Energy Services

Blue Racer Midstream | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Blue Racer Natrium Wet Gas Processing Plant Addition Almost Ready
April 7, 2014April 7, 2014

Last September an explosion and fire at Blue Racer Midstream’s Natrium, WV natural gas processing plant closed the plant (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). The plant remained closed for five long months, causing some of their customers, including Rex Energy and Atlas Resources, to find alternatives to process wet gas (see Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014).

It certainly was a happy day in January when the facility came back online, with repaired and new equipment, and a new alarm system for the nearby community. Always in the cards was an expansion of the processing capacity at the Natrium facility–doubling the ability to process and separate wet gas from 200 million cubic feet per day to 400 Mmcf/d. Blue Racer, when announcing the re-opening of the original plant in January, also announced they already have four new customers lined up for the extra/new capacity (see Blue Racer: Natrium Plant Back Online, New Customers, Adds Barging). Good news for those new customers–the extra capacity is about to go online…
Read More “Blue Racer Natrium Wet Gas Processing Plant Addition Almost Ready”
Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline
April 4, 2014April 4, 2014

It appears the PA Supreme Court’s ill-fated decision to toss out zoning provisions in the Act 13 drilling law is now affecting more than just drilling. Sunoco Logistics is trying to build a new natural gas liquids (NGL) pipeline that spans the state–running from western PA all the way to the Marcus Hook refinery near Philadelphia (see Sunoco Logistics Planning Second Mariner East Pipeline for NGLs). MDN reported in January that Sunoco Logistics has a lot riding on a court case in Washington County, PA because they are attempting to use eminent domain to force some landowners to allow the pipeline across their property (see PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case).

We now throw in a new wrinkle for Sunoco Logistics and the Mariner East NGL pipeline: Sunoco Logistics has made a request to the state Public Utility Commission (PUC) to exempt the pipeline from local zoning regulations in building some 31 pump and valve control stations across the length of the pipeline. Based on the PA Supreme Court decision in December, two Philadelphia state senators say Sunoco Logistics does not have the right to be exempted from local zoning…
Read More “Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline”
Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Processing Plants | Supply Chain

MarkWest Orders 70 Cat Gas Compressor Engines for Marcellus/Utica
April 3, 2014April 3, 2014

Caterpillar has scored one of the largest orders it has ever seen for its Cat® G3600 engines from MarkWest Energy–for use in the Marcellus and Utica Shale region. Yesterday Caterpillar Oil & Gas announced MarkWest has ordered 70 G3600 engines, which will be built in Cat’s Lafayette, IN plant. The engines are powered by natural gas and will be used in MarkWest compressor stations and processing plants.

This order, representing millions of dollars and numerous jobs, is just one more example of how shale drilling benefits everyone across the country–not just landowners and the drilling industry. Below is the press release from Caterpillar with more details, including other vendors that will be involved in assembling these “compression packages” for MarkWest, along with a news report from Lafayette, excited to have this huge new order…
Read More “MarkWest Orders 70 Cat Gas Compressor Engines for Marcellus/Utica”
Energy Services | Industrywide Issues | Pipelines | Williams

Duke Energy & Piedmont NatGas Want New Marcellus Gas Pipeline
April 2, 2014April 2, 2014

Duke Energy, headquartered in Charlotte, NC, is the largest electric power holding company in the U.S. with a number of electrical generating plants in the southeast. Piedmont Natural Gas is a utility company delivering natural gas to more than one million residential, commercial and industrial customers throughout NC, SC and TN. The two companies have something in common: a desire to use cheap, abundant natural gas from the Marcellus Shale. Duke wants it to power its electric generating plants. Piedmont wants it to deliver to customers like Duke and others. The two announced yesterday they want it so bad they’re willing to together invest in a new natural gas pipeline to bring it into NC.

