Pipelines

Commodity Price | Industrywide Issues | Pipelines | Research

EIA: New Pipelines Continue to Boost Marcellus/Utica Gas Prices
January 28, 2016January 28, 2016

It’s a pretty simple case of cause and effect, and economics 101. If you build more natural gas pipelines from the northeast to other regions, drillers can sell their gas to new markets. New demand = higher prices. And that’s just what’s happening in the Marcellus/Utica. The U.S. Energy Information Administration (EIA) pointed out in a recent Natural Gas Weekly Update that prices being paid in the Marcellus/Utica have gone UP because of new pipelines (see New Pipelines in the Marcellus Dramatically Improved Prices in 2H15). The great researchers at EIA have now expanded on that theme and have posted a new article on their Today in Energy which expands on that theme…
Read More “EIA: New Pipelines Continue to Boost Marcellus/Utica Gas Prices”
Electrical Generation | Industrywide Issues | Pipelines

ISO New England: We Need More NatGas, Pipelines for Electric Grid
January 28, 2016January 28, 2016

ISO New England, the independent, not-for-profit corporation responsible for keeping electricity flowing across the six New England states, held a conference call/webinar on Tuesday. On the call, Gordon van Welie, president and CEO of ISO New England delivered a “state of the grid” address. On the call van Welie revealed that 49% of all electricity produced in New England now comes from natural gas-fired power plants–a number that will only go higher as nuclear and coal facilities are shuttered. According to van Welie, more gas-fired plants are needed, and pipelines like Kinder Morgan’s Northeast Energy Direct (NED) and Spectra Energy’s Access Northeast are needed to get cheap Marcellus gas to the region. Natural gas and electric generation are truly joined at the hip. The relationship is between natgas and electricity is tight and getting tighter as electric generation becomes a key market for drillers…
Read More “ISO New England: We Need More NatGas, Pipelines for Electric Grid”
Industrywide Issues | Pipelines | Regulation

FERC Investigates 3 Northeast Pipelines for Overcharging
January 27, 2016January 26, 2016

The Federal Energy Regulatory Commission (FERC) has 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.” Although you might think the free market would govern what pipelines charge, pipelines, like other utilities, don’t operate in a totally free market. You can’t just up and leave one pipeline and take your gas to another. The government grants permission to operate, and the government keeps an eye on the rates charged–just like they do with your local gas and electric company. In the case of interstate pipelines, the government agency monitoring how much they charge is FERC. Apparently someone complained and FERC is now on the case. The three pipelines in the northeast under investigation are: Empire Pipeline, Iroquois Gas Transmission System and Columbia Gulf Transmission…
Read More “FERC Investigates 3 Northeast Pipelines for Overcharging”
Crude Oil | Industrywide Issues | NGLs | Pipelines | Regulation

API & GPA Say PHMSA Regs for Liquids Pipelines Not Necessary
January 27, 2016January 26, 2016

Last October the Dept. of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a notice of proposed rulemaking for new regulations governing hazardous liquid pipelines. It appears to be another case of aggressive action by the Obamadroids, bent on hassling the fossil fuel industry by requiring unnecessary regulations that don’t really improve safety. They just cost more money and take more time. The new rules will require safety inspections after “extreme” weather events and natural disasters–just to be sure there aren’t any leaks. Stepped up inspections would be required even if no problems are found–just to be sure no problems are found. The new regs also require all hazardous liquids pipelines to be piggable–something not physically possible with some pipelines. The list goes on. Recently both the American Petroleum Institute (API) and the Gas Processors Association (GPA) weighed in on the proposed new regulations. Needless to say they’re not impressed…
Read More “API & GPA Say PHMSA Regs for Liquids Pipelines Not Necessary”
Chenango County | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Cuomo Needs to “Snap on a Pair” and Approve the Constitution Pipe
January 26, 2016January 26, 2016

