Pipelines

Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines

ET Rover Pipeline Fully Subscribed, Project Scope Revised Up
October 31, 2014October 31, 2014

In June MDN told you about yet another new pipeline coming to the northeast to help alleviate infrastructure bottlenecks with getting our plentiful gas to market. Energy Transfer Partners announced the ET Rover pipeline project that will connect Pennsylvania, West Virginia and Ohio to Canada (see Big News: ETP “Rover” Marcellus/Utica Pipeline to Midwest/Canada). Yesterday ETP issued a press release to crow that the pipeline is now “fully subscribed”–that is, all available capacity has been spoken for with 15 to 20 year contracts. Interestingly, MDN noticed two key differences between this announcement and previous announcements…
Read More “ET Rover Pipeline Fully Subscribed, Project Scope Revised Up”
Energy Services | Industrywide Issues | NiSource | Pipelines

NiSource 3Q14: A Lot of Irons in the Fire, Spending Billions
October 31, 2014October 31, 2014

NiSource, owner of the Columbia Pipeline Group (with lots of projects cooking in the northeast) issued its third quarter 2014 update yesterday. We have a fair bit of news in the release about their midstream activities in the Marcellus and Utica Shale region. They also update progress on their massive modernization project in replacing a lot of existing pipeline in the northeast–to the tune of $12-$15 billion over the next 10 years. The update highlights progress for the recently announced Leach and Rayne XPress projects, the WB XPress, Mountaineer XPress and the Washington County Gathering project. There’s a lot in there!…
Read More “NiSource 3Q14: A Lot of Irons in the Fire, Spending Billions”
Accidents | Blue Racer Midstream | Energy Services | Industrywide Issues | Monroe County | Ohio | Pipelines

Blue Racer Condensate Pipeline Ruptures/Burns in Monroe County, OH
October 30, 2014October 30, 2014

A Blue Racer Midstream condensate pipeline caught fire early Tuesday morning near Cameron (eastern part of Monroe County, OH). Condensate is lighter than crude oil but heavier than natural gas liquids. Think of it as really light oil. Blue Racer’s condensate pipeline runs from Utica wells in eastern Ohio to Blue Racer’s processing plant in Natrium, WV. According to officials, the rupture in the 8-inch pipeline burned for several hours and burned several acres of surrounding woods before burning itself out. Fortunately it was a remote area where the accident occurred and no one was injured…
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Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Mariner East NGL Pipeline Begins Tests in Lebanon, PA
October 30, 2014October 30, 2014

It’s funny how reading anti-drilling media reports you get the impression that projects like Sunoco Logistics’ Mariner East Pipeline may be in jeopardy. The pipeline runs 300 miles from the western edge of Pennsylvania (and beyond) to southeastern PA in the Philadelphia area–to the Marcus Hook refinery. The pipeline, which will flow ethane and propane (natural gas liquids) is already in the ground except for a few miles in western PA. The only thing needed is approval to build 18 pump stations and 17 valve control stations in 31 municipalities along the route. Some of the municipalities are resisting by throwing up legal roadblocks (see West Goshen’s Legal Shenanigans Try to Block Mariner East Pipeline). Meanwhile, Sunoco plows ahead and has started testing the pipeline, to get it ready to go. In other words, this is not a question of if, it’s a question of when…
Read More “Mariner East NGL Pipeline Begins Tests in Lebanon, PA”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Statewide PA | UGI Energy Services

Spectra Energy Becomes 6th Partner in PennEast Pipeline Project
October 30, 2014October 30, 2014

The more the merrier. The quintet of companies who are partnering to build the 100-mile PennEast Pipeline from northeastern PA to Trenton, NJ has turned into a sextet. Large regional utility company UGI has been/continues to be the lead company building the pipeline (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The other original investors were AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries. In September, the four original partners were joined by PSEG Power, New Jersey’s largest utility (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). Now it’s partner number six: Spectra Energy…
Read More “Spectra Energy Becomes 6th Partner in PennEast Pipeline Project”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

MDN is Outraged at Massachusetts Anti-Pipeline Outrage
October 29, 2014October 29, 2014

We’re outraged at the outrage of hypocritical anti-drillers. An article from Massachusetts begins this way: “Gas pipeline opponents throughout the state of Massachusetts are outraged about a new pipeline support coalition that has formed because the group not only has ties to the company trying to put the pipeline in place, but is also putting big businesses before residential concerns.” That set us off! Here’s what we’re outraged about…
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Antero Resources | Energy Companies | Industrywide Issues | Pipelines | Processing Plants

