Pipelines

CNG/LNG | Commodity Price | Crude Oil | Decline/Depletion Rates | Economic Impact | Education | Ethane | Exporting | Industrywide Issues | M&A | NGLs | Pipelines | Processing Plants | Regulation | Research | Reserves (Proved and Unproved)

Join MDN at RBN Energy’s “Summer in the City” Event July 23 – NYC
June 30, 2015July 9, 2015

MDN invites you to join us in attending RBN Energy’s “State of the Energy Markets” one-day event in New York City on July 23. Before you hurry to say “yes,” a few caveats. It costs money (a lot of it). It’s aimed at executives working in the industry, as well as traders and investors. If that describes you (and we know that many of you read MDN), you may be interested in attending. We guarantee it will be a great event. Rusty Braziel & company will provide an overview of the key issues facing natural gas, NGLs and the crude oil market. They will explain how the markets for those three commodities interact and affect each other. They will also take a look at prices, where they may be heading, and how infrastructure affects price. If you are really “into energy” as we are, this is a must attend event. Details are below, along with a link to register…
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Boardwalk Pipeline Partners | CNG/LNG | Energy Services | Exporting | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

Sabine Pass LNG Export Expansion Approved, Utica Gas Heading There?
June 29, 2015June 29, 2015

Good news for Marcellus/Utica drillers–especially those in the Ohio Utica. Last Friday the U.S. Dept. of Energy issued a final authorization for an expansion to Cheniere Energy’s Sabine Pass Liquefaction LNG export facility in Cameron Parish, Louisiana. The approval means Sabine Pass can now export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States. The approval expands export capacity at the facility by an extra 1.38 billion cubic feet of natural gas per day (Bcf/d), to a new total of 3.58 Bcf/d. Why is it good for Utica drillers? Because at least one pipeline project will connect from Ohio all the way to the Sabine Pass facility (see Texas Gas Seeks to Reverse Flow of Pipeline from OH to LA), meaning some Utica and Marcellus Shale gas will get exported from the Gulf Coast…
Read More “Sabine Pass LNG Export Expansion Approved, Utica Gas Heading There?”
Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

The Facts on Pipelines and Their Impacts on PA Landowners
June 29, 2015June 29, 2015

Pipelines, and opposition to them from shrill anti-fossil fuel kooks, seems to be the primary battlefield in the ongoing war against fossil energy. If we had a nickle for every time we’ve heard antis talk about pipelines exploding and other scare tactics, we’d be shaleionaires. When it comes to pipelines in Pennsylvania, where a number of projects are on the books, it helps to have the facts. Dave Messersmith, an educator and member of Penn State’s Marcellus Shale Education team, is a man with the facts when it comes to drilling and pipelines. Messersmith recently did a Q&A with the Allentown Morning Call newspaper and he shares important, impartial facts about pipelines and how they impact landowners…
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Electrical Generation | Industrywide Issues | Pennsylvania | Pipelines | Research | Statewide PA

PA Gas Outlook Report 2015 – Electric Plants Changing to Natgas
June 29, 2015June 29, 2015

Last week the Pennsylvania Public Utility Commission (PUC) released its annual Pennsylvania Gas Outlook Report, which provides insight into trends in the natural gas market, both nationwide and within Pennsylvania (full copy below). The report summarizes the financial and supply data for PA’s natural gas distribution companies (NGDCs) and looks at changes and trends in the natural gas market, including usage, financial status of utilities, and market pricing. The report is prepared to provide data about the regulated gas industry in Pennsylvania and the broader natural gas markets in the region and nationally. There’s lots of good information in the report. In particular we like the EIA list of pipelines due to be “in service” sometime in 2015 in the Marcellus/Utica region, included on page 6 of the report. The big news in the report is the dramatic increase in the change from coal to natgas for electric power generation–a trend that will continue to expand into the foreseeable future…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Medina County | NEXUS Pipeline | Ohio | Pipelines | Regulation

Medina County, OH Antis Trot Out Home Rule Ballot Measure
June 26, 2015June 26, 2015

