Pipeline Constraints for Marcellus/Utica NatGas Begin Next Year

The experts at RBN Energy have done it again, explaining (and predicting) how the natural gas markets work in the Marcellus/Utica. This time they focus on pipelines. Using the latest data, RBN predicts production in the M-U will outstrip pipeline capacity to flow production to other markets beginning next year. And M-U pipelines will remain constrained (not enough capacity, existing pipelines full) for the foreseeable future–at least through 2027.
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Once again Democrat politics rear their ugly head to pressure the Virginia Air Pollution Control Board, which voted last Friday to reject issuing an air permit for a compressor station in southern Virginia for the proposed Mountain Valley Pipeline Southgate extension that will run 75 miles from Virginia into North Carolina. The permit would have allowed a compressor station to be built in the Virginia town of Chatham (Pittsylvania County). And according to critics of the pipeline, that’s just plain racist.
On Friday the Federal Energy Regulatory Commission (FERC) issued a new temporary emergency certificate to the Spire STL pipeline, a 65-mile pipeline that connects to and flows Marcellus/Utica gas from the Rockies Express (REX) pipeline to residents and businesses in the St. Louis, MO area. The temporary certificate means the pipeline will not have to shut down just as winter sets in, endangering the lives and property of more than half a million residents in the St. Louis area. Whew.
So many lawsuits and appeals of actions have been filed against the Mariner East pipeline system (being built by Energy Transfer and its subsidiary Sunoco Logistics) we’ve lost count. Dozens? Hundreds? Who knows! We try to highlight some of them–the more important ones that have the potential to slow or stop work on the 99% done system. Here’s one not even on our radar that got completely dismissed last week: Wilmer Baker and Rolfe Blume vs. Sunoco Pipeline L.P.

According to S&P Global Platts, gas production from the Marcellus and Utica shales, since the beginning of November, has “surged,” rising by nearly 1 Bcf/d (billion cubic feet per day), or up about 2.7%. The surge means production is now near record highs–in the upper 34 Bcf/d range. However, the M-U is constrained by pipeline takeaway and finite local markets. With rising supply and steady demand, prices are doing what Econ 101 predicts: beginning to fall.
Leftist tyrants are no longer content to block new shale and pipeline projects. They’ve been largely successful doing that. They have now moved on to attacking existing shale and pipeline projects, hoping to shut them down. Completely evil people. Case in point: The Environmental Defense Fund (EDF) targeted the Spire STL pipeline, a 65-mile pipeline that connects to and flows Marcellus/Utica gas from the Rockies Express (REX) pipeline to more than 640,000 residents and businesses in the St. Louis, Missouri area. If the Federal Energy Regulatory Commission (FERC) does not extend an emergency certificate for the project, it will close down on Dec. 13–in two weeks’ time. How does this new development of the left weaponizing our courts against us affect other existing pipelines? Will the darkness grow and threaten other assets?
Olympus Energy (formerly Huntley & Huntley) is expanding its drilling program in Upper Burrell, in Westmoreland County, PA, near Pittsburgh (see 
Tennessee Gas Pipeline’s (TGP) plan to flow more Marcellus gas to Westchester and New York City is called the East 300 Upgrade Project. The project involves upgrades at two existing compressor stations (in Pennsylvania), along with building a brand new compressor station in West Milford (Passaic County), just across the border and not far from Westchester County, NY. For a second time this year, Passaic County commissioners have refused to vote in favor of a resolution opposing the project.
Leftists are not only anti-fossil fuels and anti-freedom, they’re also (when they eventually don’t convince others with their inane arguments) violent. Case in point: David Suzuki, the so-called godfather of the Canadian environmental movement, warned over the weekend that if politicians don’t act to reverse climate change, there could be attacks against oil and gas infrastructure. He flat-out threatened to blow up pipelines. Why is this man not in jail?
The Federal Energy Regulatory Commission (FERC) is (surprisingly, under the current regime) sticking up for its decision made during the Trump administration to allow Equitrans’ 303-mile Mountain Valley Pipeline (MVP) from West Virginia into Virginia to continue working on completion of the 92% done project. A coalition of Big Green groups has repeatedly, viciously challenged and tried to block completion of the pipeline, more than doubling costs for the project due to court delays. On Friday, FERC filed a defense of its orders from late last year to allow MVP to restart construction on all but a very few locations still being litigated (primarily a small section through Jefferson National Forest).
What the heck? Did we just wake up in Stalinist Russia? The Missouri Public Utility Commission (MoPSC), which regulates public utilities in the state including the largest natural gas utility in the state (Spire, serving some 632,000 residents), has ordered Spire to send an email to customers fixing, retracting, correcting (whatever you want to call it) a previous email sent by Spire that warns customers they may soon be without natural gas because of the Federal Energy Regulatory Commission (FERC). Even though Spire’s original email warning is 100% the truth. Does MoPSC have that kind of tyrannical power, to force speech?
An interesting back and forth took place (we’d call it squabbling) at a technical conference last Friday hosted by the Federal Energy Regulatory Commission (FERC). FERC Chairman Richard “Dick” Glick pontificated that so-called global warming considerations must be made when evaluating new pipeline projects. He has used that excuse for years to vote against every single new pipeline project brought before him. Another FERC Commissioner, James Danly, pushed back and revealed flaws in Glick’s reasoning.
Yes, we as a collective society have lost our collective heads. So-called Critical Race Theory (CRT) appears to have brainwashed large swaths of our great land into seeing racism in every interaction and under every rock, tree–and now, even under the ground. Pipelines are racist! That’s the cry of the hard left, which unfortunately now controls our federal government. Three weeks ago we told you the Biden EPA had launched a film flam “investigation” (i.e. witch hunt) into a small pipeline aimed at delivering natural gas to a facility in Brooklyn so the gas can be liquefied and carted around New York City to prevent gas outages (see