#1 New Source of Demand for M-U Gas: Electric Power Plants
According to MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), natural gas production in Pennsylvania, Ohio, West Virginia is growing faster than demand. Lately the Marcellus/Utica is producing 42% of all the natural gas produced by the nation’s seven largest shale plays (see EIA Jan ’18 Drilling Report: M-U on Fire, Up 1/3 Billion Cubic Ft). If you add together all natgas production sources (conventional and unconventional), M-U produced 27% of the entire nation’s natgas supplies in 2017–up from 2% in 2008. It is astonishing! But Houston, we have a problem. There still aren’t enough pipelines to carry our gas to other markets, where there is demand. And we in the M-U region don’t have enough of our own demand to keep up with the ever-growing supply. Although populations grow gradually over time, the fact remains the amount of gas used to heat and cool households, and businesses, and the amount of natgas used by industrial customers, remains pretty constant over time. It may grow a little, but not nearly as much as supply is growing, which keeps the price of natgas in our region in the basement. There is a ray of sunshine though. EIA says, “Almost all of the recent growth in natural gas consumption in these [M-U] states has been in the electric power sector.” Our observation/point: the power generation space and the shale drilling space are now bosom buddies–joined at the hip. Electric generation is a critical new market for our gas–about the only new market with the capacity to sop up meaningful portions of our ever-expanding supply…
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Do the anti fossil-fuel foes in Orange County, NY still not get it? Do they not understand a new gas-fired power plant is about to go online? Competitive Power Ventures (CPV) is building a legal, legitimate, safe, low-emissions electric generating plant in Wawayanda. The plant is almost done and is now preparing for commissioning. This is the same facility Manhattanite Hollywood star James Cromwell (with a summer home in the area) has protested over the past few years (
Increasingly, large industrial plants, commercial operations and institutions like hospitals are putting their chips on CHP technology–combined heat and power. CHP, also known as cogeneration, is the concurrent production of electricity and useful thermal energy (heating and/or cooling) from a single source of energy. It is a small power plant that can both generate electricity and generate heat (or cooling) at the same time. Nothing gets wasted. The heat that comes from generating electricity is reused. Very efficient. CHP is not a particularly “new” technology. What is new is that more and more facilities are beginning to use it, because of the abundance of cheap, clean-burning natural gas. We wrote about CHP in November when we pointed out a new CHP installation at Lancaster General Hospital (see 
The Brunner Island Power Plant is located in York County, PA, but straddles Lancaster County. It is a huge 1,490 megawatt coal-fired electric generating plant, and has been the target of environmentalists for years. In February 2017, MDN told you that the new owners of the plant are investing $100 million to retrofit the plant so it can, at least part of the time, burn Marcellus Shale gas (see 
Natural gas has replaced King Coal as the #1 fuel source to generate electricity. According to our favorite government agency, the U.S. Energy Information Administration (EIA), in 2018 natural gas will generate 33% of all electricity generated in the U.S. In 2019 it goes up to 34%. Coal, on the other hand, will generate 30% of all electricity in 2018 (as it did in 2017), and go down to 28% in 2019. Power plant operators will bring 20 gigawatts (GW) of new natural-gas-fired generating capacity online in 2018. That’s the largest increase in natural gas capacity since 2004. Almost 6 GW of this new capacity (30%) will be added in one state: Pennsylvania! That’s another 6 GW powered by Marcellus Shale gas–an important new market for our gas. Here’s the EIA forecast that natgas will remain our primary source of electricity generation for at least the foreseeable future…
Millennium Pipeline is building a tiny, 7.8 mile pipeline in Orange County, NY that will connect the main Millennium pipeline to the CPV Valley Energy Center gas-fired electric plant. Both projects are currently under construction. Millennium’s project, called the Valley Lateral Project, was opposed by the corrupt Andrew Cuomo Dept. of Environmental Conservation (DEC). The DEC refused to grant necessary permits for the federal project, so the Federal Energy Regulatory Commission (FERC) voted to overrule DEC and allow it to be built anyway (see 