Williams is currently in the midst of a multi-year project to expand and extend the Transco pipeline into NC to, in part, Piedmont Natural Gas. The Transco Virginia Southside Expansion project is approximately 100 miles of new 24-inch diameter pipeline extending from the Transco mainline in Pittsylvania County, VA into Halifax, Charlotte, Mecklenburg, and terminate in Brunswick County, VA. The interesting thing (to MDN) is that Duke and Piedmont specifically say they want a new/different/second pipeline to be built. Apparently they’re not happy with a single source (from Williams) and want a little more competition in the region–so the two companies jointly announced yesterday they’re shopping for midstreamers willing to build a second pipeline to flow Marcellus gas…
Read More “Duke Energy & Piedmont NatGas Want New Marcellus Gas Pipeline”
Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

ORSANCO Ready to Monitor Ohio River for Barge Frack Waste Spills
April 1, 2014April 1, 2014

The Ohio River Valley Sanitation Commission (ORSANCO), an interstate commission representing eights states and the federal government, was set up in 1948 to monitor, issue warnings about and correct pollution issues in the Ohio River. In particular, ORSANCO handles spills from barges or boats using the mighty Ohio. According to Jerry Schulte, manager of source water protection and spokesman for ORSANCO, the organization is up to the task of protecting the Ohio from any accidents that may include barge shipments of frack wastewater.

Not only are they up to the task, ORSANCO believes the Coast Guard is now very close to allowing it, and ORSANCO is ready…
Read More “ORSANCO Ready to Monitor Ohio River for Barge Frack Waste Spills”
Energy Services | GreenHunter Resources

GreenHunter 2013: Revenues Up, Losses Down, Year of Transition
April 1, 2014April 1, 2014

GreenHunter Resources, the wastewater subsidiary of Magnum Hunter Resources, released their fourth quarter and full year 2013 update yesterday. The company reports revenues were up, losses were down, and they experienced “substantial growth” and “transition” in 2013.

Here’s the update:
Read More “GreenHunter 2013: Revenues Up, Losses Down, Year of Transition”
Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | TC Energy/TransCanada

ANR Pipeline Succeeds, Reversing Flow to Ship Utica/Marcellus Gas
April 1, 2014April 1, 2014

MDN told you a few weeks ago that ANR Pipeline, owned by TransCanada, would potentially become bi-direction and reverse flows to carry Utica and Marcellus Shale gas to the Gulf Coast–if they can secure enough commitments from shippers (see TransCanada’s ANR Pipeline to Reverse & Carry Marcellus Gas South). ANR offered up to 600,000 dekatherms (or 600 million cubic feet, Mmcf) per day of capacity in the Utica/Marcellus. Yesterday ANR announced they have met their goal–and then some. Not only have they got 600 Mmcf/d of commitments for the portion coming from the Utica/Marcellus, they’ve secured enough commitments in other locations to move a total 2 billion cubic feet (Bcf) per day along the ANR Pipeline system both north and south, which stretches 10,600 miles through the midsection of the U.S.

Here is the good news announcement from ANR that they’re going bi-directional and now have firm commitments for the next 23 (!) years:
Read More “ANR Pipeline Succeeds, Reversing Flow to Ship Utica/Marcellus Gas”
Chenango County | Energy Services | Industrywide Issues | New York | Otsego County | Pennsylvania | Pipelines | Regulation | Schoharie County | Susquehanna County | Williams

JLCNY Encourages Support of Constitution Pipeline — This Week
March 31, 2014March 31, 2014

MDN has done a fair bit of reporting on a desperately needed new natural gas pipeline due to be built from Susquehanna County, PA all the way to Schoharie County, NY. The Constitution Pipeline will be built by Williams starting later this year, if all goes according to plan (see New Marcellus Constitution Pipeline Announces “Final” Route). Last week MDN told you that both the federal EPA and Dept. of Interior have asked for more time to provide their own comments on the new pipeline (see EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline). FERC, the Federal Energy Regulatory Commission, has itself told Williams they will need to make a few adjustments to their plans (see FERC: Constitution Pipeline Should Make Changes to Lessen Impacts).

FERC will ultimately decide whether or not to allow Williams to build the pipeline. We doubt there’s much doubt about the plan–it’s almost certain to be built. FERC themselves say it’s really really needed. However, FERC must go through the motions, and one of those motions is to hold public “scoping” hearings where people (often anti-drillers) show up to gripe and moan about the plan. FERC is conducing a series of four hearings this week, starting today. The Joint Landowners Coalition of New York sent the following email (with hearing details) to request members of the JLCNY and all pro-drillers attend a meeting near them, to show support for natural gas in our region…
Read More “JLCNY Encourages Support of Constitution Pipeline — This Week”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Pipelines | Statewide WV | West Virginia

Eureka Hunter Gets New $117M Line of Credit, Expansion Continues
March 31, 2014March 31, 2014

Eureka Hunter Pipeline, a subsidiary of Magnum Hunter, is a small but growing midstream company with most of its operations in West Virginia (see these MDN articles about Eureka Hunter and their recent expansion). Apparently they plan to keep on growing. Today Eureka Hunter announced they’ve got a new line of credit at the bank–for a cool $117 million. Their line of credit can grow to $150 million under the right conditions.

