Energy Services

Energy Services | Ethane | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Washington County

MarkWest Extends Open Season for “Little” Ethane Pipeline
December 11, 2013December 11, 2013

MarkWest conducted an open season for their “little” 30-mile ethane pipeline that will run from Majorsville, PA to Houston, PA (in Washington County) from early November until December 9th. The MarkWest Liberty Ethane Pipeline is a pipeline to other pipelines (see MarkWest Open Season for “Little” Ethane Pipeline). Ethane arriving in Houston, PA will be able to hitch a ride out of the northeast via other pipelines to cracker plants and processing facilities in Canada and the Gulf Coast.

Apparently the open season didn’t garner as much business as MarkWest had hoped, because yesterday they announced “ya got a few more days to sign up.” The new deadline for the open season is this Friday, December 13th at 5:00 pm Eastern. So hurry and sign up, while you still can! Here’s the MarkWest announcement from yesterday extending the open season for the Liberty Ethane Pipeline:
Read More “MarkWest Extends Open Season for “Little” Ethane Pipeline”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Handful Protest Mariner East Pipeline at Sunoco HQ in Philly
December 11, 2013December 11, 2013

Something like two dozen paid, professional protesters showed up at Sunoco Logistics headquarters yesterday in downtown Philadelphia to preen before (a few) media cameras and make outrageously false statements about the Mariner East pipeline. These are people with nothing better to do with their time than to desperately try to grab 15 minutes of fame.

Here’s an example of the bilge that flowed from the groups financing the protest:
Read More “Handful Protest Mariner East Pipeline at Sunoco HQ in Philly”
Broome County | Energy Services | Industrywide Issues | Laser Northeast Gathering | New York | Pipelines | Williams

Williams Files to Expand Marcellus Pipeline in Broome County, NY
December 10, 2013December 10, 2013

Two years ago the newly completed Laser Northeast Gathering pipeline, a 33-mile pipeline stretching from Susquehanna County, PA across the border into Broome County, NY where it connects to the Millennium Pipeline, was sold by Delphi Midstream Partners to Williams Partners (see Laser Northeast Pipeline Selling to Williams for $750M). There is “new news” to share about the formerly named Laser, now named the “New York Mainline,” courtesy of MDN friend Andy Leahy, writing on his excellent NY Shale Gas Now! blog.

Sifting through a pile of digital paperwork, Andy found that in early December Williams filed a request to expand the Laser/NY Mainline by adding an additional 16″ pipeline loop–right here in the good old Town of Windsor, NY (where MDN is written!). The new pipeline loop will expand the capacity of Marcellus Shale gas flowing out of northeast PA and into the Millennium pipeline. Here’s Andy’s report…
Read More “Williams Files to Expand Marcellus Pipeline in Broome County, NY”
CONSOL Energy | Dominion Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Statewide WV | West Virginia

CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too
December 10, 2013December 10, 2013

MDN brought you today’s CONSOL press announcement that they have closed a deal with Dominion Resources to take over 90,000 acres of Marcellus and Upper Devonian Shale leases for $190 million (see separate story today). Not mentioned in the CONSOL announcement is the deal also includes CONSOL using Dominion to pipeline their West Virginia production to market. Dominion reports in addition to the deal with CONSOL they’ve signed agreements with several other companies too, and will deliver WV production to pipelines in Ohio.

Here’s the “complimentary/competing” press announcement issued today from Dominion. Their side of the story, if you will…
Read More “CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Open Season for Bluegrass NGL Pipeline Extended Extra 30 Days
December 10, 2013December 10, 2013

In October MDN told you the proposed Bluegrass Pipeline, a natural gas liquids (NGL) pipeline that will be built from the Marcellus/Utica to the Gulf Coast, was far enough along that joint venture partners in building the Bluegrass Williams and Boardwalk Pipeline launched an open season to lock in drillers who want to ship their NGLs out of the northeast (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). The open season was due to end next week, Dec. 16.

