Pipelines

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    New Poll: Majority in NY, MA, CT, NH Support More Pipelines!

    An overwhelming majority of voters in Connecticut, Massachusetts, New Hampshire and New York support energy delivery of transportation fuels and the use of natural gas infrastructure – including the approval and construction of more pipelines in the region, according to a new poll from Consumer Energy Alliance (CEA). The CEA calls itself the “voice of the energy consumer.” CEA provides consumers with sound, unbiased information on U.S. and global energy issues. The scientific poll conducted by CEA of voters in the four states found that energy issues will affect how 86% of them vote in the next election. It also found 58% approve of “expanding pipelines to deliver transportation fuels for consumers and markets.” And you thought voters in New England and New York were all brain-dead leftists. Huh. Turns out the media is covering up the strong support that exists for pipelines and other energy infrastructure. Hello Gov. Cuomo! Are you reading this? Here’s a summary of the poll, along with the detailed poll results…
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    First Reserve Buys EMS’ Pipeline Maintenance Platform

    First Reserve, a private equity firm (i.e. company that invests big money to buy other companies, or pieces of companies), has purchased the “integrity maintenance platform” of EMS USA, Inc. EMS is a company that fixes and maintains pipelines. Some of the work they do is in the Marcellus/Utica, hence our interest in this deal. No price was mentioned in the announcement. So what, exactly, is an integrity maintenance platform? And what does “acquiring it” actually mean?…
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    New Infrastructure Group Makes Gives Shale Industry Helping Hand

    The TriState Infrastructure Council (TSIC) was founded in Pittsburgh in late 2016 to “serve a broad-based business community during the critical next few years by attracting and deploying investments in infrastructure projects in Ohio, Pennsylvania and West Virginia.” With infrastructure upgrades, the region will be able to realize economic growth resulting from petrochemical manufacturing and related industries in the Appalachian basin. One of the driving forces behind TSIC is a name you are likely familiar with: Kathryn Klaber. Katie Klaber founded and until a few years ago led the Marcellus Shale Coalition. She opted to focus on her consulting practice following the MSC and is now managing the TSIC. The TSIC organization was founded with a group of A-list companies located in the region. At this week’s Northeast U.S. Petrochemical Construction conference in Pittsburgh, Katie unveiled an exciting new project to map infrastructure in an 82-county region throughout the Ohio River Valley. The aim is to identify missing/key/critical infrastructure components and then work to set up public-private partnerships to get those components built. The TSIC is looking at “electric transmission and distribution, pipelines, natural gas and natural gas liquid storage capacity, reliable locks and dams, rail networks, roads and bridges, water and sewer, building sites, barge loading/unloading facilities, broadband, fiber optics, and air service, among others.” And yes, the Marcellus/Utica shale is the linchpin that holds it all together–makes it all possible–and the raison d’être for the TSIC. Here’s more on the new infrastructure database, the TSIC, and how they are giving the shale industry a big assist…
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    Lying Letter from Anti Mayors in NJ Seeks to Stop PennEast Pipe

    A total of 31 anti-drilling, leftist (almost all Democrat) mayors, council members and county freeholders (not freeloaders, but freeholders) from a dozen New Jersey townships begged and pleaded with the NJ Department of Environmental Protection to kill the PennEast Pipeline project. The antis sent a letter to DEP Commissioner Robert Martin claiming PennEast will have “unacceptable” impacts in their towns if it gets built. We wonder, will they find it “unacceptable” to have their gas and electric turned off, because of lack of natural gas coming in via pipeline? It is yet another list of, frankly, nobodies who are desperately attempting to grab a headline from a sympathetic anti reporter (which they did, NJ.com), to try and create the impression that masses of people are against the project. Fortunately, it will fail…
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    Rover Pipe Settles with OH Historical Group, Pays Additional $1.5M

