Energy Services

Carroll County | Energy Services | Harrison County | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines

Cornerstone Pipeline Slightly Delayed, Construction Begins in May
April 6, 2016April 6, 2016

In the middle of March MDN brought you the news that Marathon Petroleum was saying they would begin construction on the Cornerstone Pipeline “in the next several weeks”–meaning by the beginning of April (see Cornerstone Liquids Pipeline Set to Begin Construction in E Ohio). The timeline has been moved back a month. Marathon officials are now saying construction won’t begin until May. Cornerstone is a $250 million, 50-mile liquids pipeline being built by Marathon from the MarkWest cryogenic processing plant in Cadiz (Harrison County, now owned by Marathon), northwest connecting to M3’s fractionator plant in Scio (also in Harrison County) and M3’s cryogenic processing plant in Leesville (Carroll County) before terminating and connecting to Marathon’s refinery in Canton, OH (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The pipeline will carry, at various times, crude oil, condensate and natural gasoline. No reason was given for the delay…
Read More “Cornerstone Pipeline Slightly Delayed, Construction Begins in May”
Albany County | Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Williams

RFK Jr Invokes Religion at Anti-Pipeline Rally in Albany, NY
April 6, 2016April 6, 2016

A group of around 200 anti-fracking activists–or fractivists–protested at the steps of the New York State Capitol Building in Albany, NY yesterday. They were there nominally to protest Gov. Cuomo’s inevitable cave to allow the Constitution Pipeline to be built across the eastern portion of the state. However, the language from the speakers–in particular from the rather nutty Robert F. Kennedy, Jr. (i.e. “Junior”)–was instructive. These people are fossil fuel haters–and their speeches dripped with their irrational hatred for all fossil fuels. Junior called fossil fuels “the dirtiest fuels from hell,” and then he called so-called renewable energy “patriotic fuels from heaven.” Some of you have laughed and poked fun at MDN, some of you have written us in anger, some have even unsubscribed when we have commented in the past on the hysterical and irrational antics of anti-fossil fuelers, pointing out that their belief in man-made global warming is religious and faith-based and NOT rooted in science. Junior’s own words yesterday are 100% vindication of our position. He couches the debate over fossil fuels in religious language. We were, and always have been, right about anti-drillers. The vast majority of antis don’t oppose drilling because of “water contamination” or “air pollution” or “methane migration” or any of a hundred other red herring excuses. They object because they fervently choose to believe in global warming, with no scientific evidence whatsoever, making all fossil fuels “evil” in their twisted worldview…
Read More “RFK Jr Invokes Religion at Anti-Pipeline Rally in Albany, NY”
CNG/LNG | Energy Services | Exporting | Industrywide Issues | Kinder Morgan

Kinder Morgan’s Elba Island, Georgia LNG Export Plant Progresses
April 6, 2016April 6, 2016

Last July Kinder Morgan bought out joint venture partner Shell’s portion of a proposed LNG (liquefied natural gas) project on the coast of Georgia (see KM Buys Shell’s Share in Elba LNG Export Plant, Marcellus Exports?). What does the Georgia Elba LNG plant have to do with Marcellus/Utica? Maybe nothing, but we suspect something. Kinder’s arch rival Williams owns the mighty Transco pipeline that connects, via the Elba Express pipeline, to the LNG facility. Currently Elba Island imports LNG. However, Williams has been on a mission to send Marcellus gas south–including to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). We don’t think it’s much of a stretch that Marcellus Shale gas, via the Transco, will be at least some of, if not the primary, source for gas exported from the Elba facility. The Elba facility is progressing. Yesterday Kinder announced “a contract for the engineering, procurement, construction, commissioning and startup of Kinder Morgan’s natural gas liquefaction project at Elba Island, near Savannah, Georgia.” The contract was awarded to IHI E&C…
Read More “Kinder Morgan’s Elba Island, Georgia LNG Export Plant Progresses”
Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?
April 5, 2016April 5, 2016

We understand the value of a healthy, optimistic attitude. We consider ourselves to be a “glass half full” rather than “glass half empty” type of people. But we’re also realists. Last week the builders of the proposed PennEast Pipeline–a $1.2 billion, 114-mile, 36-inch diameter pipeline that will deliver approximately 1 billion cubic feet of natural gas per day from the Marcellus gas fields of northeastern PA to locations in southeastern PA and across the border to Trenton, NJ–received what we considered bad news. The Federal Energy Regulatory Commission (FERC) told PennEast they would extend the amount of time they are taking until December of this year, rather than August, to complete their Environmental Review. And FERC won’t issue their final decision on authorizing the project until March 2017–at the earliest. PennEast had requested FERC wrap it all up by this August–an 8-month delay. In our book, that’s mildly bad news. But yesterday PennEast issued a press release saying the FERC announcement is an “important milestone,” almost lauding FERC for moving so quickly given a plateful of pipeline applications–even though it means the PennEast project now won’t be completed until 2018 instead of 2017. Is this a “glass half full” optimistic attitude? Or self-deluding denial? We can think of many reasons why it’s a manifestly bad thing that FERC has delayed–not the least of which is are multiple lawsuits sure to be launched by the radicals at THE Delaware Riverkeeper…
Read More “PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Orange County | Pipelines | Spectra Energy | Westchester County

