Industrywide Issues

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    Enviro Radicals Target MVP in Va. Following WV Court “Win”

    The lawyers that infest the Sierra Club are still celebrating a temporary court victory last week that essentially stops construction of the Mountain Valley Pipeline (MVP) in West Virginia (see Sierra Club Succeeds in Delaying MVP Project in WV via Court Order). Their strategy was/is to bamboozle a court into stopping construction at stream crossings (hundreds of them) by using a technical loophole that MVP can’t complete required work at four of the crossings within the stated 72 hours, therefore the court needs to reassess the umbrella permit issued for all crossings. So the court is doing that, temporarily suspending work at all 591 streams MVP plans to cross in WV. The Sierra Clubbers think that because they won that temporary court victory in WV, maybe they can get lightening to strike twice, convincing the court to pull the permit in Virginia too…
    Read More “Enviro Radicals Target MVP in Va. Following WV Court “Win””

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    Anti Group Sues WVU to Disclose Details of $83.7B China Deal

    Appalachian Mountain Advocates, a far-left, radical anti-drilling organization that some media outlets refer to as a simple “nonprofit law firm,” has filed a lawsuit against West Virginia University to force the university to hand over privileged and secret communications concerning the deal WV struck with China to invest $83.7 billion in the state, in the shale and petrochemical industries. As you may recall, that deal was announced last November (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). The particulars of the “deal” have never been announced–other than the top line number of $83.7 billion in investments. In fact, the “deal” was called a “memorandum of understanding” (MOU), which we said at the time: “[the deal] signed in China yesterday is a Memorandum Of Understanding (MOU). It’s a handshake–a gentleman’s agreement. And sometimes those agreements disappear. So this is far from a done deal.” In early December, following calls to disclose the deal, WV Gov. Jim Justice said the specifics are confidential (see WV Gov Justice Says China Investment Specifics are “Confidential”). So now, here comes a Big Green group trawling for trash–attempting to use (abuse) anything they can to make trouble for the shale industry. They hope if they can get their hot red hands on emails to and from the Red Chinese, they can fabricate a mountain out of a mole hill…
    Read More “Anti Group Sues WVU to Disclose Details of $83.7B China Deal”

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    DOE Publishes Updated NGL Primer for Marcellus/Utica

    Last December the Trump Dept. of Energy published a 45-page report called, “Natural Gas Liquids Primer: With a Focus on the Appalachian Region” (see DOE Publishes NGL Primer for Marcellus/Utica, Pushes NGL Storage). The DOE used its own data along with data from the U.S. Energy Information Administration (our favorite government agency) to create an up-to-date picture of Appalachian NGL supply, demand, and infrastructure. It’s only been six months, but the DOE is back with an updated edition of the same report. Hey, things are changing fast in this space, and Team Trump is on top of those changes. What’s different between the last report and this one? The new report includes “even larger projections for ethane production from the Marcellus and Utica shale plays than previously estimated.” There’s a new section identifying R&D opportunities related to natural gas and NGLs production, conversion, and storage. Perhaps most eye-opening is this: NGLs production in the M-U region is projected to increase over 700% from 2013 to 2023. Yikes! Here’s the latest and greatest from one of the few functional government agencies in Washington…
    Read More “DOE Publishes Updated NGL Primer for Marcellus/Utica”

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    BP: NatGas is “Destination” Fuel, Not Just Bridge to Renewables

    We have long thought (and written) that to concede the argument that renewable energy–wind and solar–is some sort of nirvana, a magical destination, that renewables are our inevitable energy future–is a mistake. To box ourselves in by buying into the argument that natural gas is a “bridge” to get us lower carbon emissions until renewable heaven arrives is faulty thinking. And now, none other than the CEO of BP is saying the same thing. Not in quite the same words we’ve used, but certainly the same sentiment. BP still bows to the alter of man-made global warming nonsense. But at least they have the guts to say, out loud, that natural gas itself is good enough–the “destination” as a fuel, and not simply a “bridge” to renewables. BP CEO Bob Dudley said that this week on a panel at the World Gas Conference in Washington, D.C. On the same panel, French oil giant Total CEO, Patrick Pouyanne, said, “This idea of natural gas as a transition fuel to renewables is strange.” Yes! Finally some clear thinkers willing to stand up for fossil fuels! We need more people to stand up and shout, “The renewables Emperor has no clothes!”…
    Read More “BP: NatGas is “Destination” Fuel, Not Just Bridge to Renewables”

