Pipelines

Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy New England Pipeline Gets a Name & a Partner
September 17, 2014September 17, 2014

Yikes. Pipelines planned for the northeast continue to spring up. They’re needed, that’s to be sure. And they bring with them billions of investment (and loads of jobs). All good things. Ultimately it will mean lower utility costs for gas and electric, particularly in New England–if these companies can get them built. One of the most recent entrants is Spectra Energy with their announcement in July to expand the Algonquin and Maritimes pipeline systems adding an additional 1 billion cubic feet of natural gas per day by 2017, much of it slated for New England’s electric generating plants (see Spectra Energy to the Rescue! New England Pipeline Expansion). That project now has a name and a new partner. It’s being called the Access Northeast project and Spectra has picked up a partner in Northeast Utilities to help shoulder the expense, pegged at $3 billion to build it…
Read More “Spectra Energy New England Pipeline Gets a Name & a Partner”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | UGI Energy Services | Williams

Pavlovian Opposition Continues Against PennEast, Atlantic Sunrise
September 17, 2014September 17, 2014

Whenever a major new interstate pipeline is proposed, especially in the northeast where more such pipelines are desperately needed, anti-drillers jump up and begin protesting immediately. It’s like a knee-jerk reaction–a Pavlov’s dog experiment gone awry. They don’t even know why they oppose it–they just do. Can’t help themselves. And so earlier this week we have two anti-pipeline meetings–one in New Jersey against the PennEast Pipeline project, the other in Pennsylvania against the Atlantic Sunrise Pipeline project. Whenever these nuts gather their conversation turns to the shrill and irrational. Try this one on. The proposed PennEast Pipeline will “cut a wide ‘virgin’ path along the entire western edge of the county” in Hunterdon County, NJ, according to Sierra Clubers at an anti-pipeline meeting on Monday. Kind of conjures up rape, does it not? That’s just what they intend with their incendiary language…
Read More “Pavlovian Opposition Continues Against PennEast, Atlantic Sunrise”
Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines | Supply Chain

ETP Selects Manufacturer for 600 Miles of Pipeline for ET Rover
September 15, 2014September 15, 2014

Energy Transfer Partners (ETP) in June announced their intention to build a 600-mile long pipeline called ET Rover that will shuttle some 3.25 billion cubic feet per day of Marcellus and Utica Shale gas to markets in the Midwest and Canada (see Big News: ETP “Rover” Marcellus/Utica Pipeline to Midwest/Canada). ETP hasn’t wasted any time. They already have a number of large customers lined up. The company has also lined up the manufacturer that will produce the 600 miles of pipeline–the largest order for this company in it’s 35-year history…
Read More “ETP Selects Manufacturer for 600 Miles of Pipeline for ET Rover”
Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline

Reversing the Fortunes for “Wrong Way” REX Pipeline
September 15, 2014September 15, 2014

What happens when you build a major interstate natural gas pipeline–and you’ve guessed wrong about the market. That happened to Tallgrass Energy and their Rockies Express Pipeline (REX), which runs from Colorado and Wyoming in the West to Ohio in the East. The REX Pipeline was completed in 2009, just in time for the shale revolution to begin in the Marcellus and now in the Utica. What to do when you’re pumping gas into a saturated market? At last week’s LDC Gas Forum in Chicago, Tallgrass vice president Doug Walker said you change things up…
Read More “Reversing the Fortunes for “Wrong Way” REX Pipeline”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

VA Gov. McAuliffe Vows No Drilling in Washington Natl Forest
September 11, 2014September 11, 2014

Sounding more like the liberal (and irrational) Democrat he really is, Virginia Gov. Terry McAuliffe said yesterday that there will be no shale drilling in (or under) the George Washington National Forest, which lies mostly in his state, while he’s governor. Which is kind of interesting because last week he stood toe to toe with Dominion CEO Thomas F. Farrell II at a press conference to announce his support for the $5 billion Atlantic Coast Pipeline, part of which will run through (yes) the George Washington National Forest (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). So apparently McAuliffe doesn’t mind cutting down trees and digging up the precious, pristine, “old growth” forest to lay a pipeline–but drilling a hole more than a mile under it’s surface? No way José. Which makes us wonder who’s contributing the most to his campaign coffers?…
Read More “VA Gov. McAuliffe Vows No Drilling in Washington Natl Forest”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | UGI Energy Services

Delaware Riverkeeper Petitons DRBC to Stop PennEast Pipeline
September 11, 2014September 11, 2014

THE Delaware Riverkeeper herself, the haughty and arrogant Maya van Rossum, has sent a letter to the Delaware River Basin Commission (DRBC) “petitioning” (i.e. demanding) that the DRBC “exercise jurisdiction over the PennEast Pipeline Project.” You may recall that energy utility giant UGI along with three other partners announced a proposed pipeline that will run from Wilkes-Barre, PA all the way to Trenton, NJ to flow abundant, cheap Marcellus Shale gas to homes and businesses in southeastern PA and NJ (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). UGI and partners didn’t waste any time. They recently completed a successful open season on the $1 billion PennEast Pipeline to sign up potential customers (see Successful Open Season Concludes for Marcellus PennEast Pipeline). Now along comes Miss Muffet sitting on her tuffet to try and throw her curds and whey on the process (see her letter below). If van Rossum can convince the DRBC to get involved, she stands a good chance of blocking the PennEast Pipeline from ever getting built…
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Industrywide Issues | Pipelines | Supply Chain