In February the Ohio Supreme Court, once and for all, struck down so-called “home rule” legislation passed by local municipalities where anti-drillers are able to convince enough citizens to vote for it (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). When it comes to creating local laws and zoning ordinances that prohibit or otherwise try to control oil and gas drilling, Ohio state law stipulates only the State regulates it–not towns and villages and cities. That’s the law, and that’s the law the Supreme Court upheld. So along comes Sustainable Medina County, a group of virulent anti-fossil fuelers, with a new petition to put yet another so-called home rule “bill of rights” measure on the ballot in November, this time in an attempt to stop the NEXUS pipeline. What would you call this new initiative in light of the Supreme Court’s decision? We’d call it stark, raving mad…
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Blue Racer Midstream | Energy Services | Industrywide Issues | Monroe County | Ohio | Pipelines | Processing Plants | Statewide OH

Blue Racer Brings OH Processing Plant Online, Continues to Expand
June 25, 2015June 25, 2015

Blue Racer Midstream, a joint venture between Caiman Energy II and Dominion, shared the good news yesterday that a second 200 million cubic feet per day (MMcf/d) cryogenic processing plant at its Berne Natural Gas Processing Complex in Monroe County, OH (known as Berne II, yes, they name these things) is now online and operating. Berne II doubles the processing capacity at the plant. Blue Racer also operates a processing AND fractionation complex in Natrium, WV. A 30-mile Y-grade (NGL) pipeline connects the two facilities so that Berne can send along its NGLs to Natrium for further processing. Fractionaters like those in Natrium separate NGLs into their component hydrocarbons, including ethane, butane, propane, etc. In addition to Berne II going online, Blue Racer gave us a general update on the expanding health of their operation: They have 14 long-term major Marcellus/Utica drilling customers; 650 miles of gathering pipelines in OH and WV with another 200 miles of new gathering lines under construction; and gathered volumes have doubled, and processed volumes have tripled in just the last year…
Read More “Blue Racer Brings OH Processing Plant Online, Continues to Expand”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Columbia Pipeline Board Approves 2 Projects from NE to Gulf Coast
June 25, 2015June 25, 2015

In August 2014, MDN told you that Columbia Pipeline Group, a division of NiSource, had decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Rayne Xpress will beef up an existing pipeline from Leach, Kentucky that goes all the way to Rayne, Louisiana with new compressor stations and looping. The two projects together mean up to 2.7 billion cubic feet per day (Bcf/d) of natural gas can move through the entire system–from West Virginia to the Gulf Coast and all point in between. We commented on the funny name “Leach” for a pipeline. Looks like the marketers at Columbia thought twice about it because the name has changed–for both projects. At least we think so. Yesterday Columbia issued a press release to announce the board of directors has signed off on $2.7 billion worth of investment in two projects: Moutaineer XPress and Gulf XPress. Descriptions for the two projects are almost identical to the descriptions for the Leach and Rayne XPress projects. About the only difference is that the price tag went up for the pair of projects by a billion bucks. The key takeaway from the announcement for us? The capacity to move another 2.7 Bcf/d of Marcellus and Utica Shale gas out of the northeast is on the way in the next couple of years…
Read More “Columbia Pipeline Board Approves 2 Projects from NE to Gulf Coast”
Energy Services | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

The Landman Cometh – Sunoco Seeks Easements for Mariner East 2
June 24, 2015June 24, 2015

Landmen for Sunoco Logistics have begun knocking on doors and talking to residents in nine municipalities in Chester County and six in Delaware County (Philadelphia area) to sign easements to allow the Mariner East 2 pipeline to be built through their property. Sunoco wants to begin construction in early 2016. Meetings have cropped up for landowners to hear information about the project, and get information about what their rights are and what terms they should seek before signing an easement. What is Sunoco offering in the way of compensation? It varies from landowner to landowner, depending on where the land is located and how much land they must cross. We do know how much the company offered one resident, in Uwchlan Township (Chester County)…
Read More “The Landman Cometh – Sunoco Seeks Easements for Mariner East 2”
Anti-Drilling/Fossil Fuel | Athens County | Industrywide Issues | Ohio | Pipelines

