Energy Services

Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Pipelines | Williams

NY Constitution Pipeline Route Change?
July 11, 2012December 19, 2012

Cabot Oil & Gas and Williams are partnering to build a new $750 million, 120-mile “Constitution Pipeline” to bring Marcellus Shale gas all the way from Susquehanna County, PA to Schoharie County, NY where it would connect to the Iroquois Gas Transmission pipeline and the Tennessee Gas pipeline (see this MDN story).

But the route the new pipeline takes through New York (see the map below) is being opposed by some area residents and by two Republican state legislators: Assemblyman Pete Lopez and Sen. James Seward. They want the pipeline to “hug” the Interstate 88 corridor instead.

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Energy Services | Industrywide Issues | Ohio | Patriot Water Treatment | Regulation | Trumbull County | Wastewater

Ohio EPA Says Patriot Still Can’t Dispose of Water in Warren
July 9, 2012December 19, 2012

The Ohio Environmental Protection Agency (EPA) reached out to MDN to let us know that there is an ongoing issue with Patriot Water in the City of Warren, Ohio. In short, Patriot is still not allowed to send the fracking wastewater they treat to the Warren municipal sewage treatment plant for disposal.

Last week MDN highlighted that Patriot had apparently won their case against the EPA with the Environmental Review Appeals Commission (see this MDN story). However, the Ohio EPA says “not so fast.” They have a different interpretation of what the ERAC ruling says, and they maintain the permit they’ve issued to the City of Warren has not (and will not) change, meaning Patriot will still not be allowed to dispose of treated wastewater via Warren.

Here’s the statement from Ohio EPA Director Scott Nally on the ERAC ruling:

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Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | NiSource | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA

NiSource, Hilcorp Energy Joint Venture in Utica Shale
July 9, 2012December 19, 2012

NiSource Inc. announced today they are entering a joint venture with Hilcorp Energy and combining their Utica Shale acreage together with Hilcorp doing the drilling. They’re also establishing a midstream joint venture called Pennant Midstream to construct an initial 50 miles of wet gas gathering pipelines in northeast Ohio and western Pennsylvania. And the new midstream company will build a natural gas processing complex in Ohio.

No word on exactly how much acreage the combined two have together in the Utica Shale, but the jv plus the new pipelines and processing plant is a major development for both eastern OH and western PA.

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Energy Services | Industrywide Issues | Ohio | Patriot Water Treatment | Trumbull County | Wastewater

Patriot Water Treatment Wins Case Against Ohio EPA
July 5, 2012July 5, 2012

Earlier this year MDN reported on the story of the Patriot Water Treatment facility in Warren, Ohio. Patriot accepts and treats raw fracking fluid from Marcellus drilling operations, removing heavy metals, bromide and other contaminants. Last fall, Ohio Attorney General Mike DeWine, a Republican who seems to be rather anti-drilling in his actions, declared that Patriot’s permits were illegal because they were not using the latest technology (see this MDN story).

The Ohio EPA took DeWine’s findings as a cue to go after Patriot to shut them down. They did so by not allowing the City of Warren to accept Patriot’s treated wastewater. With no place to send the treated wastewater, Patriot had to shut the plant down in April. Patriot appealed the EPA decision and on Tuesday, Patriot prevailed. The plant will reopen today.

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Altela | Clarion County | Energy Services | Industrywide Issues | McKean County | Pennsylvania | Wastewater

Altela Set to Open 2 New Frack Wastewater Plants in PA
July 3, 2012July 3, 2012

Two new fracking wastewater treatment plants will come online in Pennsylvania on August 1st—one in Clarion County, the other in McKean County. As MDN reported back in November, Altela Inc. will use a distillation process to purify fracking wastewater, a “green” alternative instead of chemically treating the water (see this MDN story).

The new news is that Altela is almost ready to open two new plants using their green technology.

