Columbia Pipeline’s East Side Expansion Project Goes Online
Yes, it takes years from the first announcement of a new pipeline project until it’s done and “in service.” In October 2012 MDN told you about a new project from then NiSource and it’s Columbia Pipeline subsidiary called the East Side Expansion (see NiSource Announces Pipeline Expansion Project for Marcellus). Since that time NiSource and Columbia have been separated into two companies with Columbia Pipeline keeping the East Side Expansion project, a project that adds 312 million cubic feet per day (MMcf/d) on the Columbia pipeline system. East Side Expansion involves upgrading compressor stations and adding two short segments of new natural gas pipelines in Chester County, PA and Gloucester County, NJ (Philadelphia area). The Federal Energy Regulatory Commission (FERC) approved the project in December 2014 and construction began shortly after (see FERC Approves Columbia East Side Project in SE PA). Last Friday Columbia announced the East Side Expansion project was placed in service, three years after it was first announced. FERC is hardly the “rubber stamp” organization anti-fossil fuel objectors make it out to be, conducting multi-year top-to-bottom reviews to ensure public safety and to ensure the environment is not adversely affected by new pipeline projects…
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A Pennsylvania state judge last Tuesday dismissed a lawsuit by three Cumberland County landowners against Sunoco Logistics Partners over the company’s assertion of eminent domain to build the Mariner East 2 pipeline across their property. Sunoco is currently pumping propane through the Mainer East 1 pipeline and has plans to add a second and third pipeline next to the existing pipeline, collectively called Mariner East 2. All told, Sunoco LP is spending an eye-popping $3 billion to build out the Mariner East project which flows natural gas liquids (propane, ethane, others) from as far away as eastern Ohio to the Philadelphia-area Marcus Hook refinery. The judge, in tossing out the lawsuit, further strengthens Sunoco LP’s argument that the Mariner projects, which will distribute the NGLs flowing through them both within PA and beyond PA, is in fact a public utility under PA law and entitled to use eminent domain, if necessary, to build the project…
Dominion is a huge utility/pipeline company operating in 13 states and organized into multiple corporations–but all under the broad umbrella known as Dominion. One of the pieces of the company is called Dominion Transmission, Inc. (DTI)–the interstate and gathering pipeline segment of the company, headquartered in Richmond, VA. Dominion has just announced they will strip out the gathering pipeline bits of the business from DTI and put them into a new company (on paper) called Dominion Gathering & Processing, Inc. It also appears that DTI itself will be renamed to Dominion Resources, Inc. The value of the transaction (what Dominion will essentially pay itself) is $434 million for the gathering assets. Why all of the musical chairs and setting up new corporations on paper? This time it doesn’t appear to be about tax advantages, as it so often is. Dominion is making the change because gathering systems are not regulated under FERC (Federal Energy Regulatory Commission) rules the way interstate pipelines are. By unbundling the gathering pipelines/compressor plants/etc. from the company that operates the interstate pipeline, Dominion can better compete with others in the midstream space. That is, right now because the gathering assets are part of the same company as the interstate pipeline, those assets are subject to FERC regulatory hoops and nonsense–so Dominion is removing those assets from that nonsense–sort of untying their hands to be on a level playing field with others…
It’s been a while since we’ve heard anything about Pennant Midstream, a joint venture between Columbia Pipeline Group and Hilcorp’s midstream subsidiary Harvest Pipeline Company with assets located mostly in the Mahoning Valley area of Ohio. Columbia, the lead jv partner, announced today that Williams (currently being bought out by Energy Transfer Equity) will become the third partner in the jv. Williams will have an initial 5% ownership share, although it’s not clear to us how much they’ve initially invested for that 5%. However, should Williams want to pony up cash for expansions to the system, they can achieve a full one-third ownership in time. Here’s the announcement with the details Columbia has decided to share…
One reason why it takes so long to build a pipeline is the litigation necessary to make it happen. In September 2014, Dominion committed full force to building a 550-mile, $5 billion natural gas pipeline that will run from West Virginia, through Virginia and into North Carolina (see 
