Pipelines

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    Dispelling the Notion that PennEast Pipe Gas Will Get Exported

    penneastFor the gazillionth time, PennEast Pipeline is addressing the lie spread by opponents that “most a that thar gas will get exported overseas.” Virulent anti-drillers try to whip up opposition to the pipeline any way they can, including spreading the lie that PennEast gas will not stay local and benefit local residents. The single counter-argument that utterly destroys that lie is this: In order to export gas, PennEast would first have to apply for and receive permission from the U.S. Dept. of Energy. Guess what? PennEast has not (nor is going to) apply to the DOE for export permission, as they indicate in the following Letter to the Editor…
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    FERC Gives WV to VA Mountain Valley Pipeline Provisional Thumbs Up

    thumbs-up.jpgThe Federal Energy Regulatory Commission (FERC) has given a preliminary thumbs up to the Mountain Valley Pipeline, 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 last October, is being built by EQT, NextEra Energy and several other partners (see Mountain Valley Pipeline Files FERC Appl, Now Just Matter of Time). 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). Last Friday FERC issued a Draft Environmental Impact Statement (DEIS) for both the Mountain Valley Pipeline and an associated project called the Equitrans Expansion Project. FERC’s DEIS runs a mammoth 781 pages (full copy below) and says the pipeline “would result in limited adverse environmental impacts, with the exceptions of impacts on forest.” In other words, FERC is giving the project a thumbs up…
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    OH Business Roundtable Report: Build New Pipelines NOW

    brt-logoThe Ohio Business Roundtable (BRT) is a partnership of the CEOs of leading Ohio companies that collectively account for more than $1 trillion in annual revenues, $1 trillion in market value and $2.6 trillion in assets. BRT’s members employ 2.6 million men and women, invest hundreds of millions of dollars annually in combined charitable contributions and research and development, and generate billions of dollars in sales for small and medium-sized businesses that are part of the supply chain. When the BRT in Ohio talks, people had better listen. Here’s the latest in what the BRT has to say: The state (i.e. Gov. Kasich) needs “a comprehensive reworking of the state’s energy policies in order to accelerate shale gas development.” No more tiptoeing around. Build those pipelines and build them NOW. That’s the upshot of a new report from the BRT titled, “Improving Ohio Energy Competitiveness” (full copy below). The report is backed up by detailed research from powerhouse consulting company McKinsey and Co. (their research is also embedded below). The BRT’s report points out the importance of the state’s natural gas-fired electric generating plants and says without more pipelines, new power plants won’t get built. The two issues are joined at the hip–vitally important for Ohio’s shale drillers, midstream companies, electric generators and yes Ohio’s electric ratepayers as well. LISTEN UP: Here’s what the BRT had to say…
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    NY Gov. Andrew Cuomo Halts Pilgrim’s (Pipeline) Progress

    Pilgrim Pipeline logoLast November, MDN told you about Pilgrim Pipeline Holdings, developing an East Coast pipeline to carry refined petroleum products such as gasoline, diesel, heating oil, and jet and aviation fuel northbound from Linden, New Jersey to Albany, New York (178 miles). In addition, a second Pilgrim pipeline will carry crude oil from Albany south to NJ and other locations. Two pipelines, side by side, liquids flowing through them in different directions (see Will Pilgrim Pipeline be Allowed to Settle in the NY World?). The oil that would flow south from Albany comes from trains delivering crude from the Bakken Shale play–a double evil in the sight of radical anti-fossil fuelers. So they turned up the pressure on the spineless Cuomo (see NY Antis Hope Gov. Cuomo Will Halt Pilgrim Pipeline’s Progress). It appears the pressure, once again, has worked. Last week the state Dept. of Environmental Conservation and the state’s Thruway Authority, working together, informed Pilgrim they will need to submit to a detailed anal exam, called a full environmental review, before obtaining approval. Anti-fossil nutters are rejoicing that the project has been slowed (gives them a chance to kill it). But Pilgrim is also spinning the news as a good thing–saying they welcome the full environmental review to prove the safety and righteousness of their proposal. Can this actually be good news for both sides?…
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    Spectra Ready to Open Valve on Expanded Pipeline from NE to Gulf

