Energy Services

Energy Services | Summit Midstream

Summit Midstream Floats 4M Units, Hopes to Raise $224M+
September 4, 2014September 4, 2014

Summit Midstream (pipeline company) is looking to raise another $224 million to use in their considerable midstream operation–including their increasing focus on the Marcellus/Utica. Yesterday the company issued a press release announcing they want to sell another 4 million “common units” (think shares of stock) in their master limited partnership (MLP) company. As of this morning, Summit unit shares were trading for $56.12 per share (or “unit”). At that price, if they sell all 4 million new shares, they’ll raise well over $200 million. As we’ve previously pointed out, Summit is making major moves in both the Marcellus and Utica Shale regions (see Summit Midstream 2Q14: Marcellus Rockets to #2 Operation). We expect some (much?) of the money they’ll raise in this newest offering will be used to either pay down previous deals, or perhaps be used for more expansion (acquisitions) in the northeast…
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Appalachian Resins | Energy Services | Ethane | Industrywide Issues | Monroe County | Ohio | Processing Plants

Ohio to Get “Baby” Ethane Cracker Originally Slated for WV
September 3, 2014September 3, 2014

In February 2013 MDN told you about plans from Appalachian Resins (AR) to build a polyethelene (PE) manufacturing plant complete with a baby ethane cracker (see “Small” Ethane Cracker Plant Coming to Wheeling, WV). The company, at that point, said they would begin construction somewhere south of the Wheeling, WV area by the end of 2013. That didn’t happen. Now we know why. Last week, AR’s CEO Jim Cutler announced he had signed a letter of intent with the Monroe County (OH) Port Authority to build the plant in Monroe County instead. The location for the plant moved just across the Ohio River, from the WV side to the OH side of the river. The cost to build the new facility is a cool $1 billion. No doubt both sides of the border will benefit, but this is definitely a loss for WV and a big gain for OH…
Read More “Ohio to Get “Baby” Ethane Cracker Originally Slated for WV”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines

Dominion Commits to Major New Marcellus/Utica Pipeline Project
September 3, 2014September 3, 2014

What a difference five months can make in the midstream business. In April Dominion launched a nonbinding (“feeling out the marketplace”) open season to gauge potential interest in a pipeline that would carry Marcellus and Utica Shale gas from West Virginia into Virginia and eventually to North Carolina (see Dominion Announces 2 New Pipeline Projects from Marcellus/Utica). The project was called the Dominion Southeast Reliability Project. At the end of May, Dominion was still saying the proposed pipeline, which would cost around $2 billion to build, was still “very preliminary” and that the company had “not decided to do this” (see More Details/Proposed Route of Dominion Marcellus to NC Pipeline). We couldn’t even locate a map of the proposed route! Looks like the nonbinding open season was a big success. Yesterday Dominion announced not only is the pipeline going forward, they’ve formed a joint venture with three other companies to build it. We have a map of the route, a name change for the project (now called the Atlantic Coast Pipeline), and the price to build it has more than doubled–from $2 billion to $5 billion! Here’s the details…
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Braskem | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

Odebrecht Moves Forward with WV Cracker Plant Plans
September 2, 2014September 2, 2014

The previously announced ethane cracker plant that is slated to be built near Parkersburg, WV is coming along very nicely, according to Odebrecht spokesman David Peebles. A talk at the West Virginia Chamber of Commerce’s Annual Meeting and Business Summit at The Greenbrier last week, along with conversations with the Parkersburg News and Sentinel, provided some key details about just where the project sits. Once again MDN notices how quickly (and convincingly) the Odebrecht cracker project is progressing after being announced just last fall, as opposed to the ponderous path being taken by Shell with their planned cracker plant, announced 2 1/2 years ago. Neither plant is a done deal, yet. But in light of Odebrecht’s full-speed-ahead attitude and news from last week, it sure seems like the WV cracker is a lot closer to being a done deal than the Shell cracker…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Otsego County | Pipelines | Williams

Cooperstown Refuses $20K Grant from Williams for Fire Equipment
September 2, 2014September 2, 2014

Back in March, MDN wrote an article highlighting the practice by Williams and their Constitution Pipeline of handing out grants to worthy causes and organizations, like fire departments, the Boy Scouts and local Chambers of Commerce. Anti-drillers typically call it payola, or greasing the skids to make those communities more accepting of the pipeline when it comes time to build it (see Constitution Pipeline Payments to Groups – Donations or Payola?). To be honest, we struggle with the issue ourselves. We think it’s great to make those payments–but we think it’s probably better to make the payments after the pipeline is fully approved and ready to be built (or already built). For us the issue is one of timing, not about the payments themselves. However, for the dunderheads in the Village of Cooperstown, NY (yes, where the Baseball Hall of Fame is located), officials there refuse to allow the local fire department to apply for a $20,000 matching grant with Williams to purchase new equipment–simply because they’re so opposed to anything to do with natural gas and fossil fuels…
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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Mahoning County | Ohio | Processing Plants | Supply Chain | Utica Shale

