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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).
Read More “2021 Midstream Outlook: Less Assoc Gas = Good News for M-U Pipe Cos.”
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.
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.
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.
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 
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.
Yesterday MDN told you that Range Resources is planning to operate at net-zero carbon within the next five years, by 2025 (see 
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.”
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 
In December 2018 Williams announced a new project to increase capacity along the Transcontinental Gas Pipe Line (Transco) in PA by an extra 582,400 dekatherms (582 million cubic feet) per day. Williams officially filed a request with the Federal Energy Regulatory Commission (FERC) to build the “Leidy South Project” in August 2019 (see 
In 2016 MDN told you about the Holleran family who didn’t want the much-needed Constitution Pipeline to cross their land in Susquehanna County, PA (see 
Is it time to turn the gas off for New York City and let the people there reap the “benefits” of having a dictator, Andrew Cuomo, as their governor? On Friday the NY Dept. of Environmental Conservation, thoroughly and completely corrupted by Cuomo, issued yet another rejection for the critically-needed Northeast Supply Enhancement (NESE) pipeline project. It was the last straw for Williams, the builder of the project, which has walked away from the project. Gas customers on Long Island, including parts of NYC, now face the real prospect of running out of natural gas (this is not an exaggeration). Andrew Cuomo is the grossest, most corrupt governor in NY’s history.
In March Williams, the midstream giant with major operations in the Marcellus/Utica, swallowed a poison pill (see 
Last week MDN told you that the second phase of Sabal Trail, a $3.2 billion, 515-mile interstate natural gas pipeline in Florida, Georgia, and Alabama to deliver (in part) Marcellus gas to the southeast was approved by the Federal Energy Regulatory Commission (FERC) and is coming online now (see