Energy Services

Energy Services | Enterprise Products Partners | Industrywide Issues | M&A | Williams

Corporate Raiders Try to Incite Shareholder Revolt at Williams
August 22, 2016August 22, 2016

On Friday MDN reported that Enterprise Products Partners, a huge midstream company, wants to buy Williams (see Here We Go Again: Enterprise Products Wants to Buy Williams). Yes, we’ve seen this movie before. Last year Energy Transfer Equity’s CEO Kelcy Warren tried the same thing–which ended in disaster earlier this year (see Dead as a Doornail: ETE Terminates Merger with Williams). History is repeating itself. The same agitators–corporate raiders–are once again pressuring Williams to accept the Enterprise offer as they tried to get Williams to accept ETE’s earlier offer. Keith “Mini Me” Meister, a protege of Carl Icahn, is one of the corporate raiders pressuring Williams. Why? So Mini-Me can flip his large amount of Williams stock at a considerable profit (screwing employees of Williams in the process). Once again, here’s why corporate raiders, like Keith Meister, are disgusting low-lifes in our book…
Read More “Corporate Raiders Try to Incite Shareholder Revolt at Williams”
Ashtabula County | Energy Services | Industrywide Issues | Ohio | Processing Plants | Velocys

Ashtabula, OH GTL Plant on Hold “Indefinitely”
August 22, 2016August 22, 2016

Last month MDN brought you the news that UK-based Velocys, a company that builds gas-to-liquids (GTL) plants has, for now, put a previously planned GTL plant project in Ashtabula, OH on hold (see Velocys Puts Ashtabula, OH Gas-to-Liquids Plant Put on Hold). As a quick reminder, GTL plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and (for Ashtabula) waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing a GTL plant in eastern Ohio. Buried in a press release in early July, Velocys said it had put the Ashtabula project “on hold” because they can’t get investors to pony up money for the project. Later in July the company issued a newsletter in which the reason for the delay seems to have changed. They now say the wax market in North America is not economical–at least right now. The local newspaper in Ashtabula picked up on that statement and is saying the Ashtabula project is on hold “indefinitely”…
Read More “Ashtabula, OH GTL Plant on Hold “Indefinitely””
Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica
August 22, 2016August 22, 2016

How low can you go, and still make money? That’s the question TransCanada is testing in a bid to compete with cheap Marcellus/Utica natural gas that is heading to Canada via new pipelines, including Energy Transfer’s Rover and Spectra Energy’s NEXUS pipelines. Last month MDN reported that TransCanada has a plan to use existing pipelines from Western Canada to Eastern Canada–from Alberta to Toronto–to ship more natural gas from west to east (see TransCanada’s Plan to Undercut/Displace Gas from the Marcellus). The aim is to make it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. As an interesting aside, even though TransCanada wants to compete with gas coming from the Marcellus/Utica, they recently bought a big piece of Marcellus/Utica infrastructure by buying Columbia Pipeline (see TransCanada and Columbia Pipeline Tie the Knot Today). If you can’t beat ’em, buy ’em. Here’s the latest on TransCanada’s low low low pipeline rates (42% less) to ship gas from Western Canada…
Read More “TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica”
Energy Services | Industrywide Issues | Iroquois Gas Transmission | Pipelines | Regulation

Iroquois Gas Pipeline Offers to Cut Rates for Customers
August 22, 2016August 22, 2016

Click for larger version

This past January the Federal Energy Regulatory Commission (FERC) launched five investigations into four pipelines, three of which operate in the northeast, to determine whether or not those pipelines have been “substantially” overcharging their customers with the excuse of “we have to recover our costs” (see FERC Investigates 3 Northeast Pipelines for Overcharging). Although you might think the free market would govern what pipelines charge, pipelines, like other utilities, don’t operate in a totally free market. You can’t just up and leave one pipeline and take your gas to another. The government grants permission to operate, and the government keeps an eye on the rates charged–just like they do with your local gas and electric company. One of the pipelines under investigation is the Iroquois Gas Transmission pipeline, which runs mostly through New York State. Iroquois has just filed an offer to lower rates for its shippers, to make the FERC investigation go away…
Read More “Iroquois Gas Pipeline Offers to Cut Rates for Customers”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Spectra Energy | Statewide NY