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    Huge New Marcellus-Fired Power Plant Coming Near Richmond, VA

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    While it’s been in the planning stages since 2016, we’ve only just become aware of an important new (mammoth) Marcellus-fired electric generating plant coming to Charles City County in Virginia. What’s that? Never heard of “Charles City” County? Neither had we. The county is located southeast of Richmond and west of Jamestown. It is bordered on the south by the James River and on the east by the Chickahominy River. The Chickahominy Power Station, as it’s called, will be a 1,650 megawatt state-of-the-art natural gas-fired power plant. The facility is owned and being developed by Balico, and built by Gemma Power Systems. According to a press release announcing Gemma’s involvement with the project, “The project will be powered exclusively by clean natural gas from the Marcellus shale formation.” That’s cool! We’re not exactly sure which pipeline(s) will flow Marcellus gas to the plant, but it’s good to know that our gas will power it. This is a huge plant. It ties as being the largest natgas-fired plant ever, along with the 1,650 MW Apex Power plant being planned for Guernsey County, OH (see Country’s Biggest NatGas Power Plant Breaking Ground in OH Oct-Nov). Here’s more on the coming Chickahominy Power Station near Richmond…
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    PA DEP Notifies Shell of “Technical Deficiencies” with Ethane Pipe

    Shell delivered some good news at last week’s Northeast U.S. Petrochemical conference in Pittsburgh: The Falcon ethane pipeline will get built next year (see Shell Says Falcon Ethane Pipeline to Get Built in 2019). The pipeline won’t actually flow ethane to the Shell cracker in Monaca until 2020 at the earliest, because the cracker plant itself won’t go online until 2020 at the earliest. The 97-mile consists of “two legs,” with about half of the pipeline located in PA, the other half in OH. The Pennsylvania Dept. of Environmental Protection (DEP) conducted three public hearings on the project earlier this year, in preparation for issuing permits. Antis came out in force and behaved badly, as they typically do (see More of the Same at Final DEP Hearing for Shell Ethane Pipeline). No matter. The pipeline will get built. But not without jumping some hurdles first. On June 1, the DEP issued three letters identifying what it calls “serious technical deficiencies” in Shell’s pipeline plan, for townships in three different counties along the pipeline’s PA route. Shell maintains this type of notification is “common” in the permitting process, and is committed to working with the DEP to address any issues of concern…
    Read More “PA DEP Notifies Shell of “Technical Deficiencies” with Ethane Pipe”

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    WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub

    A recent article in the left-leaning Roll Call (official publication for Washington, D.C. swamp dwellers) attempts to paint the Trump Administration as out of step with the people he wants to help in West Virginia. The article says Trump’s strategy to prop up failing coal and nuclear plants is an attempt to boost coal mining jobs in WV, but is running counter to the state’s strategy of embracing the natural gas industry. Perhaps they have a point. However, what’s most interesting about the article is not the ginned up conflict between Trump and WV, but how the article spotlights WV’s two U.S. Senators–Republican Shelley Moore Capito and Democrat Joe Manchin–and their continuing role in trying to make a $10 billion NGL (mostly ethane) storage hub facility become a reality. The storage hub will be a jobs magnet with some estimates that it will create more than 100,000 new jobs in the state. The storage hub will also draw manufacturers looking to locate near ethane crackers, as a source for plastics used in their manufacturing process. Capito, in her comments, attempts to gloss over the rivalry between coal and natural gas, saying “all those rivalries have gone by the wayside.” Er, a, we beg to differ. But leaving aside the coal v. natgas focus of the article, we found two very interesting items. (1) The Dept. of Energy loan guarantee that would cover $1.9 billion of the estimated $10 billion cost to build it is a much bigger deal that we had realized. Why? Because any project that wins such a guarantee has gone through a rigorous review process. Winning such a guarantee is like conferring a triple A rating on the project for others who will consider investing in the project. It gives them confidence that the project has been thoroughly vetted and is low risk. (2) Manchin, in speaking with DOE Sec. Rick Perry, is using an interesting and novel argument to convince Perry the storage hub is a good thing to do. Manchin said when hurricanes hit the Gulf Coast, it knocks out petrochemical industry there, with a cascading effect across the U.S. Cracker plants (fed by the storage hub) in the northeast, are not susceptible to hurricanes. So Manchin’s pitch to Perry is this: Keep the Gulf Coast crackers cooking for products to export to other countries, but let’s build the storage hub (and crackers) in the northeast, so our country’s petchem industry isn’t adversely affected by a major hurricane…
    Read More “WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub”

