| | | | | |

TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident

Spectra blazeAn 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). That doesn’t stop antis from engaging in wild speculation and “I told you so” statements, as they are now engaged in. THE Delaware Riverkeeper, which opposed the expansion of horsepower/capacity at a compressor station close to the explosion, is now saying the increased flow rate through the pipeline caused the corrosion. Which all sounds reasonable–until you read the words “I can’t say for certain there is a cause-effect relationship between the increases in [compressor] horsepower and the pipeline explosion, but it is information that should be part of the public discussion about this incident and pipeline safety in general.” Translation: “We won’t let this crisis go to waste. It doesn’t matter what the real cause was, we’ll amp up this explosion in sympathetic anti-drilling news outlets like the Pittsburgh Post-Gazette and spread fear everywhere we can–so we can shut down natural gas in this country.” Below is an update from Spectra Energy that one of the four pipelines is now operating again, along with the latest attempt to demagogue and unfortunate accident with absolutely no evidence…
Continue reading

|

Spectra Energy 1Q16: Access Northeast Pipeline Not Like NED

Spectra Energy logoLast week midstream giant Spectra Energy provided their first quarter 2016 update, complete with earnings/analyst phone call. The official update (below) contains a number of project updates for major pipeline projects planned or under construction in the Marcellus/Utica region. The earnings phone call with analysts provided a lot of extra color commentary on the project updates. We’ve brought you both below. One thing that stood out to MDN as we read through it: Spectra makes it clear that their Access Northeast project, a competitor to the now defunct Kinder Morgan Northeast Energy Direct (NED) project, is not like NED. There are major differences that Spectra Energy credits with what they predict will be the success of their project where the NED project failed. Not only is there an update for Access Northeast, but also updates for NEXUS, AIM, Atlantic Bridge, and others below…
Continue reading

| | | |

What Can We Learn from Spectra’s Success with Pipeline Projects?

Spectra Energy logoWith pipeline projects like Kinder Morgan’s Northeast Energy Direct (NED) deciding to call it quits (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline), and projects like the Constitution Pipeline that runs through New York State on life support (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline), you have to ask an honest question: What pipeline projects can and do get approved and built? There’s one company that seems to enjoy more success than others when it comes to getting new projects built–Spectra Energy. Kinder’s NED was arguably the superior project when it comes to getting natural gas to New England, yet Spectra’s competing Access Northeast project seems to have won. Why? What can we learn from Spectra that might help the rest of the industry when it comes to getting projects built?…
Continue reading

| | | | | | |

EIA: Explosion on Texas Eastern Pipeline in PA Cuts Natgas Flow

TETCO NE
TETCO Pipeline – click for larger version

As we have been reporting, Spectra Energy’s Texas Eastern Transmission Company (TETCO) pipeline exploded in Westmoreland County, PA on April 29 (see our stories here). Prior to the explosion there was an average of 1.4 billion cubic feet of natural gas per day flowing through the Delmont compressor station located near the explosion. Right now? Zero. So far the main affect of no gas flowing through that area has been a price spike in the Mid-Atlantic region. Natgas supplies are being handled by other pipelines and by drawing from storage. The U.S. Energy Information Administration weighed in last week with their analysis of how the TETCO explosion has impacted the northeast–both with physical gas supplies and with price for that gas. Here’s how the industry is coping…
Continue reading

| | | | | |

Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion

Spectra blazeThere was an explosion and fire in Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” pipeline last Friday (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The explosion occurred in Salem Township in Westmoreland County, PA, about 30 miles east of Pittsburgh. Although the cause of the explosion is still not known for sure, investigators do have a working theory–corrosion along welded seams in the pipeline. Investigators from the U.S Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) still say, officially, that the cause is “unknown” and the investigation “ongoing.” However, those same investigators have said they found evidence of corrosion and they’ve ordered another section of the pipeline in the area to be dug up, removed, and sent for analysis. Here’s the latest on the situation, along with an estimate of when service might be returned on this very important pipeline…
Continue reading

| | | | | |

Update on Spectra Pipeline Explosion Near Pittsburgh

Spectra blazeYesterday MDN told you about the Texas Eastern Transmission Company (TETCO) pipeline explosion last Friday in Westmoreland County, PA (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We still don’t know what caused the explosion. Spectra Energy, TETCO’s owner, is working with the Pipeline and Hazardous Materials Safety Administration (PHMSA) to investigate the incident and several pipelines in the area back to service. Spectra shut down the flows of our pipelines in close proximity to the explosion “out of an abundance of caution.” The stoppage means about 1 billion cubic feet per day of natural gas is not going to New York and New England, causing a price spike in the region. One local homeowner was seriously burned and sent to the UPMC Mercy Hospital burn unit in Pittsburgh. His condition has been upgraded from critical to serious. Below is an update with the latest we can find about the explosion and aftermath…
Continue reading