Antis Ask NY Senators to Beseech Lord Obama to Stop AIM Pipeline
August 22, 2016August 22, 2016

Click for larger version

The irrational demands of radicals in New York State are getting out of hand. In March New York’s spineless Gov. Andrew Cuomo asked the Federal Energy Regulatory Commission (FERC) to stop work on the Algonquin Incremental Marketing (AIM) pipeline project because it comes close to an existing nuclear power plant (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). A few days later the Federal Energy Regulatory Commission (FERC) told Gov. Andy to stuff it (see FERC Denies NY Request to Stop Work on Pipeline Near Nuke Plant). Following FERC’s denial, some of the worst of the worst Big Green groups, including Riverkeeper Inc., Sierra Club and Food & Water Watch sued to stop it (see Radical Enviro Groups File Appeal to Stop AIM Pipeline in NY/CT). Apparently that effort is either taking too long, or the radicals believe it’s not going to work, because they are now calling it “an emergency” and demanding New York’s far-left U.S. Senators, Chuck “the schmuck” Schumer and Kirsten “nobody ever heard of her” Gillibrand “carry the message” to the White House to stop the AIM project. That is, they want High Lord Obama to issue another one of his illegal Executive Orders or lean on FERC to stop the AIM project…
Read More “Antis Ask NY Senators to Beseech Lord Obama to Stop AIM Pipeline”
Energy Services | Enterprise Products Partners | Industrywide Issues | M&A | Williams

Here We Go Again: Enterprise Products Wants to Buy Williams
August 19, 2016August 19, 2016

Just when you thought things had finally settled down with midstream giant Williams, a new rumor is making the rounds. Brief history: Energy Transfer Equity’s (ETE) billionaire CEO Kelsy Warren propositioned Williams for over six months before going public with his overtures (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). Now the rumor mill is buzzing. Another company, Enterprise Products Partners, is making overtures to buy Williams for an undisclosed sum…
Read More “Here We Go Again: Enterprise Products Wants to Buy Williams”
Anti-Drilling/Fossil Fuel | Dominion Energy | Electrical Generation | Energy Services | Industrywide Issues | Litigation | Pipelines | Statewide VA | Virginia

Sierra Club Lawsuit Seeks to Block Power Plant, Atlantic Coast Pipe
August 19, 2016August 19, 2016

In March 2015, Dominion–a huge natural gas and electric utility as well as a midstream company–announced plans to build the State of Virginia’s largest natural gas powered electric generating plant, in Greensville County, VA (see Virginia’s Largest Electric Plant to be Powered by Marcellus Gas). The $1.3 billion state-of-the-art natural gas-fired electric generating station will generate 1,600 megawatts of electricity. Dominion’s own $5 billion, 554-mile Atlantic Coast Pipeline will provide cheap, abundant, clean-burning Marcellus/Utica Shale gas to power it (see Atlantic Coast Pipeline Makes Progress, FERC Timing Announced). The Virginia State Corporate Commission (SCC) approved the project in March of this year (see Virginia Approves State’s Largest NatGas-Powered Electric Plant). In June, Dominion began construction (see Dominion Begins Building Virginia’s Biggest NatGas Power Station). On Tuesday, environmental Nazis from the Sierra Club and Appalachian Mountain Advocates filed a federal lawsuit (in Virginia) to stop both the power plant and the pipeline, claiming the power plant won’t use the “best available emissions control technology” and that the pipeline will leak methane like a sieve…
Read More “Sierra Club Lawsuit Seeks to Block Power Plant, Atlantic Coast Pipe”
Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

More Bleating from Radical Anti Groups re FERC PennEast Hearings
August 18, 2016August 18, 2016

We’re sorry to beat a dead horse (or goat, in this case) to death, but we can’t help it. We have another shining example of far-left environmental radicals who are bleating about the Federal Energy Regulatory Commission’s (FERC) change-up in the way they accepted public comments on the PennEast Pipeline project. We first reported the antis are up-in-arms two days ago (see FERC Alters PennEast Hearing Process to Reduce Antis’ Bleating). Yesterday we shared the spitting and sputtering done by THE Delaware Riverkeeper herself, Maya van Rossum (see THE Delaware Riverkeeper Mad – Can’t Bleat at FERC Hearings). Today it’s the radicals at the New Jersey Conservation Foundation and Stony Brook-Millstone Watershed Association. Maaaaaaahhhh…
Read More “More Bleating from Radical Anti Groups re FERC PennEast Hearings”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