    Rover Pipeline (i.e. Energy Transfer) has settled an ongoing dispute with the Ohio State Historic Preservation Office (a PRIVATE organization) to pay them $1.5 million in what MDN views as shakedown money. Which is far less than the “asking” price of $1.5 million PER YEAR over the next five years ($7.5 million total). The payment comes after Rover paid the same organization $2.3 million for knocking down a dilapidated old house that was under consideration to be added to the National Register of Historic Places. In addition to the $2.3 million paid for This Old House, the Ohio State Historic Preservation Office said they had worked out a deal with Rover to pay the organization $1.5 million as compensation for something they haven’t even done yet but presumably will do–disturbing other “historic sites” as the pipeline cuts across the state. Apparently the history buffs felt the agreement was for $1.5 million per year over the next five years. Rover said (in so many words), “in your dreams.” No way. So the matter was referred to the Federal Energy Regulatory Commission (FERC) for dispute resolution. Before FERC could render a decision, the history buffs settled with Rover for a one-time additional payment of $1.5 million (a $1.5M bird in the hand is worth more than a $7.5M bird in the bush). Here’s the background for this shakedown, and a copy of the signed agreement stipulating a one-time payment of $1.5 million to the PRIVATE Ohio State Historic Preservation Office…
    Read More “Rover Pipe Settles with OH Historical Group, Pays Additional $1.5M”

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    Small Group of Antis Vent re Duke Energy Pipeline in Cincinnati

    Duke Energy needs to replace an aging pipeline, built in the 1950s, near Cincinnati, OH–or some people in Cincy will have to go without natural gas. Last Thursday the Ohio Power Siting Board (OPSB) held the first of two public hearings, to grant anti-pipeliners the opportunity to vent (see Hearings Scheduled for Proposed Duke Pipeline in Cincinnati). Duke has proposed a 13-mile, 20-inch pipeline along two potential routes. Both routes are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We call them DOPEs–Dummies Opposing Pipeline Extensions. Will the DOPEs volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built? Not on your life! Last week’s meeting didn’t disappoint. The DOPEs turned out and predicted Armageddon would occur if the pipeline gets built. However, something pretty interesting happened. Only ~100 people turned out to speak against the pipeline. The population of Cincinnati is around 300,000 people. So something like 3/100ths of a percent of the people turned up for the meeting. MDN editor Jim Willis has attended similar pipeline meetings in rural towns of 1,000 people where the auditorium was filled with 250-300 people! Some 100 people turning up to talk down a pipeline in Cincinnati says to us the fight is already over. There IS NO opposition to the pipeline. Not any real, meaningful opposition that will stop it, regardless of what anti publications like the Enquirer say. And then there was the ultimate salt in the DOPE’s wounds: not a single member of the OPSB turned up for their own hearing! They sent a court reporter to record/transcribe what the speakers said. Why should OPSB board members give up an evening to listen to nutters rant and rave?…
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    Analyst: “Nearly Impossible” for Rover to Get Done on Schedule

    Rover Pipeline, Energy Transfer’s $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, will almost certainly not go online in July as originally planned–at least according to an article on The Street evaluating the project and its builder, Energy Transfer. At the heart of the delay is a series of spills that have occurred while drilling underground, horizontally, under rivers and creeks (and other structures) in which drilling mud has spilled. The largest such spill, to date, happened on April 13 when around 2 million gallons of drilling mud spilled close to the Tuscarawas River (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). That spill, plus the others, set off a chain reaction and ongoing fight with the Ohio Environmental Protection Agency (OEPA), who lobbied the Federal Energy Regulatory Commission (FERC) to investigate. Which is now happening (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). The FERC investigation has stalled forward progress in some (not all) areas. According to an analyst from Genscape quoted in the article, Energy Transfer “seems to have an approach where they stick to the minimum requirements instead of exceeding them” when it comes to drilling and laying pipelines. Energy Transfer strongly disagrees that statement. Regardless, the company’s stock has taken a hit and the article (below) raises concerns about the future of the company’s stock for shareholders…
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    Sunoco Seeks Injunction Against Radicalized ME2 Pipe Protesters

    You may recall our story about the daughter of a Huntingdon County, PA landowner, radicalized by Big Green groups (as evidenced by her association with well known protesters previously arrested), who took to a tree on her mom’s property in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline). It ultimately didn’t matter, because Sunoco came back and cut down the few trees they need to cut anyway (see Sunoco Tricks Radicalized Protester – Returns and Cuts More Trees). In December, the up-a-tree girl and her mom (Elise and Ellen Gerhart), with lawyers and backing by Big Green money, launched a final “hail Mary” pass by appealing a case to the PA Commonwealth Court, asking the court to stop the ME2 project by claiming it doesn’t have the right to use eminent domain (see Desperate Antis Try One Last Legal Maneuver to Stop Mariner East 2). Like so many other “hail Mary” desperation passes, this one never found the arms of a receiver. In May, the court turned down the appeal (see Huntingdon Family Lawsuit Against ME2 Pipeline Fails, Game Over). With nothing left to do but break the law in an attempt to block the pipeline from their property, that’s just what the Gerharts have pledged to do. That is, invite in outside help (i.e. paid protesters) to block the path, so Sunoco Logistics Partners can’t build the pipeline across their property. Sunoco has asked a Huntingdon County judge to order the family and the outsiders to step aside, or be thrown in jail…
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    Important New Report on Pipelines & Powergen in Marcellus/Utica

