Pipelines

Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

Radical NJ Democrats Want to “Constitution” the PennEast Pipeline
May 11, 2016May 11, 2016

Click map for larger version

Anti-drillers (most of them liberal Democrats) haven’t wasted any time in adopting Gov. Andrew Cuomo’s tactic of delay, deny and death. Antis in New Jersey took notice of how Cuomo first delayed, then denied the Constitution Pipeline stream crossing permits, effectively killing the project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The leaders of radical Big Green groups in NJ, including the New Jersey Conservation Foundation and the New Jersey Sierra Club, along with several Democrat members of the NJ legislature, want the state Department of Environmental Protection to deny permits for a different pipeline project–the PennEast Pipeline. Hey, if it worked in NY, why wouldn’t it work in NJ? Problem is, NJ has a Republican governor and the DEP is an executive agency. That won’t stop the antis from trying…
Read More “Radical NJ Democrats Want to “Constitution” the PennEast Pipeline”
Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation

PennEast Pipeline Requests NJ’s Help with “Green Acres” Process
May 10, 2016May 10, 2016

The PennEast Pipeline, a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ, continues to bend over backwards, forwards and into yoga knots in order to accommodate the wishes of various special interest groups. The latest in that effort is PennEast’s invitation to several New Jersey municipalities and non-profit groups to provide feedback on PennEast’s open space initiative. Part of the PennEast route will traverse 15 acres of encumbered “Green Acres” parcels–open spaces meant to stay open and not be developed. PennEast plans to lay their pipe four feet down, cover it up, and the green/open spaces will remain green and open, forever. In fact, according to PennEast, when the pipeline installation is done and dusted, there will be “significantly more open space” than there is today. Look for THE Delaware Riverkeeper (Maya van Rossum) and other radical leftists to demagogue this latest effort by PennEast to be a good neighbor…
Read More “PennEast Pipeline Requests NJ’s Help with “Green Acres” Process”
Industrywide Issues | Pipelines

9 of 10 Biggest Marc/Utica Drillers Increase Production in 1Q16
May 10, 2016May 10, 2016

Statue of Achilleas thniskon (Dying Achilles) at the Corfu Achilleion.

Although we often read of drillers in the northeast curtailing (shutting in) production to wait for higher natural gas prices, nine of the top ten publicly traded drillers in the Marcellus/Utica produced MORE natgas in the first quarter of 2016 than they did in the first quarter of 2015. Some of them, like Gulfport and Rice Energy, produced a LOT more (up 63% and 53% respectively). However, the Achilles heel for some drillers in our region is lack of pipeline capacity to get their gas out of the immediate region. The winners in the Marcellus/Utica are those drillers who have locked in pipeline capacity to move their gas to other regions–the northeast, south, Midwest and Gulf Coast. The losers are those who haven’t–and (potentially) those who were relying on pipeline projects that are either dead or delayed–including the Constitution and Northeast Energy Direct…
Read More “9 of 10 Biggest Marc/Utica Drillers Increase Production in 1Q16”
Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

What Can We Learn from Spectra’s Success with Pipeline Projects?
May 9, 2016May 9, 2016

With pipeline projects like Kinder Morgan’s Northeast Energy Direct (NED) deciding to call it quits (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline), and projects like the Constitution Pipeline that runs through New York State on life support (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline), you have to ask an honest question: What pipeline projects can and do get approved and built? There’s one company that seems to enjoy more success than others when it comes to getting new projects built–Spectra Energy. Kinder’s NED was arguably the superior project when it comes to getting natural gas to New England, yet Spectra’s competing Access Northeast project seems to have won. Why? What can we learn from Spectra that might help the rest of the industry when it comes to getting projects built?…
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Accidents | Commodity Price | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

EIA: Explosion on Texas Eastern Pipeline in PA Cuts Natgas Flow
May 9, 2016May 9, 2016