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    Indiana Utility Files Request to Build New Gas-Fired Electric Plant

    Many (most?) electric generating companies in the U.S. are regulated–highly regulated. They’re guaranteed a certain, predictable level of (low) profits. But in return for guaranteed profitability, every single thing they do is monitored and authorized in triplicate, with one or another government agency reviewing anything and everything that happens. It’s the deal they’ve struck with the regulatory devil. Vectren is one such regulated utility in the great state of Indiana. Vectren operates the F. B. Culley Generating Station, a 369 megawatt (MW) coal power plant located in Warrick County, Indiana. They plan to close the coal-fired plant in 2023. In its place, they want to build a 900 MW natgas-fired plant and a 50-acre solar farm. Building the gas plant and solar farm would cost Vectren (meaning ratepayers) $940 million. The cost is passed on to ratepayers because Vectren is regulated. That’s the way it works. The bargain struck with the devil. The gas-fired plant will be cleaner than coal, more efficient, cheaper to operate, and better for the environment. We suspect Utica/Marcellus gas would help feed the plant. And yet, anti-fossil fuel wackos oppose the plan to switch to cleaner-burning natgas. Would they prefer no electricity?…
    Read More “Indiana Utility Files Request to Build New Gas-Fired Electric Plant”

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    SRBC Elects New Officers, NY Becomes Chair on July 1

    Perhaps the proposed legislation by PA Rep. Dan Moul (Republican from Gettysburg) to gut not only the DRBC (Delaware River Basin Commission) of its power to regulate groundwater, but also to gut the SRBC (Susquehanna River Basin Commission), is not so far off the mark after all (see PA House Bill to Neuter SRBC, DRBC Makes It to First Base). We always viewed the SRBC as a good steward of water resources within the river basin it governs, preferring to “stay in its lane” and not presume to regulate shale drilling the way the DRBC has (see SRBC Tells Anti-Drillers “We’ll Stay in Our Lane” on Water Study). Apparently each year (or two or three, we’re not sure) the SRBC rotates the positions of Chair and Vice Chair among its four members (US Army Corps of Engineers, New York, Pennsylvania, Maryland). Currently the Chair belongs to the Army Corps, but on July 1st it will change to NY. The problem is that NY’s rep on the Commission is Basil Seggos, NY Dept. of Environmental Conservation (DEC) Commissioner and an appointee by Andrew Cuomo. Seggos is a hardened, very politically left anti-fossil fueler–a puppet and tool of Cuomo. Will this change in leadership at the SRBC have an impact on how the organization operates?…
    Read More “SRBC Elects New Officers, NY Becomes Chair on July 1”

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    First Pipeline “Casualty” of Trump Tax Cut Dissolves MLP Jun 29

    In March, MDN brought you the news that the Federal Energy Regulatory Commission (FERC) had taken “significant action” to address the Trump tax cut legislation enacted last December (see FERC Takes Aim at Adjusting Pipe Rates in Light of Trump Tax Cut). FERC wants to be sure the tax cuts coming to electric companies and pipeline companies are passed on to consumers and pipeline shippers. The agency proposed new solutions to eliminate “tax loopholes” for natural gas pipelines. Closing these so-called loopholes will eliminate certain tax benefits for MLPs–master limited partnerships. Many pipeline companies (most) are organized as MLPs, which allows tax advantages to flow to investors. With certain tax benefits for MLP unitholders on the chopping block, all of a sudden some MLPs don’t look like such a hot investment anymore, at least on paper. Some analysts have speculated this may be the beginning of the end for MLPs. A few years ago Kinder Morgan got rid of all it’s MLP subsidiaries, combining them all into a single “C” corporation. In March, Tallgrass Energy, builder/operator of the mighty Rockies Express (REX) pipeline which flows Marcellus/Utica gas, announced it would do the same (see Tallgrass Energy Eliminating MLP – First “Casualty” of Tax Cut?). Yesterday Tallgrass MLP unitholders voted “overwhelmingly” to dissolve the MLP and merge it in with the corporation, which will happen later this week…
    Read More “First Pipeline “Casualty” of Trump Tax Cut Dissolves MLP Jun 29″

