Energy Services

Broome County | Energy Services | Industrywide Issues | Laser Northeast Gathering | New York | Pennsylvania | Pipelines | Susquehanna County | Williams

Laser Northeast Pipeline Selling to Williams for $750M
December 23, 2011December 23, 2011

Laser Northeast Gathering, a 33-mile natural gas pipeline that cost $55 million to build and stretches from the very active Marcellus Shale drilling area of Susquehanna County (in northeastern PA) to Broome County (in New York’s Southern Tier), connecting to the interstate Millennium Pipeline, announced yesterday the company is selling itself to Williams Partners for $750 million. The deal covers Laser’s contracts to expand the pipeline and commitments from customers already signed on. When the project is fully completed it will have 75 miles of pipeline. Laser is a subsidiary of Delphi Midstream Partners.

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Carroll County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Spectra Energy | Statewide OH | Utica Shale

Chesapeake Investing in New 70-Mile Ohio Pipeline
December 23, 2011December 23, 2011

Chesapeake Energy, American Electric Power and Spectra Energy are joining forces to build 70 miles of new pipeline in Ohio that will connect Utica and Marcellus gas wells in eastern Ohio to Spectra’s Texas Eastern pipeline system, which runs from Texas to New York. The new joint project is called the Ohio Pipeline Energy Network (OPEN). The estimated cost for the project is $500 million according to Spectra Energy.

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Economic Impact | Energy Services | Halliburton | Industrywide Issues | Jobs | Muskingum County | Ohio

Halliburton Buys Land in OH for Utica Shale Operations Center
December 20, 2011December 20, 2011

Halliburton has just purchased 178 acres in the EastPointe Business Park in Washington Township near Zanesville, Ohio. The company plans to build an operations center at the location servicing companies drilling in the Utica Shale. The new operations center is expected to create 300 jobs within the next three years.

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Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

$500M NG Processing Plant in Marshall County, WV Under Way
December 19, 2011December 19, 2011

A $500 million natural gas processing plant is currently being built by Dominion Transmission along the Ohio River in Marshall County, WV. When it’s done, it will have a 400 million cubic feet per day capacity. Chesapeake Energy has committed to processing 100 million cubic feet per day at the facility. The new plant means jobs and an economic boost for West Virginia’s northern panhandle.

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Barbour County | Crestwood Midstream | Energy Companies | Energy Services | Industrywide Issues | Mountaineer Keystone | Pipelines | Preston County | Randolph County | Taylor County | West Virginia

Crestwood to Build New Marcellus Pipeline in NE WV
December 14, 2011December 14, 2011

Houston-based Crestwood Midstream yesterday announced they will construct a new 16” inch Marcellus gathering pipeline that will run 42 miles through Preston, Taylor and Barbour counties in northeast West Virginia, connecting to Columbia Gas Transmission’s WB Pipeline in Randolph County, WV. By connecting to the WB Pipeline the new gathering pipeline will have access to the Washington, DC and Baltimore markets.

The new pipeline will be completed by this time next year and already has a long term “anchor” contract with Mountaineer Keystone, a Pittsburgh-based drilling company that will commence their horizontal drilling program in the area in the middle of 2012.

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EMG | Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Processing Plants

MarkWest Pays $1.8B to Buy Out JV Partner in Liberty Midstream
December 13, 2011December 13, 2011

MarkWest Energy announced yesterday it will pay $1 billion in cash and 19.95 million new Class B MarkWest units (worth an estimated $750 million to $850 million) to buy out joint venture partner Energy and Minerals Group’s (EMG) 49 percent interest in MarkWest Liberty Midstream. The Liberty Midstream joint venture was formed in May 2009 to focus on construction and operation of midstream services in support of Marcellus shale gas production, including pipelines to gather natural gas, facilities to process it, and transportation to get it to market.

Although MarkWest is buying out EMG’s interest in the Liberty joint venture, the two companies will create a new Utica Shale midstream joint venture in eastern Ohio in 2012 as part of the deal.

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

Spectra Gets FERC Approval to Expand PA Marcellus Pipeline
December 5, 2011December 5, 2011

Spectra Energy has received Federal Energy Regulatory Commission (FERC) approval for their Texas Eastern Appalachia to Market (TEAM) 2012 pipeline expansion project which expands Texas Eastern’s existing pipeline system and allows them to deliver extra Marcellus Shale gas to the northeast market in the U.S. A map detailing the existing pipeline and the proposed upgrades is embedded below.

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Energy Services | Enterprise Products Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH

Work on New Ethane Pipeline to Gulf Coast Now Underway in OH
November 28, 2011November 28, 2011

Survey work in central Ohio has already begun on a new ethane pipeline to be built by Enterprise Products Partners. The pipeline, which was recently announced (see this MDN story), will reach from the Marcellus and Utica Shale region in Washington County, PA all the way to Cape Girardeau, MO where it will connect with an existing pipeline to the Gulf Coast. Surveyors for the new pipeline have already turned up in Fairfield County, OH.

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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Tennessee Gas Pipeline

Tennesee Gas Pipeline Receives Approval for Northeast Upgrade
November 22, 2011November 22, 2011

The Federal Energy Regulatory Commission (FERC) yesterday approved a request by the Tennessee Gas Pipeline Company to upgrade its Northeast Project with construction of extra pipeline loops in Pennsylvania and New Jersey, as well as compressor plant upgrades in both states. The end result will be an extra 636,000 dekatherms of gas delivered per year in the important northeast market—most of it Marcellus Shale gas.