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Energy Services | Industrywide Issues | Pennsylvania | Processing Plants | Statewide PA | Sunoco Logistics

Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery
July 2, 2012July 2, 2012

Apparently the merger underway between Energy Transfer Partners and Sunoco is going well enough, and the promise of Marcellus and Utica Shale big enough, that Sunoco has inked a deal with The Carlyle Group to form a joint venture to keep the Philadelphia refinery operating. The new joint venture will save 850 jobs at the plant. Wording in the extensive press release below indicates that shale—Marcellus, Utica and Bakken—will all play an important role for the refinery moving forward.

This is good news for the workers at the refinery, and good news for consumers who will continue to have access to low-cost oil, natural gas and other petrochemical products that will be produced by the refinery. Here’s the press release announcing the deal:

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Energy Services | Industrywide Issues | Processing Plants | Statewide WV | West Virginia | Williams

Exterran Wins Contract to Build 3 WV NatGas Processing Plants
July 2, 2012July 2, 2012

A big “get” for Exterran Holdings. They’ve won the contract to build three natural gas processing plants being built by Williams Partners in West Virginia.

From the Exterran press release:

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Delaware County (PA) | Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Processing Plants | Sunoco Logistics

Will Marcellus Shale Save Philly Marcus Hook Refinery?
June 28, 2012June 28, 2012

Last year the Philadelphia region was hard-hit when both Sunoco and ConocoPhillips announced they would shut down a combined three refineries in the area. Since then, ConocoPhillips sold its refinery for $180 million to Delta Air Lines which will convert and use the plant for jet-fuel production. Sunoco is in talks to sell its one of two refineries (in Philly) to a joint venture headed by the Carlyle Group—but if that doesn’t develop, they’re going to shut it down.

And then there’s the Marcus Hook refinery, which closed it doors “for good” in April. Officials from the town of Marcus Hook and Delaware County are working hard to get it reopened. As part of that process, they commissioned a $100,000 study, just released, from IHS Consulting. The study identifies seven possible uses for the idled refinery, and pegs its best chances of reopening based on the abundance of natural gas and gas liquids coming from the Marcellus and Utica Shale region.

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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream

EQT Midstream IPO Rakes in the Cash
June 27, 2012June 27, 2012

EQT Corp, one of the larger drillers in the Marcellus and Utica Shale, has spun off its midstream (pipeline and processing plant) operations into its own company. Shares of the new EQT Midstream started selling yesterday in an initial public offering (IPO), and today those shares will start to be publicly traded on the New York Stock Exchange (ticker symbol EQM).

What does it mean? It means EQT’s midstream activities will have a nice new pot of cash to expand with—somewhere around $260 million (put another way—over a quarter of a billion dollars). EQT’s drilling activities will now be serviced by a bigger, more robust midstream operation to get their gas to market.

From the EQT press release:

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Energy Companies | Energy Services | GreenHunter Resources | Stone Energy

Who is GreenHunter Water’s New Mystery Marcellus Customer?
June 25, 2012June 25, 2012

GreenHunter Water has picked up a new drilling company for their water management services (see the full press release below). The new customer is an independent driller somewhere in the Marcellus Shale play that owns leases on approximately 90,000 acres in Pennsylvania and West Virginia and is looking to expand. Thing is, GreenHunter won’t (or can’t) disclose the identity of this new mystery customer they’ve just signed on. But MDN thinks it can! There’s one independent driller who claims to have 90,000 acres of leases in PA/WV and is looking to expand, and that company is…

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Energy Services | Hydraulic Fracturing | Industrywide Issues | New York | Pipelines | Spectra Energy | Statewide NY

Sierra Club Attacks FERC for Approving NYC Pipeline
June 25, 2012June 25, 2012

Recently the Federal Energy Regulatory Commission (FERC) approved the construction of a 20-mile pipeline from New Jersey to New York City (see this MDN story). Spectra Energy is constructing the pipeline to the tune of $1.2 billion (a mini-economic boom for NJ/NY). The new pipeline and the cheap natural gas it will bring to NYC will reduce oil burning, which will be mandated starting in 2015 when NYC residents and landlords will no longer be allowed to burn No. 6 fuel oil. The new pipeline will be the equivalent of taking the emissions of 1 million cars off city streets per year. A good thing, no?

