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It’s War: EQT Claims it Can Buy Hammerhead Pipe Due to MVP Delay
What started out as a spat between two companies that used to be one and the same, EQT and Equitrans, has quickly turned into open warfare that’s heading for court. We’re talking about the flap over whether or not EQT has the right to buy out Equitrans’ Hammerhead pipeline, and turn around and sell it, as EQT is now trying to do (see EQT & Equitrans Spat Over Hammerhead Pipeline Goes Public).
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The Federal Energy Regulatory Commission (FERC) is making official what has, until now, been unofficial (but enforceable via court orders)–state environmental agencies have exactly one year to dither around and then either grant or reject issuing a Section 401 permit for pipelines (and other projects) to cross rivers and streams and wetlands. Last week FERC issued a Notice Of Proposed Rulemaking (NOPR) to make the one-year time limit (a part of law under the Federal Clean Water Act) an official part of FERC regulations too.
Liquefied natural gas (LNG) exports from the U.S. came from literally zero in early 2016 to a total theoretical capacity today of 8.9 billion cubic feet per day (Bcf/d). The first three months of this year saw U.S. LNG exports average 7.9 Bcf/d–almost full capacity! Since then, our LNG exports have gone over a metaphorical cliff. In June, U.S. LNG exports averaged 3.6 Bcf/d. The turning point came in April.
Emboldened by Dominion Energy’s decision to abandon its 600-mile Atlantic Coast Pipeline (ACP) from West Virginia to North Carolina, anti-fossil fuel zealots are trying to force Equitrans Midstream to abandon its 303-mile Mountain Valley Pipeline (MVP) from West Virginia to Virginia. But there’s a big difference between the two: While ACP had less than 50 miles built, MVP is now 92% done and in the ground, with just a little bit left to go. Even so, it’s not stopping a small group of antis, including the well-funded Sierra Club, from attempting to kill MVP.
There’s trouble brewing in EQT-land. Once upon a time, EQT was both a producer (drilling) and midstream (pipeline) company. But then so-called activist investors forced the company (after its merger with Rice Energy) to split in two–drilling and pipelines. The split happened in November 2018 (see 
S&P Global Platts published analysis last Friday looking at supply and demand for natural gas in the Midwestern region of the country. Platts says supplies to the region from places like the Bakken, Midcontinent (SCOOP/STACK), and Rockies will decrease this winter–by a lot. But then, demand in the region will decrease too, given the slumping economy because of the coronavirus pandemic. However, it looks to us like maybe there’s an opportunity for Marcellus/Utica gas, which travels to the Midwest via several pipelines, to make up the difference between supply and demand. The region will still need more gas than supplies available.
Last week MDN told you that Enbridge had begun testing its Weymouth, Massachusetts compressor station project, the final piece of the company’s $452 million Atlantic Bridge expansion project (see 
Sounding downright nasty and mean, the Pennsylvania Dept. of Environmental Protection (DEP) Secretary Pat McDonnell has ordered Sunoco Logistics Partners (Energy Transfer) to reroute part of the Mariner East 2X pipeline around Marsh Creek Lake State Park, following a spill of nontoxic drilling mud that ended up in Marsh Creek Lake in Chester County. McDonnell uses combative and incendiary words like Sunoco “blatantly disregarded the citizens” of Chester County, has been “careless” and is guilty of “unlawful actions.” In a rather uppity tone, McDonnell says he will “not stand for more of the same” and he is “demanding a proper cleanup” of the site. Sunoco has been working diligently to clean up the spill since it happened.
Pin Oak Midstream, a subsidiary of Pin Oak Energy Partners, a relatively young Marcellus/Utica driller based in Akron, OH, has purchased most of the pipeline assets of Laurel Mountain Midstream for an undisclosed amount. The assets include 1,050 miles of natural gas-gathering pipelines and five compressor stations located in three Pennsylvania counties.
In Lansing, NY, just outside of Planet Ithaca in Tompkins County, the local utility company, NYSEG, wanted to build a short pipeline in 2017 to supply new customers with natural gas, but was blocked by crazies who irrationally hate fossil fuels (see 
Enbridge’s Weymouth compressor station project, the final piece of the $452 million Atlantic Bridge expansion project, has begun testing in preparation to go online. As part of the testing, the station will, on occasion, release a small amount of (gasp!) natural gas into the air. Run for the hills! Get out while you can!
Anti-fossil fuel zealots like the nutty Sierra Club have successfully delayed completion of Equitrans Midstream’s 303-mile Mountain Valley Pipeline from West Virginia to southern Virginia with lawsuits. The project is now 92% done and in the ground. The zealots successfully convinced Democrat federal judges to overturn key permits issued by several government agencies. One of those overturned permits, issued by the U.S. Fish and Wildlife Service (FWS) for endangered species, has just been reissued. Score a victory for the good guys.
In late 2018 a fringe environmental group called the Coalition to Reroute NEXUS (CORN), along with the City of Oberlin, Ohio, filed yet another lawsuit (with the D.C. Court of Appeals) to nullify the Federal Energy Regulatory Commission’s (FERC) original decision to approve the NEXUS Pipeline project that runs through Ohio (see 
It’s not unusual for companies in the business of delivering methane molecules to customers (the local gas utility company) to invest in the long-haul gas pipelines that deliver gas into their system. Consolidated Edison (ConEd), which serves much of New York City and its suburbs with natural gas, is one such company.