| | | | | |

Critical Project for Canadian LNG Exports Gets Favorable FERC Review

map_atlantic_bridge_full
Click for larger version

Spectra Energy’s Atlantic Bridge project has just gotten an important “favorable” Environmental Assessment (EA) from the Federal Energy Regulatory Commission. A favorable EA is a signal that FERC will, later this year, grant a full approval for the project. And that’s really good news for Canadian LNG export plants–and equally good news for Marcellus drillers. Here’s how this news all ties together. The Atlantic Bridge project is a series of upgrades to two different pipeline systems already in existence: the Algonquin Gas Transmission (AGT) pipeline and the Maritimes & Northeast Pipeline (M&NE). The two pipelines will be connected along the coast of Massachusetts, near Boston. Thing is, right now the M&NE flow gas from north to south, from Canada to the U.S. Part of the Atlantic Bridge project is to make M&NE bidirectional, able to flow gas from south to north. The AGT will collect gas from the prolific Marcellus via a third Spectra-owned pipeline–the Texas Eastern Transmission Company (TETCO) pipeline–delivering Marcellus gas to New England. Yes, much/most of the gas will go to New England, but excess gas produced during periods of the year when not as much gas is used in New England will then be available to flow on up to Canada and to one of several new LNG export facilities either in planning or under construction. It all starts with a favorable EA…
Continue reading

| | | | | |

Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate

Spectra blazeThere was an explosion and fire in Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” pipeline last Friday. The explosion occurred in Salem Township (Westmoreland County), PA, about 30 miles east of Pittsburgh. One man was seriously burned when his house caught on fire (his house was destroyed). Nine homes in the area of the explosion/blaze were evacuated. As of yesterday six of the nine were able to return to their homes. Texas Eastern Transmission is one of the largest natural gas pipelines in the U.S.–running from the Gulf Coast through Marcellus/Utica country to New Jersey. The really disgusting part was the way the NJ chapter of the radical Sierra Club immediately, with a few hours, used the explosion by implying this is what awaits homeowners if the PennEast Pipeline is built. FYI, the Texas Eastern pipeline was built in 1981 and the portion that exploded was last inspected in 2012. Below are pieces of news accounts and the running response from Spectra about the accident…
Continue reading

| | | | | | | |

Why is UTOPIA Pipeline Less “Controversial” than NEXUS in Ohio?

Utopia_Map
UTOPIA Pipeline map – click for larger version

For some reason antis in Ohio seem to have more of a problem with Spectra Energy’s proposed NEXUS natural gas pipeline than with Kinder Morgan’s UTOPIA ethane pipeline–at least that’s what the Toledo Blade claims. The NEXUS 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. UTOPIA is a 12-inch ethane pipeline will run 240 miles and will only be built in Ohio before it connects to another pipeline that goes to Canada–therefore the Federal Energy Regulatory Commission (FERC) won’t be involved in permitting UTOPIA. As we’ve previously noted, it seems like there’s been very little opposition to UTOPIA (see UTOPIA Ethane Pipeline Faces Virtually No Opposition in OH). It also seems the antis believe the NEXUS is more of a threat than UTOPIA–even though pipelines are THE safest form of transportation in the country, bar none…
Continue reading

| | | | | |

Radical Enviro Groups File Appeal to Stop AIM Pipeline in NY/CT

AlgonquinPipeline_0
Click map for larger version

A group of radical environmental groups including Riverkeeper Inc., Sierra Club and Food & Water Watch (Big Green groups) have joined a federal appeal (i.e. are suing) to stop Spectra Energy from building their Alogonquin Incremental Market (AIM) Project, a project to expand the capacity of the Algonquin Gas Transmission system to flow more Marcellus/Utica gas to northeast markets. Most of the project is 20 miles of new pipeline in the Hudson Valley area of New York. In March New York’s spineless Gov. Andrew Cuomo asked the Federal Energy Regulatory Commission (FERC) to stop work on AIM near a nuclear power plant (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). Within a few days FERC said NO (see FERC Denies NY Request to Stop Work on Pipeline Near Nuke Plant). That didn’t make the anti-fossil fuel nutters happy at all. They thought they had a real winner by painting nightmare scenarios of the AIM pipeline blowing up and taking a nuclear plant with it. Their scare tactics didn’t work–so they’ve fallen back to the tried and true: ask a liberal judge to stop it…
Continue reading

| | | | | | |

Hypocrites Protest “Fracked Gas Infrastructure” in Hudson Valley

We spotted a story from the Hudson Valley area of New York State–close enough to New York City that it’s infested with anti-drilling liberals–that caught our attention for a couple of reasons. It’s a story of about a protest held yesterday in Peekskill, NY. The protest was against Spectra Energy’s work on their Algonquin Incremental Market (AIM) pipeline project. From all appearances, four protesters showed up for the protest–and yet it got big news treatment. Most Sundays there are more than four people who show up at MDN HQ for lunch (when our kids come home to visit). The local newspaper hasn’t ever shown up to cover these momentous (for the Willis household) events. Perhaps if we held up a big banner outside that says “Welcome Home Children” the local news outlets would arrive and cover it? But we digress. The other aspect of the story that caught our attention is the admission by one of the protesters that they not only oppose the AIM project–they oppose all “fracked gas infrastructure” projects. She is demanding that NY “transition to safe, clean, renewable energy, which is wind, water and solar.” That is, the protesters are animated and motivated by an irrational hatred of all fossil fuels. How did the protesters arrive at their protest? Driving cars that burn fossil fuels riding on tires made from petroleum products and sitting on seats made from plastic (a petroleum product) wearing clothes on their bodies and shoes on their feet made from petroleum products. Holding up signs objecting to…petroleum products…
Continue reading