Late yesterday Williams/Boardwalk extended the open season another month, to Jan. 17, 2014. They say the extension is at the request of shippers who need more time to decide. Is that just blowing smoke? For real? How would you read the tea leaves? Here’s the announcement:
Read More “Open Season for Bluegrass NGL Pipeline Extended Extra 30 Days”
Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Owner of Former Sunoco Refinery Speaks on Marcellus, Future
December 10, 2013December 10, 2013

The new owner of the former Sunoco refinery in South Philadelphia says purchasing the refinery did not start out as a rescue operation (saving 850 jobs), but it did end up being one. Philip Rinaldi, CEO of Philadelphia Energy Solutions, was the guest of honor at a United Steelworkers Local 10-1 banquet last Saturday. His comments reveal him to be plain spoken and not without a surprise or two. Rinaldi fancies himself an old-style industrialist–he likes businesses that make things, saying you can’t have a society that only flips hamburgers.

Rinaldi also said the Marcellus will play a key part in his future plans. Here’s the interesting Q&A with Philip Rinaldi, his comments about why he chose the Philly refinery and about what the future may hold:
Read More “Owner of Former Sunoco Refinery Speaks on Marcellus, Future”
Anti-Drilling/Fossil Fuel | Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | New York | Schuyler County

Inergy: Boycott NY Businesses that Support ‘Gas Free Seneca’
December 9, 2013December 9, 2013

It’s interesting to MDN that when anti-fracking protesters call for boycotts of businesses that either support or (gasp) are part of the shale drilling industry, such a boycott is considered brave and courageous and a-OK. But when someone on the pro-drilling side suggests those who support fracking and the natural gas industry may want to boycott the businesses donating money and time to fight the natural gas industry, that’s “bullying” and mean and evil. Anyone else smell a hypocritical rat? We’re referring to a recent brouhaha over Inergy Midstream’s (now part of Crestwood Midstream) plan to develop a liquid propane storage facility using depleted salt caverns along the edge of Seneca Lake near Watkins Glen, NY. MDN has long covered the fight by Inergy to bring the only new storage facility proposed in the northeast (badly needed), and the people who want to stop it (see NY Protesters Arrested for Blocking NatGas Storage Facility).

In June, a VP for Inergy sent an email to 25 people suggesting they may want to boycott the businesses using their time and money to actively oppose the Inergy facility. Those businesses are part of the “Business Coalition” of the organization called Gas Free Seneca (GFS). The email sent by the Inergy VP–now six months old but but just coming to light–has GFS in a tizzy. GFS has responded with their own email that they are “extremely disturbed” by this “bullying” from Inergy. That is, GFS doesn’t like the shoe being on the other foot for a change (poor babies). We have the story of the email, and the list of the (current) 181 NY businesses that Inergy (and you) may want to consider boycotting…
Read More “Inergy: Boycott NY Businesses that Support ‘Gas Free Seneca’”
Accidents | Delaware County | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Pipelines

Minor Incident in with Millennium Pipeline NY Compressor Station
December 9, 2013December 9, 2013

The Millennium Pipeline was supposed to have completed a new compressor station near Hancock (Delaware County), NY in November. They’re getting close to being done, but not quite there yet. The new 15,900 horsepower compressor facility will add an additional 107.5 million cubic feet per day of capacity to the Millennium Pipeline, allowing them to pump more Marcellus Shale gas to the Algonquin Gas Transmission interconnect at Ramapo, NY.

Whether it was part of normal work to get the facility ready or there was a “problem” with bringing the compressor online, last Thursday Millennium personnel knocked on the door of the only residence living close to the facility and requested the family either stay inside for the next several hours, or immediately evacuate for a few hours while Millennium vented natural gas from the facility. The family (wisely) decided to evacuate for several hours…
Read More “Minor Incident in with Millennium Pipeline NY Compressor Station”
Energy Services | Industrywide Issues | Ion GX Technology | Pennsylvania | Seismic Testing | Westmoreland County

Thumper Trucks Coming to Murrysville – Make a (Very) Few Bucks?
December 9, 2013December 9, 2013

It’s certainly not a lot of money, but landowners in the Murrysville (Westmoreland County), PA area may have the opportunity to pick up some pocket change. One method used in seismic testing–finding out what’s down there–is to use “thumper trucks” that pound the ground, sending sound waves into the earth that are recorded with special equipment which allows geologists to draw maps of underground rock structures.

