Will TransCanada’s Lower Pipeline Rates Jeopardize Nexus/Rover?
Two weeks ago MDN told you that TransCanada is attempting to block Marcellus/Utica gas from entering the eastern Canadian market by lowballing pipeline transportation costs from western Canada (see TransCanada Launches Open Season to Lowball Marcellus/Utica Gas). How much are they lowballing? TransCanada is offering transportation costs of $0.66 per thousand cubic feet (Mcf). The proposed Nexus pipeline, which crosses Ohio and connects to a pipeline in Michigan that would go on from there to Canada, is charging $1.21/Mcf. The proposed Rover pipeline which also would connect to Canada is charging $1.01/Mcf. An BTU Analytics analyst does a deep dive and asks the question (our words, not hers): Will TransCanada’s lowball prices kill the Nexus and/or Rover?…
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Some more disappointing news for Williams’ Atlantic Sunrise Pipeline project, a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. One week ago MDN brought you the news that the Federal Energy Regulatory Commission (FERC) announced it is actively reviewing two alternative routes for the Central Penn Line (an important part of the Sunrise project), accepting public comments on the two alternative routes until Nov. 14 (see 
In January of this year, the Federal Energy Regulatory Commission (FERC) launched five investigations into four pipelines, three of which operate in the northeast, to determine whether or not those pipelines have been “substantially” overcharging their customers with the excuse of “we have to recover our costs” (see 
The Dakota Access Pipeline Project (DAPL) is a new approximately 1,172-mile, 30-inch diameter oil pipeline that will connect the expanding Bakken and Three Forks production areas in North Dakota to Patoka, Illinois. Although the pipeline has become the new Keystone XL complete with anti-fossil fuel lunatics protesting it, MDN has largely ignored it because it’s another battle in another geography and we’re fighting enough of our own battles. We try to cover news that directly affects the shale industry in the northeast. Except now the Dakota battle has become connected to our own battles here in the northeast. Let us explain…
A new group called Protect Our Pennsylvania launched on Tuesday at a rally in Harrisburg–at the State Capitol. The purpose of the group is to oppose and reign in the currently legal right of pipeline companies to use eminent domain to force landowners to accept a pipeline across their land. This is a tough issue for us. We have often stated this philosophy: I won’t tell you that you must allow drilling, or a pipeline, and you don’t tell me I can’t allow it. We think that’s a consistent and fair philosophy. But what do you do with a pipeline when only one or two people are blocking its route? We’ve always said, make it worth their while to allow (pay them). We’ve also said there may be times when eminent domain must (very reluctantly) be used. It is an ongoing “wisdom of Solomon” kind of issue for us, with no clear answer. So is this new group, Protect Our Pennsylvania, a group of landowners honestly concerned about their property rights? Alas, we don’t think so. Their leader, Eric Friedman, has ties to the radical Sierra Club, which means this is just one more organization pretending to be something it is not. It is, we are convinced, populated with anti-fossil fuelers and not just mom and pop landowners…
So often very small, loud-mouthed antis appear to be winning the battle that we sometimes forget about the silent majority. Case in point: In reading the typical mainstream media story about 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–you would assume the project is reviled and opposed by “everyone” and doomed to failure. But reality if far different from the false picture painted by the media. A poll conducted recently by the Tarrance Group for the Virginia Chamber of Commerce of Virginia residents shows that by a nearly 2-to-1 margin, Virginians support the Atlantic Coast Pipeline project. That would be a “landslide victory” if it were an election…
You just can’t get away from the Marcellus/Utica–even at a conference supposedly focused on the Western U.S. Natural gas infrastructure was a key topic at the recent LDC Gas Forum Rockies & West conference held in Denver, CO. ICF International vice president Kevin Petak was one of the speakers. He dropped what is (to us) a bombshell when he said he believes the Marcellus and Utica combined will pump out 40 billion cubic feet per day (Bcf/d) by 2025–just 10 short years from now. The two plays combined today are pumping around 21 Bcf/d–so Petak is predicting our output will double! If that’s so, there will need to be a whole lotta drillin’ goin’ on between now and then. In addition to Petak, Crystal Heter, vice president for commercial operations at the Rockies Express (REX) pipeline, had some VERY interesting things to say about the REX pipeline reversal which sends Marcellus/Utica gas to the Midwest. It looks like even more gas is about to go from our area westward…