Hypocrites Protest “Fracked Gas Infrastructure” in Hudson Valley
April 5, 2016April 5, 2016

We spotted a story from the Hudson Valley area of New York State–close enough to New York City that it’s infested with anti-drilling liberals–that caught our attention for a couple of reasons. It’s a story of about a protest held yesterday in Peekskill, NY. The protest was against Spectra Energy’s work on their Algonquin Incremental Market (AIM) pipeline project. From all appearances, four protesters showed up for the protest–and yet it got big news treatment. Most Sundays there are more than four people who show up at MDN HQ for lunch (when our kids come home to visit). The local newspaper hasn’t ever shown up to cover these momentous (for the Willis household) events. Perhaps if we held up a big banner outside that says “Welcome Home Children” the local news outlets would arrive and cover it? But we digress. The other aspect of the story that caught our attention is the admission by one of the protesters that they not only oppose the AIM project–they oppose all “fracked gas infrastructure” projects. She is demanding that NY “transition to safe, clean, renewable energy, which is wind, water and solar.” That is, the protesters are animated and motivated by an irrational hatred of all fossil fuels. How did the protesters arrive at their protest? Driving cars that burn fossil fuels riding on tires made from petroleum products and sitting on seats made from plastic (a petroleum product) wearing clothes on their bodies and shoes on their feet made from petroleum products. Holding up signs objecting to…petroleum products…
Read More “Hypocrites Protest “Fracked Gas Infrastructure” in Hudson Valley”
Dominion Energy | Energy Services

Dominion Floats 10.2M Shares of Stock for $750M, Help w/Questar
April 5, 2016April 5, 2016

Midstream and utility company giant Dominion announced yesterday they are floating 10.2 million new shares of common stock in the company, hoping to raise $750 million. Dominion says it will use the money for “general corporate purposes,” to repay debt, etc.–but perhaps most importantly, to help “fund in part Dominion’s combination with Questar Corporation.” Questar is a Rockies-based integrated natural gas company and Dominion is attempting to buy them for $4.4 billion–so every penny counts in that endeavor (see Dominion Resources Makes Play for Western NatGas Company Questar). Here’s the particulars of Dominion’s new stock offering…
Read More “Dominion Floats 10.2M Shares of Stock for $750M, Help w/Questar”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Litigation | M&A

DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger
April 5, 2016July 14, 2016

So what’s happening with Halliburton’s $34.6 billion buyout of Baker Hughes? At last check the deal was at best a 50/50 proposition as to whether or not it would happen. Europe currently has the deal under a microscope (see Europe Puts Halliburton/BH Merger Under a Microscope). The European Commission launched a “second phase” of their investigation into the deal, which is problematic for Halliburton. The European Commission says they see “serious potential competition concerns” with the deal. Not good. But that was in January. Since then we’d not heard anything about the deal’s progress–until now. Yesterday the U.S. Dept. of Justice sued ValueAct Capital, accusing the company of purchasing $2.6 billion worth of stock in Halliburton and BH with “the intent to influence the companies’ business decisions as the merger unfolded.” The company has been charged with violating the reporting and waiting period requirements of the Hart-Scott-Rodino Antitrust Improvements Act…
Read More “DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger”
Anti-Drilling/Fossil Fuel | Crime | Energy Services | Huntingdon County (PA) | Industrywide Issues | Pennsylvania | Pipelines | Sunoco Logistics

‘Wackos in the Trees’ Protest Continues in Huntingdon County, PA
April 1, 2016April 1, 2016