    Spectra Energy logoFantastic news for overabundant supplies of Marcellus and Utica Shale gas: Spectra Energy has asked the Federal Energy Regulatory Commission to open the valves on their Texas Eastern Transmission Gulf Markets Expansion Project. The project will shuttle supplies of natural gas from the northeast, along with supplies from Texas, to “meet the needs of demand growth in the power, industrial and LNG export sectors particularly in the Gulf Coast region of Louisiana and Texas.” Spectra began construction for the Gulf Markets Expansion Project in February. Construction will come in two stages, with the first stage targeted to go online in November. Spectra got done early and has asked for permission to begin operations at several compressor stations. More than half of the eventual 650,000 decatherms per day of new capacity along the Texas Eastern pipeline will come in the northeast, moving Marcellus/Utica gas to the Gulf Coast. Marcellus drillers EQT and Range Resources are signed up to ship gas along the expanded-capacity pipeline. Facilities along the pipeline have been or are being upgraded in Texas, Louisiana, Mississippi, Tennessee, Kentucky, Ohio and Pennsylvania. Here’s more about the project…
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    FERC Fights for Constitution Pipeline in Federal Court

    boxing-glovesTwo days ago MDN told you that the Natural Gas Supply Association (NGSA) had filed a brief in a lawsuit brought by anti-drilling zealots against the much-needed Constitution Pipeline (see NGSA Lobbies Fed Court, DEC to Advance 2 Stalled Pipelines in NY). The Constitution is a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. Radical environmental groups sued in federal court to challenge the Federal Energy Regulatory Commission’s (FERC) environmental review of the Constitution. If the wackos can get FERC’s review cast aside, they can slow the project to the point where they can (hopefully for them) kill it. That’s the game plan. The NGSA pushed back against it, and now, so has FERC. On Monday, FERC filed its own brief in federal court, asking the court to throw out the challenges by the zealots…
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    NEXUS Pipe Aims at Local Utilities, Signs Columbia Gas of Ohio

    exclusiveSpectra Energy’s NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, continues to build support and a good head of steam. In July the Federal Energy Regulatory Commission (FERC) issued a favorable draft Environmental Impact Statement for the project, a sure sign that FERC intends to approve it (see Spectra’s NEXUS Pipeline Gets Favorable Draft EIS from FERC). Earlier this week MDN reported the Ohio Environmental Protection Agency has granted air emissions permits to NEXUS so they can build five compressor stations (see OH EPA Grants Permits for 5 NEXUS Pipeline Compressor Stations). Even more good news: MDN has exclusively learned that Columbia Gas of Ohio (CGO) has signed a long-term contract to ship 50,000 decatherms per day (50 million cubic feet per day) of natural gas along the NEXUS from two points in Ohio and Pennsylvania to a point in Sandusky County, OH. This new agreement appears to be a shift in strategy by Spectra. How? CGO is a natural gas utility company–delivering gas to end users like residences and businesses. In industry parlance CGO is an LDC, or “local distribution company.” Much of the focus by the media on NEXUS has been that gas flowing through the pipeline will end up exported to Canada. This newest agreement shows that at least some of the gas flowing through NEXUS will stay in the region, distributed by LDCs. Cheap Utica (and Marcellus) gas will benefit Ohio residents and residents in surrounding states. Here’s the details of the CGO/NEXUS agreement…
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    Obama EPA, National Park Service Try to Rain on PennEast Parade

