Processing Plants

Anti-Drilling/Fossil Fuel | Butler County | Ethane | Health Impacts | Industrywide Issues | Pennsylvania | Processing Plants | Research

Philly Clean Air Council “Studies” Shell Cracker Plant Impacts
January 14, 2015January 14, 2015

The Philadelphia-based Clean Air Council, a partisan, anti-drilling organization, has just issued a so-called Health Impact Assessment (HIA) for the proposed Shell ethane cracker plant in Monaca, PA (full copy embedded below). The so-called HIA has a long list of “recommendations” for Shell, most of which will cost big bucks to implement. The HIA has no official standing and Shell can completely ignore it if they so choose. However, Shell says they’re studying it now and will consider the information it conveys as they continue to evaluate their plans to build a $2-$3 billion ethane cracker near Pittsburgh. Below we have the press release from the anti-drilling Clean Air Council, along with some initial response from Shell…
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Economic Impact | Energy Services | Ethane | Housing | Industrialization | Industrywide Issues | Jobs | Odebrecht | Ohio | Processing Plants | Washington County (OH) | West Virginia | Wood County

WV/OH Officials Going on Field Trip to Prepare for Cracker Plant
December 24, 2014December 24, 2014

The Odebrecht ethane cracker plant planned for the Parkersburg, WV area continues to walk/smell/act/behave like it’s the real deal. The latest evidence: Odebrecht has told area officials around Parkersburg, you need to be prepared for when the 100% official announcement comes, cause at that point, things will happen fast. So area officials are boning up now to be prepared for an influx of people and jobs–both a good thing, and a challenge. Area officials from Wood County, WV and neighboring Washington County, OH will head to the bitter-cold north country–Minot, North Dakota–in January (!) to see how that community has dealt with a rapidly expanding population and influx of new jobs due to the Bakken Shale…
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Energy Companies | Industrywide Issues | Pipelines | Processing Plants | Rice Energy

Rice Energy Launches Midstream IPO – MDN Nails the Price
December 9, 2014December 9, 2014

A month ago MDN told you that Rice Energy would spin out a midstream (pipelines & processing plants) subsidiary (see Rice Energy Readies Midstream Subsidiary IPO – How Much?). At the time, we didn’t have a clue as to how much the company would want to raise, but based on a formula we devised (pretty simple, using the same ratio of Antero’s E&P IPO vs their midstream IPO) we came up with the number of $588.5 million for the Rice Midstream IPO. We said at the time we would be back to let you know how close we came with our “back of the envelope” prediction. Looks like it was pretty darned close. Like, scary close…
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Hydraulic Fracturing | Industrywide Issues | Pipelines | Processing Plants | Regulation

EPA Issues New Rules for O&G Industry on GHG Emissions Reporting
November 25, 2014November 25, 2014

The Federal Environmental Protection continues to regulate things it has not business regulating–not that it makes a hill of beans worth of difference that we point it out. Nobody will challenge them on their out-of-control behavior, so we all just pretend it’s OK and go along. The latest aggressive action taken by the EPA is to publish a rule change that will go into effect in 60 days. This new rule change is in how so-called greenhouse gas emissions are reported by the oil and gas industry. Both midstreamers and upstreamers are affected, so pay attention or prepare to be fined by the EPA…
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Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Regency Energy Partners | Statewide OH | Statewide PA | Statewide WV | Sunoco Logistics | West Virginia

Sunoco Logistics, Regency Energy Presentations from Analyst Day
November 24, 2014November 24, 2014

Last week both Regency Energy Partners, which purchased PVR Partners a little over a year ago (PVR having a major footprint in the Marcellus/Utica), along with Sunoco Logistics, another major midstream player in the northeast, participated in an analyst day last week at Ritz-Carlton in Dallas. While we don’t have a transcript, we do have the PowerPoint slide decks from both companies. And what we find on some of those slides is illuminating…
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Economic Impact | Energy Services | Ethane | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Sunoco Logistics

Permit Filing Reveals NGL Mix Expected from Mariner East Pipelines
November 20, 2014November 20, 2014

