Spectra Energy

Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy 2Q16 – Access Northeast “Advancing Toward Execution”
August 4, 2016August 4, 2016

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It sure pays to be in the pipeline business. One of the biggest pipeline (i.e. midstream) companies in the U.S. is Spectra Energy. Spectra has a number of existing and planned pipelines in the Marcellus/Utica region. Yesterday Spectra released their second quarter 2016 update, reporting a net income of $305 million for the quarter. Spectra provided a handy list of the ~$6 billion in expansion projects they have under way. One of those projects is the Access Northeast project–representing half of that $6 billion. Access Northeast is the surviving winner of a contest between Spectra Energy and Kinder Morgan to pipe Marcellus and Utica Shale gas to New England and Canada–the “last man standing” when Kinder and their Northeast Energy Direct project bowed out of the race (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). With respect to Spectra and their Access Northeast project, Spectra CEO Greg Ebel had said yesterday during an earnings conference call that Access Northeast is “advancing towards execution this year” after recently achieving a “number of noteworthy milestones.” That is indeed good news! Here’s yesterday’s 2Q16 update from Spectra, along with an excerpt about Access Northeast from the earnings call…
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Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy Expects to Pay ~$100M for Ruptured PA Pipeline
August 4, 2016August 4, 2016

MDN felt that the big news today was word from Spectra Energy that their Access Northeast pipeline project is making excellent progress (see Spectra Energy 2Q16 – Access Northeast “Advancing Toward Execution”). However, a bit of news coming from Spectra disclosed on yesterday’s earnings call comes in at a close second. You may recall there was an explosion and fire in Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” pipeline in May (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The explosion occurred in Salem Township (Westmoreland County), PA, about 30 miles east of Pittsburgh and knocked out four pipelines running through the same area. One man was seriously burned when his house caught on fire and was destroyed. Since that time we’ve tracked the story with a series of updates (see them here). One of the four lines affected was restored to service shortly after the blast. Our most recent update pegs a return to service for the other three pipelines sometime in November (see Ruptured TETCO Pipeline in PA Offline Until November). Until now, we didn’t have any numbers to talk about with respect to how much it’s costing Spectra to locate and fix the problem. Yesterday Spectra’s Chief Financial Officer, John Patrick Reddy, pegged the cost for investors, saying it could go as high as $100 million…
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Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation | Spectra Energy

Pot Shot: PennEast Partner Seeks to Stop New England Pipeline
July 27, 2016July 27, 2016

In September 2014, PSEG (Public Service Enterprise Group) Power–New Jersey’s largest utility company–became the fifth company to become a partner in the much-needed PennEast Pipeline, the $1 billion pipeline project that would flow cheap, abundant and clean-burning Marcellus Shale gas from northeast Pennsylvania all the way to Trenton, New Jersey (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). You know the travails PennEast has had in trying to get the project approved. Nutjobs like THE Delaware Riverkeeper, funded by the William Penn Foundation, Heinz Endowments and others, has continually harassed and sued PennEast. One of Riverkeeper’s favorite tactics is to write gajillions of letters to the Federal Energy Regulatory Commission telling FERC that PennEast isn’t needed and isn’t wanted. So we found it a tad hypocritical to read that PSEG Power has turned around and filed their own letter with FERC–telling FERC another pipeline project, Spectra Energy’s much-needed Access Northeast pipeline which will bring more Marcellus gas to New England, isn’t needed and isn’t wanted…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Spectra Energy | Westmoreland County

Feds Find More Corrosion, Issue Order re Exploded TETCO Pipe in PA
July 21, 2016July 21, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months. One of the four lines that was offline (Line 19) was examined and certified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in early May to go back online (see TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident). However, the other three lines have remained idle pending further investigation and won’t be online again until at least November (see Ruptured TETCO Pipeline in PA Offline Until November). In an order issued on Tuesday, federal regulators with the Pipeline and Hazardous Materials Safety Administration (PHMSA) are requiring Spectra Energy to perform more testing and take corrective actions on the remaining three lines. Although the cause of the explosion is still not 100% verified, it’s still thought to be corrosion around welded pipe joints, i.e. bad pipe tape…
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Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

Spectra’s Access Northeast Pipe Wins Important Approval in Maine
July 20, 2016July 20, 2016

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In July 2014 Spectra Energy unveiled plans to deliver an extra 1 billion cubic feet of natural gas per day to New England and beyond by expanding the existing Algonquin and Maritimes pipeline systems (see Spectra Energy to the Rescue! New England Pipeline Expansion). That project was eventually named the Access Northeast Project, a direct competitor to Kinder Morgan’s proposed Northeast Energy Direct (NED) project. In February of 2015 we observed and asked the question, is Spectra’s project pulling ahead of Kinder Morgan’s project (see Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?). It was our observation at the time that Kinder Morgan’s project is mostly “greenfield”–meaning they have to dig new trenches and lay new pipe in places where no pipeline currently exists–was vehemently opposed by antis, while Spectra’s project which lays new loops of pipe next to existing pipes in existing trenches was opposed, but with less vehemence. It seems our observation was prescient, as Kinder later canceled its project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Make no mistake, Spectra Energy still faces a steep uphill battle–but they are making progress. Evidence of that came yesterday when regulators in the state of Maine approved Spectra’s plan in their state. Or more accurately, they approved passing along some of the cost of Spectra’s proposed expansion to Maine electric rate payers, who would see far lower electric rates if the pipeline gets built (it will feed natgas-fired electric generating plants in the state)…
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Anti-Drilling/Fossil Fuel | CNG/LNG | Energy Services | Industrywide Issues | Spectra Energy

