Pipelines

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    FERC Commissioner Resigns Threatening Major M-U Pipeline Projects

    FERC Chairman Norman Bay

    Last Thursday, Norman Bay, one of three Federal Energy Regulatory (FERC) Commissioners, announced he would resign effective Feb. 3–this Friday. His unexpected resignation directly threatens a number of critical pipeline projects in the Marcellus/Utica. It appears to us to be a revenge resignation–an attempt to screw the Trump Administration. Bay is a Democrat. In fact, all three sitting FERC Commissioners are Democrats. FERC is supposed to have five Commissioners–but there have been two empty slots since last September when Republican Tony Clark left. Last week President Donald Trump announced he would elevate sitting Commissioner Cheryl LaFleur to become Chairman of the Commission, replacing Bay in that role. It should be noted LaFleur has been on the Commission since 2010 and has been, at various times, Acting Chairman and full Chairman. In fact, Norm Bay was elevated by Obama to become Chairman, replacing LaFleur in that role. Did LaFluer leave in a huff? No. She stayed to do the important work of the Commission. Now that the roles are reversed, Bay seems to be bent on revenge against Trump–placing important pipeline projects in danger of not getting timely approvals. It takes three members to have a quorum, to approve projects. Some (including THE Delaware Riverkeeper) are pushing for a block on new appointments to FERC–meaning FERC’s work stops cold. Three critically urgent M-U projects have asked FERC to approve their projects THIS WEEK, before Bay leaves: NEXUS (Spectra Energy), Leach XPress (Columbia Pipeline/TransCanada), and Atlantic Sunrise (Williams)…
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    What Would it Look Like if Fracked Gas Stopped Flowing to NY?

    If we had a nickle for every time we’ve heard, read or written the sentiment, “If antis don’t want to extract ‘fracked gas’ anymore, why don’t they show us how it’s done”–we’d be rich! The point: without oil and gas, our modern way of life would cease. Stop. Kaput. No more. We are totally dependent on fossil fuels for our existence. Since New York Gov. Cuomo doesn’t seem to want nasty “fracked gas” coming into his state from Pennsylvania (witness his block of the Constitution Pipeline), perhaps PA and all other states sending natural gas to NY should shut the spigots off for a while. It’s fun to muse, what would happen if?… Well, we don’t have to wonder what would happen. We have a great example. In Central New York in January 1977 residents of Syracuse faced a blizzard and a shortage of natural gas. It got so bad factories, schools and other entities that use natural gas had to shut down. Here’s how it looked forty years ago in Syracuse…
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    Williams CEO Says M-U Production Will Grow 65% in 5 Yrs

    Hart Energy’s Marcellus-Utica Midstream Conference and Exhibition was held this week in Pittsburgh. Although MDN could not be there in person, there are plenty of reports about what was said. Perhaps the most interesting we’ve read are comments by keynoter Alan Armstrong, CEO of Williams. Among the startling remarks Armstrong made: He expects natural gas production in the Marcellus/Utica to grow by 65% over the next five years–from 23 to 38 billion cubic feet per day (Bcf/d). Yikes! He also said there are currently 60 rigs operating in the M-U, which is “not nearly enough.” In order to meet growing demand, Armstrong says some 100 rigs are needed. Double yikes! Here’s some more pickings from what was said at the conference…
    Read More “Williams CEO Says M-U Production Will Grow 65% in 5 Yrs”

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    Hope: Atlantic Coast Pipe on Trump List of High Priority Projects

    Can you smell it? We sure can. It’s called hope. Not even a full week in the new Trump Administration, hope can be found everywhere. Liberal Democrats still aren’t sure what hit them. Let us help. It’s competence. It’s someone who gives a damn about the average American. It’s someone who believes the country, as it was founded, is the best country in the world. Donald J. Trump. He’s blown into Washington, DC like a hurricane and things are changing so fast most of us can’t keep up. Case in point: On Tuesday, Trump’s second full day on the job (last Friday and the weekend don’t count), Trump signed an Executive Order “Expediting Environmental Reviews and Approvals For High Priority Infrastructure Projects.” What are ‘high priority infrastructure projects’? A document has leaked, originally compiled by Trump’s transition team, of 50 ‘Emergency & National Security Projects’ that are infrastructure projects–projects the Trump Administration believes should be worked on immediately. Project #20 in the list is Dominion’s Atlantic Coast Pipeline (ACP), a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Number 20! How cool is that? No, this doesn’t mean Trump can simply order it approved like some sovereign or tinpot dictator. Our rules and laws must be followed. What it does mean is that the Federal Energy Regulatory Commission (FERC) will now receive enormous pressure to quit dragging its feet and to “fast track” the review for ACP. It means hope on now on the horizon…
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    Union Thinks Trump Will be Good for Constitution Pipeline

