Energy Services

Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Rockies Express Pipeline | Statewide OH

REX Pipeline Zone 3 East-to-West Project Gets FERC Approval
March 3, 2015March 3, 2015

A big announcement yesterday from Tallgrass Energy Partners, owners of the Rockies Express Pipeline (REX). REX has received approval from the Federal Energy Regulatory Commission (FERC) to modify “certain facilities” along the REX pipeline from Monroe County, OH all the way to Moultrie County, IL–something they call the Zone 3 East-to-West Project. When complete, it means REX will flow an additional 1.2 billion cubic feet of natural gas per day from the Utica and Marcellus to Midwest markets. A second important announcement: The Seneca Lateral of the REX (Noble County, OH) is now fully operational. REX upgraded compressor stations along the Seneca Lateral which has boosted available capacity on the pipeline to 600 million cubic feet per day…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Williams

Latest Anti-Drilling Attack on Constitution Pipeline: “It’s Illegal”
March 3, 2015March 3, 2015

We’ve noticed a renewed effort on the part of anti-drillers to stop the already FERC-authorized Constitution Pipeline, slated to run from Susquehanna County, PA–where they can actually drill for natural gas–through upstate New York to Schoharie County (see FERC Issues Final Approval for Constitution Pipeline in PA/NY). New York State’s Dept. of Environmental Conservation (DEC) must grant what’s called a 401 Water Quality Certificate that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. The DEC held a series of public hearings on the Constitution (see Pro-Drillers Out in Force at Constitution Pipeline Hearing in Binghamton). Last week the time for public comment closed–which is why we’re now seeing anti-drillers launching a coordinated attack, as a last-ditch effort to stop the Constitution. Their attack includes sympathetic (and sycophantic) media stories and an attempt to re-brand the Constitution as “the Keystone XL pipeline of natural gas.” What a joke! Bobby Kennedy Jr. went on MSNBC (a network virtually no one watches) to make some outrageously false claims about the Constitution pipeline and FERC. It all adds up to a well-coordinated, well-funded attack by Big Environment trust funders…
Read More “Latest Anti-Drilling Attack on Constitution Pipeline: “It’s Illegal””
Energy Services | EnLink Midstream | Guernsey County | Industrywide Issues | Noble County | Ohio | Pipelines | Washington County (OH)

EnLink OH Condensate Pipe in Trouble? Open Season Extended Again
March 2, 2015March 2, 2015

EnLink Midstream is clearly having trouble getting enough business to justify building a new condensate pipeline in Ohio. In August 2014, EnLink announced a new 45-mile condensate pipeline that will stretch across Guernsey, Noble and Washington counties in Ohio (see EnLink Midstream Announces New Condensate Pipeline in ORV). The project, which connects to another EnLink pipeline in Washington County, is called the Ohio River Valley Pipeline, or ORV. In mid-December, EnLink launched a 30-day binding open season for shippers to sign up for capacity on the new pipeline (see EnLink Launches 1 Month Open Season for ORV Condensate Pipeline). An open season is the time when shippers sign on the dotted line and commit to paying for and using the pipeline when it’s built. If EnLink doesn’t get enough customers, they won’t build it. In January EnLink announced there were extending the open season another six weeks (see EnLink Extends Open Season for OH Condensate Pipeline by 6 Weeks). Those six weeks have come and gone, and guess what? EnLink has just announced they’re extending the open season again, another six weeks…
Read More “EnLink OH Condensate Pipe in Trouble? Open Season Extended Again”
Energy Services | Williams

Williams Goes Shopping for $3B, Floating Notes to Pay Down Debt
March 2, 2015March 2, 2015

