Energy Services

Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Shareholders Vote “For” ETE Merger; Appeal Court Ruling
June 28, 2016June 28, 2016

Yesterday 63% of Williams Companies shareholders voted in favor of a merger with Energy Transfer Equity at a specially called meeting at Williams’ HQ in Tulsa, Oklahoma. Specifically, they voted to approve the merger and receive their proceeds in all cash, thank you very much. Not that it makes a hill of beans worth of difference–because the deal is dead. Last Friday ETE won the right to walk away from the deal not owing Williams anything (see Court Says ETE Can Terminate Williams Merger; Williams Votes Today). As we’ve maintained for some time, this is all window dressing and legal posturing. Williams also said yesterday they will appeal the courts decision from last Friday, maintaining they (Williams) believes ETE is still contractually bound to buy (and more importantly pay) the big investors of Williams. Below are a pair of announcements from Williams about yesterday’s vote, along with some analysis…
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Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Ohio | Pennsylvania | Processing Plants | PTT Global | Shell | Statewide OH | Statewide PA | Statewide WV | West Virginia

Event Speakers Say More Crackers on the Way in the Northeast
June 28, 2016June 28, 2016

There was lots of cracker talk at the first Northeast U.S. & Canada Petrochemical Construction Conference & Exhibition in Pittsburgh yesterday. According to NGI’s ace reporter for Shale Daily, Jamison Cocklin, excitement over the Shell cracker announcement from a few weeks ago was “palpable” at yesterday’s event. There was plenty of talk about the Shell cracker–but the talk coming from the event that interests MDN is talk about both the PTT Global Chemical cracker planned for Ohio, AND the Braskem cracker planned for West Virginia. These other two world class cracker plants (similar in size and scope to Shell’s project) “remain on track.” Now that is news!…
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Energy Services | Ethane | Industrywide Issues | NOVA Chemicals | Processing Plants

Canadian Cracker Eyes Utica Ethane, Adding $2B Polyethylene Plant
June 28, 2016June 28, 2016

NOVA Chemicals Corunna cracker site – click for larger version

Shell recently committed to building a “world class” ethane cracker in Butler County, PA, outside of Pittsburgh (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). And as we mention in a companion story today, there are two more ethane crackers likely to be built–in Ohio and West Virginia (see Event Speakers Say More Crackers on the Way in the Northeast). With all of the cracker excitement, it’s easy to forget there’s already cracker plants processing Marcellus/Utica ethane–in the Gulf Coast and in Canada. Waaaay back in 2011 NOVA Chemicals signed a couple of agreements with Marcellus drillers to get ethane to feed their Ontario-based Corunna cracker plant (see NOVA Chemicals Signs Second Agreement for Marcellus Ethane to Feed its Corunna Cracker Plant). Marcellus ethane began flowing to the Corunna plant in July 2013 (see Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant). In 2014 NOVA announced when the UTOPIA pipeline project is done, the Corunna plant will begin to take in Utica Shale ethane as well (see Canadian NOVA Chemicals to Ship Utica Ethane via UTOPIA). In March of this year, NOVA announced a $400 million upgrade on the way to the Corunna plant so it can handle even more Marcellus, and Utica, ethane (see Canadian Cracker Gets $400M Upgrade to Handle More Marc. Ethane). That upgrade will take 4-5 years. The new news is that NOVA is now planning to build a new world-class polyethylene facility near the Corunna cracker, and they’ll spend $1-$2 billion to do it. Behold the awesome economic impact of a cracker…
Read More “Canadian Cracker Eyes Utica Ethane, Adding $2B Polyethylene Plant”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Litigation | Pipelines | Regulation

Sierra Club Petitions FTC to Stop Atlantic Coast Pipeline
June 28, 2016June 28, 2016