Radicalized Ohio U Students Vandalize Pipeline Construction Site
June 24, 2015June 24, 2015

Here is another story in our ongoing series of how people have become radicalized by the Big Green movement, turning into law-breakers in the name of saving Mother Earth. This latest story comes from a hotbed of radicalization–Athens, Ohio–where a small group of Ohio University students, complete with orange T-shirts with the slogan “OU Green Energy NOW!” on them, shoveled dirt back into a trench dug to lay a natural gas pipeline. They also wrapped construction equipment at the site with caution tape and plastered stickers on building materials at the site with labels saying “Recalled Due to Improper Energy Policy”. Once again we see a bunch of (in this case) mis-educated Ohio University students who grew up watching Captain Planet reruns, listening to liberal college professors, and believing every word of what they saw on Saturday morning cartoons and what they hear in the lecture hall–that mom and dad and Big Oil companies are destroying Mom Earth and the polar bears. That is, they’ve been brainwashed and now radicalized…
Read More “Radicalized Ohio U Students Vandalize Pipeline Construction Site”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Transco

Mass. DPU Rejects Anti Group’s Request to Join Pipeline Hearing
June 24, 2015June 24, 2015

ENOUGH of these anti-pipeline, anti-drilling, dump-all-fossil fuels protesters and their strategies to stop pipelines in New England. That’s essentially what the Massachusetts Department of Public Utilities (DPU) said in refusing to allow the anti-pipeline group Pipeline Awareness Network for the Northeast (PLAN-NE) “full intervenor status” at a series of hearings the DPU will hold today, tomorrow and Friday to consider whether the contracts sought by the local gas distribution companies (local gas utilities) who want to get cheap, abundant and clean-burning Marcellus natural gas from Kinder Morgan’s proposed Northeast Energy Direct pipeline, are in the public interest. The DPU wants to concentrate on the real issues at hand and not be distracted and derailed by the antics of anti-pipeliners, so the DPU turned down PLAN-NE’s request…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Taxation

For the Children: ET Rover Pipeline $91M in School Taxes 1st Year
June 23, 2015June 23, 2015

In the ongoing fracking wars, pipelines are the latest flash point for irrational anti-drillers. It used to be no one thought twice about a new pipeline going in the ground. But fear mongers from Big Green organizations like the Sierra Club claim those pipelines are a connection straight to Lucifer. We’ve seen groups of anti-fossil fuelers oppose pipelines like the PennEast, the Constitution, the Northeast Energy Direct and many others. One of those many others is the ET Rover pipeline, 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. ET Rover is a project of Energy Transfer, the company making a play to take over Williams (see our other stories on that topic). This story is about ET Rover’s campaign to overcome opposition in Ohio where the majority of the pipeline (570 miles of it) will run. According to a press release issued yesterday, the ET Rover pipeline will generate more than $135 million in ad valorem tax revenue for Ohio during its first year in operation. Of that $135 million, an estimated $91 million will be directed to more than 36 local school districts. Perhaps the nutters opposing the pipeline should rethink their opposition before they screw their own kids out of $91 million? As you know, it’s always for the chil’ren. Libraries, hospitals, parks and senior centers are among other local entities that will benefit from the tax revenue from ET Rover…
Read More “For the Children: ET Rover Pipeline $91M in School Taxes 1st Year”
Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Taxation

Philly Area Dem State Senator Introduces Plan to Tax Pipelines
June 19, 2015June 19, 2015

State Senator Andy Dinniman, Democrat from Chester (Delaware County), PA, has just introduced a new bill in the PA Senate that would require natural gas and natural gas liquids (NGL) pipelines to pay local and school property taxes in the Keystone State. His rationale is that pipelines should be required to help the communities that they affect (by traversing) in the same way the impact fee helps communities where drilling takes place. Good idea, or bad?…
Read More “Philly Area Dem State Senator Introduces Plan to Tax Pipelines”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Statewide WV | Virginia | West Virginia

New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline
June 19, 2015June 19, 2015

