the pipeline on public land in the town–in one case across a park, and in another close to an elementary school…
    Read More “PA Town’s Angst Over Mariner East 2 Pipeline Near School, Park”

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    Spectra Admits Detecting Corrision in Exploded TETCO Pipe 4 Yrs Ago

    Spectra blazeOn April 29, Spectra Energy’s Texas Eastern Transmission (TETCO) “Delmont Line 27” pipeline exploded in Westmoreland County, PA, seriously injuring one resident who still cannot walk after being 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). Brace yourself for news that may make you angry: An investigation four years ago (in 2012) discovered corrosion in the very area where the pipe would eventually explode. Spectra says they documented the corrosion, but pipe corrosion happens over time–this is nothing new–and the thing to do is to monitor it. Spectra planned to reexamine the welds and the corrosion again in 2019, per the normal and accepted safety schedule. According to Spectra, until now it has been observed that corrosion of pipes happens at a rate of no more than 2-3% per year. In the case of the exploding TETCO pipeline, the corrosion rate was vastly accelerated, more like 10-15% per year since the last examination. What made it speed up?…
    Read More “Spectra Admits Detecting Corrision in Exploded TETCO Pipe 4 Yrs Ago”

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    Patterson-UTI Buys Canadian Drilling Tech Company

    Patterson-UTI logoPatterson-UTI Energy is a company we watch as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around (see Turn Around! Patterson-UTI August Rig Count Up 3rd Mo in a Row). Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States and Canada. Patterson announced this morning they have agreed to buy out Canadian-based Warrior Rig Ltd., a drilling technology company. No price was disclosed. We consider it a good sign that Patterson can scrounge up enough nickles to buy another company. A sign that things are indeed beginning to look up…
    Read More “Patterson-UTI Buys Canadian Drilling Tech Company”

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    Rex Energy to Ship Marcellus Gas to Midwest & Gulf Coast in Nov

    go west young manHigher prices for Rex Energy’s Marcellus/Utica gas are on the way. Why? Because the company will, beginning in November, begin to ship some of its gas out of the northeast–to the Midwest and Gulf Coast, where it can get higher prices. So says Rex in an update issued yesterday. Rex issued an operational update yesterday to discuss recent results and the next round of drilling they plan to do–4 more wells on the Vaughn pad in Carroll County, OH–and the news that a new high pressure gathering system is on the way in Butler County, PA. Included in the update is the good news that Rex will begin to ship 100 million cubic feet per day (MMcf/d) of natgas to the Gulf Coast and 30 MMcf/d to the Midwest, starting in November, via two different pipelines. Which pipelines?…
    Read More “Rex Energy to Ship Marcellus Gas to Midwest & Gulf Coast in Nov”

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    Bought & Paid For “Research” Says 2 Marcellus Pipelines Not Needed

    cest-fauxTwo Democrat-run anti-fossil fuel organizations–the Southern Environmental Law Center and Appalachian Mountain Advocates–pooled their donated money together and went out to find a consulting firm with the veneer of respectability that could be bought off to produce a faux “report” slamming two much-needed pipelines. They found an easy mark in Synapse Energy Economics, headquartered in ultra-liberal Massachusetts. The “report” Synapse produced says neither 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), nor EQT’s $3.5 billion, 301-mile Mountain Valley Pipeline (from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA) are needed. The sham report, titled “Are the Atlantic Coast Pipeline and the Mountain Valley Pipeline Necessary?” (full copy below) is getting picked up by lazy (or propagandist) mainstream news organizations and reported as real news. It’s nothing of the sort. It’s a joke…
    Read More “Bought & Paid For “Research” Says 2 Marcellus Pipelines Not Needed”

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    Explosion, Fire Shut Down PA NatGas Electric Power Plant

    talen-energy-fire2There was an explosion, followed by a fire, at a natural gas-fired electric generating plant last night at Talen Energy’s Lower Mount Bethel power plant along Depues Ferry Road in Lower Mount Bethel Township, Northampton County, PA (Lehigh Valley area). Near as anyone can tell, the explosion and fire had nothing to do with natural gas or the plant itself. The explosion and fire were in an electrical transformer on the outside of the building that houses the machinery producing electricity. The entire plant is currently shut down, not producing electricity, to fix the transformer and to understand what happened to prevent it from happening again. Nobody was injured. The entire thing is pretty much a non-event. We mention it because of the breathless way it’s being reported–with headlines trumpeting a fire at a natgas power plant. Every year (month? week?) transformers blow up around the country outside of other types of buildings, including nuclear plants (see this one from Sept. 4 in Florida, and this one from Aug. 30 in Tennessee). Because natural gas is connected to the story in Northampton County, it’s a major headline. Again, natgas had nothing to do with explosion and subsequent fire… Read More “Explosion, Fire Shut Down PA NatGas Electric Power Plant”

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    NJ Sierra Club Game Plan – Kill Pipelines by Slowing Approvals

    PennEast in NJ
    PennEast in NJ – click for larger version

    An Associated Press article tackles the issue of the dozen plus natural gas pipelines planned to carry new supplies of Marcellus/Utica gas into New Jersey, and how/why those projects are moving along so slowly. Today is the final day for public comment on the much-needed PennEast Pipeline from the Wilkes-Barre, PA region southeast to the Trenton, NJ area. The next step is an environment study, to be done by the Federal Energy Regulatory Commission (FERC). THE Delaware Riverkeeper (aka Maya van Rossum) along with other virulent anti-fossil fuel nutters, like the NJ Sierra Club, are vigorously opposed–throwing as much horse manure and legal roadblocks at the project as they can. In other areas of the country it would take a project like PennEast about seven months to get approved. So far it’s been over two years for PennEast, with an end now in sight IF construction begins next year. The article is an update on the PennEast, with comments mostly against (a few for). The interesting part of the article is, for us, the very last sentence. We’ve told you for years that the game plan from antis is to delay and slow down approvals in hopes of getting projects canceled. We’ve had a front row seat of that (very effective) strategy here in New York State. The interesting final sentence in the AP article is an admission by the NJ Sierra Club that delay of PennEast is indeed their game plan, with the intent to “kill the pipeline”…
    Read More “NJ Sierra Club Game Plan – Kill Pipelines by Slowing Approvals”

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    UTOPIA Pipeline Still Battling OH Landowners with Eminent Domain

    UTOPIA Pipeline Project map
    UTOPIA Pipeline Project map – click for larger version

    Kinder Morgan’s UTOPIA (Utica To Ontario Pipeline Access) pipeline is a 12-inch ethane pipeline that will run 240 miles and will only be built in Ohio–therefore the Federal Energy Regulatory Commission (FERC) won’t be involved in permitting the project. In April we asked the question, Why is UTOPIA Pipeline Less “Controversial” than NEXUS in Ohio?. Perhaps that question was premature, because not long after we ran a story that Kinder Morgan was suing holdout landowners using eminent domain to allow the pipeline (see UTOPIA Pipeline Sues Holdout OH Landowners Using Eminent Domain). The real eye-popper was reading just how much Kinder Morgan was offering for easements to property owners. Of course what a landowner is offered depends on how many feet of land the pipeline will cross. Some landowners were offered up to $63,300 for an easement. In some cases, the offers were “more than 10 times the appraised value of the easement.” It’s certainly in a landowner’s best interest to settle before being forced to settle (for far less) via eminent domain. So how is the process going? The lawyer for one group of landowners says KM’s offers are low, not high. Here’s an update on the legal battles in the Buckeye State over UTOPIA…
    Read More “UTOPIA Pipeline Still Battling OH Landowners with Eminent Domain”