It’s not every day you go shopping…for 3 BILLION dollars. But that’s what Williams is doing. Williams recently consummated a deal to buy Access Midstream, formerly known as Chesapeake Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). Although we’ve also read it was the other way round–that Access swallowed Williams. At any rate, the combined companies, with major operations in the Marcellus and Utica Shale region, have a staggering value of $50 billion (see Deal Details for Williams/Access Midstream Merger – TTV of $50B!). The wedding was Feb 2 and the happy couple need money–fast. So Williams (which is the name plate on the door) has gone shopping for $3B. They’re floating new notes (i.e. debts, or IOUs) in order to, yes, pay down older debts…
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CONE Midstream | Energy Services

CONE Midstream’s Strong Beginning, Hits 500 Mmcf/d 6 Mos Early
February 27, 2015May 13, 2015

NOTE: The original version of this article incorrectly stated CONE had hit 1 billion cubic feet per day of throughput. MDN regrets the mathematical error!

In August 2014, CONSOL Energy and Noble Energy formed a midstream joint venture called CONE Midstream to primarily serve to connect their Marcellus and Utica wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). In October, CONE floated an initial public offering (IPO) to sell units (units are like stocks for master limited partnerships) in the new jv, raising $423 million (see CONE Midstream’s IPO Takes in $423M, Market Cap Already $1.71B!). The fledgling jv is growing up fast. The company has already passed the 500 million cubic feet per day (Mmcf/d) of throughput on its pipeline system–six months ahead of schedule. In 2014 the company had $15.3 million of revenue…
Read More “CONE Midstream’s Strong Beginning, Hits 500 Mmcf/d 6 Mos Early”
Energy Services | MarkWest Energy

MarkWest Floats Notes Seeking $650M…or $500M…or $1.15B – Which?
February 27, 2015February 27, 2015

Somebody help us out here. We noticed one day after MarkWest Energy released their 2014 numbers and commentary (see MarkWest Energy Continues to Soar in 2014, New Record for Northeast and MarkWest Energy Investor Phone Call Excerpts + PowerPoint), the company issued two press releases saying they are shopping senior unsecured notes (essentially IOUs) looking to raise money to pay off other money they borrowed in the past. Yes, they’re borrowing money to pay off borrowed money. One of the press releases says they want $650 million, and the other says $500 million. Are these two different tranches of money they’re after ($1.15 billion total)? Or did they issue one press release to supersede the other? And if so, which amount do they really want? Help!…
Read More “MarkWest Floats Notes Seeking $650M…or $500M…or $1.15B – Which?”
Energy Services | MarkWest Energy

MarkWest Energy Continues to Soar in 2014, New Record for Northeast
February 26, 2015February 26, 2015

MarkWest Energy, one of (perhaps the) largest midstream (pipelines & processing plants) companies in both the Marcellus and Utica Shale region, issued its 2014 year in review yesterday. Among the highlights: the company reported record processed gas volumes of over 3.2 billion cubic feet per day from the Marcellus and Utica during the fourth quarter, an increase of over 100% from 4Q13; they processed/fractionated over 200,000 barrels per day of NGLs in the Marcellus/Utica during 4Q14, an increase of over 100% from 4Q13; MarkWest placed into service 720 million cubic feet per day of new processing capacity, with the addition of Sherwood V and Mobley IV in the Marcellus Shale; Cadiz II in the Utica Shale; and Carthage IV in East Texas; and they began operations of a third 60,000 barrels per day propane (and heavier) fractionation facility in Marcellus/Utica. It’s hard to find any bad news for MarkWest! Here’s the update…
Read More “MarkWest Energy Continues to Soar in 2014, New Record for Northeast”
Energy Services | MarkWest Energy

MarkWest Energy Investor Phone Call Excerpts + PowerPoint
February 26, 2015February 26, 2015

In addition to releasing their 2014 update yesterday, MarkWest Energy held an analyst/investor phone call to discuss last year and talk about what’s coming up in 2015. The main portion of that call was a prepared presentation by MarkWest CEO Frank Semple. We’ve selected out the relevant portion of his statement (most of it, actually) which deals with the Marcellus/Utica. Frank gives a useful update on many of the bubbling projects they’ve been working on. Following Frank’s comments is the latest PowerPoint presentation (with a list of our favorite slides)…
Read More “MarkWest Energy Investor Phone Call Excerpts + PowerPoint”
Belmont County | Economic Impact | Energy Services | Energy Transfer Partners | Harrison County | Industrywide Issues | Jefferson County (OH) | Jobs | Monroe County | Ohio | Pipelines

