FERC Authorizes Tetco TEAL Phase II – Connecting to NEXUS Pipe

Here’s a project we’ve mentioned in passing as part of other posts, but until now, have not specifically focused on. In August 2017, Enbridge received approval (a certificate) from the Federal Energy Regulatory Commission (FERC) to construct and operate the Texas Eastern Appalachian Lease Project (“TEAL Project”). TEAL boosts the capacity along the Texas Eastern Transmission Company (Tetco) pipeline and connects it to the NEXUS pipeline. NEXUS has been under construction since last October (see NEXUS Pipeline Begins Construction in OH, MI). TEAL will bump up volumes of Utica/Marcellus gas along Tetco by an extra 950 million cubic feet per day–nearly 1 billion cubic feet! The markets for the gas are the Midwest and Canada. The justification for the project, when it was filed two years ago, was “offsetting the impact of the decline in traditional western Canadian supplies available to serve these markets.” That was before TransCanada lowered the tolls along its pipeline to bring more western Canadian gas to eastern Canada. Oops. What’s done is done. On December 19, 2017, Texas Eastern received approval to proceed with construction of the Phase I TEAL Project facilities. Last week Texas Eastern requested permission to begin Phase II in Columbiana and Belmont counties (in Ohio), and yesterday FERC said yes…
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Part of Leach XPress Pipe Up and Running Following Explosion

Leach XPress explosion location – click for larger version

Last Thursday MDN reported that TransCanada was working to restore partial service to the Leach XPress Pipeline (see TransCanada Working to Restore Partial Service on Leach XPress Pipe). Leach XPress only came online in January. The pipeline experienced an explosion and fire on June 7 (see Leach XPress Pipeline Explodes in Marshall County, WV). Most of the 1.5 billion cubic feet per day of Marcellus/Utica gas flowing through the pipeline was stopped. As of Friday, the Stagecoach-LXP meter, which ties into the Strike Force South gathering system station, was once again flowing, up to 190 million cubic feet per day. Which means Monroe and Belmont counties (OH) are now reconnected and flowing. As for the rest of the pipeline and its various metering stations, it’s all still shut down with no word on when it will be repaired and back online. There’s still no word on what caused the explosion in the first place…
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TransCanada Working to Restore Partial Service on Leach XPress Pipe

We told you last week that Columbia Gas Transmission’s Leach XPress Pipeline, which only came online in January, experienced an explosion and fire in Marshall County, WV (see Leach XPress Pipeline Explodes in Marshall County, WV). Most of the 1.5 billion cubic feet per day of Marcellus/Utica gas flowing through the pipeline is now stopped, which has caused shippers (drillers) to find alternatives, including Energy Transfer’s Rover, Tallgrass’ Rockies Express (REX), EQT’s Equitrans, and Enbridge’s Texas Eastern Transmission (Tetco) pipelines to flow gas out of the region (see Other Pipelines Pick Up Slack for Exploded Leach XPress). Although a fix for the exploded portion of Leach XPress is likely months away, TransCanada, the owner of Columbia and the Leach pipeline, is working on a plan to quickly restore part of the pipeline to service in southeastern Ohio–which would reconnect Monroe and Belmont counties to the pipeline…
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PTT Awards Belmont Cracker Engineering Contract to Bechtel

PTT has awarded the contract to build the Belmont, OH ethane cracker to Bechtel. At least, that’s the rumor swirling around. We have to say right up front, this information has not yet been announced and therefore is not 100% verified–but we’ve talked to a highly placed industry source and we believe it to be accurate. Below we offer insight into why we believe this information is accurate, and why PTT has not yet made their official final investment decision (FID) announcement, and when they might do so…
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Update on Hess’ Activity in the Ohio Utica: Completing 5 Wells