Blue Racer to Build New Wet Gas Plant in Mahoning County, OH
August 28, 2014August 28, 2014

Listen up supply chain companies who want to get involved with a big new project coming in the Ohio Utica Shale. Blue Racer Midstream, the $1.5 billion joint venture between Caiman Energy II, LLC and Dominion formed in December of 2012, plans to build a new wet gas processing facility in Mahoning County by June 2016. The new facility, located near Petersburg in Springfield Township appears to be “back on track” according to an article in the Youngstown Business Journal…
Read More “Blue Racer to Build New Wet Gas Plant in Mahoning County, OH”
CONSOL Energy | Energy Companies | Energy Services | Greene County (PA) | Halliburton | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

Frack It Again – CONSOL’s Experiment in Refracking a Success
August 28, 2014August 28, 2014

Frack and refrack? Yep. CONSOL Energy started drilling Marcellus Shale wells in 2009. In fact, they drilled half a dozen wells in Greene County at the time. Five years ago is an eternity in the shale drilling business. Knowledge and experience has expanded maybe a hundred-fold since that time. With every new well CONSOL and other drillers learn what does and what does not work. So CONSOL had an interesting idea: what would happen if we went back and refracked some of those early wells, which were not good producers? CONSOL hired Halliburton to refrack and the results were so good, they’re going to refrack another 200 wells…
Read More “Frack It Again – CONSOL’s Experiment in Refracking a Success”
Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

PA Gov Corbett Makes Political U-Turn on Pipeline Project
August 27, 2014August 27, 2014

Last week Pennsylvania Gov. Tom Corbett waded into the thorny issue of whether or not the Federal Energy Regulatory Commission (FERC) should approve the Williams Tranco pipeline expansion project. Dubbed the Atlantic Sunrise project, the $3 billion project which reaches far beyond just PA, would carry PA Marcellus Shale gas to the East Coast and to southern states (see Williams Open House Sheds more Light on Transco Atlantic Sunrise). Last week Corbett sent a letter to FERC asking the feds to look carefully at the Atlantic Sunrise expansion project because he’s hearing a lot of noise from voters about it. He also requested FERC to zoom out and look at the big picture–consider all of the proposed pipeline projects for PA and whether as a whole it makes sense–and not just look at each project individually…
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Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Williams to Expand Transco Pipeline Again, More Marcellus to NE
August 27, 2014August 27, 2014

There’s no doubt that Williams is a major midstream player in the Marcellus and Utica Shale. Williams is in the process of growing–massively–by purchasing Access Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). Williams is also the owner of the Transcontinental (or Transco) pipeline, a 10,200-mile pipeline system, extending from South Texas to New York City. Williams wants to further expand the Transco with it’s Atlantic Sunrise project to bring Marcellus gas to the northeast and southern states (see Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already). Yesterday Williams announced an open season (period of time when new customers can sign up) for yet a another expansion of the Transco, this time to bring more Marcellus Shale gas to places like New Jersey and New York City. This newest expansion is being called the Diamond East Project and Williams expects to pony up $500-$800 million to make it happen by 2018…
Read More “Williams to Expand Transco Pipeline Again, More Marcellus to NE”
Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Pipelines | Processing Plants | Wastewater | West Virginia

Mystery Solved: GreenHunter Pipelines to Terminate Near…
August 27, 2014August 27, 2014

Now that U.S. Coast Guard’s comment period for barging frack wastewater is officially closed and a positive decision to move forward is likely, we expect to see more movement from GreenHunter Water on building out their barge facility near Wheeling, WV. As part of GreenHunter’s master plan, the company announced at the end of June that they will build three new (short) pipelines, one each dedicated to brine/wastewater, fresh water, and condensate (see 3 New (Short) Pipelines from GreenHunter in Tri-state Area). The three pipelines will all terminate in the same location–but until now, GreenHunter has been cagey about where (see GreenHunter’s Unidentified Barge Facility Pipeline Destination). We said at the time the betting money is on GreenHunter’s facility in Wheeling. Were we right?…
Read More “Mystery Solved: GreenHunter Pipelines to Terminate Near…”
Anti-Drilling/Fossil Fuel | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

AAF Fails to Get Many to Oppose Barged Frack Wastewater
August 27, 2014August 27, 2014

Americans Against Fracking (AAF), a loose confederation of virulent anti-drilling groups who oppose fossil fuels and their use in society, has issued a press release to commemorate/mourn the closing of the comment period on whether or not the U.S. Coast Guard and a myriad of other federal agencies should allow barging of frack wastewater on the Ohio River. Even though AAF has multiple groups backing it–including the odious and misnamed Food & Water Watch–they were only able to get 3,400 people to sign form letters opposing federal approval for barging of frack wastewater. And so the propaganda machine at AAF has tried to spin that into a positive. What other choice do they have?…
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Butler County | Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Processing Plants | Rex Energy