It’s time to sue the nutjobs at the Sierra Club out of existence. The “non-profit” so-called environmental organization is a menace to all Americans. It’s a vipers nest of lawyers who exist solely to line their own pockets. The way they do it is to file lawsuits and “petitions” by the dump truck-load (generating work for lawyers). One of the projects they’re trying to stop is the much-needed Dominion Atlantic Coast Pipeline, a 550-mile, $5 billion project that will run from West Virginia into Virginia and on into North Carolina–benefiting the residents of all three states (see New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline and Sierra Club Pressures WV County to Oppose Atlantic Coast Pipeline). The Sierra Club’s latest tactic to try and stop the project is to petition the Federal Trade Commission (FTC) with wild claims that the project violates antitrust laws. We have a copy of the paperwork/petition they filed with the FTC (full copy below). It runs 1,215 pages long! How’s that for a mountain of legal horse manure…
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Energy Services | FMC Technologies | Industrywide Issues | M&A | Regulation

FMC Technologies/Technip Merger Approved by Obama DOJ/FTC
June 28, 2016June 28, 2016

Apparently it’s just fine with the Obama Department of Justice (DOJ) if a French company, like Technip, wants to buy an American company, like FMC Technologies. The DOJ and Federal Trade Commission (FTC) have just given the green light for the two to merge to create a new $13 billion oilfield services company (see FMC Technologies & Technip to Merge, Create $13B Oilfield Giant). FMC does work in the Marcellus/Utica, hence our interest. However, if it happens to be two American companies that want to merge–say Halliburton and Baker Hughes–the DOJ refuses to sign off (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). Why is that? Below is a statement from FMC announcing the Technip deal has been cleared to proceed under the Hart–Scott–Rodino Antitrust Improvements Act of 1976…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Court Says ETE Can Terminate Williams Merger; Williams Votes Today
June 27, 2016June 27, 2016

Big news happened in the Energy Transfer Equity (ETE) proposed merger/buyout of Williams to report. Last Friday a Delaware court ruled that ETE is contractually entitled to terminate its merger agreement with Williams. However, in a press release, ETE doesn’t say it has officially terminated the agreement. In commenting on the ruling, Williams said they still don’t think ETE has the right to wiggle out of the deal and Williams is pushing forward with holding a vote today by shareholders to approve (or not approve) the merger. As we have maintained now for a month or more, we don’t think the merger will happen–and we think all of the press releases and votes, etc. is posturing in preparation to launch lawsuits. The court’s decision essentially says ETE can terminate the agreement and won’t owe Williams any money for their trouble. ETE wanted this merger in the first place and pursued Williams for nearly a year to get it (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). But Williams is not lily white innocent in this ongoing soap opera. Lurking in the background pulling strings are corporate raiders on Williams’ board–people who want to line their pockets with cash from this deal (see Evil Corporate Raiders Double Investment (& Control) in Williams). Even though ETE wants out of the deal and even though (in our opinion) Williams is better off not merging, Williams will continue to push for a merger/takeover, so the raiders can get buckets of cash. Below we have a copy of the court opinion from Friday, along with a couple of analysts’ thoughts on what happens next…
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CNG/LNG | Dominion Energy | Energy Services | Industrywide Issues | Maryland | Processing Plants | Statewide MD

Dominion Cove Point LNG Now 38% Built, Rapid Progress Continues
June 27, 2016June 27, 2016

Dominion Cove Point Terminal – click for larger view

At last check in March of this year, Dominion’s Cove Point LNG export facility, being built in Maryland, was 24% done (see Cove Point LNG Export Plant Now 24% Complete, Rapid Progress). We’re not three months later and that number is now 38% done. No wonder the odious Sierra Club and other Big Green groups are trying so hard to block work on it! Dominion just filed a monthly status and progress report (full copy below) for Cove Point and they report the facility is 38% built. They also report the engineering is about done (99.8% complete) and equipment purchases are also done (99% complete). This is refreshingly good news. There is nothing stopping the facility now…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

Ruptured TETCO Pipeline in PA Offline Until November
June 27, 2016June 27, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s (TETCO) “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). However, the other three lines have remained idle pending further investigation (see TETCO PA Pipeline Explosion Still Limiting NatGas Flow Month Later). We now have an estimate of what else needs to be done, and how long it will take to do it…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Appeals Court: Mariner East 2 Eminent Domain Can be Challenged
June 27, 2016June 27, 2016