According to Sierra Club, that is a “no.” The Sierra Club doesn’t want cheap natural gas delivered to NYC, saving customers millions of dollars and saving the environment, because they don’t like fracking and the gas will mostly come from the Marcellus Shale. And that doesn’t fit with the the Sierra Club’s “attack everything natural gas” philosophy. So they’ve begun the process of protesting the approval for the pipeline, a process that will eventually end in federal court. Stunningly, in the paperwork they filed last week, they blame FERC for doing its job!

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Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Pipelines | West Virginia

Marshall County, WV Pipeline Installation Problems
June 25, 2012June 25, 2012

George Lagos and his small staff of water department employees who work at Marshall County (WV) Public Service District No. 4 (PSD No. 4) have a problem—too many gas pipelines being laid, not enough workers to inspect the process.

PSD No. 4 serves a large area of the county between Moundsville and Cameron. Lagos and two others are responsible for inspecting and maintaining 200 miles of water and other types of pipelines. When new natural gas pipelines are installed, Lagos is supposed to get 48 hours notice so they can monitor the installation. According to Lagos, that isn’t happening.

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Aither Chemicals | Energy Services | Industrywide Issues | Kanawha County | Processing Plants | Statewide WV | West Virginia

Aither Chemicals Still Trying for a Cracker Plant in WV
June 22, 2012June 22, 2012

Will West Virginia ever get its own ethane cracker plant? It will if Aither Chemicals, based in South Charleston, WV has any say in the matter. MDN has been following the Aither story for some time. Aither Chemicals, a spin-off/subsidiary of Mid-Atlantic Technology, Research & Innovation Center, was established to build and operate ethane cracker plants that use modern technology making the plants smaller and less expensive to build and operate than tradition cracker plants (see this MDN story for background).

Aither had a deal in principle with Bayer CropScience and MarkWest Energy to build one of these “new” kinds of cracker plants in the Charleston, WV area. That deal was set to be officially announced in mid-March (see this MDN story). But then the wheels came off the wagon and all was silent. No deal, no announcement. Until now.

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Energy Services | Hydraulic Fracturing | Industrywide Issues | U.S. Silica

New Deal Brings Midwest Sand to Marcellus/Other Shale Areas
June 22, 2012June 22, 2012

Sand is a key ingredient in the hydraulic fracturing process. A special kind of sand, referred to as crystalline sand, is injected into cracks made during fracturing and stays in the cracks, propping them open so the gas can continue to come out (which is why it’s called a “proppant”). More sand will be on the way to the Marcellus and Utica region due to a new agreement between U.S. Silica, the nation’s second-largest sand producer, and Canadian Pacific Railway (CP). CP will be the exclusive rail shipper for U.S. Silica’s new frack sand facility being constructed in Wisconsin.

From the CP press release announcing the exclusive deal with U.S. Silica:

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Energy Services | Industrywide Issues | Pipelines | PVR Midstream | PVR Partners

PVR Sells Pipeline in East Texas, Concentrating on Marcellus
June 19, 2012June 18, 2012

Penn Virginia Resource Partners (PVR), a midstream company, yesterday announced it’s selling off a small natural gas gathering system and processing plant in east Texas to DCP Midstream Partners for $63 million. The reason? To concentrate more on the Marcellus Shale region (and to focus more on PVR’s other area of focus—the panhandle of Texas and Oklahoma).

From the PVR press release:

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

Commonwealth Pipeline Open Season Exceeds Expectations
June 19, 2012June 18, 2012

Inergy Midstream, UGI Energy and Capitol Energy Ventures are partnering to build a new 200-mile natural gas pipeline from Lycoming County, PA all the way to Rockville, MD (see this MDN story). Called the Commonwealth Pipeline, the new $1 billion pipeline will connect with several major interstate pipelines along its route.

Yesterday, Inergy et al reported that their non-binding open season to sign up customers to use the pipeline went better than expected. From the Inergy press release:

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