Manufacturers Push Lawmakers for More Natural Gas Pipelines
On Friday, Paul Cicio, CEO of Industrial Energy Consumers of America (IECA), representing America’s largest manufacturing companies, sent a letter to Congress making the case that federal agencies (FERC and NERC) should have the responsibility to secure reliable and affordable access to natural gas, mainly through dramatic growth in pipeline infrastructure. The letter says FERC should be required to address any reliability concerns by expediting pipeline permits and promoting (not restricting) construction–potentially by asking for Presidential emergency powers!
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Yesterday both Antero Midstream (the pipeline subsidiary of Antero Resources), and Crestwood Equity Partners announced a deal to sell Crestwood’s remaining Marcellus assets to Antero for $205 million. The assets include 72 miles of dry gas gathering pipelines and nine compressor stations with approximately 700 MMcf/d of compression capacity located in Doddridge County and Harrison County in West Virginia.
Joe Manchin, U.S. Senator from West Virginia (now wildly unpopular in his home state) continues to have a tough time sealing the deal on a permitting reform bill that will help the Mountain Valley Pipeline (MVP) get done. Manchin traded his integrity away by voting to approve the so-called Inflation Reduction Act (a Big Green giveaway) in return for a vote on a bill to streamline the permitting of oil and gas projects like (and including) MVP. The Dems snookered Manchin into voting for the IRA with big promises, but now they don’t want to vote for his permitting bill, breaking those promises. Manchin needs help, and he’s turning to the oil and gas industry, hoping we will pressure Republican House and Senate members into helping him out. Don’t hold your breath, Joe.
Another update on the uphill battle Joe Manchin faces in getting his “side deal” legislation passed that will help Mountain Valley Pipeline (MVP) get done. Manchin agreed to vote for the misnamed Inflation Reduction Act (IRA) in return for a “permitting reform” bill, to be voted on in September, as the price for his vote. We told you it was a bad deal for many reasons–one of which is that Manchin may never get his vote. On Friday, 72 Democrat members of the House of Representatives signed a letter (copy below) to Speaker Nancy Pelosi and Majority Leader Steny Hoyer opposing the Manchin “side deal” legislation. Yeah, it didn’t but a few weeks for the Dems to welsh on their deal with Manchin. It appears that Manchin got rolled.
In February, three Democrat FERC commissioners voted to adopt onerous new regulations to use global warming considerations when approving (more like disapproving) pipeline projects (see 
One step forward and two steps back. That country tune went through our head as we read about the progress being made by Williams with its Regional Energy Access Expansion Pipeline project in Pennsylvania. The project, aimed at competing with the now-dead PennEast Pipeline project by flowing gas from northeastern Pennsylvania to the Trenton, NJ area, will get a virtual public hearing by the PA Dept. of Environmental Protection on Wednesday, October 5.
We will continue to update MDN readers throughout the month of September as U.S. Senator Joe Manchin’s huge gamble of trading away the future of the country to finish the Mountain Valley Pipeline plays out. We spotted a story that quotes powerful Democrat members of the U.S. House of Representatives saying they have no allegiance to a deal made in the Senate–even though Speaker Nancy Pelosi promised support. A radical organization called Earthjustice (an adjunct of the Democrat Party) will hold a rally in the D.C. swamp today to oppose Manchin’s “save MVP” bill. You can expect a fierce battle against Manchin’s plan. Even if he wins (we hope he does) and MVP gets done, Manchin still traded away our country’s future to get it done. It’s not a good bargain, in our humble opinion.
U.S. Senator Joe Manchin, from West Virginia, traded away the future of the country by supporting the misnamed Inflation Reduction Act (the remnants of the Green New Deal) in return for finishing the 303-mile Mountain Valley Pipeline along with a few other concessions for the oil and gas industry (see 
The left finds the most devious ways to sink their claws into the fabric of American society and force it to conform to their twisted worldview–like using an obscure regulation promulgated by the U.S. Environmental Protection Agency (EPA). In February 2022, the EPA announced a “minor” change to a regulation governing gas-fired turbines under the National Emission Standards for Hazardous Air Pollutants (NESHAP), a framework in place since 2004. At first glance, the EPA’s announcement seems to be a minor update to a highly technical rule. However, a careful examination of the list of impacted units reveals that the change in enforcement framework could have significant impacts on both supply and demand dynamics in natural gas markets in the U.S. and beyond, affecting LNG exports, gas-fired power plants, and gas transmission and processing infrastructure (pipelines) in particular.
While this is technically not a Marcellus/Utica story, it does affect our region (as well as all regions) due to the enormity of how it impacts the overall natural gas market. Russia, using the flimsy excuse that they found some trouble with a turbine during maintenance, has decided to keep the Nord Stream 1 pipeline closed down indefinitely after what was supposed to be a three-day outage to do routine maintenance. The outage denies Europe natural gas a critical time during which they are attempting to fill up storage ahead of the winter months. This is a transparent play by Vladimir Putin, who pulls all the strings in Russia, to squeeze Europe and get it to cave to his will and accept his invasion of Ukraine (i.e. remove all sanctions).
For more than four years, we have been calling attention to the fact that the Boston/New England area imports FOREIGN LNG each year, even though abundant DOMESTIC supplies sit a few hundred miles away in the Pennsylvania Marcellus (see 
A futures contract is a legal agreement to buy or sell a particular commodity asset (like natural gas) at a predetermined price at a specified time in the future. The Henry Hub Natural Gas futures contract (NG) on the New York Mercantile Exchange (NYMEX) is widely used as the national benchmark price for natural gas. The Henry Hub (HH) is located in southern Louisiana where 16 interstate natural gas pipeline systems converge. But just about any trading hub along natgas pipelines can have a futures contract associated with it. For example, the Eastern Gas South hub in southwestern Pennsylvania (which used to be called Dominion South) has monthly futures contracts extending out for years. Eastern Gas South and other M-U hubs are seeing the price for futures contracts drop like a rock compared to HH. Why? Lack of takeaway pipeline capacity.
Federal Energy Regulatory Commission (FERC) Chairman Richard “Dick” Glick tried to pull a fast one earlier this year when he tried to permanently enshrine global warming considerations as a requirement to approve all new pipeline projects (see 
We’ve heard from a few MDN subscribers who think we’re being too hard on Joe Manchin and his sellout of the country in return for finishing the Mountain Valley Pipeline (MVP) project. We don’t think so. The one thing everyone agrees on, those who support Manchin and the many of us who do not: It’s time to finish MVP…now.