Energy Services

Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

UGI/AmeriGas Talks up the Marcellus & NEPA Auburn II Pipeline
February 5, 2014February 5, 2014

AmeriGas Partners is the nation’s largest propane company, serving 2 million+ residential, commercial, industrial, agricultural and motor fuel propane customers from 1200 locations in all 50 states. Chances are in a city of any size, there’s an AmeriGas storefront someplace around town. AmeriGas is also a subsidiary of PA-based utility company UGI. AmeriGas/UGI held a conference call yesterday to discuss the company’s first quarter financial performance (their quarters are slightly different from calendar year quarters).

There were a number of references to the Marcellus made by John Walsh during the call. Walsh is the vice chairman of AmeriGas and president of UGI. Most of those Walsh’s references revolved around UGI’s Auburn Pipeline gathering system that finally went live last year (see UGI Wins! Auburn Pipeline with Marcellus Gas in NEPA Goes Live). We’ve selected out relevant portions of Walsh’s remarks from yesterday mentioning the Marcellus Shale and it’s importance to UGI’s future:
Read More “UGI/AmeriGas Talks up the Marcellus & NEPA Auburn II Pipeline”
Energy Services | GreenHunter Resources

GreenHunter’s Management Shakeup, Sells S TX Injection Well
February 4, 2014February 4, 2014

GreenHunter Water, a division of GreenHunter Resources and based in Texas, has its eyes on the northeast. GreenHunter is building up a series of frack wastewater recycling and shipping facilities throughout the Marcellus and Utica Shale region. Perhaps the most prominent GreenHunter facility in the northeast, because it’s been in the news recently, is the one they’re building in Wheeling, WV (see GreenHunter’s Wheeling Frack Wastewater Facility Hits a Snag for the latest).

We have a pair of recent announcements from GreenHunter to share. The first announcement is that GreenHunter has just sold a South Texas wastewater injection well for $3.9 million, which may not seem like MDN news, but it is because GreenHunter sold it expressly to continue the company’s laser focus on the Marcellus/Utica region. The second announcement is about a shakeup at the top. As of a few weeks ago, Jonathan Hoopes, who had been on the Board of Directors and was the interim CEO, President and COO, is now gone. GreenHunter’s Chairman of the Board, Gary Evans, has taken the reigns as interim CEO. A number of other people have changed chairs in upper management and there’s been a few new hires as well. Details below…
Read More “GreenHunter’s Management Shakeup, Sells S TX Injection Well”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | M&A | Pipelines | Processing Plants

A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage
February 4, 2014February 4, 2014

For a number of months, MDN has told you the story/news of the merger between Crosstex Energy (a Dallas, TX company) and Devon Energy (Oklahoma City, OK company). It’s an important story because both have a major presence in the Marcellus/Utica region. Essentially Devon Energy, a driller with a major midstream division, bought out Crosstex, a midstream company, and merged the two operations leaving Crosstex in command of the newly created midstream entity. The newly formed subsidiary company was recently named EnLink Midstream (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds).

An article in the Dallas Morning News about the merger caught our eye because it profiles the people involved and how the merger happened. We’re not sure that the story reveals any new, salient news about the deal–but it does reveal the depth of experience and character of the people involved. And it inspires confidence that this particular merger, a merger in which no one lost their job, portends very good things for the northeast where EnLink will continue to grow and expand. We’d call it a “here’s why you should feel good about this merger and doing business with these guys” kind of story…
Read More “A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage”
Economic Impact | Energy Services | Industrywide Issues | MarkWest Energy | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

MarkWest: 7 New NE Plants Online in Past 4 Mos, 17 More Coming!
January 31, 2014January 31, 2014

There are a number of midstream (pipeline and processing plants) companies operating in the Marcellus and Utica region. The country’s largest midstream company, Kinder Morgan, increasingly has a presence in the region. Joint ventures of various kinds, like Blue Racer Midstream (Dominion and Caiman Energy) are important new–and big–players. Williams Partners is one of the biggest. But if we had to identify which midstream company has the most assets, the most presence in the region, we’d have to say it’s MarkWest Energy. Yesterday MarkWest issued an operational update on their Marcellus and Utica projects–and frankly, it’s really impressive. This is a “time to crow about what we’ve done and will do” update. They’ve earned the right.

