CNG/LNG | Energy Services | Industrywide Issues | Lackawanna County | Litigation | Pennsylvania | UGI Energy Services
UGI Sues Scranton Suburb for Refusing to Allow LNG Storage Site
In early September, MDN told you that UGI Corporation, one of PA’s largest utility companies, plans to store trailers of LNG in the parking lot of a storage facility near Scranton, PA, and is seeking a zoning variance to do so (see UGI Seeks to Store LNG in Trailers in Scranton Suburb During Winter). UGI wants to locate LNG storage (and regasification) in the parking lot of Scranton Storage LLC’s property at 1011 Business Route 6 in Dickson City (a former K-Mart). However, the borough of Dickson City is refusing to issue a zoning variance to allow the use of the site for that purpose. UGI has filed two lawsuits in Commonwealth Court challenging the borough. Read More “UGI Sues Scranton Suburb for Refusing to Allow LNG Storage Site”
We’ve been talking a lot lately about data centers and AI (artificial intelligence) because these facilities use enormous amounts of electricity, and electricity must be generated somehow. Most often, electricity is generated by burning natural gas. Gas-fired plants are important customers for Marcellus/Utica gas. A situation in Ohio in the Columbus area related to gas-fired power is likely to play out in other areas, too. It’s something you should be aware of. The issue, in a nutshell, is this: Who should pay to build new power sources to feed data centers? Should existing electric customers be on the hook for some of the cost? Should the data centers (companies like Google, Amazon, Microsoft, Facebook, etc.) pay upfront or be forced to commit to long-term contracts for the extra demand they will place on the grid? 
Dominion Energy Virginia yesterday issued its “2024 Integrated Resource Plan” to the Virginia State Corporation Commission (SCC) and the North Carolina Utilities Commission (NCUC). The document outlines a plan to meet rising power demand through significant investments in new power generation from “every source,” expansion and modernization of the power grid, energy storage, and energy efficiency programs. The problem is (from our perspective), the plan deemphasizes natural gas in favor of unreliable renewables, to the peril of Dominion’s customers. 
Simply amazing. In August, we told you that most of Venture Global’s contracted customers for LNG from the company’s Calcasieu Pass LNG export facility in southwestern Louisiana’s Cameron Parish had filed for arbitration over Venture Global’s refusal to sell them cargoes under contract (see 
Once again, the bottom dropped out of the Pennsylvania Marcellus rig count. PA lost two rigs last week, down to just 13 active rigs, the lowest the PA rig count has been since July 2016. That’s the lowest rig count for PA in more than eight years, lower than the deep dark days of the pandemic four years ago. Ohio and West Virginia’s counts remained the same at nine and ten, respectively. On August 23, PA ran 21 rigs, OH had nine rigs, and WV had just five rigs. Last Friday (just two months later), PA had 13 rigs (a loss of eight from August), OH still had nine, but WV had ten rigs (a gain of five of PA’s lost eight). The realignment of rigs from PA to WV is an ongoing, big story concerning the rig count. 
The U.S. Court of Appeals for the Sixth Circuit (6th Circuit) slammed the brakes on a pipeline project in Tennessee on Friday. In January, the Federal Energy Regulatory Commission (FERC) issued a certificate of public convenience for Kinder Morgan’s Tennessee Gas Pipeline (TGP) subsidiary to build the Cumberland Project, a 32-mile, 30-inch pipeline to feed 245 MMcf/d of natural gas (from the Marcellus/Utica) to the Tennessee Valey Authority’s (TVA) proposed Cumberland gas-fired power plant. 
PJM Interconnection is the largest U.S. power grid operator, serving 65 million people in 13 states plus the District of Columbia (including PA, OH, and WV). PJM supplies power to more than 20% of the U.S. economy. The organization issued its annual Winter Outlook yesterday. The analysis says PJM and its members have adequate resources to serve the forecasted demand for electricity this winter under expected conditions, although reserve margins continue to shrink with continued generator (coal plant) retirements and increasing demand. However, if we have “extreme” weather events, problems like blackouts are possible. In other words, we will have enough electricity, but cross your fingers that we don’t experience any extreme weather. 
Some 15 months ago, WhiteHawk Energy, headquartered in Philadelphia with ownership of mineral and royalty interests for over 1 million gross unit acres and over 3,400 producing horizontal shale wells between the Marcellus and the Haynesville, proposed marriage to PHX Minerals, based in Fort Worth, Texas, owner of 75,000 leased mineral acres principally located in the SCOOP and Haynesville plays (see 
Dr. Judith Curry is an American climatologist and the former chair of the School of Earth and Atmospheric Sciences at the Georgia Institute of Technology. Her research interests include hurricanes, remote sensing, atmospheric modeling, polar climates, air-sea interactions, climate models, and the use of unmanned aerial vehicles for atmospheric research. She was a member of the National Research Council’s Climate Research Committee, published over a hundred scientific papers, and co-edited several major works. She’s worked with NOAA and NASA. She has more awards than you can count. Yet because she dares to openly ask questions and point out political bias in the global warming community, she has been ostracized. She is one of the smartest people alive regarding climate change. 
It’s good to revisit the basics from time to time. When drilling a shale oil or gas well, each well produces “brine,” a super-salty (minerally) water from the depths that keeps flowing long after the well is drilled and is online. This is not surface water; fresh water found down to about 300 feet. This is another layer of water thousands of feet below the surface. Disposing of brine can be a problem given the minerals in it. A lot of brine is recycled and used again for new drilling and fracking. But what happens when drilling slows down? The water continues to flow out of existing wells and needs proper disposal. Researchers at Lehigh University in Bethlehem, PA, may have a new solution. 
Earlier this week, MDN told you about the final chapter in the tragedy of the Philadelphia Energy Solutions (PES) Refining Complex (see 
If we had a nickel for every peak oil prediction we’ve reported on over the years, we’d be rich! Every few months, somebody comes along to say that either oil production or oil demand is heading for a decline…real soon now, any day, it’s inevitable. And they list their reasons why we’re hitting peak and about to go into a decline. And every darned time, they’re wrong. We have another such prediction, but this one is a bit different. It comes from an investment advisor writing to other investors on the Seeking Alpha website, an investment advisor whose work we have shared with you in the past. It’s a column from someone whose opinion we respect. 
We read a story published last week that is frightening. It leaves us speechless, and that’s saying something. Just the News is reporting that the Columbia Journalism Review (CJR) and several other publications and leftwing groups are behind a project called the “Climate Blueprint for Media Transformation,” which encourages reporters to insert climate change into every story and view fossil fuel industry voices as inherently dishonest. The project openly promotes the idea that journalists should NOT be objective when reporting on climate and energy but instead should be biased and revel in their bias. Speechless.