FERC Approves Spire St. Louis Pipeline to Flow M-U Gas
In February 2016, MDN told you about an exciting new market for Marcellus and Utica Shale gas that may open up one day in the Midwest (see New Midwest Pipeline to Tap REX’s Marcellus/Utica Gas). Laclede Group, a St. Louis-based natural gas utility, said they want to build a ~65-mile pipeline from St. Louis through southwest Illinois and connect to the Rockies Express (REX) and Panhandle Eastern Pipeline. The new pipeline would bring low-cost Marcellus and Utica Shale gas from REX to the utility–not only for resale to gas customers, but also potentially for new natgas-powered electric plants planned to replace retiring coal-fired plants. A year later (February 2017) Laclede was renamed Spire and the Spire STL Pipeline filed an official application with the Federal Energy Regulatory Commission to build the 24-inch diameter pipe that would flow 400 million cubic feet (MMcf) per day of yummy Marcellus/Utica gas from REX to St. Louis (see Spire Files Plan with FERC to Flow Marcellus/Utica Gas to St. Louis). The original timeline showed Spire thought FERC would approve the project in December 2017. Never happened. Then Spire said FERC approval should come along in “early 2018” (see Spire Expects Early 2018 FERC Approval for M-U Gas to St. Louis Pipe). That never happened either. Finally, last Friday, before FERC Commissioner Rob Powelson slips out the door in another week or so to leave behind him a hopelessly deadlocked 2-2 FERC (thanks Rob), the agency finally issued a full, final approval for the Spire STL project. The new “in-service” date has been recalculated to be “late 2019″…
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With all of the negative news stories from mainstream media in Pennsylvania regarding the Mariner East 2 (ME2) Pipeline project, and the seemingly endless challenges by Philadelphia politicians in bed with Big Green groups to try and block the project, here’s a couple of facts to warm your heart, and give antis heartburn: (1) ME2 is now 99% done; (2) ME2 will most likely go online in the next two months–by the end of 3Q18. There will still be a few small areas where ME2 proper is not online in two months–locations near Philadelphia where there have been sinkhole problems. But Sunoco Logistics Partners (aka Energy Transfer), the builder, has a workaround–repurposing an out-of-service pipeline for a few months…
Huntingdon County, PA landowner Ellen Gerhart, adamantly opposed to the Mariner East 2 pipeline being constructed across her land, had her day in court on Friday. Gerhart, as we recently reported, was accused of violating a 2017 court order preventing her from interfering with ME2 construction on her property. It was alleged that she continued to do so anyway, against a judge’s order, and on Friday, July 27 she was arrested and jailed (see 
American Mud Works held a ribbon-cutting ceremony last week to officially open up a new regional headquarters in Monroe County, OH. The company specializes in mixing drilling mud–the stuff used to cool drill bits as they chew away at solid rock some 1-2 miles below the surface. They also recycle used drilling mud and wastewater/brine. The company’s main headquarters is in Texas. They’re locating a branch operation in Monroe to service the Utica and Marcellus industries in our region. In the short-term, the new office, due to be fully operational in about four weeks, will staff up by hiring 30-40 people. However, American Mud has bigger goals in view. They aim to add more service lines and expand their operations down the road. The number of employees will likely go much higher as they expand. Let’s welcome American Mud and another 40 jobs to Appalachia!…
The Pennsylvania Public Utility Commission (PUC) yesterday voted 3-2 to allow construction to resume on the Mariner East 2 and 2x pipelines in West Whiteland Township, Chester County (near Philadelphia), ending a weeks-long stoppage specific only to that area. The shutdown began in May after a PUC administrative law judge’s highly questionable ruling, which affected ME1, ME2 and ME2x (see 
The Federal Energy Regulatory Commission (FERC) continues to play hardball with Energy Transfer over the Rover Pipeline. FERC refuses to allow four Rover laterals–feeder pipelines to shuttle gas from where it’s produced into the main Rover pipeline–to start up (see 
Natural gas produced in the Marcellus region historically has had a hard time fetching prices anywhere close to the benchmark Henry Hub price in southern Louisiana. Why? Because we have so darned much of it! Too much. Not enough ways to get our gas to other markets where it would fetch a higher price. That’s beginning to change. The “differential” (the difference between HH and our prices) is starting to narrow. Marcellus prices are coming much closer to the prices HH gas gets. That’s because of new pipelines coming online to cart our gas to other markets. Our favorite government agency, the U.S. Energy Information Administration, wrote a post yesterday on their Today in Energy website pointing out the decreasing gap in prices between the Marcellus and HH…
The Sierra Club has struck out in its attempt to stop construction of Mountain Valley Pipeline (an EQT Midstream project) in Virginia. Yesterday the U.S. Fourth Circuit Court of Appeals ruled that the VA State Water Control Board did not err in finding MVP would not unreasonably harm streams and wetlands with its construction activities. This is a MAJOR court victory for MVP and begins to clear away some of the doubt cast by other recent court decisions (see 
