Williams 4Q Update: Marcellus G&P Hits Record High – G +7%, P +9%

Our headline is a bit cryptic, so we’ll explain right up front that G&P stands for gathering and processing. In pipeline giant Williams’ latest update (covering 4th quarter and full-year 2020) company reps said the Northeast G&P unit “continues to come on very strong producing record results and contributing $29 million of additional EBITDA this quarter.” They also said Northeast (namely Marcellus) gathering volumes grew by 7% in 4Q, and processing volumes grew by 9%.
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Seneca Adding Another Rig in Tioga County, PA Thx to Pipe Expansion

Last Friday National Fuel Gas Company (NFG), the parent company for Seneca Resources and Empire Pipeline, issued its latest quarterly update for the quarter ending Dec. 31 (NFG’s first quarter 2021, everyone else’s fourth quarter 2020). Among the pearls of good news for NFG is that the company is adding a rig back in Tioga County, PA to drill on acreage NFG purchased from Shell.
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FERC OKs Small Portion of Leidy South Pipe Work in Central PA

On Friday the Federal Energy Regulatory Commission (FERC) granted its approval to Williams to begin construction on the Leidy South Project in central Pennsylvania. The purpose of the Leidy South Project, which is part of the mighty Transco pipeline, is to connect robust supplies of natural gas in the Marcellus and Utica producing regions in Pennsylvania with markets along the Atlantic Seaboard by the 2021-2022 winter heating season.
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Biggest M-U Pipeline Companies Pledge Net-Zero Emissions by 2050

Members of the Interstate Natural Gas Association of America (INGAA) announced yesterday a set of climate change commitments that outline in detail its mission to help address climate change, including working together as an industry towards reaching net-zero greenhouse gas (GHG) emissions from natural gas transmission and storage by 2050. INGAA members pledging to hit that target include the biggest pipeline companies in the M-U, including Williams, Kinder Morgan, and Enbridge.
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Williams CEO Alan Armstrong Says Biden Era Means No New Pipelines

On Joe Biden’s very first day of occupying the White House, he signed an executive order revoking a permit for the $9 billion Keystone XL oil pipeline that would cross from Canada into the U.S. According to the leftists at Bloomberg (giddy with excitement), Biden’s move to cancel Keystone “is the clearest sign yet that constructing a major new pipeline in the U.S. has become an impossible task.” The CEO for pipeline giant Williams, Alan Armstrong, agrees.
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Two Williams Projects Online Early: Leidy South & Southeastern Trail

During the Williams third-quarter 2020 update in early November, CEO Alan Armstrong shared some interesting and relevant (to the Marcellus/Utica) comments (see Williams Record M-U Volumes, Early Startup for SET, Leidy South). Armstrong said two important pipeline projects that will carry M-U gas to other markets, the Southeastern Trail (SET) expansion project and the Leidy South project, were both in the midst of coming online, ahead of schedule. On Friday Williams issued a press release to say indeed it has now happened.
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2021 Midstream Outlook: Less Assoc Gas = Good News for M-U Pipe Cos.

Each year East Daley Capital publishes its Midstream Guidance Outlook which looks at themes and trends affecting the midstream (pipeline) sector in the coming year. The latest version of Daley’s report has just been released and draws some interesting conclusions about the midstream in 2021. Namely, associated gas growth in the Permian and elsewhere will go down and result in rising gas demand from the Marcellus/Utica and Haynesville gas plays. The big winners will be M-U pipeline companies, including Williams, Antero Midstream, and Equitrans (EQT Midstream).
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Williams Deal with Bankrupt Chesapeake to Flow More Marcellus Gas

Pipeline giant Williams has cut a deal outside of bankruptcy court with Chesapeake Energy. The deal means Williams will continue to gather Chesapeake’s production in the Marcellus, Eagle Ford, and Midcontinent shale regions. Chessy has also committed to buying up to 150 million cubic feet per day (MMcf/d) of capacity on Williams’ new Transco Regional Energy Access project which will flow Marcellus gas to customers in Pennsylvania and New Jersey.
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Sisters of the Corn Return – Sue Williams re Atlantic Sunrise Pipeline

Like a bad Stephen King horror flick, the Sisters of the Corn (our name for a group of leftist nuns in Lancaster County, PA) have returned to file yet another frivolous lawsuit against Williams over a pipeline that crosses their land–a pipeline (Atlantic Sunrise) that has been up and running for years. The Sisters claim an infringement of their “religious liberties” in the lawsuit. They tried this argument once before and the U.S. Supreme Court refused to hear the case.
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Williams Record M-U Volumes, Early Startup for SET, Leidy South

During the Williams third-quarter 2020 update yesterday, CEO Alan Armstrong shared some very interesting, and relevant (to the Marcellus/Utica) comments. Armstrong said that two important pipeline projects to carry M-U gas to other markets, the Southeastern Trail expansion project and the Leidy South project, are both in the midst of coming online–ahead of schedule.
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PA Fines Atlantic Sunrise Pipe $836K for Years-Old Violations

Williams’ Atlantic Sunrise Pipeline, a 200-mile greenfield pipeline from northeastern to southeastern PA where it joins the Transco Pipeline, went online in October 2018 (see FERC Approves Atlantic Sunrise for Startup! Pipe Opens Sat. Oct. 6). Shippers on Atlantic Sunrise include Cabot Oil & Gas, Seneca Resources, and Range Resources. Yesterday the Pennsylvania Dept. of Environmental Protection (DEP) announced it is (two years after it went online) assessing fines for violations that happened during construction of the pipeline 2-3 years ago.
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Pin Oak Buys Laurel Mountain Pipe System from Williams/Chevron

Pin Oak Midstream, a subsidiary of Pin Oak Energy Partners, a relatively young Marcellus/Utica driller based in Akron, OH, has purchased most of the pipeline assets of Laurel Mountain Midstream for an undisclosed amount. The assets include 1,050 miles of natural gas-gathering pipelines and five compressor stations located in three Pennsylvania counties.
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Williams CEO Says Transco Can Serve Canceled ACP Customers in South

Transco Pipeline – laterals in Va. and N.C.

Many energy-related conferences and events have gone virtual this year due to the coronavirus pandemic. One of them is the Barclays CEO Energy-Power 2020 Conference. Yesterday Williams CEO Alan Armstrong participated in the event virtually–via conference call. Christine Cho from Barclays interviewed Armstrong. She had some great questions and Armstrong had some interesting answers. Among them was Armstrong’s assertion that the Williams Transco pipeline can meet gas demands for customers shafted by Dominion when the company suddenly canceled the Atlantic Coast Pipeline (ACP) project.
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Williams Says Pipeline Biz Doing Great Despite COVID-19

The pipeline business is doing just fine, despite COVID-19. That’s according to Alan Armstrong, CEO of one of the country’s largest pipeline companies–Williams. On a conference call yesterday to discuss the company’s 2Q20 performance, Armstrong said: “[M]any people assume that natural gas demand would be greatly diminished by COVID-19 and a stalled economy. Fortunately, we have not seen that play out at all. In fact, natural gas demand has continued to grow, both broadly across the market and on our systems, in particular.”
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FERC Begins Enviro Assessment for Williams’ PennEast Competitor

Over a year ago, in March 2019, MDN told you about a new Williams plan to beef up the Transco pipeline in Pennsylvania and New Jersey to deliver an extra 760 MMcf/d (originally 1 billion cubic feet per day) of Marcellus gas to PA, NJ, and Maryland (see Williams Announces Transco Competitor to PennEast Pipe in NEPA). The project is called the Regional Energy Access expansion project.
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