    Here’s a quote that nearly made our eyeballs drop out: “In the PJM queue, there’s roughly 130 planned gas-fired power plants scheduled to enter service through 2021 totaling 76 GW under various stages of development across a large part of the market that includes Pennsylvania, Ohio, West Virginia, Maryland, Virginia, Delaware and New Jersey.” Did you catch that? Some 130 natural gas-fired electric generating plants–most (if not all) of them fed by Marcellus/Utica gas, will go online in the next four years, generating 76 gigawatts of electricity. It is an enormous opportunity for our industry. Where did we read that stat? In a new report published by our friends at Natural Gas Intelligence (NGI). The report is called “Pipelines & Power: How New Infrastructure Could Uncork the Marcellus-Utica Natgas Bottleneck.” The opening article in the report contains the quote above (on page 2). This 20-page report is jam-packed with great information, like that quote. Actionable, useful, important information. Let us tell you a little more about NGI, about the report, and how you can get a copy…
    Read More “Important New Report on Pipelines & Powergen in Marcellus/Utica”

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    New Easement for Shell Ethane Cracker Pipeline Reveals Price Paid

    Bit by bit, piece by piece, Shell is getting landowners in Beaver County, PA to sign easements for its 94-mile Falcon Ethane Pipeline–a pipeline with two “legs” that will feed Shell’s mighty ethane cracker plant. MDN exclusively broke the news in February 2016 that Shell had begun to sign leases with landowners for the pipeline (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). As we later learned, it’s “one” pipeline with “two” legs or branches. There were more easements signed in January (see Shell Leases More PA Properties to Build Ethane Pipeline), and again in May (see Another 7 Easements Signed for Shell’s Falcon Ethane Pipeline). The latest news is that Shell has acquired another 3,183 feet. What’s different this time, however, is that we know how much Shell paid to lease those 3,138 feet. We’ve not seen any mentions of payments in the past (Shell preferring to keep it private). We won’t keep you in suspense, the price paid works out to be $75 per foot…
    Read More “New Easement for Shell Ethane Cracker Pipeline Reveals Price Paid”

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    Dominion New Market Project Still on Track in NY, Antis Fume

    In June 2014, MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York–to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The project is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York–no new pipeline is being laid. The existing Dominion pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. The Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). And then a real miracle happened. The Cuomo-corrupted New York Dept. of Environmental Conservation (DEC) approved the New Market compressor stations on Dec. 23, 2016 (see Miracle! NY DEC Approves Dominion’s New Compressor Stations). Needless to say, anti-fossil fuel freaks are freaked out that the project is now a reality. The lone compressor station that will get an upgrade (not being built from scratch) is located near Ithaca, NY, home of some of the nuttiest of the nutjobs. The antis who run the Town of Dryden (near Ithaca, where the compressor station is located) passed a “public utility moratorium” last summer (which expires this summer) in an attempt to stop the upgrade at the Dominion compressor station. However, Dominion has outsmarted the antis and continues to work on the upgrade, which is making the antis apoplectic, much to our delight…
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    Marcellus Gas Hitches a Ride to Florida Power Plant

    In April MDN provided an update on the Sabal Trail Transmission pipeline project (see Marcellus/Utica Gas Soon Heading to Florida Penninsula via Sabal Trail). Spectra Energy (and partners NextEra Energy and Duke Energy) are building Sabal Trail, a $3.2 billion, 515-mile interstate natural gas pipeline in Florida, Georgia and Alabama to deliver Marcellus gas to the southeast. The project has been underway for the past three+ years. Sabal Trail will connect to Williams’ Hillabee Expansion Project, which is a new pipeline spur built off the huge Transco pipeline system (see Williams Building Alabama Pipeline with Marcellus Connection). Williams is reversing a portion of the Transco to bring Marcellus gas south, much of it to feed natgas-fired electric plants. Last week the Federal Energy Regulatory Commission (FERC) authorized a partial startup of the Sabal Trail project and the Hillabee Expansion that will feed it (see Sabal Trail Pipeline Begins Service Connecting M-U Gas to Florida). The new news is that it’s now flowing, and the first gas coming from the new pipeline system is now servicing Florida Power & Light Co.’s Riviera Beach power plant, with other plants getting our yummy Marcellus gas in the next few days…
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    Cincinnati Leaders Smear Duke Energy Ahead of Pipeline Meeting