For years Energy Solutions Consortium (ESC) has been trying to build several natural gas-fired electric plants in West Virginia, but have been prevented from doing so by Big Coal lawsuits. We recently wrote about this issue, naming names (see 
There is a LOT going on at Dominion Energy that impacts the Marcellus/Utica region. Yesterday Dominion posted its second quarter 2018 update and held a conference call with investors to discuss what happened during 2Q18, and what to expect in coming quarters. Discussed on the call: (1) The Cove Point LNG export plant went online in 2Q18 and so far has shipped 19 cargoes of LNG–60 billion cubic feet of gas! (2) The $1.3 billion Greensville County, VA gas-fired electric plant is 95% built and will go online later this year. (3) The Atlantic Coast Pipeline and Supply Header Project is under construction and on track to be online by fourth quarter of 2019. (4) The SCANA Corporation merger is moving along, and a big decision from a judge is coming by Aug. 7 about whether or not SC can unilaterally force SCANA to lower electric rates by 15%. If the judge tosses that law and the 15% price reduction is out, the merger is in. If the price reduction stays, the merger is (our conclusion) questionable. Yeah, there’s a lot going on. Below are excerpts from the quarterly conference call, the full 2Q18 update, and the latest slide deck…
TNT Crane & Rigging, headquartered in Houston, TX, has just purchased itself a major presence in the crane/rigging market in the Marcellus/Utica. TNT announced on Tuesday it is “merging with” (i.e. buying out and merging in) Allison Crane & Rigging, located in Williamsport, PA. When you read these kinds of announcements you’re never quite sure who is buying whom. But it became clear in this announcement. TNT, which is a “portfolio company” of (i.e. majority owned by) First Reserve, a BIG private equity investment firm, owns and operates 700 cranes in 44 different branch offices across North America. Allison operates 30 cranes. That’s how we know who bought whom. Here’s the news that TNT and Allison figure they’re better together…
Trucks do a lot of the heavy lifting when it comes to the shale energy business. Water trucks and trucks hauling other materials and equipment make, we’re guessing, hundreds of thousands of trips per year throughout the Marcellus/Utica region. EQT is the largest natural gas producer in the country, following its purchase of Rice Energy last year. Trucks are a big part of what EQT does. This year alone EQT trucks will drive over 24 million miles! Safety on the roads is a “top priority” for EQT. How to accomplish better safety? Upgrades of equipment are one way EQT is tackling the safety issue. But there’s another intriguing way EQT is getting better at safety–with Big Data. EQT is using researchers from Carnegie Mellon University to gather and analyze a mountain of data from its truck operations, to figure out how to improve safety and save money. It’s working. Speeding, hard braking and other safety violations have fallen 44% since 2017…
We spotted an article covering a “rally” of maybe 20 people (judging by the pictures) who gathered on the bank of the Clear Fork of the Mohican River in Ashland County, OH this past Sunday. The group was there to protest Cabot Oil & Gas drilling a few test wells in the area to see if there’s anything in the region worth drilling for. Out of state radicals calling themselves “pipeline fighters” who had engaged in illegal activities against the Dakota Access Pipeline where there to whip up the locals–maybe convince them to do something illegal too. That’s how this kind of insanity spreads–by human contact. Anywho, the most interesting part of the article for us was not about the machinations of antis and their big boasts of how they’ll stop fracking. Instead, the most interesting part was an explanation of how Cabot came by the acreage they’ve leased in central Ohio, and how much money Cabot is offering landowners to amend existing lease agreements…
Once upon a time, before far-out liberal governors like NY’s Andrew Cuomo weaponized the federal Clean Water Act (CWA), states would use their federally-delegated authority under the CWA (Section 401) to provide feedback and get changes/tweaks to interstate pipelines passing through their respective states. Then Cuomo (now others) started bending the intent of their delegated authority under the CWA and began abusing it to block federal policy by blocking approved pipelines that benefit the citizens of many states. That’s why the Federal Energy Regulatory Commission (FERC) was created–to review and authorize energy projects, like pipelines, that pass through multiple states. If not for FERC, no pipelines (or electric transmission lines) would ever get built across state lines because one state will selfishly block such projects–“What’s in it for us?” Andrew Cuomo has stated publicly that he has and will continue to block interstate pipeline projects and new gas-fired electric plants (see 
Macquarie Infrastructure Corporation, part of Macquarie Bank, is selling 100% of the Bayonne Energy Center (BEC) gas-fired power plant in Bayonne, New Jersey for $900 million to an unnamed buyer. BEC is a 644 megawatt gas-fired electric generation plant constructed in 2012 and expanded earlier this year. BEC distributes power into New York City via a cable that runs from Bayonne, NJ beneath New York Harbor to a substation in Brooklyn. Macquarie bought the plant in 2015 for $720 million, and now they’re flipping it, making $180 million in the process. Which we suppose is good news for Macquarie. But also somewhat strange–at least to us layman. In 2016, Macquarie bought most of the Lordstown Energy Center plant in Trumbull County, OH (see