In February, a Philadelphia judge for the Court of Common Pleas (low-level court in PA) ruled in favor of the anti-drilling Clean Air Council against Sunoco Logistics Partners and their Mariner East 2 pipeline (see Philly Judge Says Case Against Mariner East 2 Can Proceed). The ruling was nothing more than “this case has merits” (in the eyes of the judge) and can proceed. The case itself is challenging the right of Mariner East 2 to use eminent domain against landowners in building the new pipeline. The Clean Air Council’s argument is that since most of the natural gas liquids that will flow through the pipeline will get exported or otherwise not used in PA itself, that moves Mariner East from being a public utility with eminent domain power to an interstate pipeline more properly reviewed and permitted by federal authorities. It’s a delay tactic, because if Mariner East 2 were to come under the aegis of the Federal Energy Regulatory Commission and eventually permitted, they would also be entitled to use eminent domain. But a FERC review would take years. Sunoco LP appealed the ruling and last week the appeals court rejected Sunoco’s arguments, sending the case back to the lower court where it will now be tried…
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Columbia Pipeline Group | Energy Services | Energy Transfer Partners | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Regulation | Statewide OH

FERC Tells Rover, Leach XPress Pipes to Redesign Routes in SE OH
June 27, 2016June 27, 2016

Two major pipeline projects have just received a big red light from the Federal Energy Regulatory Commission (FERC), pending changes to their plans. Energy Transfer’s Rover pipeline, a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, along with Columbia Pipeline’s Leach XPress, running from Marshall County, WV through Ohio to Leach, KY, got word from FERC that a small section where the pipelines cross must be reworked or it’s a “no go” for both projects…
Read More “FERC Tells Rover, Leach XPress Pipes to Redesign Routes in SE OH”
Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

ETE Makes Moves to Terminate Buyout/Merger with Williams
June 24, 2016June 24, 2016

As we’ve said for some time now, we don’t believe the Energy Transfer Equity (ETE) buyout/merger with Williams will ever take place. It’s been pretty plain that the blizzard of press releases by both companies saying “vote yes” on the deal has been legal posturing–so that when the deal is finally, completely, 100% dead–the lawyers can litigate for years to come, with each side trying to extract money from the other. The latest evidence comes from several news stories this week that Wall Street is betting that a judge is about to rule that a law firm (hired by ETE) to review the tax implications rendered their opinion “in good faith” that there will be significant tax implications arising from the deal. The way the agreement is structured, such a finding releases ETE from the deal. If the judge rules the opinion was in good faith, it’s 99.99999999% that ETE will announce the deal is dead–and the lawyers from Williams will be suing to extract boatloads of money from ETE…
Read More “ETE Makes Moves to Terminate Buyout/Merger with Williams”
Dominion Energy | Electrical Generation | Energy Services | Industrywide Issues | Statewide VA | Virginia

Dominion Begins Building Virginia’s Biggest NatGas Power Station
June 23, 2016June 22, 2016

Artist’s rendering of Greensville County Power Station – click for larger version

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 550-mile Atlantic Coast Pipeline (when built) will provide cheap, abundant, clean-burning Marcellus/Utica Shale gas to power it. In July 2015 Dominion filed a request with the Virginia State Corporate Commission (SCC) to build it (see Dominion to Build Electric Plant in S VA Powered by Marcellus Gas). The SCC approved the project in March of this year (see Virginia Approves State’s Largest NatGas-Powered Electric Plant). On Tuesday Dominion announced they’ve begun construction…
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Bradford County | Electrical Generation | Energy Services | Industrywide Issues | Lycoming County | Panda Power Funds | Pennsylvania

Panda Power’s 2 PA Marcellus-Fired Electric Plants Complete!
June 22, 2016June 21, 2016