    Labor unions, typically big Democrat supporters, are increasingly in love with Donald J. Trump. Why? Because Trump (unlike Barack Obama) is actually pushing ahead with major infrastructure project improvements. He has a list of 50 such high-priority projects (see Hope: Atlantic Coast Pipe on Trump List of High Priority Projects). As we previously reported, Trump signed executive orders earlier this week to restart the momentum on two important pipeline projects: Keystone XL and Dakota Access Pipeline (see Trump Signs Executives Orders to Restart DAPL, Keystone XL Pipes). Unions love it because projects like those two pipelines use union workers. Which has union workers in our neighborhood excited. Laborers’ Local 157 in Schenectady, NY believes Trump’s emphasis on pipeline projects will (hopefully) bleed over to the stalled Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. Not to douse their enthusiasm for Trump and the Constitution project, but the issue is in court and Trump won’t, according to a Constitution spokesman, be able to magically clear a way for the project to get started…
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    Middletown PA Decides to Blow $45K (not $100K) on Mariner 2 Study

    Rabidly anti-drilling organizations like the Philadelphia-based Clean Air Council (CAC) have been using the deep pockets of their contributors to stir up dissent against Sunoco’s Mariner East 2 NGL pipeline, particularly in towns in the Philly orbit (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?). CAC has towns like Middletown (Delaware County) so agitated, Middletown’s town council foolishly voted to allocate $100,000 out of $1.8 million the town received for leasing rights-of-way for the pipeline to assess risks and create an emergency response plan for the pipeline (see Mariner East 2 Tells PA Town: You’re Flushing $100K Down Toilet). Sunoco politely told Middletown they’re flushing 100 grand down the toilet. Federal guidelines already provide most if not all of the information (and planning) required to protect the good citizens of Middletown. So instead of blowing $100K, the town council voted this week to blow $44,500 instead…
    Read More “Middletown PA Decides to Blow $45K (not $100K) on Mariner 2 Study”

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    FERC Approves Atlantic Bridge Project for New England/Canada

    Although antis have tried to block major pipeline upgrades in the northeast/New England region, Spectra Energy continues to have success with building and completing its projects. Recently Spectra’s Algonquin Incremental Market (AIM) project, which built ~37 miles of new pipeline and half a dozen new compressor stations along the Alogonquin Gas Transmission pipeline, went into service (see New England Gets Small Increase in NatGas Pipeline Capacity). AIM is now delivering an extra 342 million cubic feet per day (MMcf/d) of Marcellus/Utica natural gas to New England. AIM is part of a larger plan from Spectra called the Access Northeast project to combine several pipeline systems to send gas into New England and all the way to Nova Scotia, Canada. Access Northeast has been frustrated by regulators in New England (see Spectra Energy Puts Access Northeast Pipe to New England on Hold). However, another important piece of the larger puzzle has now fallen into place. The Federal Energy Regulatory Commission (FERC) has just approved another piece of Access Northeast, called Atlantic Bridge. FERC previously granted the project a favorable Environmental Assessment last May (see Critical Project for Canadian LNG Exports Gets Favorable FERC Review). With certificates in hand, Spectra Energy can now start the bulldozers and begin construction. What does Atlantic Bridge entail? It beefs up capacity along the Algonquin and Spectra’s Maritimes & Northeast pipeline to carry more Marcellus/Utica gas into New England and now all the way to Nova Scotia…
    Read More “FERC Approves Atlantic Bridge Project for New England/Canada”

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    FERC Delay Pushes Back NFG’s Northern Access Pipeline Project