Constitution Pipeline Meeting in Afton – click picture for larger version

“What do we want? Pipeline! When do we want it? Now!” It was a raucous crowd who gathered last Saturday in the tiny village of Afton, New York to show support for the Williams Constitution Pipeline project. The River Club in Afton was jammed with people–by our estimation some 250-300 people. The meeting was organized and hosted by the Joint Landowners Coalition of New York (JLCNY). The JLCNY’s attorney, Scott Kurkoski (from Levene Gouldin & Thompson LLP) began the meeting with a full-throated yell: “New York Can’t Wait!” That simple sentence summed up the focus of the rally. The Constitution Pipeline is fully permitted by the Federal Energy Regulatory Commission (FERC). The only thing holding up construction of the pipeline is a stream-crossing permit from New York State. The tail is wagging the dog. Speaker after speaker (politicians, business people, labor reps) outlined the reasons why New York State can no longer wait for Gov. Cuomo to continue his waffling on this project. The frustration with Cuomo and the DEC was palpable in the audience. Whenever Cuomo’s name was mentioned there were cat calls and boos. Perhaps the best line of the day, from all of the speeches, was uttered by Assemblyman Clifford Crouch. Cliff mentioned he had called the Dept. of Environmental Conservation (DEC) just a few days prior to ask about the status of the permits. Without saying so, the DEC rep indicated the delay is not due to the agency itself. The implication was clear: Cuomo is holding it up. Crouch then said this: “We need to contact Snap-on Tools and get the governor a pair to snap on!” The crowd roared. They loved it!…
Read More “Cuomo Needs to “Snap on a Pair” and Approve the Constitution Pipe”
Energy Companies | Energy Services | EQT Corp | Industrywide Issues | Pipelines

Con Edison Becomes a Partner in Mountain Valley Pipeline
January 25, 2016January 25, 2016

The $3.5 billion Mountain Valley Pipeline (MVP) stretching from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA filed an official application with the Federal Energy Regulatory Commission last October (see Mountain Valley Pipeline Files FERC Appl, Now Just Matter of Time). It’s now working its way through the process. Along the way, the number of project partners expanded from the original EQT and NextEra Energy to include WGL Holdings, Vega Energy Partners, and RGC Resources. You can now add one more partner: Consolidated Edison. Con Edison is purchasing a 12.5% interest in the pipeline and at the same time signed a 20-year deal to buy/move 250,000 dekatherms per day of natural gas on the pipeline. In a related deal, Con Edison also agreed to a 20-year firm transportation agreement for 250,000 dekatherms per day on the Equitrans system, located in northern West Virginia and southwestern Pennsylvania, providing more direct access to supply resources upstream of MVP…
Read More “Con Edison Becomes a Partner in Mountain Valley Pipeline”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

US Forest Service Blocks Atlantic Coast Pipeline in National Forests
January 25, 2016January 25, 2016

Cow Knob Salamander

In the end it was the cow nobs and red spruce that have slowed down Dominion’s $5 billion Atlantic Coast Pipeline (ACP) project from West Virginia through Virginia and into North Carolina. Specifically, the U.S. Forest Service (USFS) has refused to grant Dominion a special permit to cross teeny tiny sections of the Monongahela and George Washington national forests in West Virginia and Virginia. Why? Because of concerns about cow knob salamanders, northern flying squirrels and red spruce trees. Just last November MDN told you that Dominion and ACP were bending backwards, forwards and sideways to avoid running through cow nob salamander territory (see Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp). Apparently the USFS doesn’t think Dominion’s plan is good enough. It’s now back to the drawing board to see where, in those regions, ACP can safely be run to avoid radical environmentalist demands. Of course the answer is “no where” as they are always unreasonable about these things. There is no “how can we work this out to your satisfaction” when it comes to nut cases. The antis simply demand, like petulant children, that you not do it at all. Which is just what the other side is now saying about ACP…
Read More “US Forest Service Blocks Atlantic Coast Pipeline in National Forests”
Industrywide Issues | Pipelines | Regulation

FERC Takes it Time with 5 Marcellus/Utica Pipeline Projects
January 25, 2016January 25, 2016

