Energy Services

Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline

Reversing the Fortunes for “Wrong Way” REX Pipeline
September 15, 2014September 15, 2014

What happens when you build a major interstate natural gas pipeline–and you’ve guessed wrong about the market. That happened to Tallgrass Energy and their Rockies Express Pipeline (REX), which runs from Colorado and Wyoming in the West to Ohio in the East. The REX Pipeline was completed in 2009, just in time for the shale revolution to begin in the Marcellus and now in the Utica. What to do when you’re pumping gas into a saturated market? At last week’s LDC Gas Forum in Chicago, Tallgrass vice president Doug Walker said you change things up…
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Fairmount Santrol | Geauga County | Ohio

OH Frack Sand Co Going Public, Seeks Big $ in IPO
September 15, 2014September 15, 2014

An Ohio-based frack sand company, Fairmount Santrol (formerly Fairmount Minerals), recently announced their intention to go public and sell shares of stock. Flying under the legal name FMSA Holdings, the company is headquartered in Chesterland (Geauga County), OH, in the northeastern corner of the state. Fairmount Santrol was founded in 1986 and last year reported $1.2 billion in revenue (or $1.6 billion, depending on the source you use) and $114 million in net income. How much money do they hope to raise?…
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Advanced Well Services | Butler County | Energy Services | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Supply Chain

PA “Snubbing” Company DWS Experiences Rapid Expansion
September 12, 2014September 12, 2014

What do you think of when you hear the word “snub”? We always thought it meant how Webster defines it: “to treat with contempt or neglect”. However, in the world of oil and gas drilling, to snub, or “snubbing” means something completely different. Deep Well Services (DWS) is the only “snubbing” oilfield services company located in Pennsylvania. With headquarters in Zelienople (Butler County), PA, the company has gone through a rapid expansion adding dozens of new employees over the past four months. So, what is snubbing and why should you care about it?…
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Energy Services | EnLink Midstream

EnLink Gets New Top Lawyer, 1st Major Personnel Change Since Merger
September 12, 2014September 12, 2014

Last year midstream company (pipelines & processing plants) Crosstex Energy announced it would merge with the midstream division of Devon Energy. The resulting new company was christened EnLink Midstream (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds). Both Crosstex and Devon had/have major operations in the Marcellus/Utica–so this was and is an important story for MDN. We further told you that the new EnLink would be retain the Crosstex leadership–and that those leaders have a heart (see A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage). The leaders of the new EnLink vowed not to lay people off–and they didn’t. The new news is that one of those leaders, Joe Davis (executive vice president and general counsel) is now either cashing in his chips and retiring, or cashing out and moving on–we’re not sure which. This is the first major change-up in EnLink’s leadership we’ve spotted since the merger was officially completed in March of this year…
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Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

VA Gov. McAuliffe Vows No Drilling in Washington Natl Forest
September 11, 2014September 11, 2014

Sounding more like the liberal (and irrational) Democrat he really is, Virginia Gov. Terry McAuliffe said yesterday that there will be no shale drilling in (or under) the George Washington National Forest, which lies mostly in his state, while he’s governor. Which is kind of interesting because last week he stood toe to toe with Dominion CEO Thomas F. Farrell II at a press conference to announce his support for the $5 billion Atlantic Coast Pipeline, part of which will run through (yes) the George Washington National Forest (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). So apparently McAuliffe doesn’t mind cutting down trees and digging up the precious, pristine, “old growth” forest to lay a pipeline–but drilling a hole more than a mile under it’s surface? No way José. Which makes us wonder who’s contributing the most to his campaign coffers?…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | UGI Energy Services

Delaware Riverkeeper Petitons DRBC to Stop PennEast Pipeline
September 11, 2014September 11, 2014

THE Delaware Riverkeeper herself, the haughty and arrogant Maya van Rossum, has sent a letter to the Delaware River Basin Commission (DRBC) “petitioning” (i.e. demanding) that the DRBC “exercise jurisdiction over the PennEast Pipeline Project.” You may recall that energy utility giant UGI along with three other partners announced a proposed pipeline that will run from Wilkes-Barre, PA all the way to Trenton, NJ to flow abundant, cheap Marcellus Shale gas to homes and businesses in southeastern PA and NJ (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). UGI and partners didn’t waste any time. They recently completed a successful open season on the $1 billion PennEast Pipeline to sign up potential customers (see Successful Open Season Concludes for Marcellus PennEast Pipeline). Now along comes Miss Muffet sitting on her tuffet to try and throw her curds and whey on the process (see her letter below). If van Rossum can convince the DRBC to get involved, she stands a good chance of blocking the PennEast Pipeline from ever getting built…
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CNG/LNG | Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Statewide PA

Marcellus Caught in Crossfire of Philly Port Leasing Controversy
September 9, 2014September 9, 2014