Koch Brothers ‘Roll Out’ Nylon Pipeline Aimed at Shale Industry
September 11, 2014September 11, 2014

An interesting development in the midstream (pipeline) business. Yesterday INVISTA, a subsidiary of Koch Industries, introduced a new nylon pipe aimed squarely at use in the oilfield–to flow both oil and natural gas (and NGLs). They call the new pipeline Raptor™ and claim it outperforms pipelines made of steel, composites and polyethylene. The maximum pressure the pipe can handle is 500 pounds per square inch (psi), which means it likely won’t be used for interstate pipelines. However, it’s perfect for local gathering pipelines because it’s quick and easy to install–saving time and money for drillers and midstream companies…
Read More “Koch Brothers ‘Roll Out’ Nylon Pipeline Aimed at Shale Industry”
Energy Services | GE Oil & Gas | Industrywide Issues | Pipelines | Supply Chain

GE/Accenture Launch Internet Pipeline Software, Columbia 1st Cust
September 8, 2014September 8, 2014

GE’s Oil & Gas division has partnered with global management consulting firm Accenture to launch Intelligent Pipeline Solution, which they describe as “the first-ever Industrial Internet offering to help pipeline operators make better decisions concerning the condition of their critical machines and assets in the oil and gas pipeline industry.” Looks to us like it’s software in the cloud–software that will help companies keep track of their pipelines and equipment and help them make better/faster/safer decisions on when things need an upgrade, or an expansion. GE/Accenture, as part of announcing this new service, announced that Columbia Pipeline Group (division of Columbia Gas) is their flagship first customer–and Columbia is using it to help manage (yes) their Marcellus/Utica Shale pipeline network…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Jackson County | Marshall County | Noble County | Ohio | Pipelines | West Virginia

3 Big Compressors Coming with Columbia’s OH Pipeline Project
September 8, 2014September 8, 2014

Representatives for Columbia Gas Pipeline are making the rounds and talking with officials in various communities where the planned expansion of their pipeline will happen. Columbia, as MDN previously reported, is spending $1.75 billion on two pipeline projects that will help move Marcellus Shale gas to the Gulf Coast (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). One of those projects is called the Leach Express–starting in Marshall County, WV and ending up in Leach, KY (hence the name). Along the way three new compressor stations will need to be built, which is the focus of this story…
Read More “3 Big Compressors Coming with Columbia’s OH Pipeline Project”
Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Transco | Williams

Yet Another Williams Transco Expansion: Western Marcellus Project
September 5, 2014September 5, 2014

Pipeline (infrastructure) projects keep getting announced fast and furiously–we can hardly keep up! Williams has announced yet another upgrade to their Transco Pipeline–this one called the Western Marcellus Pipeline Project. We get details about the new project from an open season announcement from Williams posted yesterday. The Transco is one of the country’s largest interstate natural gas pipelines–a 10,200-mile pipeline system that extends from South Texas to New York City. In February Williams announced an $2.1 billion expansion of the Transco to carry PA Marcellus gas to the Eastern seaboard, what they call the Atlantic Sunrise project (see Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already). Last week we told you about another expansion of the Transco, called Diamond East, that will beef up capacity on the Transco from Lycoming and Luzerne counties in northeast PA all the way to Mercer County, NJ, a $500-$800 million project (see Williams to Expand Transco Pipeline Again, More Marcellus to NE). Yesterday Williams announced the Western Marcellus Pipeline project, a project that will give western PA Marcellus and eastern OH Utica producers a way to get their gas to markets in the southeast (Louisiana and Texas) and even to Florida…
Read More “Yet Another Williams Transco Expansion: Western Marcellus Project”
Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

Successful Open Season Concludes for Marcellus PennEast Pipeline
September 5, 2014September 5, 2014

Barley three weeks ago a consortium of four companies announced a new pipeline project to carry Marcellus Shale gas from Luzerne County in northeastern Pennsylvania to Transco’s Trenton-Woodbury interconnection in New Jersey. The $1 billion PennEast Pipeline will be built by energy utility giant UGI, along with AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The consortium announced yesterday the successful close of a very fast binding open season–a period of time when potential customers sign on the dotted line to take capacity in the new pipeline. Of course it didn’t hurt that the consortium itself had already reserved nearly half of the 1 billion cubic feet per day capacity for themselves! Still, the other half is now sold out too (a total of 965,000 dekatherms, or 936 million cubic feet, or .936 billion cubic feet)…
Read More “Successful Open Season Concludes for Marcellus PennEast Pipeline”
Energy Services | Ethane | Exporting | Harrison County | Industrywide Issues | Kinder Morgan | Ohio | Pipelines