“Your wait time is 12-18 months, please hold.” That’s what the Federal Energy Regulatory Commission (FERC) is telling midstream companies anxious to build new pipelines in the Marcellus/Utica. Five major pipeline systems representing $15 billion of investment are currently on hold while FERC runs through it’s sloooooow process of approval. FERC’s response/excuse is that it takes 12-18 months, period. Like it or lump it. The five pipelines now on hold in the southwest PA/eastern OH/WV area include: Atlantic Coast Pipeline, Rover Pipeline, Nexus Pipeline, Leach Express Pipeline and the Mountain Valley Pipeline. Rover filed its application with FERC last February, so they’re not even a full year into the process yet. The others filed later. Although industry groups are trying to pressure FERC (via publicity) FERC isn’t moved by calls to speed up the process…
Read More “FERC Takes it Time with 5 Marcellus/Utica Pipeline Projects”
Anti-Drilling/Fossil Fuel | Crime | Dauphin County | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

7 Antis Arrested at Final PA Pipeline Task Force Meeting
January 22, 2016January 22, 2016

Yesterday we reported on the very last Pennsylvania Pipeline Infrastructure Task Force meeting, held in Harrisburg on Wednesday (see PA Pipeline Task Force Wraps Up – Did We Worry for Nothing?). Once again anti-fossil fuelers disrupted the meeting, which is nothing new. Last October a group of 20 or so antis showed up and behaved badly (see PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed”). At Wednesday’s final Task Force meeting, seven protesters behaved badly enough that they got themselves arrested. To their credit, the Democrat-run PBS StateImpact Pennsylvania is the only “media” outlet that covered the news of the arrests…
Read More “7 Antis Arrested at Final PA Pipeline Task Force Meeting”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

MA Town Plans to Raise Taxes to Oppose 1 Mile of NED Pipeline
January 22, 2016January 22, 2016

Part of the Kinder Morgan expansion of the Tennessee Gas Pipeline in New England, called Northeast Energy Direct (NED) is due to go through the Town of Warwick, MA. Warwick sits on the Massachusetts/New Hampshire border. Town leaders are opposed to the pipeline running through their town. In order to fight it, the town has opened a voluntary fund that residents can contribute to, to help with legal fees. Apparently the town “fathers” (and “mothers”) don’t have much hope anyone is going to contribute, because they want to allocate money from the town–and raise residents’ taxes in order to do it. Some Warwich residents aren’t thrilled with the prospect, since they’re already taxed up to the eyeballs. Here’s the kicker: Only about one mile of pipeline will traverse the Town of Warwick. They want to soak taxpayers to oppose a project that’s one mile of pipeline. Really? Are they really that radicalized against fossil fuels?…
Read More “MA Town Plans to Raise Taxes to Oppose 1 Mile of NED Pipeline”
Chenango County | Energy Services | Industrywide Issues | New York | Pipelines | Williams

Rally to Support Constitution Pipeline in Afton, NY Tomorrow
January 22, 2016January 22, 2016

As we’ve previously mentioned, a few times, there will be a meeting tomorrow in Afton, NY to support the Constitution Pipeline. The Joint Landowners Coalition of New York (JLCNY) is sponsoring this rally to support the Constitution. MDN editor Jim Willis plans to be there–and we hope you do too. Meeting details are listed below. It’s time–in our opinion long past time–to sue the state and force the issue. It’s time to build the Constitution Pipeline!…
Read More “Rally to Support Constitution Pipeline in Afton, NY Tomorrow”
Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Pipeline Task Force Wraps Up – Did We Worry for Nothing?
January 21, 2016January 21, 2016

Looks like we worried for nothing. Yesterday was the final meeting of the PA Pipeline Infrastructure Task Force. When it was first formed last May, we worried that local gathering pipelines would get wrapped around a regulatory axle (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). The situation seemed even grimmer when Wolf and Quigley packed the task force with government workers–half of the 48 members work for the government (see PA Gov Wolf Packs Pipeline Task Force with His Own Minions). After months of squabbling, Task Force members produced a 335-page document with 184 “recommendations” last November (see PA Gathering Pipeline Draft “Recommendations” from Wolf Task Force). As we noted at the time, “recommendations” have a way of becoming “regulations” in the hands of LibDems. But it appears the Task Force was a paper lion after all. At least one prominent member of the Task Force (Democrat Sen. Andy Dinniman) is moaning that he thinks nothing will come of the work from the Task Force…
Read More “PA Pipeline Task Force Wraps Up – Did We Worry for Nothing?”
Bradford County | Energy Services | Industrywide Issues | Kinder Morgan | Lackawanna County | Pennsylvania | Pike County | Pipelines | Tioga County (PA)