List of Towns in 4 SE OH Counties Getting ET Rover Pipeline
February 26, 2015February 26, 2015

Southeast OH will soon see a lot of new pipelines being laid, and along with it, a lot of new jobs. Energy Transfer Partners recently briefed Monroe County Commissioners on the ET Rover pipeline project, an 800-mile, $4.4 billion pipeline that will connect the Marcellus and Utica Shale region to Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). If the pipeline is laid as currently planned in the southeastern portion of Ohio, the pipeline will traverse 46.31 miles in Monroe County, 34.99 miles in Belmont County, 20.06 miles in Jefferson County and 17.7 miles in Harrison County. Here’s a list of the lucky townships in those four counties where the pipeline is due to go…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

Antis Show Up at NJ FERC Hearing to Dis PennEast Pipeline
February 26, 2015February 26, 2015

Hundreds of people turned out for the first-ever Federal Energy Regulatory Commission (FERC) hearing in New Jersey for the PennEast pipeline. You knew the nutters were lined up and ready–just about to burst waiting to get in front of the cameras and microphones to tell their silly tales of not why the pipeline should not be rerouted here or there to avoid something important–but why it should never, ever on God’s green earth NEVER get built. Some 90 people signed up to spew, and of course they didn’t disappoint. There was talk of George Washington and the Hessians (look up your American history if you don’t know what Hessians were); THE Delaware Riverkeeper herself, Maya van Rossum, made a star-studded appearance; and there were calls from some to “stand your ground” and never, ever on God’s green earth NEVER allow this evil, disgusting pipeline to get built…
Read More “Antis Show Up at NJ FERC Hearing to Dis PennEast Pipeline”
Chesapeake Utilities | Ohio | Statewide OH | Utica Shale

Chesapeake Utilities Buys OH Midstream Co, Targets Shale Industry
February 25, 2015February 25, 2015

Chesapeake Utilities Corporation is a diversified energy company with businesses in natural gas distribution, transmission and marketing, electricity distribution, propane distribution and wholesale marketing, and “other related services.” The utility branch of Chesapeake serves 225,000 customers with natural gas, electricity or propane gas. Chesapeake Utilities employs approximately 800 people. And no, Chesapeake Utilities, headquartered in Delaware, has nothing to do with Chesapeake Energy, headquartered in Oklahoma. Chesapeake Utilities has decided it’s time to pursue the shale market, so they recently purchased a small midstream (i.e. pipeline) company in Ohio–Gatherco, Inc….
Read More “Chesapeake Utilities Buys OH Midstream Co, Targets Shale Industry”
Energy Services | Harrison County | Industrywide Issues | Jobs | MarkWest Energy | Ohio | Processing Plants

MarkWest Energy Accused of Using Non-Union, Non-Ohio Workers
February 24, 2015February 24, 2015

Calling OH Gov. John “foreigner hunter” Kasich. We have an infraction! Quick! You’re needed, stat. Word has leaked out that MarkWest Energy has not only reduced the number of union members they’re using on jobs in Harrison County, OH, they’re using non-union (gasp) out-of-state workers–from exotic places like Texas and Louisiana and Oklahoma. Those places have been defined by John Kasich as “foreign” locations (i.e. non-Ohio). Periodically the jingoist-in-chief gets on his high horse and goes riding after those darned foreigners (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers and OH Gov. Kasich Goes After Out-of-State Engineers/Surveyors and OH Gov. Kasich Goes Foreigner-Hunting in Strasburg and OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). Well, we’ve found the site of another infraction…
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Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

Parkersburg Cracker Plant Decision May Not Come in 2015 After All
February 23, 2015February 23, 2015