THE Delaware Riverkeeper Mad – Can’t Bleat at FERC Hearings
August 17, 2016August 17, 2016

As we reported yesterday, the Federal Energy Regulatory Commission (FERC) has found a way to eliminate the histrionics practiced by anti-fossil fuel nutjobs who want to oppose the PennEast Pipeline at FERC hearings (see FERC Alters PennEast Hearing Process to Reduce Antis’ Bleating). FERC is denying antis an audience in front of which to engage in the circus-like freak show they love to perform. And that has THE Delaware Riverkeeper–Maya van Rossum–hopping mad. She calls the new procedure of delivering comments in a private room before a single FERC rep and stenographer “a faux public hearing.” You see, antis needs an audience, otherwise their pathetic lives have no meaning. Without hooting and hollering and making outrageously false claims (i.e. lies), where’s the fun? Without an audience, Maya’s minions will just stay home instead. Oh oh. That’s not good! Here’s how Riverkeeper stenographers at the Philly Inquirer are reporting it…
Read More “THE Delaware Riverkeeper Mad – Can’t Bleat at FERC Hearings”
Energy Services | Seventy Seven Energy

Seventy Seven Energy 2Q16: Shed $1B Debt, Lost $84.5M
August 17, 2016August 17, 2016

Earlier this month MDN reported that oilfield services company Seventy Seven Energy (SSE), the former Chesapeake Oilfield Operating company, had popped out of bankruptcy in record time–just two months after declaring bankruptcy (see Seventy Seven Energy Pops Out of Chapter 11 Bankruptcy in 2 Mos.). The bankruptcy reduced more than $1 billion worth of debt by waving a magic wand and turning debt into equity (shares of stock)–hosing existing stockholders. We also reported SSE was cleared to borrow another $100 million (go figure). Last week SSE released their second quarter 2016 update. It shows the company lost $84.5 million in 2Q16, compared to losing $74.7 million in 2Q15. Here’s the SSE 2Q16 update…
Read More “Seventy Seven Energy 2Q16: Shed $1B Debt, Lost $84.5M”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Williams

Sign Letter to PA Gov. Wolf re Support Atlantic Sunrise Pipeline
August 17, 2016August 17, 2016

Pennsylvania residents: It’s time to (once again) show your support for the Atlantic Sunrise Pipeline project, a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. It is a much-needed pipeline to move more Marcellus gas south, to new markets. In the past MDN has asked you to sign letters going to the Federal Energy Regulatory Commission (FERC) and to the PA Dept. of Environmental Protection (DEP). And you, our dear readers, have been the most responsive audience to get behind the effort to support this project. Thank you! We’re coming to you again with a new request. Please electronically sign a letter that will go to PA Gov. Tom Wolf, requesting his support for the project. Wolf’s active support of the project will go a long way toward ensuring it gets built. All you need to do is fill out your name and a few details and click the “Sign” button–it literally takes less than 60 seconds. Please take a moment and do it right now by clicking this button:
Crestwood Midstream | Energy Services | New York | Schuyler County

Rally in Support of Finger Lakes Propane Storage Facility
August 17, 2016August 17, 2016

Click for larger version

Late breaking news: Tomorrow (Thursday), Aug. 18 there will be a rally to support Crestwood’s Finger Lakes LPG Storage Facility planned for the shore of Seneca Lake. The rally will be located at the entrance of the facility, at 3768 NYS Route 14 North, Watkins Glen, NY at 4:30 pm. The New York State Dept. of Environmental Conservation continues to obstruct this vitally important piece of infrastructure. The facility planned would store LPG (liquefied petroleum gas, or propane) in a depleted underground salt cavern. Anti fossil fuel wackos have been protesting continuously for the past several years. Many of them have been arrested for illegally blocking the entrance to the facility. Here’s your chance to show up and show your support for the facility, and send a loud and clear message to Andrew Cuomo that enough is enough. Here’s the details for the rally…
Read More “Rally in Support of Finger Lakes Propane Storage Facility”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lehigh County | Northampton County | PennEast Pipeline | Pennsylvania | Pipelines | Regulation

FERC Alters PennEast Hearing Process to Reduce Antis’ Bleating
August 16, 2016August 16, 2016