Antero Resources Launches Midstream IPO, Seeks $1B+
October 28, 2014October 28, 2014

Can Antero Resources do it again? A little over a year ago, in October 2013, Antero, one of the biggest players in the Marcellus/Utica Shale, floated an initial public offering (IPO) for the company, called “taking it public” because shares of stock will be owned and traded on a public stock exchange–and raised an incredible $1.57 billion (see Antero’s IPO Fetches $1.57B, Company Valued at $11B!). Antero is hoping lightening will strike twice, and indeed it may. Yesterday the company announced that it will spin off its midstream division into a new wholly-owned subsidiary, under a master limited partnership (MLP) structure, and offer “units” (think shares of stock) that will be publicly traded. The company plans to offer more than 43 million units to investors and if it gets the target $19-$21 per unit, the grand total will once again exceed $1 billion of new investment…
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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH

Texas Gas Seeks to Reverse Flow of Pipeline from OH to LA
October 28, 2014October 28, 2014

Texas Gas Transmission owns an extensive natural gas pipeline system with about 6,100 miles of pipelines. Some 690 miles of that system runs from the Gulf Coast in Louisiana all the way to southwest Ohio (see map below). Earlier this month, Texas Gas, a wholly-owned subsidiary of Boardwalk Pipeline Partners, filed a request with the Federal Energy Regulatory Commission (FERC) to reverse the flow on their 690-mile segment and begin to carry Marcellus and Utica Shale gas from the northeast to the south. Actually, what they want to do is turn the pipeline into a bi-directional flow–so the gas can go either way. The project is called the Ohio-Louisiana Access Project and no new pipeline is needed–just modifications of yard and station piping at four existing compressor stations along with building one new compressor station (project cost of $115 million). Here’s the details…
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Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Regulation

NC Regulator Vote Means $5B Atlantic Coast Pipeline Moves Forward
October 28, 2014October 28, 2014

An important milestone has been achieved on the way to building the $5 billion Atlantic Coast Pipeline–a project that will run from West Virginia through Virginia and into North Carolina (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). The important milestone that just happened is the approval of North Carolina regulators that will allow Duke Energy and Piedmont Natural Gas to make contracts between their utilities and commercial divisions for gas transportation on the proposed pipeline. That is, by unanimous vote, the regulators just gave these companies permission to do business with themselves. Let us explain…
Read More “NC Regulator Vote Means $5B Atlantic Coast Pipeline Moves Forward”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Union Calls Sen. Markey/Warren Pipeline Opposition “Vulgar”
October 28, 2014October 28, 2014

Last week MDN told you that both Massachusetts U.S Senators–Edward Markey and Elizabeth Warren–have turned against Kinder Morgan and their planned expansion of the Tennessee Gas Pipeline across the state (see Both Mass. Senators Oppose TGP Northeast Energy Direct Pipeline). Both Senators are, unsurprisingly, Democrats. So it was with some surprise that we noticed a schism among the Democrats on the pipeline. The Laborers’ International Union of North America (LIUNA) is calling comments by Markey and Warren to FERC “a vulgar attempt to politicize our nation’s energy regulatory agencies.” Them’s fightin’ words–especially coming from a normally Democrat stronghold (a labor union). Here’s some even stronger words from LIUNA…
Read More “Union Calls Sen. Markey/Warren Pipeline Opposition “Vulgar””
Access Midstream Partners | Energy Services | Industrywide Issues | Pipelines | Processing Plants | Williams

Deal Details for Williams/Access Midstream Merger – TTV of $50B!
October 27, 2014October 27, 2014

One of the biggest–perhaps THE biggest–midstream stories of 2014 is the buyout of Access Midstream by Williams (see Big News: Williams Partners Buying Access Midstream for $6B). Access Midstream, formerly Chesapeake Midstream, has a big footprint in the Marcellus/Utica region. Yesterday (Sunday night) Williams and Access issued a joint statement that the merger plan is now done. The deal outline is settled–and now it’s down to the lawyers and approvals from the government. They expect the completed merger/takeover by Williams to be done “by early 2015.” Yesterday’s announcement (below) gives the blow by blow of the negotiated deal. It also outlines the roles that Access’ corporate officers will play in the newly combined company. As MDN said initially, this deal has the makings of creating a worthy challenger to Kinder Morgan, the nation’s largest midstream company. We originally estimated the combined value of Williams and Access combined would be around $38 billion. According to the announcement yesterday, the “total transaction value” (TTV) of this deal will be ~$50 billion!…
Read More “Deal Details for Williams/Access Midstream Merger – TTV of $50B!”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Pipelines | Williams

