Pipelines

Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Sunoco Logistics

Sunoco Logistics Open Season for Mariner East NGL Pipeline
August 10, 2012August 10, 2012

Sunoco Logistics began an “open season” yesterday for their Mariner East pipeline project to deliver natural gas liquids—propane and ethane—from liquids-rich Marcellus Shale areas in western Pennsylvania to refineries and shipping terminals in southeastern Pennsylvania. An open season is the time when drillers can sign up and make long-term commitments to use the pipeline.

From the Sunoco press release:

Read More “Sunoco Logistics Open Season for Mariner East NGL Pipeline”
El Paso | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Kinder Morgan Sells Tennessee Pipeline to Itself
August 7, 2012August 7, 2012

Stories about pipelines are not very glamorous, but when the pipeline in question is one of the major pipelines that carries Marcellus Shale gas—it’s important nonetheless. This story is sort of inside baseball. Kinder Morgan, the country’s largest pipeline company, recently concluded the acquisition of another huge pipeline company—El Paso (for $21 billion). As part of the deal, for regulatory reasons, they are required to sell the Tennessee Gas Pipeline (TGP) and a half interest in the El Paso Natural Gas pipeline (EPNG). They just announced a deal to do so, selling it to Kinder Morgan Energy Partners, which is a subsidiary/related company to Kinder. So Kinder has sold a pipeline to itself, in essence.

Here’s the press release:

Read More “Kinder Morgan Sells Tennessee Pipeline to Itself”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Pipelines

The Marcellus becomes No. 1 Shale for Natural Gas in U.S.
August 6, 2012August 6, 2012

In four short years, the Marcellus Shale has gone from barley registering on national energy reports to becoming the number one most productive natural gas field in the United States, according to Powell Shale Digest and data from the U.S. Energy Information Administration (EIA).

Read More “The Marcellus becomes No. 1 Shale for Natural Gas in U.S.”
Hydraulic Fracturing | Industrywide Issues | New York | Pipelines | Statewide NY

Does Marcellus Shale Gas have Cancer-Causing Radon?
August 2, 2012August 2, 2012

MDN has previously written about anti-drillers who try to use the scare tactic that “there’s radon in Marcellus gas” and the radon is going to cause lots of new cases of lung cancer in New York City (see this MDN story). No one in the mainstream press is picking up on this latest anti-drilling meme, so the same groups have issued a new press release hoping to keep the issue alive (see their press release below).

In a nutshell, they argue that Marcellus Shale gas is extracted in areas of the northeast where there’s lots of naturally occurring radon, and because the gas gets to market so quickly (Pennsylvania Marcellus gas fields are “right next door” to NYC), the radon has no chance to naturally dissipate. When radon hits the air, it dissipates and becomes harmless. Radon has a half life of 3.5 days—breaking down and becoming harmless at that point. The concern, apparently, is that the gas will get to market and used in under 3.5 days.

Read More “Does Marcellus Shale Gas have Cancer-Causing Radon?”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Williams Plans Marcellus Expansion of Transco Leidy Pipeline
August 2, 2012August 2, 2012

As the pace of drilling continues (but slows) in the Marcellus, the next major phase of work begins: completing wells and getting all that shale gas to market. That’s why pipelines, compressor stations and processing plants are important. Williams Partners, one of the largest pipeline operators in the country, announced yesterday they plan to expand their existing Transco Leidy Line in northern PA to accommodate new demands for shipping Marcellus Shale gas.

They expect to make a pre-filing with the Federal Energy Regulatory Commission (FERC) in early 2013, and hope to have the expansion complete by late 2015.

Read More “Williams Plans Marcellus Expansion of Transco Leidy Pipeline”
Energy Services | Industrywide Issues | Pipelines | Transco

Transco Northeast Pipeline Extension Gets Boost from FERC
August 2, 2012August 2, 2012

Transcontinental Gas Pipeline Company (or “Transco”) received a significant boost from the Federal Energy Regulatory Commission (FERC) yesterday. FERC issued a “finding” that Transco’s proposed pipeline extension in the northeast, called the Northeast Supply Link Project, does not pose a threat to the environment. The finding clears the way for full FERC approval of the project.

The project will run new pipeline and expand existing pipeline from Transco’s Leidy Line in Pennsylvania and New Jersey to existing delivery points in Pennsylvania, New Jersey, and New York City, brining with it new quantities of Marcellus Shale gas to metropolitan population centers in the northeast, including New Jersey and New York City. The FERC finding means the project will likely now receive a green light to move forward. FERC is the federal agency charged with evaluating and approving new pipeline projects in the U.S.