Kinder Morgan 4Q15: Cutting Dividend, PA Pipeline Progress
January 21, 2016January 21, 2016

Yesterday Kinder Morgan, the largest midstream company in the U.S., released their fourth quarter 2015 update. The update starts with the news that KM is lowering the cash dividend in order to avoid chasing new loans. KM says by cutting the dividend they will be able to self-fund new projects, which ultimately benefits everyone, including shareholders. The update also chronicles progress made on three Pennsylvania pipelines: the Susquehanna West Project (Tioga and Bradford counties, the Orion Project (Pike County), and the Triad Expansion Project (Lackawanna County). Below is the full update from KM…
Read More “Kinder Morgan 4Q15: Cutting Dividend, PA Pipeline Progress”
Energy Companies | Energy Services | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA | Sunoco Logistics

Range Resources Ethane Heading to Marcus Hook Beginning February
January 20, 2016January 20, 2016

Range Resources’ ethane will start to flow through a “fully operational” Mariner East 1 pipeline to the Marcus Hook refinery in February, according to an announcement by Range. Mariner East 1 has been up and running for some time, but has not, until now, flowed ethane. Yesterday’s announcement states the ethane will be loaded onto ships. Range doesn’t say where the ethane on those ships will go, but we already know that part of the story. The ethane (at least some of it) is headed for Norway, Scotland and possibly Panama (see Ineos Gets Ready to Begin Ethane Exports from Marcus Hook, PA). Here is the fantastic news that the Mariner East 1 pipeline is about to be fully, 100% ethane operational, after a very long battle to complete it…
Read More “Range Resources Ethane Heading to Marcus Hook Beginning February”
Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Williams’ Transco Pipeline Floats New IOUs to Raise $1 Billion
January 20, 2016January 20, 2016

Transcontinental Gas Pipe Line Company (Transco), is a pipeline that runs from Pennsylvania to the Texas Gulf Coast. Transco is a wholly owned subsidiary of Williams Partners L.P., and Williams Partners is part of Williams. Williams, including Transco, is about to become part of Energy Transfer Equity (see Williams Board “Unanimously” Committed to Selling to ETE). In a pair of announcements yesterday, Williams revealed that Transco will float new notes (also known as private debt, what we call IOUs). Transco will use the money they raise from these new IOUs to pay off $200 million of existing IOUs coming due in 2016. New debt to replace old debt. That’s what the first announcement revealed. The second announcement said not only do they want to pay off that $200 million coming due this year, they actually want to raise $1 billion (!) and the new IOUs will be due and payable in 2026–ten years from now. So what do they plan to do with the other $800 million not used to pay off old debt?…
Read More “Williams’ Transco Pipeline Floats New IOUs to Raise $1 Billion”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

NY AG Objects to Williams Tree Clearing for Constitution Pipeline
January 19, 2016January 19, 2016

This one was easy to predict. Last week we told you that Williams had asked, and received permission from the New York Dept. of Environmental Conservation (DEC), to begin clearing trees along the path of the Constitution Pipeline in upstate New York (see Williams Plans to Start Clearing Trees for Constitution Next Week). Anti-fossil fuelers went squealing like petulant three year-olds to their favorite “parent,” Attorney General Eric Schneiderman, asking daddy to stop Williams from killing trees. And so last Thursday Schneiderman filed an objection to the tree-clearing plan with the Federal Energy Regulatory Commission (FERC), to placate the petulant three year-olds that are his favorite constituents. The question now is, will FERC put a halt to the tree clearing, which must happen before April 1st when it becomes bat season and companies can no longer clear trees for fear of roosting Northern long-eared bats…
Read More “NY AG Objects to Williams Tree Clearing for Constitution Pipeline”