Fight Continues to Install Last Piece of 200-Mile Pipe in VA Beach
We previously highlighted Virginia Natural Gas’ (VNG) “Southside Connector” project, a 9-mile pipeline from Norfolk, VA to Chesapeake, VA that VNG says will fill a gap between two main supply lines, essential to meet growing natural gas demand in the Chesapeake area. The final 2,000 feet of pipeline needs to be laid, but will run under a river and shipyard located on the bank of the river. The shipyard owner adamantly opposes the pipeline and has launched an all-out campaign to stop it (see The Fight to Install Last 9 Miles of 200-Mile Pipeline in VA Beach). The shipyard owner says there’s welding, torching, grinding–all sorts of work with sparks happening in his yard. He maintains it’s “crazy” to build a high-pressure natural gas pipeline under his operation with so many potential ignition sources should a leak occur. Is he right?
Read More “Fight Continues to Install Last Piece of 200-Mile Pipe in VA Beach”
The Laborers’ International Union of North America (LIUNA) is ramping up to begin training local Virginia residents as construction workers for Dominion Energy’s Atlantic Coast Pipeline (ACP). The initial training will start in Buckingham County. LIUNA’s training includes both classroom and hands-on training. Folks have been pestering LIUNA for months, asking why they have not already begun training. The reason is simple: You don’t begin training until you’re ready to put people into the field to use that training. You don’t train them and then wait for months on end–while they forget what they just learned. LIUNA’s training program launch means that construction on ACP in Virginia is about to ramp up in a big way.
“Come on Jim, quit writing so much about pipelines! Write more about upstream/drilling!” We have had MDN subscribers tell us that (no lie). But here’s the thing: What happens with pipelines *directly* affects what happens with drilling–the willingness of companies to drill more. Case in point: Over the past few weeks two new pipelines have come online: Williams’ Atlantic Sunrise and DTE Energy’s NEXUS. More capacity along Energy Transfer’s recently completed Rover also recently came online. The effect of the three combined has been dramatic. Production volumes have shot up another 1 Bcf (billion cubic feet) in the past month, to over 30 Bcf/d. And get this: While the Appalachian spot price for gas was $1/Mcf (thousand cubic feet) on Oct. 8 ($2 *below* the Henry Hub price), on Oct. 24 the Appalachian price was averaging $3/Mcf! Just 12 cents below Henry. A movement of $2/Mcf! Behold the power of pipelines and why we write about them so much.
EQT Midstream, which is about to be renamed to Equitrans Midstream Corp. in a few weeks, recently issued its third quarter 2018 update (same day that EQT the driller issued its update). As you know, the two are about to split and become two independent companies. As part of the EQT Midstream update, the new midstream company leaders spoke about Mountain Valley Pipeline (MVP), a 303-mile pipeline from West Virginia into southern Virginia. MVP has experienced a lot of setbacks, most of them from a campaign of lawsuits filed by Big Green organizations (like the odious Sierra Club). A new pipeline project related to MVP was mentioned prominently in this week’s quarterly update. The pipeline is called Hammerhead.
On Sept. 10, Energy Transfer’s 24-inch gathering pipeline in Beaver County, PA, called the Revolution Pipeline, caught fire and exploded during testing (see 
A group of 13 landowners in Virginia whose property was force taken by Mountain Valley Pipeline (MVP) using eminent domain is appealing a case they already lost in federal court to the U.S. Supreme Court. The landowners claim MVP has taken private land–their land–to use for private/corporate gain and not (as the law requires) taken for a “public” benefit. Eminent domain allows the taking of private land for public benefit, but not taking private land for private benefit. The issue really revolves around the question of, What is a public benefit? Can a private company use government powers because what they provide benefits the public? The big question is, will the Supreme Court, which gets some 8,000 such appeals each year, make this appeal one of the 80 or so they consider?
Columbia Gas of Massachusetts (NiSource) continues to try and recover (physically and reputationally) from a series of explosions in its local delivery pipelines north of Boston in mid-September (see 
For some time we’ve covered the story of MLPs–master limited partnerships–and how they are being phased out. An MLP is an alternative form of organizing a company (or subsidiary company), different from a corporation. The primary purpose of an MLP is for investors, who buy “units” in the MLP instead of shares of stock, so the investor can pay less in taxes. Trump’s tax cut, while benefiting the little guy (yeah!), disadvantages MLPs (boo!). Which has caused many pipeline companies organized as an MLP to give up that form of structure. Meanwhile, new companies are being formed to buy royalty rights–using the MLP structure! So while pipeline companies are dumping the MLP structure, royalty companies are embracing it.
In early October NEXUS Pipeline, a $2.6 billion, 255-mile interstate pipeline that runs from Ohio into Michigan, received permission from the Federal Energy Regulatory Commission to begin partial operation (see 
Although EQT Midstream’s 303-mile Mountain Valley Pipeline (MVP) project has experienced a number of legal and regulatory setbacks and is currently blocked from constructing pipeline across/under/near any river, stream, or wetland in all of West Virginia and all of Virginia (some 1,100 different locations), believe it or not there are still many places where MVP can and is still installing pipeline (see 
Two weeks ago Enbridge, owner of the Texas Eastern Transmission Company (Tetco) Pipeline, announced it had put part of its Texas Eastern Appalachian Lease (TEAL) natural gas pipeline project in Ohio into service (see 
A near-capacity crowd (over 300 people) filled the Storer Ballroom at Shepherd University in Shepherdstown, WV on Wednesday to hear and talk about the Mountaineer Gas Eastern Panhandle Expansion Project–a project to deliver natural gas to a new industrial facility in Berkeley County, WV, and provide gas to other local businesses and residents in the Tri-State area. The meeting (a public hearing) was hosted by the West Virginia Public Service Commission. It was moved to Shepherdstown from Charleston at the request of fussing Sierra Clubbers.
EPA Chief Andrew Wheeler wasn’t the only speaker at yesterday’s Shale Insight event in Pittsburgh (see EPA Head Andrew Wheeler Addresses Shale Insight re “New EPA”). There were a number of other sessions addressing issues from the technical to the philosophical. A speaker from XTO Energy said the Utica Shale is only just getting started and the potential of the Utica “enormous.” A panel spoke to the critical nature of pipelines and addressed the issue of how we can better “tell our story” to the public with respect to pipelines. And another panel discussed whether and how natural gas development is affecting public health. Here’s a few select reports.
Dominion’s 600-mile Atlantic Coast Pipeline (ACP) from West Virginia to North Carolina has had its share of setbacks. But these days, it appears the project is building momentum and government/regulatory decisions are breaking in ACP’s favor. The project is on track to finish by the end of 2019, so says Dominion. The latest win for ACP came yesterday when the Federal Energy Regulatory Commission (FERC) granted permission for ACP to begin construction pretty much in all locations in West Virginia. The only prohibitions are small areas in National Park Service land and a few locations where there may be Indiana bats.
Aqua America, the nation’s second largest water/wastewater utility company headquartered near Philadelphia, announced it is buying Peoples Gas, the nation’s fifth largest natural gas utility company headquartered in Pittsburgh, for $4.275 billion. This story interests us because the buyer, Aqua America, provides services to Marcellus/Utica shale drillers, and because Peoples Gas is a buyer of Marcellus/Utica gas. The combined company will both serve the shale industry as part of the supply chain, and buy the output of the shale industry as a customer. How cool is that? What made Aqua interested in Peoples? It has to do with old pipes in the ground. And similar natures.