Read More “Transco Northeast Pipeline Extension Gets Boost from FERC”
Butler County | Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | NGLs | Pennsylvania | Pipelines | Processing Plants | XTO

MarkWest Signs Deal with XTO to Process NGLs in PA
August 1, 2012August 1, 2012

MarkWest has just signed a deal with XTO Energy (XTO is a wholly-owned subsidiary of Exxon Mobil) to extend MarkWest’s natural gas liquids (NGLs) gathering pipeline in Butler County, PA to XTO’s processing plant. Previously MarkWest announced plans to extend the same pipeline from its Houston, PA complex to the Bluestone complex in Butler County. With this announcement, MarkWest will further extend the pipeline from Bluestone to XTO’s plant.

This deal will grant MarkWest the right to fractionate and market NGLs from XTO. Adding this new pipeline to other recently announced pipelines by MarkWest, when everything is built and running, MarkWest will have 3 billion cubic feet of gas processing capacity and 270,000 barrels per day of fractionation capacity throughout the Marcellus and Utica Shale.

Read More “MarkWest Signs Deal with XTO to Process NGLs in PA”
Dominion Energy | Energy Services | Harrison County | Industrywide Issues | Jobs | Ohio | Pipelines

Union Protests Dominion Pipeline Work in Eastern Ohio
July 26, 2012July 26, 2012

The Laborers’ International Union of North America (LIUNA) is complaining that Dominion East Ohio is building a pipeline in Harrison County, Ohio using workers from West Virginia (two counties away).

Union members protested on Tuesday at a Dominion pipeline construction site in Stock Township. It wasn’t their first protest against “out of state workers.”

Read More “Union Protests Dominion Pipeline Work in Eastern Ohio”
Carroll County | Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation | Ohio | Pipelines

OH Landowner Loses in Court, Chesapeake Builds Pipeline
July 25, 2012July 25, 2012

A landowner in Carroll County, OH who had sued to stop Chesapeake Energy from installing a pipeline to a well on his property lost the court battle last Friday. Joseph Coniglio had leased his land for drilling to Anschutz, which later assigned the lease to Chesapeake, but he had not signed an agreement for pipelines to be built connecting to wells drilled on his property. Coniglio says the lease specifically prohibits pipelines without a special agreement. Landowners often will receive extra compensation for any pipelines installed to a well, and Coniglio wanted to do a deal with Chesapeake for the well on his property.

Chesapeake says the original agreement allows them to hook up the well to a pipeline. Coniglio went to court earlier in July and won a restraining order. A judge overturned it on Friday and the pipeline is now almost complete.

Read More “OH Landowner Loses in Court, Chesapeake Builds Pipeline”
Broome County | Delaware County | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Schoharie County | Susquehanna County | Williams

Williams Holds Public Sessions for New Constitution Pipeline
July 23, 2012July 23, 2012

MDN editor Jim Willis attended a “meet and greet” session by Williams about their proposed new Constitution Pipeline. This is a first-hand account of that meeting.

Gas production from northeastern Pennsylvania’s Marcellus Shale is so plentiful, new pipelines are necessary to move it to market. That was the message from Williams Corporation last Wednesday night at the West Windsor Fire Hall located just miles outside of Binghamton, NY.

Williams was on hand to discuss the proposed Constitution Pipeline, a joint venture between Williams and Cabot Oil & Gas to build a 121-mile pipeline from the Marcellus-rich area of Susquehanna County, PA north to Schoharie County, NY.

Read More “Williams Holds Public Sessions for New Constitution Pipeline”
Industrywide Issues | Pipelines

Fitch Ratings Looks at Major Pipeline Projects in Marcellus
July 13, 2012July 13, 2012

Fitch Ratings issued a special report on Tuesday titled, “Marcellus Shale Report: Midstream and Pipeline Sector — Challenges/Opportunities.” Fitch is a credit ratings agency so their primary focus is evaluating companies and the risks those companies face that might affect their stock price and credit worthiness. So bear that in mind.

But the analysts who wrote this special report (see below) do a good job of identifying the major midstream (pipeline) companies in the Marcellus, and a good job of outlining the prospects (and risks) to those companies. Starting on page 4 the report chronicles the major Marcellus Shale pipelines underway, and page 12 shows a chart of the top 10 drilling companies in the Marcellus, complete with estimates of how much natural gas they produce in the Marcellus, and how much of the overall Marcellus acreage they lease. A very handy chart indeed.