Over the past four months MarkWest has brought seven new, major projects online: 5 new cryogenic processing plants (separates wet gas into two streams, methane and NGLs), and 2 new fractionation plants (further separates the NGLs into their components, like ethane, butane and propane). Each one of these projects represents hundreds of millions of dollars of investment and hundreds of jobs. Here’s the kicker: MarkWest has another 17 major processing and fractionation projects under construction! Incredible. Below is the update issued yesterday by MarkWest which identifies many of projects and customers. It’s well worth your time to read:
Read More “MarkWest: 7 New NE Plants Online in Past 4 Mos, 17 More Coming!”
Blue Racer Midstream | Economic Impact | Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Processing Plants

Blue Racer Exec Says NE Midstream Needs Another $30B+ Investment
January 31, 2014January 31, 2014

Blue Racer Midstream CEO Jack Lafield spoke at the Hart Energy Marcellus-Utica Midstream Conference and Exhibition in Pittsburgh yesterday, and he had some interesting things to say. As for the $10 billion in infrastructure already invested in the Marcellus/Utica, Lafield says that’s “only a fraction” of what’s needed for investment in the coming years. Lafield says at least $30 billion more needs to be spent “just to keep up with the demand” for infrastructure. Yikes! He also said in his 42 years in the industry, “this is about as good as it gets.”

Also speaking yesterday was MarkWest Vice President of Corporate Development, Scott Garner, who said that MarkWest is spending $2 billion this year on the Marcellus/Utica. As MDN found with our list of 111 midstream/infrastructure projects published in our Marcellus and Utica Shale Databook Volume 2, we estimated there’s at least $40 billion in projects planned or already in process over the next five years or so. Here’s more pickings from yesterday’s conference:
Read More “Blue Racer Exec Says NE Midstream Needs Another $30B+ Investment”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Regulation | Roads | Wastewater | West Virginia

GreenHunter’s Wheeling Frack Wastewater Facility Hits a Snag
January 31, 2014January 31, 2014

GreenHunter Water, which is building a frack wastewater recycling (and potentially barging) facility in Wheeling, WV, has hit a snag. So far, it’s a pretty big snag. Last year the company received approval from the Wheeling Planning Commission to proceed with the plant, after initial resistance. So far, the WV Dept. of Environmental Protection (DEP) has not issued any permits because they won’t and don’t need to review the plant until it’s ready to start operating. Then they’ll visit and evaluate.

However, the WV Dept. of Transportation’s Division of Highways (DOH) has rejected GreenHunter’s plan to have trucks with frack wastewater entering and exiting the plant. The DOH rejection happened last August and according to the DOH, they haven’t heard a thing from GreenHunter since…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Reaction to TGP’s Planned Pipeline Across Massachusetts
January 31, 2014January 31, 2014

For the past month and a half, MDN editor Jim Willis hasn’t seen a day without a story about how natural gas prices have skyrocketed in New England (and even around New York City) because there aren’t enough natgas pipelines to the region. Not enough infrastructure. We find it amusing that the governors of six New England states recently sent a letter to their regional coop asking for help in getting more pipelines to the region (see Blue State Blues: 6 New England States Want New Natgas Pipeline). One of those states–Vermont–passed a law banning fracking (see Vermont Becomes First State to Ban Fracking). And yet Vermont wants that cheap, fracked gas from the Marcellus! How’s that for hypocrisy?

Knowing that New England tilts pretty far to the political left (and is mostly anti-fracking), we found it interesting when we spotted a story about communities in Massachusetts being approached by Kinder Morgan and their Tennessee Gas Pipeline with plans to extend the pipeline through their communities–across the entire state. How will they respond? Mass protests (pun intended)? Keep the evil, fracked gas away? No fracking way jest keep them pipes away? Interestingly, no. The attitude (so far) is more like, let’s find out where you want to run the pipeline and we’re sure we can accommodate it. Wow! What a change in attitude a price hike of $100 per thousand cubic feet of natural gas can create…
Read More “Reaction to TGP’s Planned Pipeline Across Massachusetts”
Anti-Drilling/Fossil Fuel | Enbridge | Energy Services | Industrywide Issues | Pipelines | Regulation

Marcellus Gas Heading North: Canadian Pipeline Gets “Green” Light
January 31, 2014January 31, 2014

Seems like today is midstream day on MDN. Many of our stories revolve around pipelines and processing plants, including our lead about MarkWest (be sure to give it a read). Here’s an interesting story about a pipeline project in Canada that has a Marcellus tie-in. Enbridge Gas Distribution wants to expand their natural gas pipeline in the Toronto area, spending upward of C$686 million to do it. The “greens” of Canada (garden variety fossil fuel-hating anti-drillers) objected. The greens’ objection #1: If we just turn our thermostats down low, we won’t need the extra gas. The Ontario Energy Board said: Nope. Not buying that one. Objection #2: This pipeline will bring in that evil, nasty, fracked Marcellus Shale gas and kill us all because it pollutes water (in the U.S.) and releases fugitive methane into the atmosphere (global warming, heeelp!). Again, the Ontario Energy board said: Nope. Not buying that one either.