Rex Energy Chimes In on MarkWest Expansion Announcement
August 27, 2014August 27, 2014

Yesterday MDN told you the news that MarkWest Energy is building two additional natural gas processing plants at their Keystone processing complex in Butler County, PA–one for EdgeMarc Energy and the other for Rex Energy (see MarkWest Expanding Again in Butler County, PA with Rex & EdgeMarc). Today we bring you Rex Energy’s press release announcing the same news. We don’t detect any real new news in Rex’s version of the release, although there are a few additional details not found in the MarkWest release. We bring it to you because it’s always fascinating to us to see how different companies present news that highlights what they want it to highlight…
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CONE Midstream | CONSOL Energy | Energy Companies | Industrywide Issues | Noble Energy | Pennsylvania | Pipelines | Statewide PA

CONSOL & Noble Energy Form New Marcellus Midstream Company
August 26, 2014August 26, 2014

Rather than contract with MarkWest Energy, Williams, or another midstream company, CONSOL Energy and Noble Energy, who together have a joint venture to drill in certain areas of the Marcellus Shale (or “upstream” venture), have now decided to form their own “midstream” (or pipeline) company too. Dubbed CONE Midstream–perhaps some weird amalgamation of the CONSOL and Noble Energy names–the new midstream company will take the form of a master limited partnership, or MLP. So far CONSOL and Noble have only filed paperwork and announced who will sell units (rough equivalent of shares of stock). While the announcement from CONSOL doesn’t say who will operate the new midstream company, it sure looks to us like CONSOL will be the one calling the shots…
Read More “CONSOL & Noble Energy Form New Marcellus Midstream Company”
Beaver County | Butler County | EdgeMarc Energy | Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Processing Plants | Rex Energy

MarkWest Expanding Again in Butler County, PA with Rex & EdgeMarc
August 26, 2014August 26, 2014

When you have a good thing going, like MarkWest Energy does with its Keystone processing complex in Butler County, PA, you keep growing it. And that’s just what MarkWest is doing. The company announced today they have a couple of new customers for the complex–Rex Energy and EdgeMarc Energy. The new customers will each get their own 200 million cubic feet per day (Mmcf/d) processing plants in the Bluestone facility–part of the Keystone complex that includes Bluestone and Sarsen facilities. In addition, MarkWest is also adding an additional 40,000 barrels per day (Bbl/d) of de-ethanization capacity and over 20,000 Bbl/d of additional propane and heavier NGL fractionation capacity. It means more capacity, more production, more money for landowners, and more major money will be invested in Butler County…
Read More “MarkWest Expanding Again in Butler County, PA with Rex & EdgeMarc”
Air Quality | Beaver County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell | West Virginia | Wood County

Cracker Race Continues: Odebrecht Files Remediation Application
August 26, 2014August 26, 2014

The race continues to see who will build the first multi-billion dollar ethane cracker plant in the Marcellus/Utica region. Yesterday MDN brought you the news that Shell had filed, back in May, a detailed air pollution application with the PA Dept. of Environmental Protection (DEP) for their proposed cracker plant in Beaver County, PA (see Details for Shell Ethane Cracker Revealed in Air Pollution Application). Although arriving on the scene several years after Shell’s project, Odebrecht announced last November they want to build a cracker plant near Parkersburg, WV (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Odebrecht has now filed a similar document–a Voluntary Remediation Program application–with the WV Dept. of Environmental Protection (WVDEP)…
Read More “Cracker Race Continues: Odebrecht Files Remediation Application”
Broome County | Chenango County | Coterra Energy (Cabot O&G) | Delaware County | Energy Companies | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Regulation | Schoharie County | Susquehanna County | Williams

Final EIS for Constitution Pipeline Delayed Another 2 Months, Ugh
August 26, 2014August 26, 2014

The Constitution Pipeline, which MDN has covered for more than two years, is a $683 million Williams pipeline project with backing from Cabot Oil & Gas that will run from Cabot’s gas fields in Susquehanna County, PA all the way to Schoharie County, NY. It’s an important project for Cabot Oil & Gas since it will move an additional half billion cubic feet of natural gas per day for the company. A month ago MDN told you the final Environmental Impact Statement (EIS) from the Federal Energy Regulatory Commission was due “any day” (see Constitution Pipeline Update from Cabot – Final EIS Due Any Day). The EIS was already delayed, and now we learn that it’s delayed yet again. According to top energy blogger and analyst Richard Zeits, the EIS for the Constitution is now delayed until the end of October–another two months…
Read More “Final EIS for Constitution Pipeline Delayed Another 2 Months, Ugh”