In February MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see 
The New Jersey Division of the Rate Counsel (NJDRC) is a state government agency responsible for representing the interests of residents, businesses and other rate payers in dealing with regulated public utilities and insurance firms. Apparently the NJDRC filed a so-called analysis with the Federal Energy Regulatory Commission (FERC) in September slamming the need and cost recovery plan for the PennEast Pipeline, a $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. PennEast has responded to that analysis with an independent report written by Concentric Energy Advisors (full copy below). The Concentric report refutes (i.e. obliterates) the “incorrect assumptions” made in the NJDRC comments to FERC…
Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system that will carry 342 million cubic feet (MMcf) 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 their final approval for the project, allowing it to go forward. Construction began last year and continues now. Two weeks ago FERC issued an order allowing part of the AIM project–in Putnam County, NY, and Fairfield County, CT–to power up and begin service. However, not all of the project is yet built. Four nutjob protesters criminally locked themselves inside a piece of pipeline in Verplanck (Westchester County), NY last week (see 
Last week we reported on a half joking (half not joking) comment by Pennsylvania State Senator Gene Yaw made at a PA midstream conference, in which he said maybe PA should stop sending its fracked gas to New York State (see 
In just about every state in the country, before you start digging a hole in the ground for some reason (water well, septic system, laying an underground electric line, etc.)–the first thing you do is call 811 or some similar phone number. The “one call” or “first call” reaches a state-authorized (not necessarily state-run) office where they have, on file, maps detailing any kind of underground cables, pipelines and other infrastructure. If such underground structures exist, a representative of the owner for the underground line will, if necessary, stop by and mark the areas so when you do begin digging, you don’t hit it. Makes sense. A bill under active consideration in the Pennsylvania legislature, Senate Bill (SB) 1235, “enhances” the existing 811 law in PA. One of the “enhancements” is that it removes an exclusion for low-pressure natural gas gathering pipelines from being required to be part of the 811 system. Many owners of excluded lines voluntarily participate in the programs. The bill also would transfer regulatory enforcement power over the lines from the Department of Labor to the Public Utility Commission. The Pennsylvania Independent Oil & Gas Association (PIOGA) is pushing back against the removal of the exclusion for conventional production lines and the most rural (“Class 1” under federal law) gathering lines…
We spotted a press release issued yesterday by Cabot Oil & Gas, providing an update for the Williams Atlantic Sunrise Pipeline project. Which kind of surprised us. Why would Cabot issue an update on someone else’s pipeline? Is Cabot an investor in the project? We asked–the answer is “no.” However, Cabot is the major shipper that will use the Central Penn Line portion of the Atlantic Sunrise project. And that’s what the announcement was about. Cabot said the Federal Energy Regulatory Commission (FERC) has announced it is actively reviewing two alternative routes for the Central Penn Line, accepting public comment until Nov. 14. OK, so that sometimes happens. Is it worth a press release? Then we read that this development means yet another delay for the Atlantic Sunrise project–and investors immediately punished the stock for both Williams and Cabot. Ah, now we understand! The press release is to reassure investors that Cabot believes FERC, while slowing things down a little, won’t delay things too long. THAT’S what the press release is really all about…
Dominion recently announced a new pipeline project called Eastern Market Access Project. The project will beef up two compressor stations in Virginia, build a new compressor station in Maryland, and add a couple of pipeline taps near Washington, D.C. The purpose of the $145 million project is to deliver more gas to Washington Gas, and to deliver gas to a new gas-fired electric power plant being built in Maryland. We suspect Marcellus/Utica gas will be the added gas flowing to both Washington Gas and the new electric plant in Maryland. [Note: A Dominion spokesman later confirmed to us that the gas will come from either the Marcellus or Utica plays.] You may recall that in May 2015 Washington Gas announced a plan to invest in Marcellus wells in Greene and Clearfield counties in PA (see