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    Constitution Pipe Asks FERC for Speedy Rehearing, 2020 Deadline

    Seems like a week doesn’t go by that MDN isn’t asked (by someone from Pennsylvania), “Is there any hope of building the Constitution Pipeline through New York?” Our standard response is this: The only way it gets built is (a) NY elects a new governor favorable to the industry–about a 1% chance of that happening, (b) President Trump issues an Executive Order overriding Cuomo’s blockade of Constitution (and other pipeline projects)–maybe a 10% chance of that happening, or (c) the Federal Energy Regulatory Commission (FERC) reconsiders a decision to not overrule NY’s move to block the project–maybe a 15% chance. The U.S. Supreme Court in April refused to consider the Constitution Pipeline case, closing that door (see Supreme Court Rejects Constitution Pipe Request to Overrule NY). In January of this year, FERC turned down Constitution’s request to overrule NY (see Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC). But then Constitution (i.e. Williams) asked FERC to reconsider their ruling, to “rehear” the case as it’s called, in Feburary (see Constitution Pipe Files for FERC Rehearing, Then Back to Court). In March, FERC gave themselves a little more time to think about rehearing the decision, but since that time, the agency has been silent. Yesterday Williams/Constitution filed a request with FERC asking them to urgently, speedily, quick-like-a-bunny, pretty-please with a cherry on top hurry up and reconsider/rehear their earlier decision, this time hopefully overruling NY. Could it happen? Sure, it could. Will it? Doubtful, but hey, hope springs eternal! Williams/Constitution also filed an official request yesterday with FERC to extend the deadline to build the Constitution project–from this year to 2020. If FERC grants the extension, then maybe there is a glimmer of hope that FERC will change its mind, or that FERC somehow sees a way that Constitution can still get built…
    Read More “Constitution Pipe Asks FERC for Speedy Rehearing, 2020 Deadline”

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    Ohio Approves $900M Harrison County Power Plant in Cadiz, OH

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    In September 2016, MDN reported that EmberClear planned to fund and build a new $900 million, 1,000-megawatt electric generating plant in Harrison County, OH (see $900M Utica Gas-Fired Electric Plant Coming to Harrison County, OH). The new plant will be fed by Utica Shale gas. EmberClear was, until July 2016, a Canadian-based company. But it went bankrupt and after emerging from bankruptcy it changed its name to Ember Partners, now based in Houston, TX. Since 2016 we haven’t heard anything about the project. But things were/are happening. Last week the Ohio Power Siting Board (OPSB) authorized construction of the 1,050 megawatt (MW) natural gas-fired, combined-cycle electric generation facility in Cadiz–called the Harrison Power Plant. Which is good news indeed. The plant will generate 500 temporary construction jobs and 30 permanent jobs and use a huge amount of natural gas to power it (good for Utica drillers!). Construction on the plant is due to begin in October of this year and the plant will be done and online in June 2021. Here’s the details…
    Read More “Ohio Approves $900M Harrison County Power Plant in Cadiz, OH”

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    FERC Issues Favorable Enviro Assessment for Rhode Island LNG Plant

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    In 2016 MDN told you about a plan by utility company National Grid to build a teeny tiny LNG liquefaction plant in Providence, Rhode Island (see Rhode Island Commies Oppose “Fracked Gas” LNG Plant). The Fields Point LNG plant, facing stiff opposition from a small group of RI House and Senate members (who said they hate fossil fuels), would cost $180 million and liquefy 20 million cubic feet (MMcf) of natural gas per day and store it. All of the opposers–socialist Democrats–called on FERC to reject the project. Nearly two years later, FERC just issued a favorable environmental assessment (EA) for the project. No, it’s not a final approval–but it’s the one key step prior to a positive final approval. FERC will almost certainly now approve the project, much to the consternation of the fossil fuel haters…
    Read More “FERC Issues Favorable Enviro Assessment for Rhode Island LNG Plant”

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    EIA Report Shows Low Demand for NGLs in Marcellus/Utica Region