A new “research study” was recently published that, per the usual routine, is generating false headlines that leave a false impression. The study is called “Sustainability of UK shale gas in comparison with other electricity options: Current situation and future scenarios,” published in the so-called journal, Science of The Total Environment. Here’s an example of a headline it’s generating in fake mainstream news: “Shale gas is one of the least sustainable ways to produce electricity, research finds” (Phys.org). We’ve seen that headline or variations of it in a number of publications. The narrative being spun by anti-fossil fuelers in quoting the study is this: “You know how shale gas has taken over as king of producing electricity–well you should ignore all of its benefits (clean burning, less polluting, cheaper) and instead use renewables because shale gas isn’t really sustainable and all that great after all.” That’s the upshot of the study, and the stories about the study. Just one teeny, tiny problem: The “research” is fake. Fraudulent. A heaping pile of doo-doo. The so-called researcher concocted his own biased set of criteria on which to judge various forms of electricity generation sources, and then declared shale gas flunks the test. Once again, fake research based on a twisted, biased worldview that says all fossil fuels are evil…
We don’t know how many times we have to keep ringing the bell–this is a five-alarm situation! Wake up! A group of Democrats elected to the Jessup, PA Borough Council (Scranton suburb) are actively trying to block the completion of the state’s largest natural gas-fired electric generating plant–the first phase of which will be ready to go online in a little over a month. A bunch of ninny nanny antis didn’t like that they couldn’t stop the project, so they used money and help from Big Green groups last November to launch successful campaigns to defeat incumbent Council members who voted to authorize the Lackawanna Energy Center to be built by Invenergy (see 
Pennsylvania legislators (Democrats and RINOs) who were banking on the federal government to “fix” the problem of the free market are panicking after the Federal Energy Regulatory Commission rejected DOE Sec. Rick Perry’s so-called Grid Resiliency Pricing Rule that would tip the scales in favor coal and nuclear energy, keeping unprofitable electric generators in business longer (see 
On September 29, U.S. Energy Secretary Rick Perry sent a letter to the Federal Energy Regulatory Commission (FERC) directing the agency to complete action on a “Grid Resiliency Pricing Rule”–ostensibly within 60 days. The proposed rule Perry proffered, sometimes referred to as the Notice of Proposed Rulemaking (NOPR), would put in place regulations that favor electric generating plants powered by coal and nuclear. That is, it would allow unprofitable ventures to pass along new costs, making them profitable–in the name of protecting the electric grid. The theory Perry (and by extension President Trump) subscribe to is that if the free market drives out coal and nuke plants, the electric grid would be “vulnerable” to far fewer sources to power it. If coal and nukes are all but gone, and all of sudden there’s a natural gas shortage, or prices spike for natural gas, it would endanger the electric supply in this country. On one side of the argument are those who believe the free market sometimes needs a helping hand (via regulation), and on the other those who believe the free market will sort it all out and we are not vulnerable. The incoming/new chairman of FERC, Kevin McIntyre, asked for an extension so he and another new FERC member could take a little time to do a proper review (see 
Last May, New York Gov. Andrew Cuomo announced plans to construct a new “state-of-the-art, locally-sourced mini-power grid” that will connect to the statewide electric grid but will also be able to operate independently, to power the Empire State Plaza in Albany–a complex of buildings in downtown Albany housing much of New York State government (see 
Just yesterday MDN warned you about a group of antis who had seized political control in the Pennsylvania borough of Jessup, where Invenergy is nearing completion of the state’s largest natural gas-fired electric generating plant (see 
It’s been a long road, but we’re finally close to startup for the first phase of what will be Pennsylvania’s largest gas-fired electric generating plant near Scranton, PA. The Invenergy plant, dubbed the Lackawanna Energy Center (located in the community of Jessup), will produce 1,480 megawatts of electricity when it’s fully built and running. Construction crews are hard at work in frigid temperatures, working to complete the first of three combined-cycle generator units. The work is 80% done on the first unit and on track to be completed by February. The plant is certainly having an impact on locals–both good and bad. On the bad side, we previously reported that antis in the Jessup community exacted their revenge on local political leaders for approving the plant by removing them from office (see