Below is the full story about the pipeline. Embedded in it is the response by the calm, wise heads from the Ontario Energy Board to the greens, responding to them on the shale gas issue:
Read More “Marcellus Gas Heading North: Canadian Pipeline Gets “Green” Light”
Economic Impact | Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Williams CEO: Transco Pipeline will Double Capacity by 2017
January 30, 2014January 30, 2014

Williams President & CEO, Alan Armstrong, addressed the Hart Energy’s annual Marcellus-Utica Midstream Conference & Exhibition at the David L. Lawrence Convention Center in downtown Pittsburgh yesterday. He said several interesting things, but the one that caught our attention was this: Williams is going to spend $5 billion expand their Transco methane pipeline. Transco runs from the Gulf Coast to New York. Armstrong said they will be adding more mainline to the Transco–making it longer, by about 9%. Which doesn’t seem like much, but it will nearly double the capacity of the entire pipeline. That’s a big hairy deal with lots of implications: More gas can get to market for consumers (bringing down prices for consumers), more gas can be shipped from drillers (more revenue for drillers), and more Marcellus gas will make it’s way into northeastern markets (great for drillers and landowners).

A summary of Armstrong’s speech:
Read More “Williams CEO: Transco Pipeline will Double Capacity by 2017”
Energy Companies | Energy Services | Gulfport Energy | Industrywide Issues | M&A | MarkWest Energy | Ohio | Ohio Gathering | Pipelines | Processing Plants | Statewide OH | Summit Midstream

Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering
January 29, 2014January 29, 2014

Last December MDN told you that Summit Midstream was buying out Gulfport Energy’s share of the Ohio Gathering pipeline and processing system (see Summit Midstream Buys Gulfport’s Interest in Ohio Gathering). As we said at the time, the deal appears complicated on paper with multiple names (like Blackhawk Midstream), but the bottom line was/is that Summit will be the 40% owner and MarkWest Energy will remain the 60% owner of the Ohio Gathering system.

Yesterday, in an announcement by Summit that’s equally dense with details (likely written by lawyers), Summit announced they’ve closed the Ohio Gathering deal. That’s the sum total of this announcement–that the deal is now done:
Read More “Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering”
Accidents | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Blue Racer: Natrium Plant Back Online, New Customers, Adds Barging
January 28, 2014

Big news from Blue Racer Midstream. Last September there was an explosion and a fire “isolated to a small area” at the Blue Racer Natrium processing and fractionation facility in Marshall County, WV (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). The fire knocked the plant offline for customers needing to process wet gas. At least two (perhaps more) customers found other sources to process their wet gas (see Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014). According to a single sentence buried in a press release issued yesterday, the Blue Racer Natrium plant is finally, after five long months, back online. No date was given for when it resumed operations–presumably yesterday or over the weekend. The statement says, “The Natrium I processing unit has recently returned to service following a temporary shutdown that occurred after a fire damaged the unit.”

No mention of how long it was offline (five months!) or the work done to get it back online. Probably the lawyers telling them to keep their mouth shut. Anyway, we’re happy to see it back up and running. In addition to that very big news (which was decidedly downplayed in the press release), Blue Racer also announced yesterday they’ve picked up several new customers for an expansion at the Natrium processing/fractionation plant (see who below). Finally, Blue Racer announced that in addition to the current rail, truck and pipeline they use to move NGLs (natural gas liquids) from the plant, they’re adding barging down the Ohio River. Notwithstanding the downplayed reopening of the Natrium plant, this is one of the most enlightening press releases from a midstream company we’ve seen in some time…
Read More “Blue Racer: Natrium Plant Back Online, New Customers, Adds Barging”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

Houston Investment Firm a True Believer in WV Cracker Plant
January 28, 2014January 28, 2014

A huge vote of confidence by an investment firm that the ethane cracker plant recently announced by Gov. Earl Ray Tomblin and planned for Parkersburg, WV will actually be built (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Siltstone Capital, an investment and advisory firm with corporate offices in New York and Houston, bought the old Blue Cross and Blue Shield building in downtown Parkersburg–vacant since 2009–to set up offices for the company and to lease out space they don’t use themselves.