    Duke Energy needs to replace an aging pipeline, built in the 1950s, near Cincinnati, OH–or some people in Cincy will have to go without natural gas (see Hearings Scheduled for Proposed Duke Pipeline in Cincinnati). Duke has proposed a 13-mile, 20-inch pipeline along two potential routes. Both routes are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We call them DOPEs–Dummies Opposing Pipeline Extensions. Will the DOPErs volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built? Not on your life! Two public hearings have now been scheduled, one for tomorrow (June 15), and the other July 12. Just ahead of tomorrow’s meeting, two Democrat politicians–one from the city, the other from the county–are smearing Duke Energy, accusing the company of using “intimidation tactics” to “push through” the pipeline. Which is, of course, nonsense. What kind of intimidation? Did Duke hire thugs with baseball bats to roam the streets? No. Duke had the audacity to send surveyors out to chart the path of the proposed pipeline. For our hyperventilating politicians (displaying mock outrage), such activity is “alarming” and Duke should immediately “cease and desist”…
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    Atlantic Sunrise Hearing in Bloomsburg Repeat of Previous Hearings

    As we reported yesterday, the first two (of four) public hearings were held on Monday by the Pennsylvania Dept. of Environmental Protection (DEP) to elicit comments on the proposed $3 billion, 198-mile Atlantic Sunrise Pipeline, an expansion of Williams’ Transco Pipeline system (see Atlantic Sunrise Supporters Far Outnumber Antis at PA DEP Hearings). Supporters of the pipeline far outnumbered opponents at both hearings, which has left antis spitting and sputtering: “How did we get outmaneuvered?” The third hearing was held last night, in Bloomsburg, PA (Columbia County). How did it go there? Pretty much a repeat of the meetings on Monday night: supporters far outnumbered opponents of the pipeline. Like the other meetings, a somewhat odd alliance between the local Chamber of Commerce and labor unions provided many of the supporters who attended–to talk about the jobs and enormous positive economic impact of the project…
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    SPACs Overtaking MLPs to Finance New Energy Infrastructure

    Click for larger version

    We’d heard of MLPs–or master limited partnerships–but we’d never heard of SPACs. Until now. According to Motley Fool, “An MLP combines the tax benefits of a limited partnership with the liquidity that publicly traded securities — like stocks and bonds — offer.” You buy a “unit” in an MLP, which you can think of as a stock, but you the unit-buyer get treated (for tax purposes) like you’re a partner in the company–not like a typical stockholder. Which means you would get certain tax breaks not available to stockholders. MLPs have been quite popular, especially in the midstream (pipeline) sector. But according to an article in the New York Times, special purpose acquisition companies, or SPACs, are beginning to fill the “gap” left by the declining use of MLPs. How do SPACs work? We’ll let the NYT explain…
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    XcL Midstream Building New Dry & Wet Gas Gathering Pipes in WV

    It doesn’t happen often, but every now and again we read about driller or (in this case) pipeline company operating in the Marcellus/Utica we had never heard of before. Such is the case today. A new (to us) midstream company, XcL Midstream, has formed and is already building a dry gas gathering pipeline system in West Virginia, with plans to build a wet gas gathering system in WV too. According to its website, XcL “operates in the premier region of the Appalachia basin in Marshall and Wetzel Counties, West Virginia. XcL Midstream’s Appalachia Connector Pipeline is strategically located at the intersection of every major long-haul interstate pipeline system in Southwest Appalachia and provides shippers with market price optionality.” XcL plans to gather and process dry gas, wet gas (i.e. natural gas liquids), and transport water for its customers. XcL has its headquarters in Canonsburg, PA, near Pittsburgh. The reason that the company popped up on our radar is because Platts ran an article announcing that XcL has signed a customer–THQ Appalachia I, an affiliate of Tug Hill–to use 600 million cubic feet per day (Mmcf/d) on the dry gas pipeline, 200 Mmcf/d on the wet gas pipeline system, and to use a forthcoming water pipeline to boot. Here’s the thing: both XcL and THQ/Tug Hill are backed by private equity company Quantum Energy Partners. So apparently this is one of Quantum’s portfolio companies doing business with another of Quantum’s portfolio companies. In essence, one cousin helping out the other cousin. Perhaps we can call them kissin’ cousins?…
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