Magnum Hunter CEO Gary Evans says the new credit line means MH itself won’t have to float cash to the midstream subsidiary like it does now–meaning more flexibility and Eureka Hunter can expand faster. And that’s a good thing! Here’s the Eureka Hunter announcement posted today:
Read More “Eureka Hunter Gets New $117M Line of Credit, Expansion Continues”
Energy Services | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Pipelines | PVR Midstream

ULS Says PVR Marcellus Bankrupted Their Company by Not Paying
March 28, 2014March 28, 2014

Utility Line Services Inc. (ULS), a company that does construction work for utility companies–like digging trenches and laying pipeline–is suing PVR Marcellus Gas Gathering in a Delaware County, PA court. ULS says PVR owes them more than $17.7 million in unpaid invoices and another $7.8 million in lost profits. The lawsuit stems from work done by ULS for PVR in laying 17 miles of pipeline in Lycoming County. Like all lawsuits, this one is a bit complicated, but essentially ULS says PVR slowed and then stopped payments, even though the pipeline was completed and gas now flows through it.

Both companies are pointing the finger at the other saying the other company was responsible for obtaining certain permits, and lack of those permits caused delays and increased costs in overtime and project overruns. Unfortunately PVR’s lack of payments to ULS has bankrupted ULS. They’ve closed their doors, laid off 600 workers and sold their equipment at auction. Not a happy ending. Here’s the story behind the lawsuit just getting under way and expected to run for at least three weeks in Delaware County Common Pleas Court…
Read More “ULS Says PVR Marcellus Bankrupted Their Company by Not Paying”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Commerce Sec Burdette Praises Odebrecht/Antero, Warns Drillers
March 28, 2014March 28, 2014

Aside from WV Gov. Earl Ray Tomblin, no one in West Virginia has been more dedicated, more focused and more committed to finding an ethane cracker plant for the state than WV Commerce Secretary Keith Burdette. MDN has stories going back years that mention Burdette and his quest for a cracker (just one example: WV’s Burdette Still in Hunt for Ethane Cracker Plant). We think it’s a fair statement to say without Burdette, the Odebrecht cracker plant project would not have happened. Our hat is off to Keith and the marvelous work he’s done for the state.

Yesterday Keith delivered a rousing speech at the Marcellus to Manufacturing Ethane Development Conference at the Charleston Civic Center. We have a transcript of his speech below. In it, Keith acknowledges the contributions of Odebrecht’s David Peebles in making this project happen. He also praises Antero Resources for their bold and brave commitment to providing half of the ethane for the new cracker plant. Finally, Keith sounds a word of warning to other drillers that are signing agreements to ship ethane out of the northeast region. He believes they may want to reconsider. The northeast has enough ethane for “a dozen crackers” if so much of it wasn’t heading to the Gulf Coast or Canada via pipeline…
Read More “WV Commerce Sec Burdette Praises Odebrecht/Antero, Warns Drillers”
Antero Resources | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

Antero to Provide 50% Ethane Needed at Parkersburg Cracker Plant
March 27, 2014March 27, 2014

The ethane cracker plant planned for Parkersburg (Wood County), WV, to be built by Odebrecht and operated by Odebrecht subsidiary Braskem America, took another giant step closer to reality yesterday. Powerhouse Marcellus/Utica driller Antero Resources announced they will provide 30,000 barrels per day of ethane for the proposed new plant when/if it gets built. That’s half of what the plant needs to operate. Antero Resources CEO Paul Rady was joined by Odebrecht VP of business development David Peebles on stage at the Marcellus to Manufacturing Ethane Development Conference at the Charleston Civic Center for the big announcement yesterday. WV Gov. Earl Ray Tomblin took to the stage to crow about the deal too (he’s earned the right).