Earlier this month MDN told you that Sunoco Logistics has decided to move forward–if they get regulatory approval–with building the Mariner East 2 natural gas liquids (NGL) pipeline which will stretch from eastern Ohio all the way to the Philadelphia area (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). The pipeline and associated upgrades will cost Sunoco $2.5 billion. Some of the “associated upgrades” will be to the Marcus Hook refinery near Philly. A Reuters investigation, released yesterday, unearthed new details about Sunoco’s plans for the Marcus Hook refinery. Reuters got a hold of permit applications Sunoco filed with the state Dept. of Environmental Protection (DEP) in September which discloses the capacities and types of storage tanks Sunoco plans to build to hold all those incoming NGLs, which tells us what they expect to receive via the Mariner East I & II pipelines once both are operational…
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Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Trip to Brazil Reaffirms Cracker Plant: “Comfort Level Strong”
November 19, 2014November 19, 2014

Last week West Virginia Gov. Earl Ray Tomblin led a trade delegation on a junket to Brazil to talk with officials from Odebrecht and Braskem about the $3 billion proposed ethane cracker plant/petrochemical complex the companies are planning for Parkersburg, WV (see WV Gov. Tomblin Leads Trade Mission to Brazil re Cracker Plant). Accompanying Tomblin on the trip were his wife, Secretary of Commerce Keith Burdette and several others. Fresh back from the trip both Tomblin and Burdette have very encouraging comments. Burdette in particular effused about the ASCENT cracker plant project, saying: “Our comfort level [that the project will happen] is very strong.” Burdette also said (perhaps in response to criticisms about an expensive taxpayer-funded trip to Brazil) that it was important for WV officials to spend time in their offices–as a courtesy and to show commitment to a project that the company is spending beaucoup bucks on in WV…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell (Finally) Buys Site for Cracker Plant in Beaver County, PA
November 7, 2014November 7, 2014

We’re still a long way from a decision by Shell on whether or not they will build a $2-$3 billion ethane cracker plant in Beaver County, PA. However, today the company took another giant step forward in that process. Shell has told the current owner of the site, Horsehead Corporation, that Shell is exercising their option to buy the property…
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Braskem | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Gov. Tomblin Leads Trade Mission to Brazil re Cracker Plant
November 7, 2014November 7, 2014

West Virginia Gov. Earl Ray Tomblin’s office has announced that the Governor and first lady, along with Keith Burdette, Secretary of the West Virginia Dept. of Commerce and several other officials, are going on a road trip to Brazil to babysit, er advance the ball on the ethane cracker plant planned for the Parkersburg, WV area by Brazilian company Odebrecht and its sister company Braskem. The trade delegation will discuss “next steps” with their counterparts–to ensure everything is on track. It’s also a nice little junket/vacation to get the Guv (a Democrat) out of town after his state essentially turned Republican underneath his feet in Tuesday’s election…
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Carroll County | Energy Services | Industrywide Issues | Ohio | Processing Plants | Utica East Ohio Midstream | Utica Shale

UEO Midstream Processing Plant in Carroll County Online Soon
November 4, 2014November 4, 2014

The Utica East Ohio Midstream natural gas processing plant in Leesville (Carroll County), OH, will be, according to county officials, operational within the next couple of weeks. When it comes online, the plant will process 200 million cubic feet per day of Utica Shale natural gas…
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Beaver County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell

MDN’s “Juvenile” Needling of Shell over Slow Cracker Pace
November 4, 2014November 4, 2014

An MDN reader wrote editor Jim Willis yesterday to take issue with our observation that “it’s about time” Shell did something to advance their ethane cracker project in Beaver County, PA (see Shell to Hold Info Session on Monaca Ethane Cracker Next Week). In a not-so-subtle way, the reader essentially told us to get our heads out of our…frac sand…and take note that Shell has been very active over the past year or so with advancing their project, contrary to our “juvenile” remarks suggesting otherwise. In particular, the old Horsehead Holding Corp. zinc smelter at the site was shut down this past May. The buildings were knocked down and are now almost completely removed from the site. Our not-so-subtle source also pointed us to Jeff Burd’s excellent blog site called Building Pittsburgh. Jeff refers to Shell and their cracker project as being like a duck…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell to Hold Info Session on Monaca Ethane Cracker Next Week
November 3, 2014November 3, 2014

