Pipelines

Bradford County | Energy Services | Greene County (PA) | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | Preston County | PVR Midstream | PVR Partners | West Virginia | Wyoming County (PA)

PVR Partners Marcellus Pipeline Flows Increase 60% in 1 Year
January 14, 2014January 14, 2014

Midstream company PVR Partners issued an update yesterday to brag about their Marcellus operations–and well they should. Average throughput on the PVR “Eastern Midstream Systems” increased 60%, from 1.1 billion cubic feet per day average in December 2012 to 1.8 Bcf/d in December 2013. They also completed a total of 101 well connections in 2013 for the Eastern Midstream area.

PVR’s Eastern Midstream includes operations in Lycoming, Wyoming, Bradford and Greene counties in Pennsylvania, and Preston County in West Virginia. Here’s the full PVR update with more details:
Read More “PVR Partners Marcellus Pipeline Flows Increase 60% in 1 Year”
Belmont County | Blue Racer Midstream | Economic Impact | Energy Services | Industrywide Issues | Jobs | Marshall County | Ohio | Ohio County | Pipelines | Processing Plants | West Virginia | Williams

Utica/Marcellus Construction Spending Rockets in Wheeling Area
January 14, 2014January 14, 2014

According to McGraw Hill Construction, the Wheeling, WV Metropolitan Statistical Area, which includes Ohio and Marshall counties in WV and Belmont County in Ohio, saw construction explode from $60.3 million in 2012 to $1.57 billion in 2013–a 29-fold increase. The vast majority of that explosion in construction came from–you guessed it–the Marcellus and Utica Shale. Midstream companies Williams and Blue Racer spent the majority of that on new processing plants and pipelines in the area.

This is incredibly good news for that area of the Ohio Valley. The even better news? Ironworkers Local No. 549 predicts this kind of spending by the drilling industry will go on for at least another 5-10 years. Wow!…
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Alternative Energy | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

Natural Gas’ “Unfair Advantage” over Wind and Solar
January 14, 2014January 14, 2014

Yet another novel argument is being trotted out by the militant green left–natural gas an an “unfair” advantage. You see, it’s just too darn easy to build a pipeline–compared with putting up an electrical transmission line. That’s the cockamamie argument now being made by renewable energy zealots like Jaafar Rizvi, writing in Grist Magazine.

As MDN has shouted for years now–the shale drilling debate is not really about water contamination, truck traffic and “fugitive” methane–it’s really about a few misguided people who want to pick your energy source for you–and for everyone else too. They irrationally hate fossil fuels because fossil fuels, including natural gas, threaten to slow the adoption of so-called renewable sources of energy, like wind and solar. How do wind and solar energy get to market? Via high voltage electricity transmission lines. According to Mr. Rizvi, it’s not a fair playing field between natgas pipelines and electric transmission lines…
Read More “Natural Gas’ “Unfair Advantage” over Wind and Solar”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Regulation

Sierra Club, LWV Chooses Coal over NatGas in South Jersey
January 13, 2014January 13, 2014

Hey, the next member of the New Jersey Sierra Club or NJ League of [Liberal Democrat] Women Voters you meet, shake their hand–pump it up and down hard–and congratulate them on damaging the environment in South Jersey, which is what they’ve just done. South Jersey Gas wanted to run a 22-mile natural gas pipeline that would power an electric generating plant–replacing coal that powers the plant now–and also bring natural gas to residential homes in beautiful Cape May County, NJ. But so-called environmental groups like the Sierra Club and members of the LWV objected and pressured regulators to reject the proposal because the pipeline would run through an area of scrub pine trees that happen to grow in sandy soil. It was rejected even though the pipeline would mostly follow roadways and existing rights-of-way and would largely not disturb the so-called forest.

Nah, this one was far to easy to demagogue with talk about “pristine this” and “undeveloped that.” Throw in some magic phrases, and nag the *#$@ out of regulators, and you have yourself a rejection. So now, residents in Cape May will continue to breathe dirtier air and continue to heat their homes in winter with oil instead of clean-burning natural gas. Thanks Sierra Club and LWV! You’re real champs of the environment…
Read More “Sierra Club, LWV Chooses Coal over NatGas in South Jersey”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | NGLs | Pipelines | Processing Plants | Research

Must-Read IHS Report: Midstream/Downstream Spending Hits $90B/Yr
January 8, 2014January 8, 2014

Information Handling Services, or IHS, is the publisher of choice for the American Petroleum Institute (API). A new API/IHS study was published in December, but apparently just released to the public yesterday by the API. The study is titled “Oil & Natural Gas Transportation & Storage Infrastructure: Status, Trends, & Economic Benefits” (full copy embedded below).

