Energy Services

El Paso | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines

Marcellus/Utica Gas Heading South on Expanded El Paso Pipeline
August 16, 2013August 16, 2013

Examples of the enormous economic power of the Marcellus/Utica to influence the entire nation’s economy keep coming–almost daily it seems. Latest example: Kinder Morgan’s El Paso Pipeline Partners announced yesterday that not only has the most recent “open season” (when buyers and sellers of natural gas commit to using a pipeline in the future when it’s built) resulted in commitments for the original proposed expansion of 600 million cubic feet of natgas per day (Mmcf/d), they also have additional demand for another 400 Mmcf/d. That’s demand to deliver 1 billion cubic feet of natural gas per day (Bcf/d) to markets in Georgia, South Carolina and Florida.

And where, do you think, will the extra 1 Bcf/d of gas supplies come from? You guessed it: The Marcellus and Utica Shale…
Read More “Marcellus/Utica Gas Heading South on Expanded El Paso Pipeline”
Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | NiSource | Ohio | Pipelines | Processing Plants | Statewide OH

More Progress for Hickory Bend Pipeline/Processing Plant in OH
August 16, 2013August 16, 2013

The Pennant Midstream “Hickory Bend” pipeline continues to make good progress. Pennant is a joint venture between NiSource and Hilcorp Energy, established to build a $300 million wet gas pipeline and processing plant in eastern Ohio (see the original announcement from July 2012: NiSource, Hilcorp Energy Joint Venture in Utica Shale).

Although the project has faced its challenges and minor delays, it has made excellent and steady progress. The cryogenic processing plant in Springfield Township is now being reported as “completed” (the first time we’ve heard that), and pipeline boring crews are working this week in Columbiana County. An update:
Read More “More Progress for Hickory Bend Pipeline/Processing Plant in OH”
Aveda Transportation | Energy Services | Upshur County | Utica Shale | West Virginia

Aveda Transportation Opening WV Branch Office to Move Utica Rigs
August 15, 2013August 15, 2013

Aveda Transportation and Energy Services Inc., a Canadian oilfield hauling services and equipment rental company, released their second quarter financials yesterday. Aveda currently operates a branch office in Williamsport, PA to service Marcellus drillers.

An interesting little announcement was tucked in yesterday’s release. Aveda is opening another branch office in the northeast–this one in West Virginia–to service the rapidly growing number of rigs in the Utica Shale. According to CEO Kevin Roycraft, he’s counting on the new WV office to contribute to the company’s bottom line by fourth quarter of this year…
Read More “Aveda Transportation Opening WV Branch Office to Move Utica Rigs”
Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Regulation | Wastewater | West Virginia

Wheeling, WV Approves GreenHunter Frack Wastewater Facility
August 14, 2013August 14, 2013

With capes gently flapping in the breeze, it was a crushingly sad defeat for the brave and noble Wheeling Water Warriors who sought to stop the evil frackwater company from establishing yet another facility along the shores of the pristine (*cough*) Ohio River…. OK, enough of that drivel! A great victory for GreenHunter Water and for sanity: The Wheeling (WV) Planning Commission has approved GreenHunter’s plan to develop a frack wastewater recycling/barge facility at the former Seidler’s Oil Service site on North 28th Street. The plan, opposed by a small band of anti-drilling protesters who called themselves the Wheeling Water Warriors, came before the Planning Commission several times without a vote in recent months (see Wheeling Delays Vote Again on GreenHunter Wastewater Facility).

The Commission took up the matter again at it’s Monday meeting and finally voted to approve GreenHunter’s plan. Eventually, GreenHunter hopes to use the facility to not only recycle shale drilling wastewater, but also ship some of it (by barge) down the Ohio River to locations in Ohio for disposal via injection wells. Shipping wastewater by barge is currently under review at the federal level, awaiting approval…
Read More “Wheeling, WV Approves GreenHunter Frack Wastewater Facility”
Energy Services | Industrywide Issues | Kinder Morgan | Pennsylvania | Pike County | Pipelines | Tennessee Gas Pipeline

TGP Spokesman Addresses Pike County Chamber – Protesters MIA
August 14, 2013August 14, 2013

In March of this year, anti-drilling malcontents tried to physically stop the expansion of the Tennessee Gas Pipeline (TGP). The TGP’s “Northeast Upgrade” is an extra 40 miles of pipeline in PA and NJ that will expand the pipeline’s capacity to handle additional Marcellus Shale gas. A judge told the malcontents to knock off their aggressive “protests” (illegal blocking of public roadways) or face jail time and stiff fines (see PA Judge Grants Injunction Against Protesters of TGP NE Pipeline).

At the time, the malcontents also plotted to disrupt a meeting of the Pike County, PA Chamber of Commerce where TGP was going to speak about the project, so the Chamber postponed the event. The rescheduled talk finally took place last week. Here’s a summary of what was said:
Read More “TGP Spokesman Addresses Pike County Chamber – Protesters MIA”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Open Season to Expand Transco Pipeline in PA Marcellus
August 13, 2013August 13, 2013

Williams has announced last Thursday an “open season” (a time to lock in contracts for natgas pipeline capacity) for their Transco pipeline in the Marcellus/Utica Shale region. If Williams gets enough interest, they’ll look to expand the Transco pipeline in PA and eventually move an additional 1 billion cubic feet of natural gas per day from the northeast to markets along the East Coast and the southeast.