ION Geophysical Corporation of Houston, TX is sending thumper trucks to the Murrysville area in February, and landowners who are selected and agree to allow the trucks access on their land can get a one-time payment of $5 per acre. Depending on how much land you own, it will at least buy a few cups of coffee at Starbucks…
Read More “Thumper Trucks Coming to Murrysville – Make a (Very) Few Bucks?”
Crestwood Midstream | Energy Services

Crestwood Midstream’s Plans for 2014 (Hint: Marcellus)
December 9, 2013December 9, 2013

Last week Crestwood Midstream Partners issued an update for their 2014 plans. You may recall that in 3Q13 Crestwood merged with Inergy Midstream (see Crestwood/Inergy Complete Their Merger Today, Worth $8B). At the time, Crestwood said their focus for the remainder of this year would largely be the Marcellus Shale (see Crestwood Midstream 3Q13: Merger Done, Pedal to Marcellus Metal).

According last week’s update, the Marcellus will continue to be one of the primary focuses of the company. Crestwood plans to spend $400 to $425 million on new capital projects in 2014–much of it in the Marcellus, although they also have major projects cooking in the North Dakota Bakken Shale region and the Niobrara Shale of Colorado & Wyoming. The “forward looking” update from Crestwood:
Read More “Crestwood Midstream’s Plans for 2014 (Hint: Marcellus)”
Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines

Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon
December 6, 2013December 6, 2013

When it comes to carting away lucrative ethane from the Marcellus/Utica, there’s been a horse race between Sunoco Logsitics and their Mariner West pipeline to Sarnia, Canada, and the Enterprise Products Partners and their ATEX (Appalachia-to-Texas Express) pipeline to the Gulf. Mariner West recently won the race in a photo finish (see “Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?). However, Enterprise announced yesterday they are now filling the ATEX pipeline with ethane and testing it. The pipeline should be fully operational by the end of December–months ahead of schedule.

The exciting thing about the ATEX pipeline is it’s connection to four different fractionation (“separating”) plants: two in OH, one each in PA and WV. Why are these two ethane pipelines a big deal? Great question…
Read More “Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Regulation | Williams

Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court
December 6, 2013December 6, 2013

A small but dedicated group of anti-drillers in Kentucky continue to oppose plans by Williams and Boardwalk Partners to build the Bluegrass natural gas liquids (NGL) pipeline through their state. The Bluegrass will stretch from the Marcellus/Utica all the way to the Gulf Coast. MDN estimates it will cost at least $1.5 billion to build it (see 2013 Marcellus and Utica Shale Databook – Volume 2). We told you about previous efforts to stop the pipeline in, ironically, the Bluegrass state–Kentucky (see Bluegrass NGL Pipeline Encounters Resistance from Some in KY and Bluegrass NGL Pipeline Hits Brick Wall in the Bluegrass State). We even told you about God getting involved (see Thank God the Bluegrass Pipeline will Bypass Marion County Nuns).

Looks like the anti-drillers have not given up. A new group with the cutsie name KURE (Kentuckians United to Restrain Eminent Domain) has formed to oppose the pipeline. Their strategy is to deny the Bluegrass the right to use eminent domain to lay pipeline under property where landowners don’t want it. KURE filed a lawsuit yesterday in Franklin Circuit Court (Frankfort, KY) questioning the legality of eminent domain for the Bluegrass…
Read More “Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court”
Commodity Price | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

NYC’s Energy Infrastructure “Transformed,” Boston’s is Not – Why?
December 6, 2013December 6, 2013

We find it amusing that mainstream media is so narcissistic and navel-gazing that if a story doesn’t originate from NYC/DC media axis, it’s as if the story never existed. Case in point: The Atlantic magazine trumpets “no one noticed” that last month a whole lot more natural gas started flowing to New York City because of a new $1.2 billion pipeline from Spectra Energy connecting NJ to NY. Uh, excuse us Atlantic, but MDN noticed. We’ve been covering this story for the past two years! We told readers back on Oct. 21 that Spectra was opening the valves on an additional 800 million cubic feet of mostly cheap Marcellus Shale gas per day (see Spectra NJ-NY Marcellus Gas Pipeline Goes Online Nov. 1).

