Pipelines

Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

Dominion Files Application to Move Marcellus Gas to Charleston, SC
March 22, 2016March 22, 2016

According to their own documents and timelines, Dominion Carolina Gas Transmission is behind a few months, but they finally just filed an official application with the Federal Energy Regulatory Commission (FERC) for a 55-mile pipeline project called the Transco to Charleston Project. As the name implies, it will be a short pipeline to connect the Transco pipeline, which is in the process of reversing flows to bring Marcellus and Utica Shale gas south, to send that gas to the Charleston, SC area. The projected in-service date is November 2017…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

2 NEPA Members of Pipeline Task Force Want to Know, What’s Next?
March 22, 2016March 22, 2016

In May 2015 Pennsylvania Gov. Tom Wolf and his underling Dept. of Environmental Protection (DEP) Secretary John Quigley created a “Task Force on Pipeline Infrastructure Development” (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). The stated purpose of the group was “to identify best practices for pipeline siting, permitting and safety.” We won’t recount all of the twists and turns–of how the Task Force was packed with government employees beholden to Wolf, etc. Along the way antis tried to protest and derail the meetings held by the Task Force (see PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed”). The final meeting was held and the final report was released all 658 pages of it with 184 recommendations (see PA Pipeline Task Force Report: 658 Pages, 184 “Recommendations”). Two members of the task force from northeast PA are now asking the question, “What happens next?” We have the answer: NOTHING…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | Pipelines | TC Energy/TransCanada

Rumor Comes True: TransCanada Buying Columbia Pipeline for C$13B
March 18, 2016March 21, 2016

That was pretty fast. One week ago MDN told you that the rumor mill was working overtime about a potential buyout of Columbia Pipeline Group, a major Marcellus/Utica midstream company, by TransCanada, of Keystone XL Pipeline fame (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). The number bandied about was $10 billion to buy Columbia. Neither Columbia nor TransCanada would confirm the rumors. But yesterday, TransCanada announced they’ve reached a deal with Columbia, to buy them for $13 billion (Canadian dollars, which is ~$10 billion US). It gives TransCanada a set at the midstream table since increasingly natural gas is flowing from the U.S. to Canada–after years of it being primarily the other way around. One of the primary selling points, according to TransCanada, is Columbia’s Marcellus/Utica assets. Here’s the Columbia/TransCanada announcement…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation

FERC Approves Pipeline to Move More Marcellus/Utica Gas to Chicago
March 18, 2016March 18, 2016

In October 2014 Kinder Morgan ran an open season with an eye on expanding the Natural Gas Pipeline Company of America (NGPL) system in the Chicago area (see Kinder Morgan Plans Chicago Pipeline Expansion for Marcellus/Utica). The expanded NGPL system, called the Chicago Market Expansion Project, will bring new volumes of Marcellus and Utica Shale gas, heading west on the reversed Rockies Express Pipeline, to over 100 interconnects with Chicago-area local distribution companies, direct-connect power plants, industrial end users, interstate pipelines, and NGPL’s storage and highly liquid pooling points. Kinder originally thought they would beef up capacity by an extra 450,000 dekatherms per day. Somewhere along the way the project was scaled back to 238,000 Dth/d. The good news is that the Federal Energy Regulatory Commission (FERC) has just approved the project, which is on track to be completed by the end of this year. The expansion provides an important new market for Marcellus/Utica gas…
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Industrywide Issues | Pipelines | Regulation | Research

FERC Report: Northeast Pipeline Shortage Won’t Resolve Until 2019
March 18, 2016March 18, 2016

The Federal Energy Regulatory Commission (FERC) yesterday released its 2015 State of the Markets Report (see full copy below). Among the findings in FERC’s view of the marketplace: Most places across the country have seen a bump up in pipelines over the past 10 years, relieving constrained natural gas transportation. Except for the Marcellus/Utica region. In our neck of the woods lack of pipelines continues to mean a surplus–high inventories and low prices. Is there any hope in sight? Yes, IF the pipelines get approved and built, FERC says by 2019 our gas should be hitting new markets with a resulting boost to the price. Also interesting is FERC’s reluctance to embrace and endorse the prediction made by the U.S. Energy Information Administration just last week that in 2016 natural gas will surpass coal as the #1 source fuel to generate electricity in the U.S. (see NatGas is Killing Coal in Electric Generation Market – 2015 is Proof). FERC very definitely backed away from that prediction in their report. Hmmm…
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CNG/LNG | Industrywide Issues | Pipelines

Former GDF Suez CEO Launches New Energy Marketing Company
March 18, 2016March 18, 2016