In August 2013, Moxie Energy of Vienna, VA sold the permits/rights to build a new Marcellus gas-powered electric generating plant in Bradford County, PA to Panda Power Funds of Dallas, TX (see Moxie Liberty Sells PA Electric Plant Project to Panda Power). The project was renamed from Moxie Liberty to Panda Liberty. A few months later, in December 2013, Moxie sold a second Marcellus-gas fired electric plant project to Panda, this one slated to be built in Lycoming County, PA (see Panda Power Buys Rights for 2nd Marcellus-Fueled Electric Plant). That project was renamed from Moxie Patriot to Panda Patriot. Panda contracted with Gemma Power Systems (Connecticut) to build both 829-megawatt plants. We have some terrific news to share: Gemma reports completing both facilities and has turned them over to Panda to begin operation!…
Read More “Panda Power’s 2 PA Marcellus-Fired Electric Plants Complete!”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

3 Outta 4 Proxy Firms Recommend “Yes” Vote for Williams Merger
June 22, 2016June 21, 2016

Yesterday MDN brought you a story of how the Williams/Energy Transfer Equity merger defies logic (see Williams/ETE Merger Defies Logic – Here’s Why). Part of that story deconstructs the support for the deal by proxy advisory firm Institutional Shareholder Services (ISS). The analyst we quote in that article says ISS is buying Williams’ line that Williams’ assets after a merger with ETE will produce boatloads of cash and profit for the newly merged company, while the very same assets apart from the merger won’t. Even though the merged company will have an enormous load of new debt following the merger. It defies logic. And yet, Williams has found two more proxy advisory firms who are now willing to go on the record, like ISS, in support of the merger. What do they see that we don’t? Tune in to this episode of As the (Midstream) World Turns…
Read More “3 Outta 4 Proxy Firms Recommend “Yes” Vote for Williams Merger”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Statewide MD

Sierra Club Gets Desperate, Sues DOE to Stop Cove Point LNG
June 22, 2016June 21, 2016

The Sierra Club is one of the worst, most radical Big Green groups in existence. We sincerely hope you never give them a penny of your money. They don’t care a whit about the environment–they only care about feeding the beast, money for their own organization. One way to do that is to keep your name in the news constantly. And a way to do that is by filing frivolous lawsuits. The Sierra Club has been railing against the Cove Point LNG export facility being built by Dominion for years (see Sierra Club Files Objection to Cove Point LNG Export Facility and Sierra Club, Others Trash Talk Cove Point LNG Export Terminal). As we previously reported in March, the facility is a quarter done (see Cove Point LNG Export Plant Now 24% Complete, Rapid Progress). There is no stopping it. But the odious Sierra Clubbers continue to try. The Sierra Club formally filed a petition with the Dept. of Energy asking the DOE to re-hear (and reconsider) their decision to allow Cove Point to export LNG for 20 years. In April the DOE rejected the request (see DOE Rejects Sierra Club’s Request to Re-Hear Cove Point Decision). So now the Sierra Club is taking the DOE to court to challenge their decision to allow Cove Point exports…
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Energy Services | Harrison County | M3 Midstream | Momentum | Ohio

M3 Donates New Building to Township in Harrison County, OH
June 21, 2016June 20, 2016

We’ve written plenty of stories about midstream (pipeline) companies “giving back” to the communities where they either currently, or plan in the future, to operate. Typically midstream companies donate a few thousand dollars to various nonprofit groups. It adds up. Recently PennEast Pipeline donated $85,000 to 17 different groups (see PennEast Pipeline Spreads Some More Coin in PA/NJ Communities). The Constitution Pipeline just handed out another $50,000 and has now handed out over $2 million in grants to nonprofits (see Constitution Pipeline Doles Out Another $50K in Grants, Despite NY). But this is the first time we’ve heard of a midstream company giving a new building away! M3 Midstream (Momentum) has donated a brand new 5-bay building for North Township in Scio, OH–where they operate a natural gas processing plant. And that’s not the only thing M3 has done for the town. Needless to say, local town leaders are happy as clams…
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