We previously told you the API/IHS estimates each year drillers in the U.S. spend on the order of $150 billion to drill new oil and gas wells (see US Spending $150B+ to Drill New Oil & Gas Wells Each Year). MDN editor Jim Willis heard at the recent Platts Global Energy Outlook Forum that midstream-specific spending is only $15 billion per year (see Energy Industry Leaders Gather at Platts Forum in NYC). This new IHS report provides further clarification on spending in the midstream and downstream. If you lump new yearly spending together for all midstream (pipelines & processing plants) and downstream (refineries and distribution), IHS says the number was actually $53 billion in 2010, and had rocketed to nearly $90 billion in 2013. IHS researchers believe spending will remain around $90 billion in 2014 and something close that, per year, until 2020. Truly astonishing numbers. And that’s not the only revelation contained in this “must read” report. Like, there are 1 million new jobs on the way because of all this spending…
Read More “Must-Read IHS Report: Midstream/Downstream Spending Hits $90B/Yr”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Eureka Hunter Boasts 360% Yearly Increase in Marcellus/Utica Flow
January 8, 2014January 8, 2014

Eureka Hunter, the wholly-owned midstream (pipeline) subsidiary of driller Magnum Hunter, published their month by month flow numbers yesterday for how much gas they pumped through their pipelines in West Virginia and Ohio during 2013. It was an impressive year for Eureka Hunter. The average daily flow or “throughput” in 2012 was 23,291 million Btus (or MMBtus), which equates to 23.3 million cubic feet per day (or MMcf/d). If the “average” well is producing, say, 3 MMcf/d, that’s the equivalent of having 8 wells connected to the pipeline. The average daily flow in 2013 was 83,828 MMBtus, or 83.4 MMcf/d, or 28 wells hooked up and flowing. That’s a 360% year over year increase–nearly quadruple the volume!

What the average doesn’t tell you, however, is that by the end of the year, Eureka Hunter’s pipeline flowed nearly 160,000 MMBtus, or 160 MMcf/d, which is production from an average 53 wells. They predict in 2014 the daily flow rate will hit 206,500 MMBtus. Somewhere between 40-50% of the gas they flow is from Triad Hunter, another Magnum Hunter subsidiary (sister company to Eureka Hunter). Below is the press release with Eureka Hunter’s monthly flow numbers. With our explanation above, you now know how to view it!…
Read More “Eureka Hunter Boasts 360% Yearly Increase in Marcellus/Utica Flow”
Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | UGI Energy Services | Wyoming County (PA)

UGI Wins! Auburn Pipeline with Marcellus Gas in NEPA Goes Live
January 7, 2014January 7, 2014

It’s been a loooong uphill battle for utility company UGI with their Auburn Pipeline system, but by persisting, they’ve finally won against staggering odds. We’re happy to report that the Auburn Pipeline is now fully operational and Marcellus gas is flowing through it. The final leg of the Auburn, which connects the Tennessee Gas Pipeline with the Transco pipeline, is now done. Initially UGI proposed a compressor station in Luzerne County, but that was scrapped (see Luddites of Luzerne: UGI Scraps Plan for PA Compressor Station). The compressor was later built in Wyoming County.

Next up was opposition to a simple “gate station” or metering station. Even though another gate station had been in the area for 50 years, UGI still had to battle the forces of anti-drilling to build a new one (see Back to Kindergarten: UGI Explains NatGas Gate Stations). The gate station got built. Once all the court battles were fought, and won, UGI prevailed and the Auburn is now complete, which is very good news for consumers who will benefit from cheap, regionally extracted Marcellus Shale gas…
Read More “UGI Wins! Auburn Pipeline with Marcellus Gas in NEPA Goes Live”
About MDN | Anti-Drilling/Fossil Fuel | Commodity Price | Crude Oil | Economic Impact | Ethane | Health Impacts | Hydraulic Fracturing | Industrywide Issues | Litigation | MDN Resources | NGLs | Pipelines | Regulation

MDN’s Top 10 Most Important Stories of 2013 – Our View
December 31, 2013December 31, 2013

Yes it’s trite and certainly overdone, but hey, it’s the last day of 2013 and a slow news day. So MDN editor Jim Willis thought he would put together a list of what he considered to be the top 10 Marcellus and Utica Shale stories from 2013. It’s a look into what we believe, based on your input and feedback, to be the most relevant and important stories from this year. Enjoy!…
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Energy Companies | Energy Services | Gulfport Energy | Industrywide Issues | MarkWest Energy | Ohio | Ohio Gathering | Pipelines | Statewide OH | Utica Shale

Summit Midstream Buys Gulfport’s Interest in Ohio Gathering
December 24, 2013December 24, 2013

Summit Midstream, until recently, has had midstream operations (pipelines, processing plants) in other major North American shale plays–but they are actively moving into the Marcellus and Utica Shale. In June MDN reported that Summit Midstream had purchased the Mountaineer Midstream gathering system from MarkWest Energy for $210 million in WV (see MarkWest Sells Doddridge County, WV Pipeline System to Raise Cash). On Friday, Summit purchased a significant joint venture share in the Ohio (Utica Shale) Gathering system for an undisclosed sum (although NGI’s Shale Daily is reporting the deal is worth $190 million). We have the Summit press release below, but it’s heavy and dense with joint venture this and partnership within partnership that.

Here’s the MDN simplified view of the deal…
Read More “Summit Midstream Buys Gulfport’s Interest in Ohio Gathering”
Armstrong County | Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Pennsylvania | Pipelines | Regulation

EQT Gathering Gets USACE Green Light for Armstrong County Pipeline
December 24, 2013December 24, 2013

EQT Gathering wants to install an 8.1 mile gathering pipeline in Armstrong County, PA. Some of the pipeline crosses federal lands and requires the U.S. Army Corps of Engineers (USACE) to conduct an environmental assessment and judge whether or not the project would significantly impact “natural and cultural resources.” The Corps has done their investigation and has issued an FONSI–a Finding of No Significant Impact. Which means sometime after a 30-day public comment period (during which shrill anti-drillers will no doubt wail and moan), EQT will be able to move forward with the project. A happy ending!

The statement issued by the Corps:
Read More “EQT Gathering Gets USACE Green Light for Armstrong County Pipeline”
Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Transco Pipeline Shatters NatGas Delivery Record in Eastern US
December 23, 2013December 23, 2013

Midstream company Williams owns the largest natural gas delivery pipeline in the country–the mighty Transco which is 10,200 miles long counting all of its offshoots. The Transco pipeline has a typical daily maximum capacity of 10.15 million dekatherms. On Dec. 12 Williams reports the Transco broke its own record by delivering 10.83 million dekatherms of natural gas during the recent cold snap.

Riding in on a white horse just in time to help out was (ta da ta da)–the Marcellus Shale. Williams brought its Northeast Supply Link project (in the Marcellus) online early, ahead of schedule, which contributed an additional 250,000 dekatherms for Transco to use in meeting the increased demand…
Read More “Transco Pipeline Shatters NatGas Delivery Record in Eastern US”
Coterra Energy (Cabot O&G) | Energy Companies | Exporting | Industrywide Issues | Pennsylvania | Pipelines | Susquehanna County

Cabot Signs Deal to Export Gas via Cove Point, MD
December 20, 2013December 20, 2013

The good news continues to roll out of Cabot Oil & Gas. In a corporate updated issued yesterday, the company said they’ve signed a deal with Pacific Summit Energy (a subsidiary of Japanese company Sumitomo) to export up to 350,000 million Btus of natural gas per day via Dominion’s planned Cove Point, MD LNG export facility. The Cove Point facility is currently supposed to be in operation in 2017. The deal runs for 20 years. Previously, MDN told you that Japan and India have already spoken for 100% of LNG exports from Cove Point (see Dominion’s Cove Point LNG Facility Achieves Important Milestones).

In what seems to be unrelated but actually is related, Cabot also said they’ve achieved another milestone–they now produce 1.5 billion cubic feet of natural gas per day out of their wells in Susquehanna County, PA. That’s just one year after hitting 1 Bcf/d! So in one year production has skyrocketed another 50%. Truly astonishing. How much of today’s current production is Cabot committing to send overseas?…
Read More “Cabot Signs Deal to Export Gas via Cove Point, MD”
Industrywide Issues | Pipelines | Regulation

Is Federal Regulation of Local Gathering Pipelines on the Way?
December 20, 2013December 20, 2013

The permitting and regulating of pipelines in this country–in particular natural gas pipelines–is complex. Depending on the type of pipeline, different federal and state (and even local) government agencies a) permit it, and then perhaps confusingly, b) a different agency ensures it meets safe operating standards. That is, the people who permit it usually don’t inspect it. The biggest gap in the regulation picture is that of local gathering pipelines running from the wellhead to a larger regional pipeline or compressor plant. Ohio recognized this problem and recently put the Public Utilities Commission of Ohio (PUCO) in charge of inspecting gathering lines (see PUCO Now Regulates Gathering Pipelines in Ohio and Cheat Sheet: Which Agencies Regulate OH Drilling/Pipelines).

Ohio has addressed the “lack of oversight of gathering lines” issue. However, Pennsylvania has not. Gathering lines in the Keystone state are still not regulated or inspected by any government agency, and that gives some people pause–and it gives some a reason to involve the federal government. A DC-based reporter writing for the Chicago-based In These Times publication has written a good article addressing the pipeline issue in general, and PA’s gathering lines in particular. He indicates the federal Pipeline and Hazardous Materials Safety Agency (PHMSA) is sniffing around the regulation of gathering lines, which is worrisome to those of us who believe it’s better regulated at the state level…
Read More “Is Federal Regulation of Local Gathering Pipelines on the Way?”
Anti-Drilling/Fossil Fuel | Broome County | Cortland County | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Onondaga County | Pipelines

Millennium Scraps Cortland-to-Syracuse Pipeline, Binghamton Next?
December 19, 2013December 19, 2013

In May MDN told you about plans by the Millennium Pipeline to expand “south to north,” to haul Marcellus Shale gas from Cortland to Syracuse, NY, launching a non-binding “open season” to gauge interest (see The Irony: Millennium Pipeline Expanding in NY for More Shale Gas). The Cortland-to-Syracuse pipeline was part of a larger plan, to go from Binghamton-to-Syracuse. The Millennium’s plan is/was to build a pipeline from Binghamton to Cortland first, and then from Cortland on to Syracuse. The open season in May was to see if there would be enough interest for the Cortland to Syracuse leg. Apparently, there was not.

An article in the Syracuse Post-Standard yesterday says the Millennium has scrapped their plan to build the Cortland-to-Syracuse pipeline. And, even more surprisingly, the Binghamton-to-Cortland pipeline (where the Millennium would connect to the Dominion Transmission pipeline) is now ominously “under review.” Which sure looks to us like the entire project may be scrapped. Question: Did the ever-present opposition from anti-drilling nutters sink the Millennium project?…
Read More “Millennium Scraps Cortland-to-Syracuse Pipeline, Binghamton Next?”
Electrical Generation | Exporting | Hydraulic Fracturing | Industrywide Issues | Meetings | NG Vehicles | Pipelines | Processing Plants

Energy Industry Leaders Gather at Platts Forum in NYC
December 19, 2013December 19, 2013

One week ago, MDN editor Jim Willis attended the Platts Global Energy Outlook Forum in New York City. The Forum, an annual event that attracts the titans of the worldwide energy industry, was held at the swanky Waldorf Astoria Hotel. Although Jim has been traveling to NYC for years and prides himself on his ability to navigate Manhattan on the subway, every now and again he botches it–like this time. So he ended up walking an extra 6-7 city blocks after getting off at the wrong stop (doh!). But that’s OK. It was a brisk day and the walk did him good.

Rather than get on the ungodly 3:10 am bus from Binghamton to NYC, Jim elected to ride the 6:10 am bus, which was late arriving at the Port Authority due to traffic at the Lincoln Tunnel. So he missed the first session and joined the second session shortly after it had begun. But wow, what a session it was! Below Jim shares his notes from the session “Switching, Ditching and Bridging Fuels,” his notes and impressions from the lunch keynote address by DOE Sec. Ernest Moniz, and his notes from the afternoon session titled, “Midstream Gathers Momentum”. Jim got to hear some of the biggest names in energy. It was all a bit heady for a “small time” natural gas blogger with an attitude…
Read More “Energy Industry Leaders Gather at Platts Forum in NYC”
Energy Companies | Halcon Resources | Industrywide Issues | Ohio | Pipelines | Trumbull County

Niles, OH Does Complete Turnaround, Leases Land for Pipeline
December 19, 2013December 19, 2013

What a complete turnaround–dare we say a “revelation”–in Niles, OH. In August, the Niles City Council voted to ban drilling. The measure they passed also prohibited the city from doing business with the drilling industry, which is a problem because the city does a lot of business with the industry (see Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban). So a month after they passed the measure, City Council voted to rescind it (see Niles, OH Votes to Lift Frack Ban One Month After Passing It).

In a complete turnaround from their anti-drilling ways of just a few months ago, City Council voted yesterday, unanimously, to let Halcon Resources lay a new pipeline under a portion of city-owned land…
Read More “Niles, OH Does Complete Turnaround, Leases Land for Pipeline”