Virginia Marcellus Power Plant Now Online, Boosts Local NatGas Price
Marcellus Shale gas is now powering a Panda Power Funds electric generation plant supplying electricity for 778,000 homes in the Washington, DC metro area. Panda announced that its 778-megawatt “Stonewall” generating station in Loudoun County, Virginia is now online producing electricity for Northern Virginia/District of Columbia customers. MDN first had its eye on this project in November 2014 when we brought you the news that South Jersey Gas had won the contract to provide Marcellus Shale gas to the plant when built (see NJ Utility to Provide Marcellus Gas to Virginia Power Plant). South Jersey Gas is using the Dominion Transmission pipeline to get the gas there. Dominion upgraded their system last year in order to flow more gas to the project (see FERC OKs 6 Dominion Compressor Station Upgrades in PA, MD, VA). Incredibly, the Panda Stonewall project is estimated to contribute a mind-blowing $7.1 billion to the Virginia economy during its recent construction and the first 10 years of operation. No wonder communities love these natgas-fired electric plant projects! Since Stonewall going online, the spot price of natural gas traded at the nearby Dominion South trading hub has gone up 50% from prices of gas traded there a year earlier…
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Here’s a quote that nearly made our eyeballs drop out: “In the PJM queue, there’s roughly 130 planned gas-fired power plants scheduled to enter service through 2021 totaling 76 GW under various stages of development across a large part of the market that includes Pennsylvania, Ohio, West Virginia, Maryland, Virginia, Delaware and New Jersey.” Did you catch that? Some 130 natural gas-fired electric generating plants–most (if not all) of them fed by Marcellus/Utica gas, will go online in the next four years, generating 76 gigawatts of electricity. It is an enormous opportunity for our industry. Where did we read that stat? In a new report published by our friends at Natural Gas Intelligence (NGI). The report is called “Pipelines & Power: How New Infrastructure Could Uncork the Marcellus-Utica Natgas Bottleneck.” The opening article in the report contains the quote above (on page 2). This 20-page report is jam-packed with great information, like that quote. Actionable, useful, important information. Let us tell you a little more about NGI, about the report, and how you can get a copy…
Siemens, the largest industrial manufacturing company in Europe with its headquarters in Germany, sought out and has cut a deal with Duke Energy to build a brand new, “first of its kind” advanced natural gas-combustion turbine for Duke Energy’s proposed 400-megawatt expansion at its Lincoln County Combustion Turbine Station near Charlotte. Siemens will build a single turbine able to generate 400 megawatts essentially on demand, as needed, for those times when extra electricity is needed (called “peaking” for peak demand). The project will be built in three phases beginning in 2018, with lots of testing, and won’t be ready until 2024. In return for allowing Siemens to build this new tech and test it out, Duke is getting a sweetheart deal on the price, although the price has not been publicly disclosed. So what does this have to do with the Marcellus/Utica? Long before 2024 there will be, at a minimum, Marcellus/Utica gas flowing to that region via the forthcoming Atlantic Coast Pipeline project. And by that time, seven long years from now, who knows? We expect there may be more pipelines built and in place not even conceived or announced–yet. This will be one more (added to the already 130 announced) power generation projects coming in the PJM region (see today’s companion story, Important New Report on Pipelines & Powergen in Marcellus/Utica). Here’s the exciting news about a brand new technology coming along to leverage abundant, clean-burning natural gas in the Marcellus/Utica and beyond…
In April MDN provided an update on the Sabal Trail Transmission pipeline project (see
Competition is good. Last week we told you about the coming competition between the Marcellus/Utica Shale play in Pennsylvania, West Virginia and Ohio, and the Haynesville Shale play in Louisiana (see 
Tuesday night in Clarksburg, WV, the state Public Service Commission heard public comments about a non-utility utility–the Energy Solutions Consortium Harrison County Power plant project. The project is a Marcellus-gas fired electric generating plant that will produce 580 megawatts of electricity to sell to the PJM power grid serving 13 states. Hence our label of a “non-utility utility” project. Technically, the project is not a utility because it’s not regulated with strict price controls, like “traditional” utilities. However, it will sell electricity to regulated utilities. ESC was founded by father and son team Andrew and Matthew Dorn, based in Buffalo, NY. The Dorns are behind a series of WV natgas-fired electric plants, the first of which will get built in Marshall County (see
Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast, didn’t want to be left out of the most important midstream story of the century (the Marcellus/Utica), so they bought Columbia Pipeline Group–closing on the sale in July 2016 (see
In May MDN told you that New York Gov. Andrew Cuomo had 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
There is a coming shortage of natural gas to fire electric power plants in wintertime in New England. So says an analysis presented last week to the ISO-New England Planning Advisory Committee. ISO New England Inc. is the independent, non-profit Regional Transmission Organization (RTO) that manages the electric grid for Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. The study presented last week shows that there will be enough natgas reaching New England in summer for the foreseeable future, but in the winters of 2025 and 2030, almost every planning scenario shows New England will only have half (50%) of the gas it needs to operate electric generating plants. This is seriously bad news for New Englanders–and something we previously predicted (see 
On Monday, 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. The energy-efficient microgrid will supply 90% of the power for the 98-acre downtown Albany complex, and is expected to save the Plaza more than $2.7 million in annual energy costs. The project will also remove more than 25,600 tons of greenhouse gases from the atmosphere each year – the equivalent of taking more than 4,900 cars off the road – supporting New York’s goal to reduce emissions by 40 percent by 2030 from 1990 levels. In an emergency, it can power a shelter for Albany residents. So what will power the magical microgrid and deliver this nirvana of cheaper electricity AND reduce so-called greenhouse gas emissions at the same time? Is it a huge solar array errected in Albany or in the nearby countryside? Nope–the sun doesn’t always shine. Must be a wind farm, maybe off the coast of Long Island? Nope. The wind doesn’t always blow. The magic fuel for the magic microgrid is, you guessed it–fracked shale gas from the Marcellus. Yes, Andrew Cuomo is the same governor who has banned fracking in New York State and is blocking construction of pipelines to bring “fracked gas” from Pennsylvania into New York State. And some people think Donald Trump is crazy?!!!…
MDN previously reported on a $900 million Marcellus gas-fired electric generating plant coming to Orange County, NY (see