Last week MDN noted having spotted the first cloud over the Odebrect project to build a $3 billion ethane/petrochemical plant near Parkersburg, WV (see First Cloud Appears for Odebrect WV Ethane Cracker Plant Project). Ostensibly it is the low price of oil that’s causing Odebrecht to reconsider whether or not they will move forward with the project. As we pointed out, “reevaluating” doesn’t mean they’ve decided not to move forward. It just means they’re taking their time. There is, however, a marked change in the “feeling” about this project. Prior to recent comments by Odebrecht the very strong presumption is that the project will proceed. Now? That presumption is no longer quite so strong. WV officials, from both the state and from Wood County where the cracker is due to be built, weighed in with their observation that it’s not the location of the cracker that’s in question…
Read More “Parkersburg Cracker Plant Decision May Not Come in 2015 After All”
Anti-Drilling/Fossil Fuel | Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Regulation | Wastewater | West Virginia

GreenHunter Keeps Pressure on USCG to Barge Brine on Ohio River
February 23, 2015February 23, 2015

GreenHunter Resources is keeping up the pressure on the U.S. Coast Guard (USCG)–essentially daring them to stop GreenHunter from proceeding with barging brine–or produced water–from shale wells down the Ohio River (see GreenHunter to Coast Guard, We’re Barging While You Fiddle Around). In new comments last week, GreenHunter’s Chief Operating Officer Kirk Trosclair reaffirmed his company is proceeding with its plan to begin barging from a facility in Wheeling, WV. Meanwhile, so-called “environmental” groups are organizing and joining forces with the Wheeling Water Warriors (Warriors, Warriors, Warriors…that’s an echo you hear for our superheros) to oppose GreenHunter from barging a substance that isn’t anywhere near as toxic as the chemicals that currently float down the river on barges every single day. Here’s what Trosclair said last week…
Read More “GreenHunter Keeps Pressure on USCG to Barge Brine on Ohio River”
Energy Services | Industrywide Issues | Pipelines | Research | Spectra Energy

Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?
February 20, 2015February 20, 2015

Spectra Energy’s Access Northeast pipeline project is shaping up to be a worthy competitor to Kinder Morgan’s proposed expansion of the Tennessee Gas Pipeline, a project they call Northeast Expansion Direct (NED). On Wednesday, Spectra announced a new partner for Access Northeast–National Grid–along with an open season to sign up more potential customers–mostly electric generating companies (called LDCs or Local Distribution Companies) that use natural gas to fire their plants. The new partnership means Spectra has locked up electric generating plants that serve 70% of all the electric customers in New England–and they’re trying to get even more. Spectra is also trying to build as little new pipeline as possible, using looping (new pipeline laid next to existing pipeline) in areas where extra capacity is needed. Below we have the announcement about the open season and National Grid joining the project, a copy of the Access Northeast project map, and a brand new study by ICF commissioned by the Access Northeast partners that details how this project will save New Englanders $1 billion+ per year in electric costs. We also throw in a few of our own observations on this bold plan and whether or not the region can support both the Access Northeast and NED projects…
Read More “Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?”
Access Midstream Partners | Bradford County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Williams

PA Landowners File RICO Royalty Lawsuit Against Chesapeake/Williams
February 19, 2015February 19, 2015

Along with acquiring Access Midstream (formerly Chesapeake Midstream), Williams has just acquired a brand new lawsuit. Two Bradford County, PA law firms along with a New Jersey law firm on Tuesday filed a RICO (Racketeer Influenced and Corrupt Organizations Act) lawsuit on behalf of 90 landowners in Bradford County against Chesapeake Energy and Williams Partners (because Williams is now the owner of what was Access Midstream) claiming Chessy and Williams/Access conspired to defraud landowners of royalty money by deducting post-production expenses they had no right to deduct…
Read More “PA Landowners File RICO Royalty Lawsuit Against Chesapeake/Williams”