TETCO Pipeline – click for larger version

As we have been reporting, Spectra Energy’s Texas Eastern Transmission Company (TETCO) pipeline exploded in Westmoreland County, PA on April 29 (see our stories here). Prior to the explosion there was an average of 1.4 billion cubic feet of natural gas per day flowing through the Delmont compressor station located near the explosion. Right now? Zero. So far the main affect of no gas flowing through that area has been a price spike in the Mid-Atlantic region. Natgas supplies are being handled by other pipelines and by drawing from storage. The U.S. Energy Information Administration weighed in last week with their analysis of how the TETCO explosion has impacted the northeast–both with physical gas supplies and with price for that gas. Here’s how the industry is coping…
Read More “EIA: Explosion on Texas Eastern Pipeline in PA Cuts Natgas Flow”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Williams

Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC
May 6, 2016May 6, 2016

Atlantic Sunrise Pipeline map – click for larger version

The sun continues to rise on on Williams’ Transco Atlantic Sunrise pipeline project. It seems like we’ve covered the story of Atlantic Sunrise forever–a $2.1 billion project consisting of compression and looping of the Transco Leidy Line in Pennsylvania along with a greenfield (brand new) pipeline segment of 178 miles, called the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania (see Atlantic Sunrise Will Pump $1.6B into Economy, Create 8K Jobs). There’s been some opposition from wackos and nutjobs–but for all their bluster, they are relatively few in number. In April 2015 Williams filed an official application with the Federal Energy Regulatory Commission (see It’s Official: Williams Files with FERC for Atlantic Sunrise Pipeline). A major step in the approval process is to receive a favorable environmental impact statement (EIS) from FERC. That happened yesterday. FERC says that although there are “some impacts on the environment,” those impacts “would be reduced to less-than-significant levels” with proposed mitigation by Williams. This is really terrific news–an indication that FERC will grant final approval later this year or early next year…
Read More “Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Analyst Says Check Your History, Constitution Pipe Won’t Get Built
May 6, 2016May 6, 2016

Constitution Pipeline map – click for larger version

An analyst with a Washington, D.C. policy and research firm believes that Gov. Andrew Cuomo’s recent action in denying Williams stream crossing permits for the Constitution Pipeline means that project is dead. He cites another pipeline project from a decade ago–the Islander East project–that faced a similar situation. In the end, Islander East didn’t get built. He believes the same fate is in store for the Constitution. We sincerely hope he’s wrong and that FERC (Federal Energy Regulatory Commission) will “grow a pair” and not let Gov. Cuomo bully them. At its heart this is a battle over the trampling of federal authority. We find it curious that Obama and his sycophants throughout the government are hellbent on expanding federal authority over every aspect of our lives–from health care, to what we eat, to what forms of power we can use. And yet these same people stand by and are silent when a federal agency like FERC is emasculated by a state like NY. Of course it should be the opposite. This is one time when the federal government Constitutionally has the authority to act, and that authority has been illegally co-opted by a state. FERC needs to force the issue in court to overrule NY’s abuse of power. The analyst, however, doesn’t see it that way…
Read More “Analyst Says Check Your History, Constitution Pipe Won’t Get Built”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion
May 5, 2016May 5, 2016

There was an explosion and fire in Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” pipeline last Friday (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The explosion occurred in Salem Township in Westmoreland County, PA, about 30 miles east of Pittsburgh. Although the cause of the explosion is still not known for sure, investigators do have a working theory–corrosion along welded seams in the pipeline. Investigators from the U.S Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) still say, officially, that the cause is “unknown” and the investigation “ongoing.” However, those same investigators have said they found evidence of corrosion and they’ve ordered another section of the pipeline in the area to be dug up, removed, and sent for analysis. Here’s the latest on the situation, along with an estimate of when service might be returned on this very important pipeline…
Read More “Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion”
Economic Impact | Industrywide Issues | Jobs | Pipelines | Research

New Study Proves Shale Gas has Big Impact on Manufacturing Sector
May 4, 2016May 4, 2016