A small group of partisan, liberal, left-wing Democrats pretending to be a huge group of “concerned residents” from “Virginia and West Virginia” have formed a self-important group called Allegheny-Blue Ridge Alliance to oppose the 550-mile, $5 billion Dominion Atlantic Coast Pipeline project that will run from West Virginia into Virginia (benefiting the residents of both states) and on into North Carolina. MDN told you earlier this week about a group of RINOs and Democrats working together–wealthy gentry class landowners–working to stop the Atlantic Coast Pipeline from traversing their horse farms (see Virginia RINOs in League with Dems to Stop Atlantic Coast Pipeline). That group, called “All Pain No Gain”, is not among the members of Allegheny-Blue Ridge Alliance. This new coalition or group of groups is, in typical fashion, against all proposed routes for the Atlantic Coast Pipeline. It is an unreasonable and irrational fossil fuel-hating position–being “reported” by “news organizations” like the Associated Press as just an ordinary group of concerned citizens with legitimate concerns. It’s NOTHING of the sort…
Read More “New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline”
Energy Services | Industrywide Issues | Kinder Morgan | NGLs | Pipelines | Tennessee Gas Pipeline

KM’s SECOND Binding Open Season for Utica/Marcellus NGL Pipeline
June 18, 2015June 18, 2015

Last summer, in response to a reader’s query, MDN went nosing around to bring you the status of what had been called Kinder Morgan’s Y-Grade NGL pipeline from the Utica/Marcellus to the Gulf Coast. We found, at the time, the project is still very much alive (see Kinder Morgan Y-Grade NGL Pipeline from NE to SW Still Alive). We also learned at that time the name had been changed to be the Utica Marcellus Texas Pipeline (UMTP) Project. Kinder Morgan’s plan is to repurpose nearly 1,000 miles of existing Tennessee Gas Pipeline, reversing the flow to go from north to south, and changing the hydrocarbons in the pipeline to be NGLs. As we pointed out in December, that has some of the anti-pipeline kooks in Kentucky all riled up (see KY Antis Now Opposing Kinder Morgan Y-Grade NGL Pipeline). Yesterday Kinder Morgan announced a binding open season to sign up shippers for UMTP (see the announcement below). But wait a minute! KM ran an binding open season in January/February 2014. Must be they had no (or few) takers then. Will they get enough customers the second time around?…
Read More “KM’s SECOND Binding Open Season for Utica/Marcellus NGL Pipeline”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route
June 18, 2015June 18, 2015

Last Friday the NEXUS Gas Transmission pipeline, a $1.5-$2.0 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada, filed a full set of twelve draft environmental Resource Reports with the Federal Energy Regulatory Commission (FERC). A summary of the filing (included below) shows there are six large customers for the pipeline in Ohio (gas processors, utilities and large industrial companies). In addition to information about who will use the pipeline and the economic benefits that will come from the pipeline, NEXUS also filed information on alternative routes for the pipeline. Of note, one alternative route, proposed by the Coalition to Reroute NEXUS (CORN, which we’ve dubbed CORNy), is flat out rejected by NEXUS. CORNy wants to move the pipeline away from the Canton-Akron area. NEXUS says that’s a bad idea, for lots of reasons…
Read More “NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route”
Delaware County (PA) | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Washington County

Business & Labor Unions Join Forces to Promote Pipelines in PA
June 18, 2015June 18, 2015

You don’t normally think of local Chambers of Commerce (business owners) and labor unions (rank and file workers) as breaking bread together. And they NEVER commingle their membership roles in order to lobby local, state and federal authorities on policy and regulation. Until now, that is. In Pennsylvania, two Chambers of Commerce on opposite sides of the state, the Delaware County Chamber and the Washington County Chamber, along with two labor unions, the Laborers’ International Union of North America (LiUNA) with 25,000 members and the International Union of Operating Engineers (IUOE) Local 66 with 7,000 members, have all joined forces. And what has the power to cause management and labor to join forces? The Marcellus Shale. The four organizations together have formed the Pennsylvania Energy Infrastructure Alliance, a “broad-based coalition in support of timely approval for critical energy infrastructure in the Commonwealth.” The main focus of the Alliance is to promote the benefits and building of pipelines…
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