Energy Services

Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Atlantic Sunrise Pipeline Like Interstate Highways of Yesteryear
June 20, 2016June 20, 2016

There are many reasons why the Williams Atlantic Sunrise Pipeline project should and will get built. As we’ve covered over the past week or so, anti-fossil fuelers object because, well, because they irrationally hate fossil fuels. But this is not a new phenomenon. Back in the 50s and 60s when our nation built the Interstate highway system, we heard the very same arguments antis make today: the land will get carved up; our way of life will end; our peaceful existence is threatened; etc. We spotted an excellent “letter to the editor” that lays out the similarities of antis now and then…
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Electrical Generation | Energy Services | Industrywide Issues | Kinder Morgan | Lackawanna County | Pennsylvania | Pipelines | Regulation | Susquehanna County | Tennessee Gas Pipeline

NEPA Pipeline for Power Plant Gets Positive FERC Assessment
June 17, 2016June 17, 2016

Kinder Morgan’s Tennessee Gas Pipeline Company (TGP) is proposing to build a small pipeline near Scranton, PA to service what will be the state’s largest natural gas-fired electric generating plant, in Jessup (see Kinder Morgan 4Q15: Cutting Dividend, PA Pipeline Progress). The pipeline project is called the Triad Expansion Project and involves building seven miles of new 36-inch pipeline alongside an existing pipeline in Lenox and Clifford Townships, Susquehanna County, PA. When complete, Triad will deliver 180,000 dekatherms (180 million cubic feet) of natural gas per day to the new Invenergy plant in Jessup, called the Lackawanna Energy Center. Good news for the Triad project and the Invenergy plant: the Federal Energy Regulatory Commission (FERC) has just granted a favorable Environmental Assessment for the pipeline–all but guaranteeing its approval…
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Dominion Energy | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY

Petition Asks Gov. Cuomo to Approve Upstate Pipeline Project
June 17, 2016June 17, 2016

We hate to say this, but we’ve seen this movie before. Last October the Federal Energy Regulatory Commission (FERC) approved Dominion’s $165 million New Market Project–a project that expands Dominion’s transmission pipeline from western New York across the state to the Capital Region of the state, near Albany (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). As with any fossil fuel-related project, radical environmentalists objected (see NY Antis Flood FERC in Fight Against Dominion’s New Market Project). Also once again, there’s a holdup in New York–the Dept. of Environmental Conservation (DEC), at Gov. Cuomo’s behest, has delayed granting necessary permits for the project to begin. Can anyone say “Constitution” (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Yesterday three groups, including the Consumer Energy Alliance (CEA), the Business Council of New York State and New York State Laborers’ filed a petition with Cuomo with 10,000 signatures requesting he get off his rear-end and approve the New Market Project…
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Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

More Support for Atlantic Sunrise at FERC Hearings in PA
June 17, 2016June 17, 2016

Last night concluded a round of four public hearings held by the Federal Energy Regulatory Commission (FERC) regarding approval for Williams’ Atlantic Sunrise pipeline project. The first hearing, in Lancaster, PA, was largely a circus freak show of anti-drilling babblers (see Lancaster Antis Try to Bully Pipeline Supporters, FERC Reps). A session held in Lebanon County, PA was dominated by supporters of the pipeline (see Supporters Dominate 2nd FERC Hearing for Atlantic Sunrise Pipeline). Last night’s hearing, held in Dallas, PA (near Wilkes-Barre) also saw many supporters. One of the supporters who spoke in favor was MDN friend Kevin Lynn. MDN editor Jim Willis has appeared on Kevin’s weekend talk radio show a few times in the past (“The Shale Gas News,” heard every Saturday at 10 am on 94.3 FM in the Scranton/Wilkes-Barre area). Here’s how things went down last night in Dallas…
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Economic Impact | Energy Services | Industrywide Issues | Jobs | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH

NEXUS Awards Contracts to Build Pipeline – Union & Non-Union Labor
June 16, 2016June 16, 2016

NEXUS map – click for larger version

Spectra Energy has awarded four contracts to three companies to build the 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. Two of the three companies will use union labor, the third will not–and that’s causing some pushback from labor groups in Ohio. A NEXUS rep said that 79% of the pipeline will be built by union labor. Labor unions would prefer that percentage be 100. Spectra/NEXUS guaranteed at least 50% of the labor would be union–so the contracts far exceed their promise. A dollar figure was not released for the work. Here’s who got the work to build NEXUS…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | West Virginia

Federal EPA Throws Cold Water on Leach XPress, Rayne Xpress Pipes
June 16, 2016June 16, 2016