Everybody knows, anecdotally, that the shale revolution has been great for U.S. manufacturers. Empty plants have roared back to life and new plants have been built, bringing back millions of jobs, due to the huge quantities of natural gas being extracted from shale in the U.S. Now we have a research study to prove what we already knew anecdotally. Yesterday the National Association of Manufacturers (NAM) released a new research report from IHS titled “Energizing Manufacturing: Natural Gas and Economic Growth” (full copy below). The research finds that shale gas has put an extra $1,337 back in the pockets of the average hard-working American family. Wow! Shale gas has also contributed to the creation of 1.9 million jobs throughout the economy. Double wow! Just building natural gas transmission lines has meant more than 347,000 jobs with 60,000 of those jobs in manufacturing. Here’s the best part: All of it is without a government program or taxpayer expense. Read on for more good news about how the shale revolution and the miracle of fracking has benefited every single American…
Read More “New Study Proves Shale Gas has Big Impact on Manufacturing Sector”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

Update on Spectra Pipeline Explosion Near Pittsburgh
May 3, 2016May 3, 2016

Yesterday MDN told you about the Texas Eastern Transmission Company (TETCO) pipeline explosion last Friday in Westmoreland County, PA (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We still don’t know what caused the explosion. Spectra Energy, TETCO’s owner, is working with the Pipeline and Hazardous Materials Safety Administration (PHMSA) to investigate the incident and several pipelines in the area back to service. Spectra shut down the flows of our pipelines in close proximity to the explosion “out of an abundance of caution.” The stoppage means about 1 billion cubic feet per day of natural gas is not going to New York and New England, causing a price spike in the region. One local homeowner was seriously burned and sent to the UPMC Mercy Hospital burn unit in Pittsburgh. His condition has been upgraded from critical to serious. Below is an update with the latest we can find about the explosion and aftermath…
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CNG/LNG | Energy Services | Exporting | Industrywide Issues | Pipelines | Regulation | Spectra Energy

Critical Project for Canadian LNG Exports Gets Favorable FERC Review
May 3, 2016May 3, 2016

Click for larger version

Spectra Energy’s Atlantic Bridge project has just gotten an important “favorable” Environmental Assessment (EA) from the Federal Energy Regulatory Commission. A favorable EA is a signal that FERC will, later this year, grant a full approval for the project. And that’s really good news for Canadian LNG export plants–and equally good news for Marcellus drillers. Here’s how this news all ties together. The Atlantic Bridge project is a series of upgrades to two different pipeline systems already in existence: the Algonquin Gas Transmission (AGT) pipeline and the Maritimes & Northeast Pipeline (M&NE). The two pipelines will be connected along the coast of Massachusetts, near Boston. Thing is, right now the M&NE flow gas from north to south, from Canada to the U.S. Part of the Atlantic Bridge project is to make M&NE bidirectional, able to flow gas from south to north. The AGT will collect gas from the prolific Marcellus via a third Spectra-owned pipeline–the Texas Eastern Transmission Company (TETCO) pipeline–delivering Marcellus gas to New England. Yes, much/most of the gas will go to New England, but excess gas produced during periods of the year when not as much gas is used in New England will then be available to flow on up to Canada and to one of several new LNG export facilities either in planning or under construction. It all starts with a favorable EA…
Read More “Critical Project for Canadian LNG Exports Gets Favorable FERC Review”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate
May 2, 2016May 2, 2016

There was an explosion and fire in Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” pipeline last Friday. The explosion occurred in Salem Township (Westmoreland County), PA, about 30 miles east of Pittsburgh. One man was seriously burned when his house caught on fire (his house was destroyed). Nine homes in the area of the explosion/blaze were evacuated. As of yesterday six of the nine were able to return to their homes. Texas Eastern Transmission is one of the largest natural gas pipelines in the U.S.–running from the Gulf Coast through Marcellus/Utica country to New Jersey. The really disgusting part was the way the NJ chapter of the radical Sierra Club immediately, with a few hours, used the explosion by implying this is what awaits homeowners if the PennEast Pipeline is built. FYI, the Texas Eastern pipeline was built in 1981 and the portion that exploded was last inspected in 2012. Below are pieces of news accounts and the running response from Spectra about the accident…
Read More “Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate”
Electrical Generation | Energy Services | Industrywide Issues | Lycoming County | Northumberland County | Pennsylvania | Pipelines | Regulation | Snyder County | UGI Energy Services | Union County