Read More “Fitch Ratings Looks at Major Pipeline Projects in Marcellus”
Economic Impact | Energy Services | Industrywide Issues | NiSource | Ohio | Pipelines | Statewide OH

NiSource Announces $4B Upgrade Plan for Interstate Pipelines
July 13, 2012July 13, 2012

Midstream and utility company NiSource is in the news for a second time this week. On Monday, NiSource announced a joint venture with Hilcorp to build new Utica Shale gathering pipelines and a processing plant in eastern Ohio and western Pennsylvania (see this MDN story).

Yesterday NiSource announced a new project to rebuild and upgrade 12,000 miles of its Columbia Gas Transmission interstate pipelines and compressor stations to the tune of $4 billion over the next 15 years. Much of that work will benefit the Marcellus and Utica Shale region, resulting in more shale gas finding its way to market, according to NiSource.

NiSource reps, federal government officials and the Mayor of Columbus held a press conference yesterday to talk about this major new initiative by NiSource. Below is the follow-up press release, rearranged by MDN to show the important information first:

Read More “NiSource Announces $4B Upgrade Plan for Interstate Pipelines”
Caiman Energy | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Williams

Williams Does Second Midstream Deal with Caiman Energy
July 11, 2012December 19, 2012

Midstream giant Williams Partners continues an aggressive push into the Marcellus and Utica Shale and continues to cozy up with Caiman Energy as well. Yesterday Williams announced it will contribute $380 million toward a new $800 million joint venture with Caiman and several other partners to develop pipelines and processing facilities for natural gas, natural gas liquids and oil in the Utica Shale region of northeast Ohio and northwest Pennsylvania.

Earlier this year Williams spent $2.5 billion to purchase Caiman subsidiary Caiman Eastern Midstream, giving Williams a major midstream presence in the Marcellus/Utica region in northern West Virginia, southwestern Pennsylvania and eastern Ohio (see this MDN story). The recurring theme for Williams’ latest jv and acquisitions seems to be, “Get thee to the wet gas.”

Read More “Williams Does Second Midstream Deal with Caiman Energy”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Pipelines | Williams

NY Constitution Pipeline Route Change?
July 11, 2012December 19, 2012

Cabot Oil & Gas and Williams are partnering to build a new $750 million, 120-mile “Constitution Pipeline” to bring Marcellus Shale gas all the way from Susquehanna County, PA to Schoharie County, NY where it would connect to the Iroquois Gas Transmission pipeline and the Tennessee Gas pipeline (see this MDN story).

But the route the new pipeline takes through New York (see the map below) is being opposed by some area residents and by two Republican state legislators: Assemblyman Pete Lopez and Sen. James Seward. They want the pipeline to “hug” the Interstate 88 corridor instead.

Read More “NY Constitution Pipeline Route Change?”
Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | NiSource | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA

NiSource, Hilcorp Energy Joint Venture in Utica Shale
July 9, 2012December 19, 2012

NiSource Inc. announced today they are entering a joint venture with Hilcorp Energy and combining their Utica Shale acreage together with Hilcorp doing the drilling. They’re also establishing a midstream joint venture called Pennant Midstream to construct an initial 50 miles of wet gas gathering pipelines in northeast Ohio and western Pennsylvania. And the new midstream company will build a natural gas processing complex in Ohio.

No word on exactly how much acreage the combined two have together in the Utica Shale, but the jv plus the new pipelines and processing plant is a major development for both eastern OH and western PA.

Read More “NiSource, Hilcorp Energy Joint Venture in Utica Shale”
Brooke County | Hancock County | Industrywide Issues | Ohio County | Pipelines | West Virginia

WV Landowners Drive a Hard Bargain for Pipeline Deals
July 6, 2012December 19, 2012

Some West Virginia landowners who feel shortchanged with low drilling signing bonuses ($5 per acre) and royalty rates (12.5%) are holding out for better deals to run pipelines across their property, and that’s leading to a slow-down of new wells coming online in the state, according to a former DEP representative.

Counties being affected by the slowdown include Ohio, Brooke and Hancock. Typically pipeline easements are a one-time payment, like a signing bonus, and are based on a per foot price. How high will those prices go? Some of the numbers being tossed about are breathtaking.

Read More “WV Landowners Drive a Hard Bargain for Pipeline Deals”