| | | | | |

FERC Denies NY Request to Stop Work on Pipeline Near Nuke Plant

The Federal Energy Regulatory Commission (FERC) has just delivered a blistering slap across the face of New York Gov. Andrew Cuomo. You may recall in early March Cuomo asked FERC to stop Spectra Energy’s work on their Algonquin Incremental Market (AIM) pipeline project, 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. Cuomo wanted the work stopped because the pipeline will run close to a nuclear plant (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). FERC has just said “nope” to Cuomo’s request. The work to build the pipeline continues…
Continue reading

| | | | | |

Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant

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. That is, until New York Gov. Andrew Cuomo stepped in. Cuomo sent a letter on Monday to FERC (copy below) asking FERC to stop construction of AIM because the proposed pipeline path takes it right next to a “troubled” nuclear power plant along the shoreline of the Hudson River. Cuomo says he’s concerned about the drilling that will take place, being so close to a plant that has ongoing issues. Will Cuomo once again stop a natural gas pipeline from being built? Cuomo refuses to allow the state Dept. of Environmental Conservation issue stream crossing permits for the FERC-approved Constitution pipeline, and now he’s trying to screw a second pipeline from being built. If you ask us, this is getting out of hand…
Continue reading

| | | | |

Marcellus/Utica Gas May Head to GA & FL via Alabama Pipeline

Marcellus and Utica Shale gas will get access to an important new market, but not until 2019. Northeast gas will be able to service the very populous southeastern states of Georgia and Florida in about three years’ time with the construction of two new pipelines. The first pipeline is called the Sabal Trail, a 516-mile pipeline from Alabama through Georgia and then through much of Florida. Sabal Trail is a Spectra Energy, NextEra Energy and Duke Energy joint venture with Spectra taking the lead. Two weeks ago, after a 2 1/2 year-long process, the Federal Energy Regulatory Commission (FERC) approved the Sabal Trail project. But how would northeast gas get to Alabama? Good question! That’s where a shorter intrastate (Alabama only) pipeline project comes into play. Yesterday American Midstream Partners announced an “open season” to elicit shippers to sign up for capacity on a 45-mile extension of the Magnolia Intrastate pipeline. If built, the Magnolia expansion would connect Kinder Morgan’s Tennessee Natural Gas Pipeline’s 500 Line, which brings gas from north to southwest, with Williams’ Transco pipeline. Transco has a number of branches in the south, including a connection to the Sabal Trail when it gets built (see the map below). The Magnolia expansion, if built, will not be in service until 2019…
Continue reading

| | | | | | | | |

Pipeline Companies May Lose Big-Time if Chessy “Restructures”

Yesterday’s free fall of Chesapeake Energy’s stock based on rumors that the company may be considering bankruptcy (see today’s lead story) is not only affecting Chesapeake’s stock price. It’s also affecting the stock price of Energy Transfer Equity and Williams, two huge midstream companies. Why? ETE, you may recall, is in the process of buying Williams for $37.7 billion (see Looks Like a March 2016 Wedding for ETE & Williams). The main reason ETE is buying Williams, with its major presence in the Marcellus/Utica, is because of long-term contracts to use its pipelines in the northeast. One of Williams’ main customers with those long-term contracts is (yes) Chesapeake Energy. What if Chessy is forced to renegotiate or cancel or otherwise can’t honor those contracts? Whoops. There goes one of the big reasons for the deal in the first place. Which may explain why ETE’s stock went from $7.01 on Friday to closing at $4.09 yesterday (down 42%), and why Williams’ stock went from $17.11 on Friday to closing at $11.16 yesterday (down 35%). Here’s how/why Chesapeake’s troubles will not only affect ETE and Williams, but other midstream companies like Spectra Energy, Columbia Pipeline Partners and Marathon Petroleum as well…
Continue reading

| | |

Spectra Energy Provides Update on 3 NE Pipeline Projects

Midstream giant Spectra Energy released their fourth quarter and full year 2015 update yesterday. It was a mixed bag. Overall Spectra showed strong performance for the year, but their natural gas liquids business combined with a weak Canadian dollar worked to drag down the company’s financials. Of primary interest for us is a section in the report updating us on several important pipeline projects for the Marcellus/Utica: NEXUS, AIM and Access Northeast…
Continue reading