UTOPIA Open Season Begins Today – OH to MI NGL Pipeline
September 5, 2014September 5, 2014

Back in December MDN told you about Kinder Morgan’s new proposed new pipeline called the Utica To Ontario Pipeline Access, or UTOPIA (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). The 240-mile natural gas liquids (NGL, specifically ethane and propane) pipeline will connect multiple fractionation facilities in Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada where they will be delivered to NOVA Chemicals. The new $300 million, 10-inch pipeline from OH to MI is what is called UTOPIA. Yesterday KM announced a binding open season for UTOPIA…
Read More “UTOPIA Open Season Begins Today – OH to MI NGL Pipeline”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines

Dominion Commits to Major New Marcellus/Utica Pipeline Project
September 3, 2014September 3, 2014

What a difference five months can make in the midstream business. In April Dominion launched a nonbinding (“feeling out the marketplace”) open season to gauge potential interest in a pipeline that would carry Marcellus and Utica Shale gas from West Virginia into Virginia and eventually to North Carolina (see Dominion Announces 2 New Pipeline Projects from Marcellus/Utica). The project was called the Dominion Southeast Reliability Project. At the end of May, Dominion was still saying the proposed pipeline, which would cost around $2 billion to build, was still “very preliminary” and that the company had “not decided to do this” (see More Details/Proposed Route of Dominion Marcellus to NC Pipeline). We couldn’t even locate a map of the proposed route! Looks like the nonbinding open season was a big success. Yesterday Dominion announced not only is the pipeline going forward, they’ve formed a joint venture with three other companies to build it. We have a map of the route, a name change for the project (now called the Atlantic Coast Pipeline), and the price to build it has more than doubled–from $2 billion to $5 billion! Here’s the details…
Read More “Dominion Commits to Major New Marcellus/Utica Pipeline Project”
Energy Companies | EQT Corp | Industrywide Issues | Pipelines

EQT & NextEra Tie the Knot on WV-VA Pipeline Joint Venture
September 3, 2014September 3, 2014

There’s a big difference between nonbinding and binding–as in open seasons. When a pipeline company wants to see if they can get any interest for building a pipeline (which involves millions of dollars of investment, sometimes billions) they start with a “nonbinding” open season. Think of it as an elaborate marketing exercise in lead generation. If the company gets good vibes from the nonbinding open season, they then move to a binding open season. It’s one thing to say “Yeah, we’ll use X capacity on that pipeline if you build it.” It’s a whole other thing to sign on the dotted line, committing to a binding contract for the next 10-20 years. It is a huge financial commitment. EQT and their joint venture partner NextEra Energy announced a new pipeline project in June. The 330-mile Mountain Valley Pipeline project would run from Wetzel County, WV to Pittsylvania County, VA (see EQT Announces New Marcellus/Utica Pipeline to Southeastern US). EQT announced yesterday the previous nonbinding open season changed to binding, an important change…
Read More “EQT & NextEra Tie the Knot on WV-VA Pipeline Joint Venture”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Otsego County | Pipelines | Williams

Cooperstown Refuses $20K Grant from Williams for Fire Equipment
September 2, 2014September 2, 2014

Back in March, MDN wrote an article highlighting the practice by Williams and their Constitution Pipeline of handing out grants to worthy causes and organizations, like fire departments, the Boy Scouts and local Chambers of Commerce. Anti-drillers typically call it payola, or greasing the skids to make those communities more accepting of the pipeline when it comes time to build it (see Constitution Pipeline Payments to Groups – Donations or Payola?). To be honest, we struggle with the issue ourselves. We think it’s great to make those payments–but we think it’s probably better to make the payments after the pipeline is fully approved and ready to be built (or already built). For us the issue is one of timing, not about the payments themselves. However, for the dunderheads in the Village of Cooperstown, NY (yes, where the Baseball Hall of Fame is located), officials there refuse to allow the local fire department to apply for a $20,000 matching grant with Williams to purchase new equipment–simply because they’re so opposed to anything to do with natural gas and fossil fuels…
Read More “Cooperstown Refuses $20K Grant from Williams for Fire Equipment”
Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

PA Gov Corbett Makes Political U-Turn on Pipeline Project
August 27, 2014August 27, 2014

Last week Pennsylvania Gov. Tom Corbett waded into the thorny issue of whether or not the Federal Energy Regulatory Commission (FERC) should approve the Williams Tranco pipeline expansion project. Dubbed the Atlantic Sunrise project, the $3 billion project which reaches far beyond just PA, would carry PA Marcellus Shale gas to the East Coast and to southern states (see Williams Open House Sheds more Light on Transco Atlantic Sunrise). Last week Corbett sent a letter to FERC asking the feds to look carefully at the Atlantic Sunrise expansion project because he’s hearing a lot of noise from voters about it. He also requested FERC to zoom out and look at the big picture–consider all of the proposed pipeline projects for PA and whether as a whole it makes sense–and not just look at each project individually…
Read More “PA Gov Corbett Makes Political U-Turn on Pipeline Project”