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    We spotted a blog post from our favorite government agency, the U.S. Energy Information Administration, that made us sit up and take notice. The EIA wrote about the consumption rates of what they call hydrocarbon gas liquids (HGLs). We call it natural gas liquids (NGLs). We typically define NGLs–the “other” hydrocarbons that come out of the hole along with oil and gas–as compounds like ethane, butane, propane, isobutane and pentane. All the “-anes.” EIA goes one step further and includes the “-enes”–ethylene, propylene, butylene and isobutylene. The EIA post talks about what these compounds are used for. The thing that caught our attention was the chart showing “Top ten hydrocarbon gas liquids-consuming states, 2016.” The chart lists which states “consume” or use the most NGLs (HGLs). Put another way, the chart shows where the best markets are for selling NGLs. And frankly, it ain’t around here! Only one M-U state, Pennsylvania, even appears in the list of top 10 states. Both Iowa and Illinois use more NGLs than PA! Why is that? Simple answer: Both of those states, along with Texas, Louisiana, and Kentucky are the only states in the country that possess functioning ethane cracker plants. Cracker plants sop up a LOT of ethane, a lot of NGLs, and it shows in the numbers. PA will no doubt make its up the top 10 list when the Shell cracker goes online. Ohio, should PTT build a cracker there, will begin to appear in the list. And WV, if LyondellBasell buys Braskem and builds a cracker near Parkersburg, will also begin to appear in the list. Until that time, the brutal fact is that there just isn’t much of a market in our region for the abundant volume of NGLs we produce–meaning drillers must export NGLs out of our region, or those NGLs become an expense, costing money to get rid of…
    Read More “EIA Report Shows Low Demand for NGLs in Marcellus/Utica Region”

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    EQT CEO Didn’t Show Up for Annual Mtg – CFO Talks of Wild Ride

    Last Thursday EQT held its annual shareholder’s meeting. By all accounts it was a sleepy affair with few people attending–inside at least. Even the current interim CEO, David Porges, didn’t bother to show up, sending along CFO Rob McNally to be the official face of the company. McNally spoke about the past few years as hectic, going from “one transaction to the next.” McNally said “there’s a light at the end of the tunnel” for things to now settle down–once the company splits in two later this year (into upstream and midstream). However, a handful of Mountain Valley Pipeline (MVP) protesters showed up to mouth off–marching outside EQT HQ where the annual meeting was held. McNally said, in so many words, protests of MVP are no big deal. The company thought there would be protesters, and they even planned for illegal protests in the construction timeline (people chaining themselves to bulldozers, etc.). Just one more day in the life of a fossil fuel company that deals with nutters all the time…
    Read More “EQT CEO Didn’t Show Up for Annual Mtg – CFO Talks of Wild Ride”

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    Sierra Club Succeeds in Delaying MVP Project in WV via Court Order

    The insidious and well-funded Sierra Club has scored another temporary legal victory in stopping Mountain Valley Pipeline (MVP) construction throughout West Virginia. One month ago we reported that the Clubbers had claimed a temporary victory in stopping construction work of MVP at four river crossings in WV. At that time (in May), the Clubbers and a mishmash of other radicalized groups filed a motion asking the Fourth District U.S. Circuit Court of Appeals to suspend a permit issued by the U.S. Army Corps of Engineers that allows MVP to construct the pipeline across streams and rivers in the Mountain State (see Army Corps Engineers Suspends MVP Permit for River Crossings). The Clubbers’ tortured logic was this: When constructing the pipeline across a river, the stated government standard is that construction can take no longer than 72 hours. MVP says it will need longer when constructing the pipeline across four rivers–Elk, Gauley, Greenbrier and Meadow. Therefore (say the Clubbers), MVP is in violation of the general permit issued by the Corps and that means ALL (not just those four rivers) construction should be stopped, immediately. The Corps said they had reviewed the standards and have (for now) rescinded the permit as it applies ONLY to those four rivers, NOT to any other locations. However, the Fourth District Court ruled late last week that construction at all 591 stream crossings the pipeline traverses must now be immediately stopped until the court farts around and considers the full lawsuit brought by the radicalized Clubbers. Enough of this nonsense!…
    Read More “Sierra Club Succeeds in Delaying MVP Project in WV via Court Order”