    National Fuel Gas Company (NFG), the Buffalo-based utility giant with both a drilling subsidiary (Seneca Resources) and a midstream/pipeline subsidiary (Empire Pipeline) filed an application with the Federal Energy Regulatory Commission (FERC) in March 2015 for a pipeline project they call Northern Access 2016 (later renamed to simply Northern Access Project, dropping the “2016” part). The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton (see NFG’s Marcellus Pipeline from NWPA to NY Hits Resistence). In July 2016, FERC issued a favorable Environmental Assessment, paving the path for full approval (see NFG’s Northern Access Pipeline Gets Favorable FERC Review). NFG had hoped to have the project done and in-service by November of this year. However, due to foot-dragging by FERC, NFG has just announced a revision. They now say the project can’t get completed until “the second quarter of the Company’s 2018 fiscal year.” NFG doesn’t operate on a calendar year for reporting, they’re a quarter ahead. So the Company’s 2Q18 means 1Q18 for everyone else. Translation: NFG hopes to have it built and in-service by March 2018. In addition to the “bad news” of the delay, NFG sprinkled in some good news about production in 4Q16: due to an increase in Marcellus production, NFG’s calendar 4Q16 production (for subsidiary Seneca Resources) was up 16% over the same period in 2015…
    Read More “FERC Delay Pushes Back NFG’s Northern Access Pipeline Project”

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    New Poll: 62% of Virginians Support Mountain Valley Pipeline

    The Mountain Valley Pipeline (MVP) is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission in October 2015, is being built by EQT, NextEra Energy and several other partners including WGL (see today’s companion story). The project has faced stiff opposition from landowners in West Virginia (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). The project has also faced opposition from landowners in Virginia (see Mountain Valley Pipeline Wins Right to Survey in VA w/o Permission). Fortunately the Federal Energy Regulatory Commission (FERC) is signaling its favor for the project (see FERC Gives WV to VA Mountain Valley Pipeline Provisional Thumbs Up). However, that doesn’t stop rabidly radical organizations like the Sierra Club from spreading lies (see Sierra Club Attacks Mountain Valley Pipeline with Sham Report). Mason-Dixon Polling & Research conducted a public opinion poll of Virginians, to see what residents think of the project. The results are in. The question asked was this: “The proposed Mountain Valley Pipeline would transport natural gas underground from West Virginia to Virginia to help meet the demand for energy in homes and businesses in various regions of Virginia and the southeastern United States. Do you support or oppose construction and operation of the Mountain Valley Pipeline?” The response? Some 62% of Virginians support the pipeline, while only 26% oppose it (and 12% are clueless)…
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    Columbia Pipeline Launches Open Season for New M-U Project

    Last week the Federal Energy Regulatory Commission (FERC) approved Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects (see FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects). The two projects together will flow an additional 1.5 billion cubic feet (Bcf) of Marcellus/Utica gas to the Gulf Coast. With those two successes in hand, Columbia Pipeline Group (now owned by TransCanada) is floating another project, called Buckeye XPress. As you can guess from the name, this new project will beef up service along the Columbia Gas Transmission pipeline from Ohio (and PA and WV) to send even more Marcellus/Utica gas to the Gulf via the interconnection at Leach, Kentucky. Columbia launched a non-binding open season to gauge interest in the project, which will use looping and beefed up compressor stations to increase capacity another 700 million cubic feet (MMcf) per day along the existing pipeline Columbia pipeline system, which is abbreviated TCO…
    Read More “Columbia Pipeline Launches Open Season for New M-U Project”

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    Speculation: Transco Sending M-U Gas to Louisiana LNG Terminal

    Over a year ago the mighty Transco turned bidirectional, sometimes sending gas northward from the Gulf (as it’s done for 50 years), and now, sometimes sending gas from the Marcellus/Utica southward, to the Gulf. Much more gas will head south once the Atlantic Sunrise Pipeline project gets built (see FERC Approves Atlantic Sunrise Pipeline! Cabot Grabs More Capacity). However, from various stories we’ve read, and from our speculation, we’ve assumed that at least some Marcellus/Utica gas now flows far enough south that perhaps some of it reaches the Cheniere Energy LNG export facility in Sabine Pass, Louisiana (see LNG Slowly Changing the NatGas Game in the Marcellus/Utica). Until now, the gas traveling from north to south has only made it as far as the Creole Trail pipeline and from there Creole Trail would conduct the gas to Cheniere’s LNG plant in Sabine Pass. But beginning yesterday Transco is now connected directly to the Sabine Pass facility. We have to confess this is speculation on our part, but we don’t think it’s much of a stretch to say that Marcellus/Utica gas is now flowing to Sabine Pass for export. And if our gas is not now flowing to Sabine Pass, it soon will be. Here’s our evidence…
    Read More “Speculation: Transco Sending M-U Gas to Louisiana LNG Terminal”

