FERC Scales Back Review of Pipe Connecting M-U Gas to Gulf Coast
In September 2018 MDN brought you the exciting news that Enable Midstream Partners had announced a plan to build a new interstate natural gas pipeline project called the Gulf Run Pipeline which will, in part, connect Marcellus/Utica gas supplies to the Gulf Coast for exporting (see New Pipeline Designed to Connect M-U Gas to Gulf Coast LNG Exports). Fast forward to this year and although the project is still alive and kicking, Enable has scaled it back.
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Energy Transfer’s Revolution Pipeline runs through Bulter, Beaver, Allegheny, and Washington counties in southwest PA. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see 
The full U.S. Court of Appeals for the District of Columbia (DC Circuit) heard oral arguments yesterday in a case of major importance to the future of all federally-approved pipeline projects. The case revolves around the Federal Energy Regulatory Commission’s (FERC) use of something called a tolling order in approving Atlantic Sunrise Pipeline (in the PA Marcellus). Big Green groups launched the lawsuit in an effort to strip away FERC’s right to use tolling orders when considering requests to “rehear” decisions to approve pipelines.
Great news! The Mariner East 2 pipeline project along with Shell’s mighty ethane cracker project will once again be able to restart their stopped construction. At least according to our reading of the law. As you may know the Pennsylvania Dept. of Community and Economic Development (DCED) has been “reviewing” waiver requests to allow all work to resume for both ME2 and the cracker project (see 
The first phase (of three) for Sabal Trail, a $3.2 billion, 515-mile interstate natural gas pipeline in Florida, Georgia, and Alabama to deliver Marcellus gas to the southeast, came online in June 2017 (see 
Reuters recently published a story called “Bankruptcy looms over U.S. energy industry, from oil fields to pipelines.” Until now the main focus and chatter has been about shale oil drillers and how they will, or will not, survive the low oil price apocalypse. What we haven’t heard much about (until now) are pipeline companies. As the article points out, midstream companies are not immune to the price crash nor (for some) to bankruptcy.
Disgusting anti-fossil fuel lunatics have hassled the Keystone XL oil pipeline in the Midwest with frivolous lawsuits for years. Last week an Obama-appointed liberal judge serving in Montana, U.S. District Judge Brian Morris, vacated a permit for the Keystone project, once again stopping construction. The permit vacated was issued by the U.S. Army Corps of Engineers and is called a Nationwide Permit 12–the equivalent of a Section 401 permit under the Clean Water Act–allowing projects like pipelines to be built across or under streams, rivers and “wetlands” (swamps). The problem with the judge’s action is that it potentially affects all pipeline projects across the country using an NP12 permit–including the delayed Mountain Valley Pipeline (MVP), a 303-mile Marcellus/Utica gas pipeline from West Virginia to southern Virginia.
Virginia Natural Gas (VNG), a company that serves customers in northeastern Virginia, wants to build new natural gas infrastructure in Prince William and Fauquier counties. VNG is seeking state approval to build 24 miles of new pipeline and two new compressor stations (expanding a third compressor), connecting to the mighty Transco pipeline system to flow Marcellus/Utica gas to the region. The Header Improvement Project, as it’s called, will help service VNG’s 300,000 natural gas customers and is needed to deliver natural gas to two proposed new gas-fired power plants.
The Narragansett Indian Tribe in Rhode Island won’t be smoking the peace pipe any time soon. The Tribe tried to block construction of Tennessee Gas Pipeline’s (TGP) Connecticut Expansion pipeline project as a violation the National Historic Preservation Act by not protecting “ceremonial stone landscapes” supposedly found along the path of the pipeline (see 
Marcellus/Utica propane flows from eastern Ohio and southwestern Pennsylvania all the way to southeastern PA via the Mariner East pipelines (ME1 and ME2). A petrochemical facility operated by Braskem America in Marcus Hook (near Philadelphia) processes some of that propane, turning it into polypropylene–the raw plastic used to make N95 masks, hospital gowns, and sanitary wipes–items in critical demand right now to protect health care workers against the COVID-19 coronavirus. This will bring tears to your eyes as it did ours: Some 40 workers at the Braskem plant voluntarily decided to stay at the plant for 28 days straight–working 12-hour shifts–not leaving once during that time so they could be sure of no COVID contamination while they worked to make polypropylene that in turn would be used to make personal protective equipment for healthcare workers. We salute them one and all!
Although the NYMEX futures price for natural gas zoomed up to $1.92 per thousand cubic feet (Mcf) yesterday, the price for natgas didn’t go up everywhere. As you know, there is no one price for natural gas, although the most quoted price is the Henry Hub benchmark. Yesterday at the Waha trading hub in West Texas (the Permian Basin), the traded price for natgas sunk to a new, historic low: -$7.67/Mcf. It closed the day at -$5.79/Mcf. That is, sellers were paying buyers to take their gas. Why?
Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system designed to carry 342 million cubic feet of natural gas per day to New England states that badly need the gas. On March 3, 2015, the Federal Energy Regulatory Commission (FERC) issued its final approval for the project, allowing the project to go forward. Construction began in 2015 and, following extreme opposition from New York State over a small portion of the project, it finally went online in 2016.
A federal court in Pennsylvania has just verbally slapped down THE Delaware Riverkeeper–both the umbrella Riverkeeper organization and (by name) the person who claims to be THE riverkeeper of the Delaware, Maya van Rossum, for a transparent and pathetic attempt at blocking the Mariner East 2 pipeline project with yet another frivolous lawsuit. In the decision, the judge says the litigation tactics of the Riverkeeper organization “do nothing to protect the environment.” The judge also said to impose liability against ME2 in this case “would offend basic principles of fairness and effect an absurd result” and “violate due process.” Ouch.
Officials from both Delaware County and Chester County (suburbs of Philadelphia) sent a letter to state officials earlier this week asking the state to once again shut down critical work being done on the Mariner East 2 pipeline project. The county officials, at the prompting (control?) of the uber-leftist and radical Clean Air Council, are using the COVID-19 crisis as their excuse to try and shut down work on the project. In their letter, county officials cite unnamed and anecdotal “sources” who claim (lie?) that workers on the pipeline are violating social-distancing rules–at work and off. Ninny nannies tattling. Do you think workers would jeopardize their own health and the health of their families? No, we don’t think so either.