Siltstone invests in companies in the energy sector: exploration and production, oil services, and midstream. If they weren’t totally convinced that the Odebrecht cracker plant would be built, you can be sure Siltstone would not have spent $475,000 on a vacant building in Parkersburg, WV (population 31,492)…
Read More “Houston Investment Firm a True Believer in WV Cracker Plant”
Energy Services | Industrywide Issues | Pipelines | Processing Plants | Williams

Williams Changes Up Leadership for Northeast Gathering Operation
January 28, 2014January 28, 2014

A reshuffling of leadership for Williams’ operations in the northeast Marcellus/Utica region. Previously, Frank Billings ran the show for the Northeast Gathering & Processing operating area. Billings has been reassigned/promoted to corporate HQ. Taking over for Billings as head of Northeast Gathering is Jim Scheel. What does it all mean? We don’t know–so we’re left to read between the lines.

It seems from the statements by Williams’ CEO Alan Armstrong that Billings blazed the trail and got things rolling in the northeast, and now the northeast region has turned into more of an ongoing, operational kind of thing–and Scheel is an operations guy, good at focusing on the details of turning the northeast area into a well-oiled machine. At least that’s our read. What do you think? Here’s the announcement…
Read More “Williams Changes Up Leadership for Northeast Gathering Operation”
Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | New York | NGLs | Schuyler County | Statewide NY

Northeast Propane Shortage – Andrew Cuomo Partially to Blame
January 24, 2014January 24, 2014

Propane is one of the natural gas liquids (NGLs) that comes out of the ground along with methane (natural gas) in places like southwest PA and eastern OH–otherwise known as “wet gas” areas of the Marcellus and Utica Shale region. There’s been a number of stories recently in the national media about supply shortages of propane. The Pennsylvania Propane Gas Association issued a press release yesterday addressing those concerns–to layout the reasons why propane is in short supply and why prices for it have jumped.

When you read beyond the headlines, you’ll find there’s a pretty simple reason why propane prices have skyrocketed in the northeast and New England–it’s because of New York’s anti-fracking governor Andrew “the ditherer” Cuomo. He’s not only dithering about whether or not to allow fracking, he’s also dithering on whether or not to approve a new propane underground storage facility near Seneca Lake–what the industry terms a “critical” need to relieve propane supply issues in this part of the country. Here’s a good rundown on the current propane supply issues plaguing the U.S., including Cuomo’s hand in it…
Read More “Northeast Propane Shortage – Andrew Cuomo Partially to Blame”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Wastewater | West Virginia

Bumpy Ride for GreenHunter Because of WV Coal Chemical Spill?
January 23, 2014January 23, 2014

Is there a connection between the recent chemical leak in West Virginia that cut off water for 300,000 people–a leak related the coal industry–and GreenHunter Water’s plans for a frack wastewater recycling plant in Wheeling, WV? Perhaps. No, GreenHunter had nothing to do with the chemical spill that made national headlines for weeks (see Coal Industry Blamed for West Virginia Chemical Spill). But because GreenHunter plans to store fracking wastewater in tanks above ground “mere yards from the Ohio River” as one article says, they are now coming under increased scrutiny. One might say they’re now under a microscope.

MDN has covered the long road for GreenHunter in establishing the Wheeling wastewater recycling facility (see these MDN articles). Just when it appeared that the path was clear–and that even the U.S. Coast Guard would finally grant GreenHunter permission to barge frack wastewater from the Wheeling facility–the coal-related chemical spill happened, which may end up adversely affecting the GreenHunter project…
Read More “Bumpy Ride for GreenHunter Because of WV Coal Chemical Spill?”
Economic Impact | Energy Services | Fayette County | Industrywide Issues | Jobs | Pennsylvania | Williams

Williams Expands in PA Again, Adds Local HQ in Fayette County
January 23, 2014January 23, 2014

Although headquartered in Tulsa, Oklahoma, Williams–one of the largest (perhaps the largest) midstream company in the Marcellus and Utica Shale–continues to expand its footprint in the northeast. The latest area where Williams is expanding is southwest PA–Fayette County to be precise. Williams recently opened a new local headquarters for their Williams Energy division in Fayette. The new location currently employs 75 people (so far).

Here’s the story of Williams’ ongoing expansion in SW PA…
Read More “Williams Expands in PA Again, Adds Local HQ in Fayette County”