Yesterday we told you about a Big Green effort to stop tree clearing for the Mariner East 2 pipeline in Huntingdon County, PA–about a young woman who climbed 40 feet up a tree to sit in a tree house so crews could not cut down the trees around her (see PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline). She’s still “up a tree.” Looks like her publicity stunt worked because starting today crews can’t legally cut any more trees for fear of hurting an Indiana bat. (We say it’s more than bats that are batty in Huntingdon County.) The young woman’s mother, who happens to own the property and the trees, was arrested approaching the cutting crews (after being told by a judge to stay away) because, she says, she feared they would cut a tree close to her ~~blithering idiot~~ daughter and hurt her. There’s also another nutter up a tree on the property. Even though the tree climbers prevented harvesting of a few trees, Sunoco Logistics, the builder of the pipeline, says it’s no big deal–they got almost all of the trees cut they needed to and come fall it won’t take long to nip the last few. Here’s how anti-drilling PBS (funded in part with taxpayer dollars) reported the ongoing “tree-sit,” as they call it…
Read More “‘Wackos in the Trees’ Protest Continues in Huntingdon County, PA”
Energy Services | Fairmount Santrol | Industrywide Issues | Ohio | Regulation | Sand/Proppant | Statewide OH

SEC Investigates OH Frac Sand Company for Allegedly Paying Bribes
April 1, 2016April 1, 2016

One of the largest frac sand providers for shale drillers in the U.S. is Fairmount Santrol. Based in Ohio, Fairmount sells proppants (sand and other substances used in oil and gas drilling) around the world. Apparently Fairmount’s dealings in another country is what has landed them in hot water with the U.S. Securities and Exchange Commission. The SEC is investigating Fairmount under the Foreign Corrupt Practices Act. The company is accused of paying bribes to foreign officials for help in getting business. We’re not excusing such behavior, but come on, really? You don’t think such things don’t go on a million times a day in every industry from oil & gas to dog food?? Sounds more like a fossil fuel industry witch hunt to us than a legitimate investigation…
Read More “SEC Investigates OH Frac Sand Company for Allegedly Paying Bribes”
Anti-Drilling/Fossil Fuel | Crime | Energy Services | Huntingdon County (PA) | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline
March 31, 2016March 31, 2016

Another environmentalist has tipped over the edge. The daughter of a landowner in Huntingdon County, PA scampered up a tree and planted herself there to prevent that tree and others near it from being cut down by crews clearing a path for the Mariner East 2 pipeline. Just two days ago we told you that Huntingdon County Common Pleas Judge George Zanic previously issued an order to Ellen Gerhart to allow tree clearing on three acres of her property (see Court Grants Mariner East 2 Right to Clear Trees in Huntingdon, PA). Gerhart’s daughter Elise literally “went up a tree” yesterday to a platform pre-built there, between two trees, and says she’ll stay there until the end of the week when tree-clearing season is over. You can’t clear trees after March 31st for fear of killing a threatened bat species. No word on when/if authorities will climb the tree and forcibly remove her. Thing is, she’s not alone. Radical environmentalists are behind Gerhart’s stunt. Two well-known anti-drilling radicals were arrested for blocking work at the site–and bail was set at $100,000 each. Yes, it’s time to get serious with these repeat lawbreakers. It’s also time to go up the tree and extricate Ms. Gerhart and put her in jail with them…
Read More “PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline”
Air Quality | Dominion Energy | Energy Services | Industrywide Issues | NiSource | Regulation | UGI Energy Services

Dominion & NiSource Bow Down to Lord Obama, Worship the EPA
March 31, 2016March 31, 2016

Yesterday the Environmental Protection Agency (EPA) unveiled the Natural Gas STAR Methane Challenge Program at the Global Methane Forum held in Washington, DC. The Methane Challenge is a “voluntary” program for obsequious companies to pretend they’re concerned about so-called fugitive methane escaping into the atmosphere and toasting Mom Earth. Silly, we know–but this is how some billion dollar companies gain favors from the political establishment–and improve their evil fossil fuel image with the nutjobs who believe in this stuff. Tragically, several Marcellus midstream companies, including Dominion, NiSource and UGI signed on to this flummery. There are 41 such companies from across the country who have signed on to the Methane Challenge (we list them all below). Prediction: It won’t be long before this “voluntary” program becomes involuntary–with the jackboots of the EPA on the necks of all oil and gas companies to get them to comply with the unrealistic standards in the program…
Read More “Dominion & NiSource Bow Down to Lord Obama, Worship the EPA”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

CORNballs Tell OH Landowners to Call Police & AG to Stop Pipeline
March 31, 2016March 31, 2016

MDN has written a number of stories about CORN–the COalition to Reroute NEXUS (see our stories here). The CORNballs have just resurfaced to pedal more obstructionist advice, hoping to incite a riot against a simple pipeline in Ohio. Do you know how many thousands of miles of pipelines already exist in Ohio–and have for generations? And yet this group falsely paints a picture of environmental holocaust if one more pipeline is built in the Buckeye State. Like community organizers everywhere, CORN is attempting to foment civil unrest and create an atmosphere where there are potential clashes between landowners, the pipeline company, and local law enforcement. They hope and pray for an “incident” that they can use as publicity to paint the pipeline as evil and uncaring about landowners. It’s all bilge–every last bit of it. Here’s the latest PR offensive from the CORNballs of Ohio…
Read More “CORNballs Tell OH Landowners to Call Police & AG to Stop Pipeline”
Dominion Energy | Electrical Generation | Energy Services | Industrywide Issues | Statewide VA | Virginia