Constitution Pipeline Gets FERC Final Environmental Approval
October 27, 2014October 27, 2014

A VERY key piece of the puzzle for building the 124-mile Constitution Pipeline from Susquehanna County, PA north all the way to Schoharie County, NY fell into place late last week. On Oct. 24, the Federal Energy Regulatory Commission (FERC) issued final environmental review of the proposed pipeline, being built by Williams (with major partner Cabot Oil & Gas, whose gas will flow through it). The final environmental impact statement (EIS) issued by FERC says the pipeline can be built with a minimum impact to the environment. What potential obstacles now remain? Very few. FERC will issue a final “Order” to authorize the pipeline and is expected to do so by Jan. 22, 2015. Game over for anti-drillers on this one. They lost…
Read More “Constitution Pipeline Gets FERC Final Environmental Approval”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Tennessee Gas Pipeline

Deerfield MA “Bans” Kinder Morgan TGP Pipeline – Or So They Claim
October 24, 2014October 24, 2014

In September MDN pointed out the antics of the silly nutters in the Town of Deerfield, Massachusetts. The county Board of Health claims they have “unlimited power” to stop the Tennessee Gas Pipeline from coming through their township, if they decide to exercise their impressive (super) powers (see MA Town Health Board Claims “Unlimited Power” to Stop TGP). They’ve just decided to exercise those “powers.” In a breathtakingly bold (and stupid) move, they’ve served notice to Kinder Morgan that all construction on the proposed TGP pipeline in their town is forthwith banned. Of course, according to law, only the Federal Energy Regulatory Commission has the power to authorize (or not) the pipeline through Deerfield–but why spoil a really good acid trip flashback for the old hippies behind this nonsense? Lawlessness is very fashionable these days…
Read More “Deerfield MA “Bans” Kinder Morgan TGP Pipeline – Or So They Claim”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Both Mass. Senators Oppose TGP Northeast Energy Direct Pipeline
October 23, 2014October 23, 2014

Looks like Kinder Morgan will continue to have an uphill battle to get permission to build an extension to the Tennessee Gas Pipeline that crosses the state of Massachusetts to bring cheap Marcellus gas to New England. When the $6 billion project that would upgrade TGP in many states and build 177 miles of new pipe across Massachusetts was announced earlier this year, we were mystified that the response was muted to mildly positive (see Reaction to TGP’s Planned Pipeline Across Massachusetts). It took a few months, but the anti-drillers eventually crawled out of the woodwork to begin bashing away at the project (see NIMBYism Becomes NOMEism in MA Over Kinder Gas Pipeline). Now, both U.S. Senators from Massachusetts, along with other leading state Democrat politicians, are lining up against what is now called the TGP Northeast Energy Direct project…
Read More “Both Mass. Senators Oppose TGP Northeast Energy Direct Pipeline”
Energy Services | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | PVR Partners | Regency Energy Partners | Regulation | Tioga County (PA)

PA DEP Fines Regency/PVR $306K for Sloppy Pipeline Work in 2012/13
October 22, 2014October 22, 2014

It’s old news, but is just now hitting the public domain. PVR Midstream, which is now part of Regency Energy Partners (see Marcellus/Utica Midstreamer PVR Bought by Regency Energy for $5.6B), did some sloppy installation work with pipelines in Lycoming and Tioga counties in Pennsylvania in 2012 & 2013. So says the PA Dept. of Environmental Protection (DEP). According to the DEP, PVR had multiple violations of the Clean Streams Law, Dam Safety and Encroachment Act and state regulations while building two pipelines. PVR, at the time of the citations, quickly corrected everything wrong. Regency, the new owner of PVR, had to pay the fine. Oh, the fine (paid in August by Regency) was $306,570. Ouch…
Read More “PA DEP Fines Regency/PVR $306K for Sloppy Pipeline Work in 2012/13”
Doddridge County | Dominion Energy | Energy Services | Harrison County | Industrywide Issues | Pipelines | West Virginia | Wetzel County

Smaller Dominion Pipeline Coming in WV – Part of Atlantic Coast?
October 22, 2014October 22, 2014

Dominion plans to build a 550-mile, $5 BILLION pipeline that will carry Marcellus and Utica Shale gas from West Virginia into Virginia and eventually to North Carolina (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). As part of that project, or perhaps in addition to it, they plan to build a smaller diameter 34-mile pipeline, called the Supply Header project, from Wetzel County through Doddridge County and into Harrison County, where it will connect to the new Atlantic Coast pipeline…
Read More “Smaller Dominion Pipeline Coming in WV – Part of Atlantic Coast?”