All’s we can say is, It’s about time! Shell will hold a pair of public meetings next Thursday, Nov. 13, at the Lincoln Park Performing Arts Center in Midland (Beaver County) PA to discuss their plans for an ethane cracker plant in Monaca with area residents. Yes, no doubt the crazies from outside of the area will show up to gripe and complain, as always happens. No big deal. As of next week it be exactly one year ago that Odebrecht announced their “world scale” ethane cracker for Parkersburg, WV (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Seems to us that since that time all of the momentum to actually build a cracker plant has been with Odebrecht/WV and that Shell’s PA effort seems to have lost steam. Perhaps Shell is finally stepping up their game once again and getting serious about building a plant, originally announced all the way back in March 2012 (see Shell Announces Location of Ethane Cracker Plant)…
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CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Processing Plants | Statewide MD

Dominion Breaks Ground on Cove Point, MD LNG Export Facility
October 31, 2014October 31, 2014

It was only Wednesday night of this week (Oct. 29) at the Oil & Gas Awards dinner in Oklahoma City, OK that a fellow attendee (from Eagle Rock) asked me at dinner when Dominion would break ground on the Cove Point LNG plant. I told him I had not heard they’ve yet broken ground, but it should be any day now. Little did I know how prophetic those words would be! Yesterday Dominion announced that they have now officially broken ground on the Cove Point LNG export plant, a project that will inject between $3.4 and $3.8 billion in Calvert County, Maryland and pump upward of 1.8 billion cubic feet per day of cheap, abundant Marcellus and Utica Shale gas…
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Antero Resources | Energy Companies | Industrywide Issues | Pipelines | Processing Plants

Antero Resources Launches Midstream IPO, Seeks $1B+
October 28, 2014October 28, 2014

Can Antero Resources do it again? A little over a year ago, in October 2013, Antero, one of the biggest players in the Marcellus/Utica Shale, floated an initial public offering (IPO) for the company, called “taking it public” because shares of stock will be owned and traded on a public stock exchange–and raised an incredible $1.57 billion (see Antero’s IPO Fetches $1.57B, Company Valued at $11B!). Antero is hoping lightening will strike twice, and indeed it may. Yesterday the company announced that it will spin off its midstream division into a new wholly-owned subsidiary, under a master limited partnership (MLP) structure, and offer “units” (think shares of stock) that will be publicly traded. The company plans to offer more than 43 million units to investors and if it gets the target $19-$21 per unit, the grand total will once again exceed $1 billion of new investment…
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CNG/LNG | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Regional LNG Plant, Filling Stations Coming to Pittsburgh Region
October 28, 2014October 28, 2014

A man with a long history of projects and companies dealing in LNG (liquefied natural gas) and CNG (compressed natural gas), Robert E. Petsinger, has announced he’s putting together financing for a $440 million company that will (a) build a regional LNG production plant along the banks of the Ohio River somewhere near Pittsburgh, and (b) build 50 LNG and LNG-derived compressed natural gas stations within a 500-mile radius of Pittsburgh. The reason for the location? To use cheap, abundant, locally mined Marcellus Shale gas. Given Petsinger’s history, this is no blue flame pipe dream. You can take it to the bank…
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Access Midstream Partners | Energy Services | Industrywide Issues | Pipelines | Processing Plants | Williams

Deal Details for Williams/Access Midstream Merger – TTV of $50B!
October 27, 2014October 27, 2014

One of the biggest–perhaps THE biggest–midstream stories of 2014 is the buyout of Access Midstream by Williams (see Big News: Williams Partners Buying Access Midstream for $6B). Access Midstream, formerly Chesapeake Midstream, has a big footprint in the Marcellus/Utica region. Yesterday (Sunday night) Williams and Access issued a joint statement that the merger plan is now done. The deal outline is settled–and now it’s down to the lawyers and approvals from the government. They expect the completed merger/takeover by Williams to be done “by early 2015.” Yesterday’s announcement (below) gives the blow by blow of the negotiated deal. It also outlines the roles that Access’ corporate officers will play in the newly combined company. As MDN said initially, this deal has the makings of creating a worthy challenger to Kinder Morgan, the nation’s largest midstream company. We originally estimated the combined value of Williams and Access combined would be around $38 billion. According to the announcement yesterday, the “total transaction value” (TTV) of this deal will be ~$50 billion!…
Read More “Deal Details for Williams/Access Midstream Merger – TTV of $50B!”