The story from Reuters:
Read More “Open Season to Expand Transco Pipeline in PA Marcellus”
Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Dominion Sells $500M Natrium NGL Plant to… Itself
August 13, 2013August 13, 2013

Dominion, a huge energy company that does everything from shale drilling to pipelines and processing plants to selling gas and electric as a utility, has just sold the newly built and operating $500 million NGL processing plant in Natrium, WV to…itself. The Natrium plant was due to go online late last year. Then it was forecast be online in the spring of this year. The plant, which separates natural gas liquids from methane in the Marcellus/Utica Shale, finally went online in late June (see Blue Racer Midstream’s Natrium, WV NGL Plant Now Up & Running).

Blue Racer Midstream officially took title to the Natrium plant as of August 9th. Blue Racer is a joint venture between Dominion and Caiman Energy II. Dominion essentially owns Blue Racer, ergo Dominion sold the plant to itself. These things happen on paper–no doubt for more favorable tax and accounting purposes for investors. Dominion’s announcement from yesterday:
Read More “Dominion Sells $500M Natrium NGL Plant to… Itself”
Accidents | Energy Services | Industrywide Issues | MarkWest Energy | Ohio | Pipelines | Statewide OH

OH EPA Dings MarkWest Over Slurry Spills in OH Swamps
August 12, 2013August 12, 2013

Once upon a time here in the good old U.S. of A. we used to call large areas of stagnant, smelly, mosquito-infested pools of water what they are: swamps. Then came the so-called environmentalist movement that renamed the word “swamp” to the pristine-sounding word “wetland.” Gotta love a good euphemism. We used to drain swamps. Now we make people get permits to walk across them, for fear of killing a mosquito (no doubt carrying West Nile Virus). Such is the enlightened age in which we live.

MarkWest Energy, arguably the largest midstream company (pipelines and processing plants) in the Marcellus and Utica Shale region, is having trouble in–or more properly under–some of Ohio’s swamps. In drilling under some Ohio “wetlands” to install pipelines, MarkWest has leaked a non-toxic clay-and-water slurry on a number of occasions. The Ohio Environmental Protection Agency (EPA) has told MarkWest recent spills are “unacceptable.” Ohio anti-drillers see it as an opportunity to shut down fracking (no pipelines, no way to get the gas and liquids to market). Fortunately, the Ohio EPA is a bit more level-headed than that, saying they prefer to work with companies like MarkWest to help them do better, not just shut them down…
Read More “OH EPA Dings MarkWest Over Slurry Spills in OH Swamps”
Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Mahoning County | NiSource | Ohio | Roads

NiSource Wins Friends in Mahoning County with Road Repair Project
August 9, 2013August 9, 2013

Pennant Midstream, an entity created by NiSource and Hilcorp Energy, is developing a $300 million natural gas gathering and processing network in northeastern Ohio that extends from Mercer and Lawrence counties in Pennsylvania, through Mahoning County, and into Columbiana County. The project, called Hickory Bend, will gather natural gas produced from Hilcorp wells exploring the Utica shale and transport the gas to a $150 million cryogenic processing plant under construction in Springfield Township. By all accounts the project is on track to be completed by the end of this year (see OH Hickory Bend Pipeline/Plant Makes Excellent Progress).

NiSource is making new friends with their latest initiative. As part of the Hickory Bend project, NiSource (i.e. Pennant Midstream) will spend $1.5 million to rebuild roads in Mahoning County, OH likely to be damaged from heavy trucks working on the project. According to county officials, the amount of roadways that will be rebuilt, and the way NiSource is doing it (not just repaving but rebuilding from base layers) goes “well above and beyond the minimum that was required”…
Read More “NiSource Wins Friends in Mahoning County with Road Repair Project”
Economic Impact | EMG | Energy Services | Industrywide Issues | Kinder Morgan | MarkWest Energy | Ohio | Pipelines | Processing Plants | Statewide OH | Tuscarawas County

2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf
August 8, 2013August 8, 2013

Looks like the Williams/Boardwalk Bluegrass NGL pipeline is about to get some competition. Yesterday, Kinder Morgan, MarkWest and The Energy and Minerals Group (EMG) announced a new joint venture on two projects aimed at the Marcellus/Utica Shale region. The first project is a 400 Mmcf/d cryogenic processing plant in Tuscarawas County, OH to separate raw natural gas into methane and natural gas liquids (NGLs). The second project is a new NGL pipeline that will, like the Bluegrass, run from Ohio all the way to the Gulf Coast. There’s no mention of how much the partners will invest in the two projects, but we believe it could easily approach $1 billion of new investment in the northeast.