It may take a few months, but we’re glad to see some mainstream media outlets finally, grudgingly, report the good news. However, there are other stories the media continues to ignore, like why Boston will continue to pay high prices for their natural gas even though there’s plenty of cheap gas to be had. There’s a pretty simple explanation…
Read More “NYC’s Energy Infrastructure “Transformed,” Boston’s is Not – Why?”
Energy Services | Industrywide Issues | Marathon Petroleum | Ohio | Pipelines | Statewide OH | Utica Shale

Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline
December 5, 2013December 5, 2013

Another new pipeline is on the way in the Utica Shale. This one will be built by Marathon Petroleum Corporation, the largest refiner in the Utica Shale region. The Cornerstone pipeline, as they’re calling it, will stretch nearly 50 miles from the MarkWest cryogenic processing plant in Cadiz, OH northwest connecting to M3’s fractionator plant in Scio and M3’s cryogenic processing plant in Leesville along the way as it terminates and connects to Marathon’s refinery in Canton, OH (see map below). The pipeline will carry, at various times, crude oil, condensate and natural gasoline.

The Cornerstone pipeline is slated to be built and in operation in 2016, according to Marathon officials. Here’s what Garry Peiffer, President of Marathon’s Master Limited Partnership MPLX GP said about the Cornerstone project on an analyst call yesterday:
Read More “Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline”
Energy Services | Industrywide Issues | NGLs | Pipelines | Sunoco Logistics

Into the Light: Open Season Announced Mariner East 2 NGL Pipeline
December 5, 2013

A few weeks ago MDN observed that Sunoco Logistics’ is planning a second Mariner East NGL pipeline to run alongside the pipeline they’re working to complete now that runs from western PA all the way to the Marcus Hook refinery near Philadelphia (see Sunoco Logistics Planning Second Mariner East Pipeline for NGLs). We wouldn’t say Sunoco’s plans for a second pipeline have been shrouded in secrecy or conspiratorial, but we would say they haven’t exactly been forthcoming about their plans either–until now.

Yesterday Sunoco announced a binding open season to allow producers to sign up for capacity on the Mariner East 2 pipeline (official name). The open season began yesterday but we find no mention of when it will end, so perhaps it’s open-ended for now. (Usually open seasons last for a month or so.) The plan is to have this new pipeline operational in early 2016. Here’s the press release from Sunoco Logistics announcing the open season for Mariner East 2 (with map):
Read More “Into the Light: Open Season Announced Mariner East 2 NGL Pipeline”
Economic Impact | Electrical Generation | Energy Services | Industrywide Issues | Jobs | Lancaster County | Pennsylvania | Pipelines | Williams

New Electric Power Plant in Lancaster Powered by Marcellus Gas
December 5, 2013December 5, 2013

Even though there’s no Marcellus Shale under Lancaster County, PA, the county is about to benefit from the Marcellus Shale. A new electrical generating power plant is planned for Lancaster County that will be powered by cheap Marcellus Shale gas from Pennsylvania–meaning lower electricity prices for the 390,000 homes it will power. It also means a new 9-mile natural gas pipeline will be built, and a 7-mile water pipeline.

Lots of jobs in building the plant and the pipelines, some landowners will benefit from having the pipeline cross their property, and everyone in the region gets lower cost electricity. It’s a win/win/win situation–thanks to the Marcellus…
Read More “New Electric Power Plant in Lancaster Powered by Marcellus Gas”