Columbia Leach Express map – click for larger version

In August 2014, MDN told you that Columbia Pipeline Group, a division of NiSource, had decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Rayne Xpress will beef up an existing pipeline from Leach, Kentucky that goes all the way to Rayne, Louisiana with new compressor stations and looping. The two projects together mean up to 2.7 billion cubic feet per day (Bcf/d) of natural gas can move through the entire system–from West Virginia to the Gulf Coast and all point in between. In April of this year, the Federal Energy Regulatory Commission (FERC) issued their draft Environmental Impact Statement (EIS), which was positive. Earlier this week the federal Environmental Protection Agency (EPA) came along with their comments and decided to throw cold water on both projects. Why are we not surprised?…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Williams Tries, One Last Time, to Garner Support for ETE Merger
June 16, 2016June 16, 2016

Yesterday Williams published a letter from Institutional Shareholder Services (ISS)–a “leading proxy advisory firm”–recommending that shareholders in Williams should vote “yes” on the merger with Energy Transfer Equity (ETE). Williams will hold a special shareholder’s meeting on Monday, June 27, to vote on the proposed merger. Even if a majority votes in favor of the merger–far from a foregone conclusion–it’s still not a done deal. ETE continues to assert that expert opinions on the taxability of the merger may scuttle the deal. Just a few weeks ago ETE sued Williams to abort the deal (see Midstream Soap: ETE Sues to Walk Away from Williams Takeover Deal). We view all of this–voting for the merger, etc.–as posturing. Fodder for the lawyers to use after the deal fails to consummate. Here’s the latest in our ongoing soap opera that we call, As the (Midstream) World Turns…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Regulation | Transco | Williams

Supporters Dominate 2nd FERC Hearing for Atlantic Sunrise Pipeline
June 15, 2016June 15, 2016

The silent pipeline-supporting majority became more vocal last night at a second hearing in as many days for the Williams Atlantic Sunrise Pipeline. Monday night’s Federal Energy Regulatory Commission (FERC) public hearing was a circus-like freak show, complete with one crazy wearing a cape like he’s Superman (see Lancaster Antis Try to Bully Pipeline Supporters, FERC Reps). In contrast, last night’s FERC hearing at Lebanon Valley College in Annville was dominated by solid, clear-thinking residents who support the pipeline and the benefits it will bring to the community. Oh there were a few crazies present, but nothing like the night before…
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Energy Services | Industrywide Issues | Michigan | NEXUS Pipeline | Regulation | Statewide MI

DTE Energy Wants Ratepayers to Pay if NEXUS Pipe is Unprofitable
June 15, 2016June 15, 2016

NEXUS Pipeline Project – click for larger version

DTE Energy is a Detroit-based energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.2 million customers in Southeastern Michigan, and a natural gas utility serving 1.2 million customers in Michigan. DTE’s businesses include power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and trading. DTE has its fingers in a lot of energy pies. DTE is one of the main customers for the 255-mile, $2 billion NEXUS interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada (see Spectra Energy Files Formal FERC Application for NEXUS Pipeline). DTE is also one of the backers/partners in NEXUS–providing money for the project. Spectra Energy will be the managing partner that actually builds and maintains NEXUS. DTE has asked Michigan regulators for a guarantee that it can pass along NEXUS costs to gas and electric ratepayers IF the utility’s gas supply costs from NEXUS prove to be unprofitable. That doesn’t sit well with many people, including Michigan’s Attorney General…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Pennsylvania | Pipelines | Regulation | Williams

Lancaster Antis Try to Bully Pipeline Supporters, FERC Reps
June 14, 2016June 14, 2016

MDN has attended several Federal Energy Regulatory Commission (FERC) “scoping hearings” in the past (see Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). So we’ve seen first-hand the kind of antics that virulent anti-fossil fuelers engage in at such hearings. Which has led us to comment these hearings are often freak shows–a forum for these people to vent and verbally vomit all over FERC representatives. Such was the case last night in Lancaster, PA at a public hearing held by FERC for the much needed, largely noncontroversial Atlantic Sunrise Pipeline, to be built by Williams. A group of 250-350 (depending on the media source) showed up to listen, with some speaking, at last night’s hearing. Not all in the audience were antis–but many were. People who support the pipeline have better things to do with their time than listen to nutters bleat and blat and carry on. Let’s put the numbers in perspective. Lancaster and Lebanon counties have a combined total population of 653,000 residents. Of that, 350 showed up for the hearing. If all 350 were against the pipeline (which wasn’t the case, but bear with us), that would be .05% of the population–statistically zero. And yet this very small group with very big mouths get all of the media coverage from the event…
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Axiall | Energy Services | Ethane | Industrywide Issues | M&A | Marshall County | Processing Plants | West Virginia