It was just Monday of last week that MDN observed that the Odebrect cracker plant just “feels” like it’s going to happen (see Odebrecht’s WV Ethane Cracker has The Big Mo–Momentum). Yesterday’s Antero announcement is more evidence of that. Below is the official Antero announcement about their ethane contribution to the proposed new cracker, along with a report of who said what about the deal at yesterday’s Charleston conference…
Read More “Antero to Provide 50% Ethane Needed at Parkersburg Cracker Plant”
Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Regulation | Statewide NY | Susquehanna County | Williams

EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline
March 27, 2014March 27, 2014

NGI’s Shale Daily is reporting both the federal Environmental Protection Agency (EPA) and the Dept. of Interior (DOI) have filed requests with the Federal Energy Regulatory Commission (FERC) to extend the comment period on the proposed 124-mile Constitution Pipeline. The Constitution will run from the prolific gas fields of Susquehanna County, PA across the border and up into Schoharie County, NY where it will interconnect with two major interstate pipelines–carrying Marcellus Shale natural gas produced by Cabot Oil & Gas and other drillers (see New Marcellus Constitution Pipeline Announces “Final” Route). Along the way a local utility company will tap into the Constitution to deliver natural gas to rural locations (see Leatherstocking to Tap Constitution Pipeline for Local Deliveries).

However, the Constitution will need to make a few changes, according to FERC (see FERC: Constitution Pipeline Should Make Changes to Lessen Impacts). But nothing too major. That is, unless the EPA and DOI jump in with new demands. Their delay is unwelcome and potentially troubling–although we’re not ready to hit the panic button just yet. Here’s what Shale Daily says about the request from EPA & DOI:
Read More “EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline”
Energy Services | Falcon Drilling

More Drilling Rigs Come to the Utica/Marcellus – from Falcon
March 27, 2014March 27, 2014

Falcon Drilling, which operates 13 drilling rigs in PA, WV and the OH Marcellus and Utica, has just purchased three new drilling rigs for their northeast drilling operations–good news for Marcellus and Utica operators.

Here’s the low down on the types of rigs Falcon has just purchased, and where they plan to use them…
Read More “More Drilling Rigs Come to the Utica/Marcellus – from Falcon”
Accidents | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Sunoco Logistics

Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve
March 27, 2014March 27, 2014

Last Tuesday Sunoco Logistics discovered a 5-inch crack leaking crude oil from their Mid-Valley Pipeline–and the oil was leaking into the Oak Glen Nature Preserve just west of Cincinnati, OH. Ouch. Initial reports were that 10,000 gallons of oil had leaked before the pipeline between Hebron, KY and Lima, OH was shut off. That estimate has been doubled–it’s now thought more than 20,000 gallons of oil leaked. Double ouch.

What does this have to do with Marcellus/Utica shale drilling? Not much. It’s possible some of the oil comes from Ohio–more likely from other locations (we don’t know). Sunoco Logistics is the company that has built (and is building) the Mariner West and Mariner East ethane/NGL pipelines–but it’s a stretch to compare those gas pipelines with the Mid-Valley oil pipeline. The connection between the oil spill and northeast shale drilling is this: MDN editor Jim Willis first learned about the leak at the Oil & Gas Awards’ “Conference for Excellence” last week in Pittsburgh. Jim was sitting next to an official from McCutcheon Enterprises–one of the companies called in to clean up the mess–who told Jim about the spill and his company’s rapid response to work on getting it cleaned up…
Read More “Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve”
Anchor Drilling Fluids | Energy Services | Industrywide Issues | M&A

Downstream Petrochemical Co Buys Upstream Frack Fluid Co
March 27, 2014March 27, 2014

Calumet Specialty Products Partners, a company that processes crude oil and other feedstocks into customized lubricating oils, solvents, waxes and asphalt used in consumer, industrial and automotive products, has just purchased Anchor Drilling Fluids outright for $235 million in cash. Anchor manufactures drilling mud and frack fluids used in shale drilling in the Marcellus, Utica and just about every other major shale play across the U.S. It certainly makes sense for Calument, a huge chemical company already in the “downstream” petrochemical space to move into chemical manufacturing for the “upstream” exploration and production space.

You may recall Calument is also building a gas-to-liquids (GTL) plant at their Karns, PA location to convert Marcellus Shale gas to diesel fuel (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA). Here’s yesterday’s announcement that Calumet has plunked down $235 million for Anchor Drilling Fluids…
Read More “Downstream Petrochemical Co Buys Upstream Frack Fluid Co”