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    Large Crowd Turns Out For/Against 22-Mile Pipeline in NJ Scrub Pines

    On Monday the New Jersey Pinelands Commission, which oversees a stand of scrub pines in South Jersey, held a public hearing to listen to comments on a plan to build a 22-mile pipeline through the scrub pines, burying it alongside the road so as to not disturb any spindly trees. The pipeline will supply clean-burning natural gas to a power plant currently fed by coal, cleaning up the air and lowering CO2 emissions. But dunderheads in the area are still opposed–largely incited by radical environmental groups like the NJ Sierra Club and the odious Food & Water Watch, who spread lies about the project. So many people turned up for the meeting, it maxed out the meeting room of 260 and some had to wait outside in the rain (which didn’t sit well with the pampered snowflakes). Predictably many who showed up wanted to go on record as opposed to the project. Isn’t that always the case? It’s easy to motivate people to attend a meeting when they’re against something–much harder to attract people who support something. At any rate, the surprising thing about yesterday’s meeting were the many people who turned out to support the pipeline. Also predictable, at least one anti (from the odious Food & Water Watch) couldn’t contain herself and had to be ejected for disrupting the meeting…
    Read More “Large Crowd Turns Out For/Against 22-Mile Pipeline in NJ Scrub Pines”

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    Trump Signs Executives Orders to Restart DAPL, Keystone XL Pipes

    President Trump is wasting no time in correcting the mistakes of the Obama Administration. Yesterday Trump signed a pair of Executive Orders meant to restart and advance the XL Keystone Pipeline and the Dakota Access Pipeline projects. The orders include a requirement that the pipes manufactured for the projects be manufactured right here at home, in the U.S. The orders in no way require the projects to get completed, they are simply meant to help clear regulatory hurdles so the projects’ builders can get moving again. Predictably the action is making radical fossil fuel haters apoplectic…
    Read More “Trump Signs Executives Orders to Restart DAPL, Keystone XL Pipes”

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    FERC Delays PennEast Pipe 3rd Time, PennEast Spins as ‘Good News’

    PennEast Pipeline is a very important $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. It will feed local utilities and power generation plants along its route. In April 2016 the Federal Energy Regulatory Commission (FERC), which oversees permitting for the pipeline, told PennEast the agency would extend the amount of time they are taking until December 2016, rather than the original target of August, to complete their environmental review (see PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?). It was (for us) a small red flag. Hey, it happens. Projects get delayed because regulatory agencies get bogged down. But then it happened again: FERC told PennEast they would once again move the goal posts and delay the final environmental review from December 2016 to February 2017 (see FERC Delays PennEast Pipeline Final Review – Again). Hmmm. Bigger red flag. Now FERC is doing it for a third time, which is a huge red flag in our book. FERC issued a statement on Friday to say the final environmental review now won’t happen until April. What’s going on? And why is PennEast once again spinning this as some sort of “good news”?…
    Read More “FERC Delays PennEast Pipe 3rd Time, PennEast Spins as ‘Good News’”

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    PHMSA Publishes New Pipeline Rule on Faster Accident Reporting

    Yesterday the U.S. Pipeline & Hazardous Materials Safety Administration (PHMSA) published a final “rule” (actually 31 pages of rules, which we’ve included below) in the Federal Register, which will become law (i.e. official regulation) on March 24th. The new “rule” requires pipeline operators to report incidents or accidents by phone within one hour of when they become aware of the incident/accident. It also steps up drug and alcohol testing requirements for workers. Here’s the latest in unlegislated laws to come down from on (Washington, DC) high…
    Read More “PHMSA Publishes New Pipeline Rule on Faster Accident Reporting”

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    US Steel Plant in PA Re-Opening – Manufacture Atlantic Coast Pipe?

    A former U.S. Steel pipe manufacturing plant near Pittsburgh (in McKeesport) has been leased to Dura-Bond Industries and will re-open in the next 6-9 months, according to the president of Dura-Bond. The plant will hire around 100 people (fantastic news for Pittsburgh). According to the Pittsburgh Business Times, Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina–will use Dura-Bond pipe. Our conclusion: One of the reasons (perhaps THE reason) for the McKeesport facility re-opening is to produce Atlantic Coast Pipeline pipes…
    Read More “US Steel Plant in PA Re-Opening – Manufacture Atlantic Coast Pipe?”