    rain-on-my-paradeVarious government agencies populated with liberal Democrats, including the Obama Environmental Protection Agency, the Obama National Park Service, the Obama Fish & Wildlife Service, and the New Jersey Environmental Protection Agency, filed negative comments about the PennEast Pipeline with the Federal Energy Regulatory Commission (FERC) on Monday. The last day to file public comments on PennEast was this past Monday, Sept. 12. In what almost seems like a coordinated attack, various agencies all filed their highly inflammatory and negative comments at the eleventh hour. The Obama EPA’s comments were particular egregious, making fantastically wild claims like building PennEast “may” end up causing arsenic in groundwater supplies. Talk about bogus B.S. (Barbara Streisand). The question is, will this unwarranted assault by federal and state agencies cause further delays in the already-delayed PennEast project?…
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    Duke Energy Modifies/Scales Back Plan for SW OH Pipeline

    duke-energyDuke Energy Ohio, an LDC or “local distribution company” serves some half a million customers with natural gas in Ohio. The company has a ~12 mile pipeline to flow gas it needs to move from one point to another in Hamilton County, the southwest corner of the state. The Duke pipeline has been around and in service since the 1950s. Duke needs to replace that pipe or some of the half million Duke customers won’t get natural gas any more. Because anything to do with “fracking” or “pipelines” has been so thoroughly bastardized by the media and anti-drilling whack jobs, there was, of course, opposition to Duke’s plan. So Duke “listened” and has scaled back their plans. Instead of building a 30-inch gas pipeline running at 600 psi (pounds per square inch), the revised plan calls for a 20-inch pipeline running at 400 psi. Duke has proposed two potential routes (see the map below). Here’s the lowdown on Duke’s scaled-back, tiny pipeline project in Hamilton County called the Central Corridor Pipeline Extension Project…
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    OH Lets Dominion Boost Recoverable Spending on Pipe Replacement

    dominionDominion launched a $4 billion, 25-year Pipeline Infrastructure Replacement (PIR) program in mid-2008. The program involves replacing over 5,500 miles of Dominion’s 22,000-mile pipeline system. Most of the pipeline to be replaced was installed in the first half of the 1900s. Some of the pipeline (much?) is being done in Ohio. The pipelines Dominion wants to replace in Ohio are regulated by the Public Utilities Commission of Ohio (PUCO). If Dominion wants to do anything with or for the pipelines in Ohio, they first need PUCO permission. Dominion has sought, and now received, PUCO permission to expand the program in Ohio. Dominion currently spends $160 million per year on the program in Ohio. PUCO gave them permission to up that amount to $170 million next year and $200 in 2018. Why is that important? Because Dominion gets to “recover” the costs (i.e. charge the costs) to utility customers. Dominion customers in Ohio can expect to see a rate increase…
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    OH Company Buys Canadian Pipeline Coating Manufacturer

    rpmRPM International Inc. is a manufacturing company based in Medina, OH. It is the owner/maker of such name brands as Rust-Oleum. RPM’s subsidiaries that are leaders in specialty coatings, sealants, building materials and related services across three segments. One of those segments is the oil and gas industry. So it’s no surprise that RPM has just bought out Specialty Polymer Coatings, Inc. (SPC), a Canadian manufacturer of high-performance coatings for the global oil and gas pipeline market. No details of the deal were announced, but we do know that SPC has annual net sales of $26 million. The upshot: another Ohio company will get more deeply involved in the shale oil and gas industry–just one more way oil and gas (and shale) benefits everyone…
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    PA DEP Tells Mariner East 2 to Correct “Significant Deficiencies”

    Mariner East 2
    Mariner East 2 – click for larger version

    John Hohenstein, the head honcho for dams, waterways and wetlands with the Pennsylvania Dept. of Environmental Protection (DEP) sent a strongly-worded missive (21 pages long, full copy below) to Matthew Gordon, principle engineer and project manager for Sunoco Logistics’ Mariner East 2 pipeline project last week. The letter was an assessment of Mariner East 2’s application with the state to cross numerous waterways and swamps as it is (mostly) built next to existing pipelines and stretches across 17 PA counties, spanning the state. In the letter Hohenstein tells Gordon there are “significant technical deficiencies” in the application, and unless those deficiencies are addressed by November 7, Sunoco can kiss stream-crossing approval goodbye…
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    PA Town’s Angst Over Mariner East 2 Pipeline Near School, Park