Virginia Approves State’s Largest NatGas-Powered Electric Plant
March 30, 2016March 30, 2016

Last July Dominion filed a request with the Virginia State Corporate Commission (SCC) to build a $1.3 billion state-of-the-art natural gas-fired electric generating station in Greensville County, VA (see Dominion to Build Electric Plant in S VA Powered by Marcellus Gas). The new power station will generate 1,600 megawatts–enough electricity to power 400,000 homes. It will be the biggest electric plant in Virginia. The plant would be powered by–you guessed it–Marcellus Shale gas (see Virginia’s Largest Electric Plant to be Powered by Marcellus Gas). We have some great news to report. The SCC has approved the project. Construction, according to Dominion, will begin “later this year”…
Read More “Virginia Approves State’s Largest NatGas-Powered Electric Plant”
Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline | Tallgrass Energy

Tallgrass Buys Out Sempra’s Portion of REX Pipeline for $440M
March 30, 2016March 30, 2016

Just a few years ago that Tallgrass Energy, majority owner of the Rockies East Express (REX) pipeline–a 1,712-mile pipeline which runs from Colorado and Wyoming to Ohio–had an “Oh crap!” moment. The pipeline was built to bring then-abundant natural gas from the West to markets in the Midwest (like Chicago) and the East–via connections with other pipelines. Then the Marcellus and Utica happened, forever changing the natural gas dynamic in the United States. Nobody in the Midwest and East wanted western gas anymore. What to do?! Tallgrass knows how to pivot, and pivot they did–deciding to reverse the flow for a portion of the REX pipeline (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). Their bright idea worked, and beginning last August, the REX pipeline from Monroe County, OH to Mexico, MO reversed its flow (see 1.8 Bcf/d of Marcellus/Utica Gas Heads West on REX Starting Aug 1). What was a huge negative turned into a big positive for Tallgrass. Now Marcellus/Utica rides the pipeline west every single day–and there’s no sign of it letting up. If anything, REX will reverse more of the line at some point. That got Tallgrass to thinking, maybe REX had become the crown jewel of the company. So Tallgrass has decided to buy out one of partners in REX, Sempra Energy, to the tune of $440 million…
Read More “Tallgrass Buys Out Sempra’s Portion of REX Pipeline for $440M”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Constitution Pipeline Reps Met with Cuomo Aide – April Deadline
March 29, 2016March 29, 2016

The Constitution Pipeline is a badly needed natural gas pipeline that would run ~125 miles from the gas fields of Susquehanna County, PA up into New York–all the way to Schoharie County, NY–where it would intersect with the Iroquois Pipeline and the Tennessee Gas Pipeline. The $683 million project would pump 650 million cubic feet per day (MMcf/d) of PA shale gas to markets throughout the northeast and potentially into New England. The Federal Energy Regulatory Commission (FERC) approved the project in 2014. Pennsylvania cleared the way for the pipeline in 2015. New York is holding it up–the tail wagging the dog–by not issuing stream and swamp crossing permits. We have repeatedly called on Williams, the main sponsor of the project, to take New York to court to strip them of their right to have any say in the matter since Cuomo is intentionally stopping the project for political reasons (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). We’re just now hearing that representatives from the Constitution met with a top Cuomo aide in February to answer questions. The clock is ticking and Cuomo is almost out of time. New York has until April 29 to issue the permits or the application made to the state one year ago will expire. Perhaps that will be the triggering event for a massive lawsuit against the state…
Read More “Constitution Pipeline Reps Met with Cuomo Aide – April Deadline”
Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

Ongoing Demolition Work at Future Belmont OH Ethane Cracker Site
March 29, 2016March 29, 2016

Bulldozers and heavy equipment continue to demolish an old coal-fired electric plant in Belmont County–at the site where PTT Global Chemical says they want to build a $5.7 billion ethane cracker plant. It’s a good sign that PTT continues to spend big money on the project. PTT is in the midst of spending $100 million on engineering plans for the plant (see PTT Announces 2 Contractors Working on Belmont Cracker Plant). The project is the first of all the announced cracker projects in the northeast to get its own website (see Getting Serious: Ohio Ethane Cracker Gets its Own Website). And now, demolition at the FirstEnergy R.E. Burger power plant site…
Read More “Ongoing Demolition Work at Future Belmont OH Ethane Cracker Site”