This announcement is great economic news for Ohio (Tuscarawas County in particular), and great economic news for Marcellus/Utica drillers who need extra takeaway capacity for the NGLs they’re currently producing. The press release from Kinder Morgan with details about the two new projects:
Read More “2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf”
Dominion Energy | Energy Companies | Energy Services | Gulfport Energy | Harrison County | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale

Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market
August 8, 2013August 8, 2013

Straight off a conference call yesterday comes the news that Gulfport Energy has just signed a 10-year contract with Dominion Transmission to transport the natural gas Gulfport produces in the Ohio Utica Shale to the Midwest–using Dominion’s pipelines. The agreement is to ship 100 million cubic feet per day of gas (100 Mmcf/d), ramping up to 150 Mmcf/d by late 2014. Gulfport’s CEO James Palm made the announcement yesterday.

Palm also said on the conference call that Gulfport continues to lease acreage in Ohio and plans to drill “at least” 70 new wells next year in the Utica. More from yesterday’s call:
Read More “Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market”
Anti-Drilling/Fossil Fuel | Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Pipelines | Williams

Bluegrass NGL Pipeline Encounters Resistance from Some in KY
August 8, 2013August 8, 2013

The Bluegrass natural gas liquids (NGL) pipeline, announced in March 2013, will run from the Marcellus/Utica region southwest all the way to the Gulf Coast in Louisiana (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline). The pipeline’s route will take it through Kentucky, where it will connect to Boardwalk’s Texas Gas Transmission, LLC system (Texas Gas) in Hardinsburg, KY. From Hardinsburg, the existing natgas Texas Gas pipeline will be converted to run NGLs. The entire project is slated to be up and running by late 2015.

However, some residents in KY are objecting to the pipeline. Do they have any valid points?…
Read More “Bluegrass NGL Pipeline Encounters Resistance from Some in KY”
Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Washington County

Washington County, PA Judge Continues Anti-Drilling Decisions
August 7, 2013

What if a county judge’s wife was an anti-drilling activist–so motivated by her fervor she knocks on area residents’ doors to ask for their signature on petitions to ban drilling. Do you think that might affect the objectivity of said judge? And what if that judge repeatedly rules against gas drillers in case after case? Do you think that might be evidence that said judge is not capable of setting aside his own bias? Yeah, we would think so too–and such is the case with Washington County, PA judge John DiSalle.

Earlier this year, Judge DiSalle blocked Range Resources from obtaining two permits to drill wells in Robinson Township (see Judge Refuses to Recuse Himself from Range v Robinson Twp Case). Judge DiSalle is back–this time on a different case. DiSalle is now refusing to allow Range and MarkWest Energy to build a compressor station in Cecil Township. See a trend here? Range and MarkWest are appealing DiSalle’s latest anti-drilling ruling to the PA Commonwealth Court…
Read More “Washington County, PA Judge Continues Anti-Drilling Decisions”
Butler County | Energy Services | Industrywide Issues | Pennsylvania | Reserve Environmental Services | Wastewater

RES Breaks Ground for Wastewater Treatment Plant in Butler, PA
August 6, 2013August 6, 2013

Reserved Environmental Services, otherwise known as RES Water, is a Pennsylvania-based shale drilling wastewater treatment processor. RES’ claim to fame is that they build and operate zero liquid discharge facilities–100% of treated wastewater is returned to the field for re-use in fracking and drilling.

RES has just broken ground on its second wastewater treatment plant–in Penn Township (Butler County), PA. The new $2.5 million facility is projected to be operational later this year. According to RES president Andy Kicinski, more RES treatment plants are on the way in the Marcellus region…
Read More “RES Breaks Ground for Wastewater Treatment Plant in Butler, PA”
Columbia Pipeline Group | Energy Services | NiSource

NiSource: 5 Marcellus/Utica Projects, $744M Investment
August 5, 2013August 5, 2013

NiSource, a major gas & electric utility company operating in the northeast and southwest (and parent of Columbia Gas and Columbia Pipeline), is increasingly a major midstream–pipeline and processing plant–player in the Marcellus and Utica Shale region.

Here’s a handy roundup of the projects NiSource and its subsidiaries have underway in the Marcellus/Utica, representing roughly 3/4 of a billion dollars of investments:
Read More “NiSource: 5 Marcellus/Utica Projects, $744M Investment”
Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC
August 2, 2013August 2, 2013

More than 1 1/2 years ago MDN told you about a planned new 70-mile pipeline and compressor station to connect Utica and Marcellus wells in eastern Ohio to Spectra Energy’s Texas Eastern pipeline system (see Chesapeake Investing in New 70-Mile Ohio Pipeline). Called the Ohio Pipeline Energy Network (OPEN), the project is a $500 million joint venture between Chesapeake Energy, American Electric Power and Spectra Energy. Not since December 2011 have we heard any news about the project–until now.

Even though there’s been no media coverage, Spectra has been hard at work planning and holding public meetings for feedback on eight different proposed pipeline routes. The Federal Energy Regulatory Commission (FERC) has given Spectra until Sept. 20 to tell them which alternative is their preferred route. FERC will then make a decision and (presumably) issue a permit that will allow Spectra to begin construction. An update on the OPEN project…
Read More “Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC”