FERC Tells Antis “No” for Rehearing Potomac Pipe Decision
Anti-fossil fuelers are on a holy mission to stop a 3.37-mile, 8-inch pipeline from being built under the Potomac River by Columbia Gas (see Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous”). The pipeline, from Maryland on one side of the river to West Virginia on the other side, will be built to feed a larger pipeline project from Mountaineer Gas called the Eastern Panhandle Expansion. The Federal Energy Regulatory Commission (FERC) approved the project in July 2018. In August 2018 a group of radicalized anti-fossil fuelers filed a request for a “rehearing” (reconsideration of the decision)–the first step on the way to filing a court case against the project. FERC took its sweet time, but last week the agency finally turned down the antis’ request for a rehearing.
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After we picked ourselves up off the floor from laughing so hard, it dawned on us the far-left radicals at THE Delaware Riverkeeper, Clean Air Council and PennFuture have done both the PennEast Pipeline and Adelphia Gateway pipeline projects a HUGE beneficial service. Those three nutty groups commissioned and have just released a new “study” (copy below) that uses data to show PennEast and Adelphia together, WHEN (not if) they get built, will mean that PA drillers have to drill and connect another 1,913 to 3,061 new shale wells to feed them. Well duuuh! Of course it means that!! And that’s a GREAT thing for all of PA. More economic stimulus. More jobs. More tax revenues flowing to local municipalities. (Do these groups know they’ve just handed us a new argument in favor of these pipelines?)
Everyone, and we mean everyone, is still reeling from the double shock of the COVID-19 coronavirus and its effect on the world economy, and the Saudis and Russians pumping more oil, driving oil prices into the ground. Frankly, the COVID-19 virus is the bigger deal. It will have long-lasting effects for years to come on the U.S. economy, including a big effect on the oil and gas industry. The question is, what kind of effect? Is there any way to predict what may happen in the coming couple of years and longer? No one can really predict, but if anyone could, it would be the bright minds at RBN Energy. They’ve attempted the near-impossible: Try to predict how things will change following the COVID-19 lockdown (around March 6). Try to divine how the oil and gas (and NGL and midstream) worlds will change in the coming months and years. Their assessment is sobering.
Here’s a rum’un (Brit speak meaning “strange” or “odd”) if ever we’ve heard of one. Shell shut down construction activity a week ago at its mighty ethane cracker plant site in Beaver County, PA, sending nearly 8,000 people home (see 
The final bits of Columbia Gas Transmission’s Mountaineer XPress pipeline project (most of it located in West Virginia) went online just over one year ago (see 
We’ve been following the story of whether or not work on the Mariner East 2 pipeline project in Pennsylvania can continue during the current lockdown and order issued by Gov. Tom Wolf to cease all “non-life-sustaining” activity, including construction work on pipelines not yet in service (see 
The confusion over whether or not the Mariner East 2 (ME2) pipeline project has (a) shut down all construction, except certain tidying up aspects at certain locations, or (b) has permission by the state to keep on building, is still not 100% settled. On Monday we told you that ME2 construction was in the process of ceasing under orders issued by Gov. Wolf (see 
The Energy Equipment and Infrastructure Alliance (EEIA), a non-profit representing people and businesses who work in the energy infrastructure supply chain, filed an “amicus curiae” (friend of the court) brief in support of PennEast Pipeline’s request to get the U.S. Supreme Court. PennEast has asked the Supremes to overturn a lower court decision that allows states like New Jersey to usurp federal authority by blocking PennEast, a FERC-approved pipeline.
If there’s a silver lining in this tragic COVID-19 coronavirus crisis, this may be it: Radicals who want to deny everyone the right to use fossil fuels with their unending campaigns of protests and legal actions are pretty much stopped in their tracks. They can no longer make mischief to block pipelines and shale drilling and the use of natural gas by ordinary citizens (via municipal bans). The virus has stopped most court cases, public hearings, and even the right to assemble and protest. Antis are apoplectic and scared that pipeline and drilling projects will get approved and move forward because antis can’t bully public officials and courts into bending to their twisted anti-fossil fuel views.
As we told you last Friday, there was some confusion over whether or not construction of the Mariner East 2 (ME2) pipeline, which is nearing completion, is included under Pennsylvania Gov. Tom Wolf’s “stop work” order to prevent PA residents and workers from further spreading the COVID-19 coronavirus (see 
A worker hired to x-ray welds on sections of the Mariner East 2 pipeline in southwestern Pennsylvania has been charged falsifying records, indicating that he performed the work when he didn’t. That’s a felony. According to one news account the worker, from Westmoreland County, PA, is expected to plead guilty and faces up to five years in prison and a fine up to $250,000. The good news is that Energy Transfer, the builder, discovered the deception and immediately reported it. ET reinspected all of the welds supposedly inspected by this worker.
Yesterday Pennsylvania Gov. Tom Wolf issued an executive edict that all “Non-Life-Sustaining Businesses” will close as of 8 pm last night. Notwithstanding the sleazy attempt by State Sen. Andy Dinniman to shut down construction of the Mariner East 2 (ME2) pipeline project by using the virus as an excuse (see today’s companion story), there appears to be some confusion as to whether or not ME2 construction is subject to Wolf’s edict to stop construction. The Pennsylvania Public Utility Commission (PUC) refuses to tell ME2 to stop building. However, in Wolf’s list of what is “life-sustaining” and what isn’t, all construction, including “Utility Subsection Construction” is in the stop-work category. Is ME2 or isn’t it still actively under construction at this point?
The oil and gas marketplace is often described as being divided into three sectors: upstream, midstream and downstream. Upstream is drilling and producing, midstream is processing and transporting (basically pipelines), and downstream is end-users of all types–converting oil and gas into various products and/or delivering it to end-users. The COVID-19 coronavirus has the power to affect any and all three areas. However, the midstream and downstream (in particular pipeline companies and utility companies) do not expect this insidious virus to affect their operations. Why? It’s called business continuity planning.
Yesterday EQT, the nation’s largest natural gas producing company, issued a press release to update investors and the marketplace on a couple of important issues. First, the company has sliced off another $75 million in previously-planned spending for 2020. The company now plans to spend $1.075 – $1.175 billion on drilling and other expenses this year. Second, the company “has entered into an agreement with a third-party to permanently release firm transportation obligations of approximately 400 MMcf/d, or approximately 15% of EQT’s current portfolio.” Translation: EQT was able to cancel 15% of the contracted pipeline capacity they had, lowering expenses.
Adelphia Gateway is a plan to convert an old/existing 84-mile oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, into a natural gas pipeline–flowing Marcellus gas to southeast PA. Roughly half of the pipeline was previously converted and already flows natgas. In December the Federal Energy Regulatory Commission issued final approval for the project (see