LifeEnergy sounds like it might be a new age acupuncture treatment–or perhaps an energy drink. But it’s neither. LifeEnergy is an energy company with a “focus on delivering energy products and services to residential and business customers across North America.” It is, as near as we can tell, an energy marketing company. You know how you get telemarketing calls to change your electric and/or gas from the local utility to some other company that delivers electricity or gas to your home via the same local utility, but reportedly at a better/different price? We think that’s what this company is all about–except on a national scale. It is who is behind the company that first got our attention. The new head of LifeEnergy is the former CEO of GDF Suez Energy North America, a division of the French electric energy giant ENGIE. And who is GDF? They’re the company with an LNG import terminal near Boston that keeps trying to screw Kinder Morgan and Spectra Energy out of building pipelines to New England (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England and LNG Importer Publishes Sham Report Slamming New England Pipelines). GDF would rather import natural gas–because they personally profit from it–rather than see local gas from the Marcellus/Utica find its way to New England markets. The guy who used to run that has stepped away to run this instead…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

30 Big Green Groups Ask FERC to Pay Them to Oppose Pipelines!
March 17, 2016March 17, 2016

In a day and age when we see our country slipping away from us at an alarming rate, and we witness outrage after outrage, when yet a new outage appears, it’s hard to focus attention on it and get worked up about it. We’ve told you the about the latest angle of attack against the fossil fuel industry by fossil haters like THE Delaware Riverkeeper. That angle is to attack the Federal Energy Regulatory Commission (FERC) with multiple lawsuits, hoping to tie it up in knots and make it dysfunctional (see THE Delaware Riverkeeper Sues FERC, Tries to Close it Down and Dela. Riverkeeper Sues FERC Again – Over Leidy Pipeline Expansion). Here’s the latest outrage that has us hopping mad. Some 30 Big Green groups have filed a petition with FERC asking the agency to set up an Office of Public Participation. The groups, including such luminaries as the Sierra Clubbers, National Resources Defense Council and the Environmental Defense Fund, want to be able to aggressively challenge pipeline (and other) projects that come before FERC–and get this, they want to be compensated for the work they do to challenge those projects! Can you believe it!! They want TAXPAYERS to pay their staffers and lawyers to try and stop the very projects that benefit those same taxpayers! Simply amazing. We’ve truly fallen Through the Looking Glass, Alice…
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Energy Services | Ethane | Industrywide Issues | NOVA Chemicals | Pipelines

Canadian Cracker Gets $400M Upgrade to Handle More Marc. Ethane
March 16, 2016March 16, 2016

Nova Chemicals’ Corunna (Ontario, Canada) cracker plant is in for a $400 million makeover to convert the plant into using 100% ethane feedstock. The project will also invest in a second pipeline to feed ethane from the Marcellus/Utica to the plant. Nova’s board of directors recently approved the investment and work is scheduled for 2017/2018. This is good news for Marcellus/Utica drillers who are waiting (seems like FOREVER) for a regional ethane cracker plant to get built somewhere in the northeast. Even if one of the three major (and one minor) cracker plants is green lighted for the Marcellus/Utica, will will take 4-5 years to build it. In the meantime, if they can contract pipeline space, drillers can send their ethane to nearby Corunna cracker plant–so this is good news indeed. Here’s the details…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation

FERC Approves TGP Connecticut Expansion Pipeline Project
March 16, 2016March 16, 2016

The Federal Energy Regulatory Commission (FERC) last Friday approved Tennessee Gas Pipeline’s (TGP) Connecticut Expansion project. The project includes building 13.42 miles of new pipeline loops in three states: Connecticut, Massachusetts and New York. When completed, the new looping will serve an additional 72,100 dekatherms of (mostly) Marcellus Shale gas to three utility companies in Connecticut. The $86 million project is in no way connected to TGP’s Northeast Energy Direct (NED) pipeline project. Below are the details for the project, along with a project map…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Lebanon County | Pennsylvania | Pipelines | Sunoco Logistics

Pipeline Opposition in Lebanon, PA Fading Away to Nothing
March 15, 2016March 15, 2016

Here’s what MDN notices about pipeline supporters and detractors. Not that long ago MDN editor Jim Willis attended a meeting in Afton, NY supporting the delayed Constitution Pipeline (see Cuomo Needs to “Snap on a Pair” and Approve the Constitution Pipe). Reports say there were over 300 people jammed into that meeting. Then we read about two anti-pipeline groups in Lebanon County, PA holding a meeting to oppose two different pipelines coming through their area–and they can barely scrape together 50 people. What does that tell you about opposition to pipelines? It’s nearly non-existent, except for a few loud mouths that are endlessly interviewed by mainstream media…
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Industrywide Issues | Litigation | Pipelines

DB Brief on Court Decision re Driller Canceling Pipeline Contract
March 15, 2016March 15, 2016

Last week MDN brought you the news that midstreamers’ nightmare had come true–with a decision in a Texas court case that allowed a driller who had declared bankruptcy to cancel previously signed contracts for a pipeline gathering system (see Midstream Nightmare Comes True: Judge Lets Driller Cancel Contracts). The fear is that more drillers will use this new tactic of declaring bankruptcy in order to shed previously signed deals with pipeline companies. Is that fear legitimate? After all, this was a single case for a single driller/pipeline company. Will it be used as a precedent in other cases? We spotted a policy brief from powerhouse banking company Deutsche Bank, their Equity Research division, addressing the question of just what are the implications coming from the Texas decision…
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Carroll County | Energy Services | Harrison County | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines

Cornerstone Liquids Pipeline Set to Begin Construction in E Ohio
March 14, 2016March 14, 2016

The Cornerstone Pipeline, announced at the end of 2013, is a 50-mile liquids pipeline being built by Marathon Petroleum from the MarkWest cryogenic processing plant in Cadiz (Harrison County), OH northwest connecting to M3’s fractionator plant in Scio (also in Harrison County) and M3’s cryogenic processing plant in Leesville (Carroll County) before terminating and connecting to Marathon’s refinery in Canton, OH (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The pipeline will carry, at various times, crude oil, condensate and natural gasoline. Last fall Price Gregory, the company hired to build the Cornerstone, advertised for 400 workers (see Price Gregory Hiring 400 People in OH to Build Cornerstone Pipeline). Seems like it’s taken a long time, but construction of the pipeline is set to begin “in the next several weeks”…
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Energy Services | Industrywide Issues | Pipelines | Williams

Williams Building Alabama Pipeline with Marcellus Connection
March 14, 2016March 14, 2016

On Friday Williams announced it will begin construction in May on the Hillabee Expansion Project, a new pipeline spur built off the huge Transco pipeline system. The Federal Energy Regulatory Commission (FERC) approved the project in February. The Hillabee Expansion Project is designed to expand the existing Transco pipeline’s capacity in Alabama beginning in May 2017, supplying gas to the proposed Sabal Trail pipeline. The Hillabee Expansion is designed to be constructed in three phases, adding a total of approximately 1,131,000 dekatherms per day (dt/d) of pipeline capacity to the Transco system by May 2021–enough natural gas to meet the needs of over 4 million American homes annually. So what does a new pipeline being built in Alabama have to do with the Marcellus/Utica? Quite a lot, as it turns out…
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Exporting | Industrywide Issues | Pipelines

Marcellus/Utica Gas Increasingly Heads to Canada via Pipeline
March 14, 2016March 14, 2016

In a low-price environment for natural gas, like the one we are in now, it’s every man (and woman) for himself. Marcellus/Utica drillers are scrambling to get their production to markets that pay enough to stay in business. While we still don’t have our own LNG export facility in the northeast, Cove Point, Maryland is under construction. But it won’t be ready for several more years. In the meantime, how can our drillers get product to international markets? One international market is obvious: Canada. It used to be that Canada sent natural gas to the U.S. It still does, but increasingly the flows are reversing and the U.S., especially in the Marcellus/Utica region, is sending natural gas to Canada. How? Using pipelines. Some of the pipelines are being built new. Some already exist and are getting reversed…
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Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Litigation | New York | Pennsylvania | Pipelines | Regulation | Statewide NY | Susquehanna County | Williams

Cabot Says Constitution Pipeline Delayed Yet Another Year – Thx NY
March 11, 2016March 11, 2016

In what appears to us to be a “might as well get all of the bad news out in one day” strategy, Cabot Oil & Gas announced yesterday (after losing a case related to water contamination in Dimock, PA) what everyone already knows: The Constitution Pipeline is delayed for yet another year. The Constitution is illegally being held up by New York Gov. Andrew Cuomo. The pipeline, approved by the Federal Energy Regulatory Commission in 2014, will run from Susquehanna County, PA to Schoharie County, NY where it will connect with two interstate gas pipelines. You can only clear trees until the end of March because threatened and endangered bats (don’t ask). New York has managed to delay the pipeline for another entire season. Instead of being ready later this year, the pipeline is now delayed until the second half of next year. Here’s what we want to know: When will Williams (building the pipeline) and Cabot, the major backer and beneficiary of the pipeline, sue New York in federal court to force the issue? When will they realize that Cuomo is NEVER going to approve it–that they will have to force the state to allow it? It’s time to wake up and smell the coffee. New York is run by a dictator…
Read More “Cabot Says Constitution Pipeline Delayed Yet Another Year – Thx NY”
Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | Pipelines | TC Energy/TransCanada

TransCanada Makes Play to Buy Columbia Pipeline for $10B
March 11, 2016March 11, 2016

It was only in mid-2015 that Columbia Pipeline Group broke away from parent NiSource to become it’s own company (see NiSource/Columbia Pipeline Divorce is Final). And lookie here… TransCanada, the company that Obama screwed out of building the Keystone XL Pipeline, is in serious talks to buy out/merge with Columbia. The deal being rumored is on the order of $10 billion. TransCanada confirms they’re talking with someone, but won’t specifically name Columbia. But everyone knows its Columbia. Such a combination would create a powerhouse midstream company in North America…
Read More “TransCanada Makes Play to Buy Columbia Pipeline for $10B”