It’s been a while–quite a while–since we’ve heard anything about Hess’ Utica drilling program. The last article we ran on Hess drilling in the Utica was in April 2016 when Hess management said that while they have “good rock” in the Utica, they would mothball their Utica operations until more pipelines are built. Looks like the pipelines are built. We spotted a story that gives new information about Hess’ plans in the Utica. They currently have 59 wells producing in the Ohio Utica. They’re working to complete another 5 previously drilled (in 2015?) wells, which will give them 64 producing wells “in the next month or so.” As for new drilling, the company will hopefully restart their program to drill new wells “hopefully in mid-2019.” Here’s what Hess’ “Utica operations area lead” guy had to say at a Kiwanis Club meeting last week in Steubenville about how much, and where, they’re drilling in the Utica…
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PTT Buys Another 300+ Acres for Belmont County, OH Cracker

In yet another very good sign that the proposed PTT Global Chemical ethane cracker plant in Belmont County, OH is headed for a positive final investment decision (FID), PTT has just purchased another 300+ acres to go along with the previous acreage they purchased as the site for the future cracker/petrochemical project. Last July MDN reported PTT had spent $13.8 million to buy 168 acres at the proposed site for a second Appalachia ethane cracker, in Belmont County, OH (see PTT Global Buys Land for Belmont, OH Ethane Cracker Plant). That site, the former R.E. Burger power plant property (owned by FirstEnergy Corp.), is the primary location for the proposed cracker. However, more land is needed. A deed filed earlier this week shows that PTT has purchased another 300+ acres for $17.5 million from the Ohio-West Virginia Excavating company. Together, both parcels are roughly 500 acres, which is more than enough land for the facility. Until now numbers like $6.5 billion have been thrown around as the total project cost. The number has now gone up–to as much as $10 billion! Here’s the latest good news that it’s looking better and better for a second ethane cracker in Appalachia…
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Still No Deal on Property Next to PTT OH Ethane Cracker Site

Homeowners who live near the location of a possible ethane cracker plant in Belmont County, OH are running out of time to negotiate a deal to sell their properties. Living next door to a cracker plant is not anyone’s idea of paradise. There will be noise, and smells and (yes) some air pollution coming from the plant. Best to sell now before the plant begins construction. However, representatives for PTT Global Chemical which will build the plant (IF it gets built), say they already have all the land they need for the facility (see PTT Global Buys Land for Belmont, OH Ethane Cracker Plant). Not needing the land puts PTT in a good negotiating position. There are 10 homes in the general vicinity of the proposed cracker plant whose owners want to sell. PTT says they’ve offered the homeowners 125% of fair market value for their homes. The lawyer representing the homeowners says the valuations are not accurate. However, it’s far from being a stand-off. There is no malice or vitriol. It sounds to us like both sides think a deal will get done. It just boils down to finalizing numbers. Here’s the latest on real estate for the proposed Belmont cracker plant…
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Free Pipeline Training Course in April in SWPA & Eastern OH

The Gas Technology Institute (GTI) has previously offered a 100% free training program for those interested in a career building pipelines in the Marcellus/Utica region (see 4-Wk FREE Training Program Helps Unemployed Get M-U Pipeline Jobs and Still a Few Openings for Free Training for M-U Pipeline Jobs in SWPA). GTI is offering the same training program once again in April, at two locations: Armstrong County Industrial Development Council in Freeport, PA, and Belmont College in St. Clairsville, OH. Each location is limited to 20 students. If you are interested and live somewhere within driving distance of either location, what are you waiting for? Sign up before all slots are taken! Starting salaries for graduates “often exceed $50,000” and can lead to careers with salaries in the six-figure range (hey, where do we sign up?!). We have the details of how to enroll for FREE in this valuable training course–a course worth $3,500…
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New Video of Burning XTO Well in Belmont County; EPA’s Wild Claim