    logo-transThere is no doubt Sunoco Logistics Partners has been pushing a boulder up a hill when it comes to the Mariner East 2 pipeline project–a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia, carting ethane, butane and propane to the facility from both the Utica and Marcellus region. For over a year the project was mired in legal challenges of whether or not it can claim public utility status, with a right to use eminent domain. In July, PA’s Commonwealth Court ruled it is a public utility with a right to use eminent domain (see Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline). But the fight continues–town by town. Nowhere is that more evident than Middletown Township in Delaware County, PA. Monday night the town council voted, unanimously, to put an ordinance on the docket for council members to vote on at the Sept. 26 meeting, an ordinance that if passed, will allow Sunoco LP to move forward with building the pipeline on public land in the town–in one case across a park, and in another close to an elementary school…
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    Spectra Admits Detecting Corrision in Exploded TETCO Pipe 4 Yrs Ago

    Spectra blazeOn April 29, Spectra Energy’s Texas Eastern Transmission (TETCO) “Delmont Line 27” pipeline exploded in Westmoreland County, PA, seriously injuring one resident who still cannot walk after being burned over much of his body (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The reason for the explosion and fire was corrosion on welds covered with a particular kind of pipe tape no longer in use (see Spectra Says PA Pipeline Explosion “Unacceptable,” Blames Pipe Tape). Brace yourself for news that may make you angry: An investigation four years ago (in 2012) discovered corrosion in the very area where the pipe would eventually explode. Spectra says they documented the corrosion, but pipe corrosion happens over time–this is nothing new–and the thing to do is to monitor it. Spectra planned to reexamine the welds and the corrosion again in 2019, per the normal and accepted safety schedule. According to Spectra, until now it has been observed that corrosion of pipes happens at a rate of no more than 2-3% per year. In the case of the exploding TETCO pipeline, the corrosion rate was vastly accelerated, more like 10-15% per year since the last examination. What made it speed up?…
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    NGSA Lobbies Fed Court, DEC to Advance 2 Stalled Pipelines in NY

    ngsaThe Natural Gas Supply Association (NGSA) has gone into action to support two currently-stalled pipeline projects in the People’s Republic of New York, where Chairman Cuomo rules. Yesterday the NGSA filed a brief in federal court to respond to an effort by the rogues gallery of environmental extremist groups (including Catskill Mountainkeeper, Riverkeeper, Sierra Clubbers and other ne’er–do–wells) to stop the Constitution Pipeline from getting built. The Constitution is a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. The enviro groups sued in federal court to challenge the Federal Energy Regulatory Commission’s (FERC) environmental review of the Constitution. If the wackos can get FERC’s review cast aside, they can slow the project to the point where they can (hopefully for them) kill it. That’s the game plan. NGSA is pushing back, legally. Also this week the NGSA asked the NY State Dept. of Environmental Conservation (DEC) to get off its rear-end and approve air permits for Dominion’s New Market Project–a fairly dull $159 million capacity upgrade to an existing natural gas pipeline which runs across upstate New York from the PA line, west of Horseheads, and then northeasterly to the state’s Capital Region. Once again the DEC is doing their master’s bidding by refusing to grant necessary air permits for the New Market Project to proceed…
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    Rex Energy to Ship Marcellus Gas to Midwest & Gulf Coast in Nov

    go west young manHigher prices for Rex Energy’s Marcellus/Utica gas are on the way. Why? Because the company will, beginning in November, begin to ship some of its gas out of the northeast–to the Midwest and Gulf Coast, where it can get higher prices. So says Rex in an update issued yesterday. Rex issued an operational update yesterday to discuss recent results and the next round of drilling they plan to do–4 more wells on the Vaughn pad in Carroll County, OH–and the news that a new high pressure gathering system is on the way in Butler County, PA. Included in the update is the good news that Rex will begin to ship 100 million cubic feet per day (MMcf/d) of natgas to the Gulf Coast and 30 MMcf/d to the Midwest, starting in November, via two different pipelines. Which pipelines?…
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