EQT and NextEra US Gas Assets plan to build the Mountain Valley Pipeline (MVP), a 330-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. There’s been plenty of pushback from landowners who won’t allow MVP access to survey (see 
Kinder Morgan continues to fight an uphill battle to get its Northeast Energy Direct (NED) pipeline project accepted and approved. In March MDN noticed that Kinder had failed to sign up any new customers in the previous eight month period, with commitments remaining at 500,000 dekatherms per day, equivalent to 1/2 Bcf/d (see 
Perhaps we now know the real reason why a group of anti-fossil fuel protesters decided to abandon their protest at the headquarters of PennEast Pipeline’s main sponsor, UGI. MDN told you yesterday how mainstream media in the New Jersey market covered a “massive” protest (of 35 people) who showed up at the Statehouse in Trenton during the day–with obviously nothing better to do–to protest against the PennEast Pipeline (see 
In an unusual move, the Wayne County (OH) Board of Commissioners has written to the Federal Energy Regulatory Commission (FERC) to oppose having Energy Transfer’s ET Rover pipeline come through the southern portion of their county, as currently planned. ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers that will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The bulk of the pipeline would run through Ohio, including southern Wayne County. The Board of Commissioners’ objection is unusual because Wayne is a mostly rural county with farms. Farmers, while not always welcoming of pipelines running through prized hay fields and crops, can sure use the money that would come from such a project. Farmers typically do support pipelines–and drilling. The commissioners cite safety concerns and damage to farmland in their letter to FERC…
Some 35 anti-fossil fuel wackos, apparently with no jobs, show up during a slow news day at the Statehouse in Trenton, NJ to protest the PennEast Pipeline and news outlets report it as a major story, implying there’s a huge movement against the pipeline. What about the 366,500+ residents who also live in Mercer County and who aren’t opposed to the PennEast and who didn’t turn out to protest it? Is that worth a story? Apparently not. Of course this tiny protest wasn’t spontaneous–it was organized, planned, hyped and paid for by nutty Sierra Clubbers and THE Delaware Riverkeeper (Maya van Rossum)…
It takes guts to walk boldly into the liberal lion’s den and tweak the nose of the beast. That’s what Marty Durbin, chief executive of America’s Natural Gas Alliance (ANGA), has done with an editorial appearing in yesterday’s Boston Globe newspaper. Durbin has the audacity to tell readers that their high energy bills and constrained natural gas supplies is “self-imposed.” He also tells them they can believe whatever they want, but they can’t defy the laws of supply and demand and there is no arguing the fact that New Englanders pay high energy prices because they lack necessary natural gas supplies. Just a few hundred miles away natgas prices in the Marcellus are a fraction of what gas sells for in New England. Marty pours it on! He also says a recent study shows without new natgas supplies for New England, by 2020 the average consumer will pay almost $1,000 more per year in energy costs than they do today. Read Marty’s audacious editorial for yourself below, full of cold, hard truth. Let’s hope New Englanders will see the light–which happens to be a blue natural gas flame…
One New England town shows how to “do it right” when it comes to dealing with a big pipeline company like Kinder Morgan. As we’ve covered (endlessly), Kinder’s Northeast Energy Direct (NED) project will expand the mighty Tennessee Gas Pipeline to run across parts of Massachusetts and New Hampshire before terminating near Boston. Anti-fossil fuel nutters demand the project be canceled–sentencing New Englanders to obscenely high gas and electric rates forever. One town–Amherst, NH–had concerns about the route and worked with Kinder Morgan to get the pipeline shifted to a route that works for them. This is how adults behave…
THE Delaware Riverkeeper, Maya van Rossum, and a bunch of her anti-fossil fuel pals delivered a letter on Wednesday to America’s most liberal governor, PA Gov. Tom Wolf, asking him to immediately suspend all further Marcellus drilling in the state and while he’s at it, stop building any new pipelines. They also “demand” (their words) that Wolf shut down his Pipeline Infrastructure Task Force which he created back in May (see 