Spectra Energy LNG Storage Project Proposed for Somerset, MA
July 18, 2016July 18, 2016

It’s hard to believe something as simple and uncomplicated and safe has a storage tank for liquefied natural gas (LNG) could be controversial. But if you irrationally believe all fossil fuels are evil, you’re against such a storage tank. That’s the battle now shaping up in Somerset, Massachusetts. Spectra Energy is looking to build “two giant storage tanks full of liquefied natural gas” at a site in town , near Walker Street. The town administrator is in favor because Spectra will pay the town $10 million in lieu of taxes. But anti-fossil fuel nutters are rising up to oppose the project–even though they do so using the very fossil fuels the abhor every single day of their pathetic lives–being wholly dependent on fossil fuels for their very existence…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

FERC’s Glowing Draft Review of NEXUS Pipeline; Antis Respond
July 13, 2016July 13, 2016

NEXUS map – click for larger version

On Monday MDN brought you the great news that the Federal Energy Regulatory Commission (FERC) has given the $2 billion, 255-mile interstate NEXUS pipeline a glowing draft environmental impact statement (see Spectra’s NEXUS Pipeline Gets Favorable Draft EIS from FERC). NEXUS is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada, via a pipeline that traverses the state of Ohio. We have now what we didn’t have on Monday–a copy of the FERC draft EIS (see a full copy below). You can’t read it and not see the meticulous detail and work that has gone into researching such a project. To falsely claim, as do anti-fossil fuel nutters, that FERC is simply a “rubber stamp” for Big Oil & Gas is not supported by documents like this one. Although the review is glowing, there is one teeny, tiny criticism/suggestion from FERC recommending an alternative route near Green, Ohio. The anti-drilling group CORNballs (our name for CORN, or COalition to Reroute Nexus), is glomming on to that tiny crack of the door and plans to drive a Mack truck through it…
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Anti-Drilling/Fossil Fuel | Crime | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Religious Radicals Arrested for Stopping Work on Boston Pipeline
July 1, 2016July 1, 2016

Once again a group of so-called religious leaders, including a serial criminal, were arrested in Boston blocking work on a very short, 5-mile pipeline (West Roxbury Lateral) that will bring cheap, abundant, clean-burning Marcellus Shale gas to local residents in the Boston area. Some 26 were arrested, some of the same nutters were arrested in May (see Boston “Religious” Leaders Arrested for Blocking Pipeline Work). Of the 26 arrested at Wednesday’s protest, eight people laid down in a trench and had to be hauled out on stretchers by police. (We personally wouldn’t have been so kind.) Among the arrested was Tim DeChristopher, a criminal who previously served 15 months in prison and six months at a halfway house after that for committing fraud against the Bureau of Land Management in 2008. DeChristopher moved to Boston to attend Harvard Divinity School. Guess that says it all…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

Ruptured TETCO Pipeline in PA Offline Until November
June 27, 2016June 27, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months (see Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion). One of the four lines that was offline (Line 19) was examined and certified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in early May to go back online (see TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident). However, the other three lines have remained idle pending further investigation (see TETCO PA Pipeline Explosion Still Limiting NatGas Flow Month Later). We now have an estimate of what else needs to be done, and how long it will take to do it…
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Economic Impact | Energy Services | Industrywide Issues | Jobs | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH

NEXUS Awards Contracts to Build Pipeline – Union & Non-Union Labor
June 16, 2016June 16, 2016

NEXUS map – click for larger version

Spectra Energy has awarded four contracts to three companies to build the NEXUS Pipeline–a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. Two of the three companies will use union labor, the third will not–and that’s causing some pushback from labor groups in Ohio. A NEXUS rep said that 79% of the pipeline will be built by union labor. Labor unions would prefer that percentage be 100. Spectra/NEXUS guaranteed at least 50% of the labor would be union–so the contracts far exceed their promise. A dollar figure was not released for the work. Here’s who got the work to build NEXUS…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lease & Royalty Payments | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH

CORNballs Claim Most OH Landowners Won’t Sign NEXUS Pipeline Lease
June 10, 2016June 10, 2016