XTO well in Belmont County, OH

As we reported on Tuesday, it has now been over a month since a Utica Shale well being drilled by XTO Energy Belmont County, OH exploded and caught fire (see XTO Well Explosion in Ohio Still Under Investigation Month Later). A variety state and federal agencies are investigating to see what went wrong. Still no guesses or theories. However, lack of hard data isn’t stopping the federal Environmental Protection Agency (EPA) from making a wild, off-the-cuff claim that the well leaked 100 million cubic feet of methane into the atmosphere per day until it was capped (see Exploded XTO Well in Belmont County Finally Capped After 20 Days). What does the EPA base that claim on? Nothing. It’s a guess. EPA officials were at the scene of the exploded well shortly after it exploded–but they never took any measurements. Why measure when you can guess? XTO is pushing back against the EPA’s wild guess. Below we have more on the EPA’s guesswork, and a just-released video of the burning well, taken from the air on the day the well exploded…
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XTO Well Explosion in Ohio Still Under Investigation Month Later

On Feb. 15, XTO Energy was drilling a Utica Shale well on the Schnegg well pad near Captina Creek (York Township, Belmont County, OH) when they “lost control” of the well and it exploded and caught fire (see XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated). Fortunately no one was injured. It took XTO 20 days to get the well capped so it would stop venting methane into the atmosphere (see Exploded XTO Well in Belmont County Finally Capped After 20 Days). It’s now 35 days from the initial explosion and XTO and state officials investigating the incident still don’t know why it happened. An XTO spokesperson updated Belmont Count commissioners last week on the aftermath of the explosion and how XTO is working hard to ensure area residents are well taken care of. Here’s the latest on the aftermath, and the ongoing investigation…
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PTT Global Ohio Cracker Grows to $10B Project w/New Partner

With much fanfare, yesterday a press event was held in Columbus, OH to make an official announcement of what we already know: that South Korea’s Daelim Chemical, a subsidiary of Daelim Industrial, is now a partner with PTT Global Chemical in the Belmont County ethane cracker project. We previously brought you that news on Feb. 1 (see PTT’s “Big Announcement” – Gets a New Partner for Belmont Cracker). OH Gov. John Kasich along with officials from PTT and Daelim held a presser yesterday to officially announce the partnership, but also to announce that PTT has pulled the trigger on buying more land for the project–a positive sign. There was also talk by all three that the size of the project has grown. Plans are now that the project will cost $7.5-$10 billion to build, and it will have the same daily capacity as the Shell cracker now under construction in PA–using up to 100,000 barrels of ethane per day to make ethylene (raw plastic). Disappointingly, there was no “final investment decision” (FID) announcement. However, Kasich said he is “very hopeful” all three will be back, soon, to make an FID announcement…
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Top 3 Most-Drilled Counties in Ohio Utica for 2017

If you look at the number of Utica wells drilled in 2017, Belmont, Monroe and Jefferson counties were the top 3 counties in the state for new Utica wells drilled. However, if you dig a little further, you’ll find that two of those three counties saw more wells drilled in 2017 than in 2016, while one of them saw a 45% drop in new wells drilled in 2017–indicating that county has “fallen out of favor,” at least to some extent. Which is which? For that, you have click to continue reading…
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Exploded XTO Well in Belmont County Finally Capped After 20 Days

On Feb. 15, XTO Energy was drilling a Utica Shale well on the Schnegg well pad near Captina Creek (York Township, Belmont County, OH) when they “lost control” of the well and it exploded and caught fire (see XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated). Fortunately no one was injured. Some of the ~100 people from the nearby 30 homes who were evacuated finally felt safe enough to return home–some 10 days later (see Neighbors of Exploded XTO Well in Belmont, OH Finally Return Home). However, not all of them returned home. Some did not want to return until the well is capped. We’re happy to report the well is finally, after 20 days, now capped. In order to cap it, workers first had to flare the well (burn off excess gas)–which happened Tuesday. XTO’s #1 priority now that the well is capped is to get those displaced back into their homes…
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XTO Well Blowout in Belmont County, OH Still Leaking 2 Wks Later

Two weeks after an XTO Energy well in Belmont County, Ohio exploded (not hurting anyone, blessedly), the neighbors have moved back–all but four homes closest to the pad. However, the well remains uncapped. Although it’s an unfortunate event that has caused a major upset for around 100 people, one Belmont County commissioner waxed philosophical by saying, “accidents happen.” What’s the latest on this accident and the cleanup effort by XTO?…
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