From the FERC press release:

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Energy Services | Industrywide Issues | Laser Northeast Gathering | Pennsylvania | Pipelines | Susquehanna County

PA Pipeline Allowed to Withdraw Public Utility Application
November 11, 2011November 11, 2011

Laser Northeast Gathering is a 30-mile, $55 million pipeline being built from Susquehanna County, PA to across the border in Broome County, NY. When complete, the pipeline will connect wells in Susquehanna County with the Millennium Pipeline which runs through Broome County. As MDN previously reported, Laser Northeast had filed for public utility status and then eventually withdrew that application when the need for eminent domain was no longer necessary.

The final chapter in that story is now written. The PA Public Utility Commission (PUC) on Thursday voted to officially allow Laser Northeast to withdraw the application they had once submitted.

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Chesapeake Energy | Economic Impact | Energy Companies | Energy Services | Enterprise Products Partners | Industrywide Issues | Pipelines | Statewide WV | West Virginia

Is Chesapeake’s Ethane Pipeline Deal a Negotiating Tactic?
November 10, 2011November 10, 2011

Last week, MDN reported that officials in West Virginia were angry with Chesapeake Energy over their decision to sign a contract to ship ethane out of the Marcellus region for processing in the Gulf Coast (see this MDN story). Specifically, state Commerce Secretary Keith Burdette said the deal may jeopardize the state’s chances of attracting a cracker plant—a facility that processes ethane into ethylene, the raw material used to make plastics. The chief complaint was that Chesapeake has been part of negotiations to bring such a plant to the region but at the same time were silent about their impending deal with Enterprise Products Partners to lease a pipeline to move ethane out of the area.

Chesapeake has responded to the criticism and says its deal with Enterprise has been “misunderstood.” A recent statement from Chesapeake seems to indicate the deal to ship ethane via pipeline is a negotiating tactic to get the best price for their ethane. Other industry sources are sticking up for Chesapeake and say the deal is certainly not a “cracker killer.”

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Caiman Energy | Energy Services | Industrywide Issues | Marshall County | Roads | West Virginia

Energy Company Takes to the Sky to Move Utility Poles
November 10, 2011November 10, 2011

Caiman Energy has found a novel way of moving large steel utility poles (electric poles) that it needs to install to bring in more power to a natural gas processing plant located at Fort Beeler near Cameron (Marshall County), WV. To address concerns over truck traffic and damage to roads, Caiman is using helicopters to shuttle the utility poles.

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Energy Services | Industrywide Issues | Ohio | Preferred Fluids Management | Richland County | Wastewater

Mansfield OH Getting Two New Wastewater Injection Wells
November 10, 2011November 10, 2011

Looks like two more injection wells are coming to Ohio. These new wells will be built near Mansfield (Richland County), Ohio and are specifically designed to handle 200,000 gallons of fracking wastewater per day from Marcellus and Utica Shale drilling operations.

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El Paso | Energy Services | Enterprise Products Partners | Industrywide Issues | Kinder Morgan | MarkWest Energy | Pipelines | Sunoco Logistics

How Many Ethane Pipelines will the Marcellus Shale Support?
November 8, 2011November 8, 2011

In yesterday’s Pittsburgh Business Times, reporter Anya Litvak does a good job of analyzing the prospects for various ethane pipelines that may (or may not) be constructed from the Marcellus region to other geographies in order to process the ethane into ethylene (a raw material used in making plastics). She keyed off the news that the joint venture from El Paso Corp. and Spectra Energy to build a Marcellus Ethane Pipeline Systems (MEPS) didn’t attract enough interest for it to go forward.

However, as MDN mentioned yesterday, Enterprise Products Products is building an ethane pipeline and Chesapeake Energy will be its first customer (see this MDN story). That pipeline is due to go in service in 2014.

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Chesapeake Energy | Economic Impact | Energy Companies | Energy Services | Enterprise Products Partners | Industrywide Issues | Jobs | Pipelines | Statewide WV | West Virginia

WV Officials Angry with Chesapeake Over Ethane Pipeline Deal
November 7, 2011November 7, 2011

State officials in West Virginia are angry with Chesapeake Energy over the announcement that Chesapeake has signed a deal to ship ethane out of the Marcellus region via pipeline to the Gulf Coast for processing. A quick petrochemical lesson: Some of what comes out of the ground when drilling for natural gas is the chemical compound ethane—especially found in “wet gas” areas of the Marcellus like West Virginia. Ethane can be processed into ethylene, which is the raw material used to make plastics.

West Virginia and Pennsylvania have been heavily courting Shell and at least one other unnamed company to build a “cracker plant” to process the ethane (crack it) into ethylene. Building a cracker plant in the region would attract thousands of jobs and billions of initial investment, and billions in revenue from associated plastics industries that would sprout up around the plant. It’s like winning the biggest imaginable lottery jackpot when it comes to jobs, money and tax revenue.

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Chesapeake Energy | Energy Companies | Energy Services | Enterprise Products Partners | Industrywide Issues | Pipelines

Chesapeake First Customer for Ethane Pipeline to Gulf Coast
November 4, 2011November 4, 2011

Looks like Enterprise Products’ plan to build an ethane pipeline from the Marcellus and Utica Shales to the Gulf Coast (see this MDN story) is already paying off. Chesapeake Energy is the first company to commit to using the pipeline, which is due to be completed and in service by 2014.

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