We’ve sat through our fair share of public hearings and open houses for pipelines–from Federal Energy Regulatory Commission (FERC) hearings to state agency hearings to open houses sponsored by midstream companies (see Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). The script is always the same. Anti-fossil fuel freaks show up and perform before the cameras and microphones. That’s what they are there to do–engage in a circus act. When they are denied such an opportunity, they complain (see Williams’ Smart Open House in Lebanon County Confounds Antis). FERC hearings are always the same–show up and sign up to speak, with 3 or 4-minute allotments for each speaker. And speakers are taken in the order in which they signed in. Those in the audience who are for or against typically applaud or issue boos and insults. We have often said FERC personnel should get hazard pay for sitting through 4-hour marathons of this nonsense. FERC has wised up. They held a public hearing last night in the Bethlehem, PA area for the proposed PennEast Pipeline project. Instead of a public forum, FERC set two private rooms with a stenographer in each. FERC recorded comments two-at-a-time, in private. And they saved themselves all of the theatrics by anti-drilling trolls. And of course, that didn’t sit well with the antis. Most of the antis who spoke were reading from cue cards prepared for them by THE Delaware Riverkeeper, Maya van Rossum. The antis are so dumb they can’t even form their own thoughts about why they are against the project! Too funny…
Read More “FERC Alters PennEast Hearing Process to Reduce Antis’ Bleating”
Energy Services | Williams

Williams to Appoint 3 New Board Members, Replace Raiders Who Quit
August 16, 2016August 16, 2016

The big news in the midstream world over the past year was the attempted merger/takeover of Williams by Energy Transfer Equity. That deal finally fell apart in June (see Dead as a Doornail: ETE Terminates Merger with Williams). The only thing left still going on to do with that botched attempt is lawyers arguing about who owes what to whom (keeps the lawyers gainfully employed). After the deal failed, some Williams board members (namely two corporate raiders) attempted a palace coup. They tried to oust Williams CEO Alan Armstrong. When that effort failed, nearly half of the Williams board–who thought they would get rich quick by a sale to ETE–up and quit (see Half of Williams Board, Including 2 Corporate Raiders, Quit). Since last month Williams has been down 6 out of the original 14 board members. Time to fix that. Yesterday Williams announced it will name three new independent directors to the board in time for the annual meeting in November. No names were floated as potential candidates…
Read More “Williams to Appoint 3 New Board Members, Replace Raiders Who Quit”
Chesapeake Utilities | Electrical Generation | Energy Services | Industrywide Issues | Pipelines | Regulation

FERC Approves Plan to Deliver NatGas to Delaware Power Plant
August 15, 2016August 15, 2016

In July MDN reported that the Federal Energy Regulatory Commission (FERC) has approved Eastern Shore Natural Gas’ (ESNG) System Reliability Project (see 600 Days & Counting to Build a 7-Mile NatGas Pipeline in PA-DE). ESNG is a local gas utility serving the Delmarva Peninsula, which includes most of Delaware and portions of Maryland and Virginia. Their System Reliability Project includes 10.1 miles of new looping pipeline and a compressor station upgrade. Part of that pipeline has taken nearly two years to get approved, thanks to the insane objections of anti-fossil fuelers. It is good news that the project is moving forward. On the heals of that approval comes another FERC approval for ESNG: FERC has approved ESNG’s plan to deliver an extra 45,000 dekatherms per day of natural gas via its pipeline to service Calpine’s 309 megawatt electric generation plant in Dover, Delaware…
Read More “FERC Approves Plan to Deliver NatGas to Delaware Power Plant”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Regulation

Atlantic Coast Pipeline Makes Progress, FERC Timing Announced
August 15, 2016August 15, 2016

Atlantic Coast Pipeline

More good news for 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. In March MDN reported Dominion has agreements for 96% of the capacity along the 1.5 billion cubic feet per day pipeline (see Dominion’s Atlantic Coast Pipeline Makes Major Strides). Not only that, but 90% of the landowners along the pipeline’s proposed route have granted Dominion survey access and many of them have signed easements allowing Dominion to build the pipeline across their land. The new news is that the Federal Energy Regulatory Commission (FERC) has set June 30, 2017 as the date by which the agency will issue their final environmental impact statement for the project. In other words, we now have specific dates for when this project will advance…
Read More “Atlantic Coast Pipeline Makes Progress, FERC Timing Announced”