Once again the Marcellus is in the middle of what appears to be a Democrat vs. Republican fight–this time over who will control prime riverfront port facility property in the Delaware River in Philadelphia. Here is our understanding of the situation: the Philadelphia Regional Port Authority (PRPA) is in talks to lease 200 acres at the Southport facility to Philadelphia Energy Solutions (PES)–operator of the former Sunoco Inc. refinery in South Philadelphia–who would then turn around and find an operator for the terminal itself. PES wants to ship Marcellus Shale gas from the port facility location after piping it there from other parts of PA. But a bigtime Philly Democrat, John Brown Jr., president of Penn Warehousing and Distribution Inc. (a paper-import company) wants to lease the port facility for himself and the operations of his company. So Brown hired former State Senator Vincent J. Fumo (Democrat with a lot of influence) to pull strings and hose the deal developing between PRPA and PES…
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American Water Management | Earthquakes | Energy Services | Industrywide Issues | Ohio | Trumbull County | Wastewater

ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake
September 8, 2014September 8, 2014

On Sunday, August 31 at 5:45 pm, there was an earthquake in the vicinity of Weathersfield (Trumbull County), OH. However, no one felt it. The only way anyone knew there was a quake was because of monitoring by the U.S. Geological Survey. The Ohio Dept. of Natural Resources (ODNR) is investigating whether or not two wastewater injection wells, operated by American Water Management Services (AWMS), was the cause of that low-level quake that no one felt. According to the ODNR, from an “abundance of caution” they asked AWMS to shut down operations at those two wells while they investigate, which has now been done…
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Energy Services | GE Oil & Gas | Industrywide Issues | Pipelines | Supply Chain

GE/Accenture Launch Internet Pipeline Software, Columbia 1st Cust
September 8, 2014September 8, 2014

GE’s Oil & Gas division has partnered with global management consulting firm Accenture to launch Intelligent Pipeline Solution, which they describe as “the first-ever Industrial Internet offering to help pipeline operators make better decisions concerning the condition of their critical machines and assets in the oil and gas pipeline industry.” Looks to us like it’s software in the cloud–software that will help companies keep track of their pipelines and equipment and help them make better/faster/safer decisions on when things need an upgrade, or an expansion. GE/Accenture, as part of announcing this new service, announced that Columbia Pipeline Group (division of Columbia Gas) is their flagship first customer–and Columbia is using it to help manage (yes) their Marcellus/Utica Shale pipeline network…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Jackson County | Marshall County | Noble County | Ohio | Pipelines | West Virginia

3 Big Compressors Coming with Columbia’s OH Pipeline Project
September 8, 2014September 8, 2014

Representatives for Columbia Gas Pipeline are making the rounds and talking with officials in various communities where the planned expansion of their pipeline will happen. Columbia, as MDN previously reported, is spending $1.75 billion on two pipeline projects that will help move Marcellus Shale gas to the Gulf Coast (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). One of those projects is called the Leach Express–starting in Marshall County, WV and ending up in Leach, KY (hence the name). Along the way three new compressor stations will need to be built, which is the focus of this story…
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Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Transco | Williams

Yet Another Williams Transco Expansion: Western Marcellus Project
September 5, 2014September 5, 2014

Pipeline (infrastructure) projects keep getting announced fast and furiously–we can hardly keep up! Williams has announced yet another upgrade to their Transco Pipeline–this one called the Western Marcellus Pipeline Project. We get details about the new project from an open season announcement from Williams posted yesterday. The Transco is one of the country’s largest interstate natural gas pipelines–a 10,200-mile pipeline system that extends from South Texas to New York City. In February Williams announced an $2.1 billion expansion of the Transco to carry PA Marcellus gas to the Eastern seaboard, what they call the Atlantic Sunrise project (see Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already). Last week we told you about another expansion of the Transco, called Diamond East, that will beef up capacity on the Transco from Lycoming and Luzerne counties in northeast PA all the way to Mercer County, NJ, a $500-$800 million project (see Williams to Expand Transco Pipeline Again, More Marcellus to NE). Yesterday Williams announced the Western Marcellus Pipeline project, a project that will give western PA Marcellus and eastern OH Utica producers a way to get their gas to markets in the southeast (Louisiana and Texas) and even to Florida…
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Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

Successful Open Season Concludes for Marcellus PennEast Pipeline
September 5, 2014September 5, 2014

Barley three weeks ago a consortium of four companies announced a new pipeline project to carry Marcellus Shale gas from Luzerne County in northeastern Pennsylvania to Transco’s Trenton-Woodbury interconnection in New Jersey. The $1 billion PennEast Pipeline will be built by energy utility giant UGI, along with AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The consortium announced yesterday the successful close of a very fast binding open season–a period of time when potential customers sign on the dotted line to take capacity in the new pipeline. Of course it didn’t hurt that the consortium itself had already reserved nearly half of the 1 billion cubic feet per day capacity for themselves! Still, the other half is now sold out too (a total of 965,000 dekatherms, or 936 million cubic feet, or .936 billion cubic feet)…
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Energy Services | Ethane | Exporting | Harrison County | Industrywide Issues | Kinder Morgan | Ohio | Pipelines

UTOPIA Open Season Begins Today – OH to MI NGL Pipeline
September 5, 2014September 5, 2014

Back in December MDN told you about Kinder Morgan’s new proposed new pipeline called the Utica To Ontario Pipeline Access, or UTOPIA (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). The 240-mile natural gas liquids (NGL, specifically ethane and propane) pipeline will connect multiple fractionation facilities in Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada where they will be delivered to NOVA Chemicals. The new $300 million, 10-inch pipeline from OH to MI is what is called UTOPIA. Yesterday KM announced a binding open season for UTOPIA…
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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…
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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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