Westlake Chemical Buys Axiall, Enters NE Cracker Market
June 14, 2016June 14, 2016

In December MDN told you that Axiall Corporation, a large petrochemical manufacturer, had made a final investment decision to move ahead and build a $3 billion ethane cracker/petrochemical facility in Louisiana (see Final Decision: Axiall Building Ethane Cracker in LA…NE Ethane?). Based on comments and various news accounts, we shared with you the opinion that its almost certain the plant will be supplied by shale gas from the Marcellus/Utica region (see Axiall Announces New Cracker Plant for LA, Fed by NE Ethane). Axiall owns, among other things, a large petchem plant in Marshall County, WV, the former PPG chemical plant along W.Va. 2 which Axiall bought just three years ago. Last Friday Westlake Chemical, another large petchem manufacturer, announced they are buying Axiall lock, stock and barrel–for $3.8 billion. Among the comments Westlake made is that it “looks forward” to working on the ethane cracker plant in Louisiana. Welcome to the Marcellus, Westlake!…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Will ETE Use FTC’s “Condition” to Scuttle Proposed Williams Merger?
June 13, 2016June 13, 2016

Gulfstream Natural Gas System map

As MDN reported on Friday, the Federal Trade Commission has granted conditional approval of the Energy Transfer Equity (ETE)/Williams merger deal. The one condition FTC made is that Williams must sell its 50% ownership in Gulfstream Natural Gas System LLC, located in Florida (see As the (Midstream) World Turns: FTC Approves ETE/Williams Merger). ETE has been looking for a way to back out of the deal without losing its shirt in the process. So the question becomes, Will ETE use the FTC condition to scuttle the deal? Or at a minimum, use it to drive Williams back to the table to renegotiate the deal?…
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Braskem | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

A Pulse! WV Ethane Cracker Project Comes Back from the Dead
June 10, 2016June 10, 2016

What’s this? The all-but-dead ethane cracker project planned for West Virginia has new life! (Perhaps the Shell announcement has something to do with it?) Brazilian company Odebrecht has pulled out of the Appalachian Shale Cracker Enterprise (ASCENT) project previously announced for the Parkersburg, WV area (see Odebrecht Pushes the Pause Button on WV Ethane Cracker). However, Odebrect subsidiary Braskem has confirmed they will now move forward with developing the project on their own. If this bears out, it is fantastic news for a state that (in our opinion) deserves a cracker. But before you get overly excited, Braskem’s announcement that they are now the lead on the project is still not a confirmation they will build it. Braskem is still in the evaluation stage…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lease & Royalty Payments | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH

CORNballs Claim Most OH Landowners Won’t Sign NEXUS Pipeline Lease
June 10, 2016June 10, 2016

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 (see Spectra Energy Files Formal FERC Application for NEXUS Pipeline). 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. A group of anti-fossil fuelers calling themselves the Coalition to Reroute Nexus, or CORN, is trying to stop the project (not reroute it). We affectionately call the nutters, “CORNballs” here at MDN. Earlier this year the CORNballs tried to incite trouble by telling landowners to call the police if NEXUS surveyors showed up on their doorstep to ask permission to survey (see CORNballs Tell OH Landowners to Call Police & AG to Stop Pipeline). The CORNballs are back, claiming that the vast majority of landowners along the proposed route for NEXUS have not, and will not, sign an easement to allow the pipeline…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Regulation | Williams

As the (Midstream) World Turns: FTC Approves ETE/Williams Merger
June 10, 2016June 10, 2016

In our ongoing soap opera of whether or not Energy Transfer Equity and Williams will tie the knot, another new development to report. Yesterday the Federal Trade Commission (FTC) gave the deal its stamp of approval–providing Williams sells its 50% ownership in Gulfstream Natural Gas System LLC (located in Florida). Yesterday both Williams and ETE issued the same, nearly word-for-word identical statements, indicating some level of communication between the two still exists…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

TETCO PA Pipeline Explosion Still Limiting NatGas Flow Month Later
June 9, 2016June 9, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months (see Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion). One of the four lines that was offline (Line 19) was examined and certified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in early May to go back online (see TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident). But since that time the other three lines have remained idle. When will the other three lines go back into service? And, did the Line 27 explosion cause any lasting airborne hazards?…
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