The NEXUS Pipeline is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada (see Spectra Energy Files Formal FERC Application for NEXUS Pipeline). It is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. A group of anti-fossil fuelers calling themselves the Coalition to Reroute Nexus, or CORN, is trying to stop the project (not reroute it). We affectionately call the nutters, “CORNballs” here at MDN. Earlier this year the CORNballs tried to incite trouble by telling landowners to call the police if NEXUS surveyors showed up on their doorstep to ask permission to survey (see CORNballs Tell OH Landowners to Call Police & AG to Stop Pipeline). The CORNballs are back, claiming that the vast majority of landowners along the proposed route for NEXUS have not, and will not, sign an easement to allow the pipeline…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

TETCO PA Pipeline Explosion Still Limiting NatGas Flow Month Later
June 9, 2016June 9, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months (see Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion). One of the four lines that was offline (Line 19) was examined and certified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in early May to go back online (see TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident). But since that time the other three lines have remained idle. When will the other three lines go back into service? And, did the Line 27 explosion cause any lasting airborne hazards?…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Marathon Petroleum | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH

Updates on 3 Major OH Pipelines at Utica Midstream Seminar
June 9, 2016June 9, 2016

Some 160 people showed up for the Utica Midstream Seminar held yesterday at the National Football Hall of Fame in Canton, OH. The event, sponsored by the Canton Regional Chamber of Commerce and ShaleDirectories.com, provided updates on three major pipeline projects either under construction or soon to be under construction in the Buckeye State: Marathon Petroleum’s Cornerstone Pipeline, Spectra Energy’s NEXUS pipeline project, and Energy Transfer’s Rover pipeline project. Here’s what reps from each organization had to say about their respective projects…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Boston “Religious” Leaders Arrested for Blocking Pipeline Work
May 26, 2016May 26, 2016

Last July MDN told you about a group of so-called religious leaders from the Boston area who have taken to worshiping Mother Earth (the creation) instead of worshiping the Creator (see Group of Bostonians Use Religion to Protest 5-Mile Natgas Pipeline). We won’t belabor the point we’ve made so often, that these people are hypocrites in the extreme by protesting “fossil fuels” when their very existence is dependent on fossil fuels. This group of so-called religious leaders are against a 5-mile natural gas pipeline that will deliver more cheap, abundant, clean-burning Marcellus Shale gas to local residents in the Boston area. Their sole objection to the pipeline is that natural gas is a fossil fuel, and they object to burning fossil fuels based on twisted religious grounds (even though they arrive at protest events in vehicles powered by fossil fuels). Fine. Let them spout off and make jerks of themselves. We have a First Amendment that allows them to do just that. But spouting off is not enough for this crew. They’ve taken to breaking the law. A group of these misguided “religious leaders” were arrested yesterday because they blocked a construction site for the pipeline, shutting down construction and costing Spectra Energy, the company building it, a load of money. Perhaps the parishioners at the “churches” (and synagogues and mosques) led by these “leaders” will enjoy seeing their offering money go to fund damages?…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Spectra Energy | Statewide NY

NY’s 2 Radical Senators Call for Halt in Building Algonquin Pipeline
May 23, 2016May 23, 2016

New York’s Senators – Kirsten Gillibrand and Chuck Schumer

Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system that will carry 342 million cubic feet of natural gas per day to New England states that badly need the gas. On March 3, 2015 the Federal Energy Regulatory Commission (FERC) issued their final approval for the project, allowing it to go forward. Construction began last year and continues now, with a target in-service date later this year. New York’s radical, anti-drilling governor, Andy Cuomo, tried to stop the Algonquin using the flimsy excuse that some of the drilling for the pipeline would happen a half mile from a nuclear power plant–a plant that Cuomo wants to shut down anyway (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). A few weeks after Cuomo requested FERC shut it down, they told him “no” (see FERC Denies NY Request to Stop Work on Pipeline Near Nuke Plant). So, in good government/radical environmentalist collusion fashion, several Big Green groups filed an appeal with the liberal District of Columbia Court of Appeals to try and stop it (see Radical Enviro Groups File Appeal to Stop AIM Pipeline in NY/CT). Now, New York State’s two radically leftist Democrat Senators, Chuck “the schmuck” Schumer and Kirsten “who dat?” Gillibrand (the Senator nobody knows about and nobody cares about) have come down on the side of (surprise!) the radical kooks who want to stop the pipeline…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

Spectra Says PA Pipeline Explosion “Unacceptable,” Blames Pipe Tape
May 12, 2016May 12, 2016

Last night representatives from Spectra Energy held a town hall meeting at the Congruity Presbyterian Church in Westmoreland County, PA to discuss the explosion of Spectra’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). Speaking and taking questions from the audience were Devin Hotzel, manager of stakeholder outreach, Tom Wooden, vice president of operations, Andy Drake, vice president of operations, and Randy Putt, local area manager. According to Spectra, they think a tape coating used on the welds of the pipeline is the culprit–having corroded over time. There may be other contributing factors, but right now they are concentrating on the tape coating which they say was only used for a short period of time–in the early 1980s when the pipeline was built. Here’s a report from the meeting…
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