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MVP Delay to 2022 Spells More Trouble for M-U Gas Prices
Two weeks ago we brought you the sad news that completion and startup for Equitrans’ 303-mile Mountain Valley Pipeline (MVP) and the company’s 75-mile extension to it called MVP Southgate will now be delayed until 2022 and 2023 respectively (see Equitrans Delays MVP & Southgate In-Service Dates to 2022 & 2023). The delays are due to frivolous lawsuits brought by foreign-money-backed Big Green groups including the Sierra Club. The delay is, according to RBN Energy, creating a shortage of takeaway capacity in the Marcellus/Utica region and keeping prices for natgas in the M-U low.
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The Jones Act prevents LNG from being transported from one U.S. port (like Cove Point, Maryland and Elba Island, Georgia) to other U.S. ports (like Boston and New York) because there are no built-in-the-USA LNG carriers, a requirement under the 1920 Jones Act. When New England runs low on natural gas, they must import the gas from Russia (see 
Last Friday National Fuel Gas Company (NFG), the parent company for Seneca Resources and Empire Pipeline, issued its latest quarterly update for the quarter ending Mar. 31 (NFG’s second fiscal quarter, everyone else’s first quarter). The company’s purchase of Shell’s Marcellus assets last year (450,000 acres, 350 producing Marcellus and Utica shale wells in Tioga County) gave Seneca a 43% boost in production in its fiscal 2Q21 over 2Q20. Seneca drilled 14 new wells in fiscal 2Q.
Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil, and produced water gathering (pipeline) systems in several unconventional shale plays, including the Marcellus and Utica. Last week Summit issued its first-quarter 2021 update. The company’s Utica Shale segment continued to be the star performer.
Yesterday MDN reported comments by Energy Transfer (ET) that the company plans to finally (after years of delays) complete the final pieces of the Mariner East 2 pipeline project by the third quarter of this year (see 
There are still a few select pipeline projects under construction in the Marcellus/Utica, even during the anti-fossil fuel Joe Biden regime. One such project of keen interest for us is the Mariner East 2 (ME2) NGL pipeline that runs from eastern Ohio through Pennsylvania to the Marcus Hook refinery near Philadelphia. The builder and owner of ME2 project, Energy Transfer, issued its quarterly update last week. As part of that update we found a reference from top management that ME2 will be completely finished (“done done”) sometime in the third quarter of this year.
A short 19-mile pipeline project called the Del-Mar Energy Pathway project, crossing both Delaware and Maryland, began its final phase of construction earlier this year after receiving approval from Maryland for traversing a wetland area (see 
When a pipeline company considers whether or not to build a new pipeline, the company conducts an “open season”–a time when drillers (producers), traders, buyers and others who want guaranteed capacity along that pipeline can sign long-term contracts. Such contracts guarantee pipeline companies will be able to make back the considerable amount of money they have to spend to build the pipeline. What happens when those 5-, 10-, and 20-year contracts expire?
Jim Snell, Business Manager at Steamfitters Local 420 (Philadelphia area) has written a powerful editorial appearing in the Delaware Valley Journal. Snell begins his article by saying President Biden’s “build back better” proposal overlooks the backbone of America’s energy system: pipelines. Snell goes on to make an irrefutable case for how Marcellus Shale drilling in northeastern and southwestern PA benefits Philadelphia and southeastern PA.
An important issue we don’t often think about is pipeline maintenance. Natural gas pipelines have to be inspected and sometimes repaired. When that happens, it takes a portion of the pipeline out of service. When pipelines are taken out of service, natural gas doesn’t have a way to get to the same markets it was flowing to, meaning it begins to pile up in the location where it’s extracted. Further meaning too much supply in a given location, which leads to lower prices. That’s what appears to be happening in northeastern Pennsylvania right now.
Somebody’s head is gonna roll at liberal Columbia University (big lib university located in the heart of New York City). Somehow the truth has just leaked out of Columbia about the necessity and benefits of natural gas pipelines and how they are helping to LOWER the amount of carbon dioxide in the atmosphere (if you happen to care about such things–which we don’t). How did this happen? Researchers who care about telling the truth and how doing so enhances one’s reputation, have authored the study “Investing in the US Natural Gas Pipeline System to Support Net-Zero Targets” (full copy below).
The experts at RBN Energy continue their series of blog posts about pipelines that flow Marcellus/Utica gas to other regions with a look at two pipelines that connect directly to Canada: Tennessee Gas Pipeline and Empire Pipeline. In this post we learn that natural gas flows from the M-U over this past weekend hit a new record high of 17.3 billion cubic feet per day (Bcf/d). We also learn M-U pipelines flowed an average of 16.7 Bcf/d in April–an all-time high for any month! The problem is we’re now maxed out and need more pipelines.
If the Federal Energy Regulatory Commission (FERC) thinks it is going to change the rules for how it approves existing, already-filed applications for pipelines, it needs to think again. That’s according to a group of both Republican and Democrat U.S. Senators who sent a warning letter to FERC last week. The Senators say FERC has no right to change the rules part of the way through the game, which is exactly what FERC, under Chairman Richard “Dick” Glick, is threatening to do.
Radicalized groups including the New Jersey Sierra Club and the Pinelands Preservation Alliance tried their best to abuse the court system to overturn permits to build a 28-mile natural gas pipeline project called the Southern Reliability Link (SRL) pipeline project. They have (we’re happy to report) failed. SRL will connect to New Jersey Natural Gas’ (NJNG) distribution system serving customers in Ocean, Burlington and Monmouth counties (in NJ) to provide backup for hundreds of thousands of NJ residents who lost access to natural gas following Super Storm Sandy. The NJ Superior Court’s Appellate Division dismissed appeals by the radicals to overturn state-issued permits for the project.