UGI Sunbury Pipeline Gets FERC Approval, Built by November?
May 2, 2016May 2, 2016

UGI Marcellus assets map – click for larger version

Contrary to the lies spread by anti-pipeline groups like THE Delaware Riverkeeper, the Federal Energy Regulatory Commission is no rubber stamp for the oil and gas industry. In December 2014 Pennsylvania utility company UGI pre-filed an application to build a new 35-mile pipeline to feed a natgas-powered electric generating plant in Snyder County, PA (see UGI Pre-Files with FERC for New Marcellus Pipeline in Central PA and UGI Building 35-Mile Pipeline for Panda Power Electric Plant). The project was estimated to cost $150 million–money that goes into the local economy. It took long enough, but last week the Federal Energy Regulatory Commission (FERC) finally approved the project. The 20-inch Sunbury Pipeline will start in Lycoming County and travel through Montour, Union, and Northumberland counties, cross the Susquehanna River and ending up at Hummel Station Plant in Shamokin Dam in Synder County…
Read More “UGI Sunbury Pipeline Gets FERC Approval, Built by November?”
Energy Services | Industrywide Issues | Pipelines | Tallgrass Energy

REX Buying Back Another 25% of Pipeline from Sempra
April 29, 2016April 29, 2016

REX Pipeline map – click for larger version

Tallgrass Energy, builder and operator of the mighty Rockies Express (REX) Pipeline issued their first quarter 2016 update yesterday. Among the interesting bits of news in the update is that Tallgrass is buying out Sempra Power & Gas’ 25% ownership interest in REX. Sempra Power & Gas is a subsidiary/division of Sempra Energy. Just last month Tallgrass bought out Sempra Energy’s existing ownership stake in REX for $440 million (see Tallgrass Buys Out Sempra’s Portion of REX Pipeline for $440M). Apparently a division of Sempra still owned a large stake in the pipeline, and now Tallgrass is buying out that interest as well. REX is a 1,712-mile pipeline which runs from Colorado and Wyoming to Ohio, originally built to flow western natural gas to the Midwest and East. But then the Marcellus/Utica took off like a rocket and all of a sudden there was no market for western gas in our neighborhood. So Tallgrass reversed the flow for part of the REX (see Rockies Express Pipeline Reverses Flow from Utica to Midwest). Tallgrass turned what could have been a company-killing decision into the crown jewel asset of the company, simply by reversing the flow. Here’s the 1Q16 update from Tallgrass…
Read More “REX Buying Back Another 25% of Pipeline from Sempra”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pipelines | Statewide NY

NY Antis Hope Gov. Cuomo Will Halt Pilgrim Pipeline’s Progress
April 29, 2016April 29, 2016

In 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?). Earlier this month we told you about a strategy by New York anti-fossil fuel freakers to stop Pilgrim’s progress by using local town bans (see NY Antis Attempt to Stop Pilgrim Pipelines with Local Bans). But maybe such a town by town strategy won’t be necessary after all. The freakers are now buoyed by NY Gov. Cuomo’s decision to stop the Constitution Pipeline–a natural gas pipeline. The freakers think maybe Cuomo will halt Pilgrim’s progress too…
Read More “NY Antis Hope Gov. Cuomo Will Halt Pilgrim Pipeline’s Progress”
Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Statewide OH

Resources for Landowners Faced with Pipeline Easements
April 29, 2016April 29, 2016

In MDN’s daily trawl of the news, we came across a resource for landowners from Ohio State University (OSU), a program called “Pipeline Easement and Right-of-Way Agreements.” Apparently OSU’s Extension service conducts workshops on occasion for landowners and other interested parties. We don’t have a list of the workshops, but we do have copies of the resources they hand out–very useful resources, including four different fact sheets that we think landowners in any state will benefit from…
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