CNG/LNG | Energy Services | Industrywide Issues | Lehigh County | Pennsylvania | UGI Energy Services
UGI Energy Launches LNG Peak Shaver in Bethlehem, PA
Yesterday UGI Energy Services, a subsidiary of Pennsylvania utility company UGI Corporation, held a ribbon-cutting ceremony at its brand new Bethlehem, PA LNG peak shaver facility. Pennsylvania Public Utility Commission (PUC) Chairwoman Gladys Brown Dutrieuille was among the dignitaries on hand to celebrate. What is a “peak shaver” and why is this an important project for the PA Marcellus?
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Last week Pennsylvania issued a paltry 3 new shale well drilling permits (lowest we’ve seen in months), Ohio issued a single new permit, and West Virginia issued 5 new shale well permits. All 3 PA permits were issued in Greene County. The OH permit was issued in Carroll County (bit of a surprise). And all 5 WV permits were issued in Tyler County.
Radical anti-fossil fuel groups have not given up hope they can somehow, at the last minute, block the $10 billion Shell ethane cracker plant (about a year from being completed) from ever starting up. Perhaps Biden’s “victory” has given them a little boost of irrational exuberance? In 2015 the Pennsylvania Dept. of Environmental Protection (DEP) issued an air permit for the cracker plant. Shell needs to tweak the permit with new information. Antis are asking PA to deny the new tweaks, claiming Shell wants to pollute the region even more. Shell says the tweaks reflect new realities, including LOWER emissions.
Pennsylvania Gov. Tom Wolf and his Dept. of Environmental Protection (DEP) continue to push a plan that will raise Pennsylvania residents’ electric rates by 50% or more, a carbon tax plan called the Regional Greenhouse Gas Initiative (RGGI). The DEP will conduct 10 three-hour virtual public hearings between Dec. 8 and 14. There will be no in-person hearings due to concerns over COVID-19.
The radicalized Pennsylvania Environmental Defense Foundation (PEDF) never gives up. In June 2017, the PEDF won a case at the PA Supreme Court by the skin of their teeth (see 
Although the national election is still undecided (looking like Biden, a complete disaster), in almost every other respect Republicans (i.e. pro-shale candidates) won, big-time. Republicans gained seats in the U.S. House of Representatives, look to be keeping a majority in the U.S. Senate, and picked up seats in many state legislatures. Leftist Democrats poured BIG money into Pennsylvania in an attempt to flip both the PA House and Senate from red to blue. They failed. And that’s very good for shale energy in the state.
During the Williams third-quarter 2020 update yesterday, CEO Alan Armstrong shared some very interesting, and relevant (to the Marcellus/Utica) comments. Armstrong said that two important pipeline projects to carry M-U gas to other markets, the Southeastern Trail expansion project and the Leidy South project, are both in the midst of coming online–ahead of schedule.
In August Pennsylvania hiked its permit fee to drill a new shale well to be the most expensive of any state in the country, from $5,000 to $12,500 (see 
We’re speechless (which doesn’t happen often). The liberal, anti-shale Democrats who write and manage the Pittsburgh Post-Gazette have endorsed Donald J. Trump for president! They had plenty of criticism for Trump in their lukewarm “endorsement,” but the fact they did endorse Trump is, well, big news. The Post-Gazette editors, who haven’t endorsed a Republican for president since 1972, say “Mr. Biden is too old for the job, and fragile.” We agree.
Dan Dinges, CEO of Cabot Oil & Gas, said last week: “2020 has proven to be the most challenging year for natural gas prices in the last 25 years, resulting from a multi-year trend of overcapitalization of both oil and natural gas assets across our industry.” Indeed. The company released its third-quarter 2020 update on Friday and reported a net loss of $15 million, compared to net income of $90.4 million in 3Q19. This is the first quarterly net loss for Cabot in recent memory. Still, there was plenty of good news coming from the 3Q update…
The bad blood between Energy Transfer (ET) and the Pennsylvania Dept. of Environmental Protection (DEP) continues. ET’s Sunoco Pipeline subsidiary is desperately trying to complete the Mariner East 2X pipeline from eastern Ohio through to Marcus Hook near Philadelphia. A recent drilling mud spill in Marsh Creek State Park prompted the DEP to demand Sunoco change the route for ME2X (which was less than 60 days from being done) to a new route around the State Park (see 
Energy Transfer (Sunoco Pipeline) is pushing back against a demand by the Pennsylvania Dept. of Environmental Protection (DEP) that the company’s Mariner East 2X pipeline project be rerouted around Marsh Creek State Park (in Chester County, PA) following a drilling mud spill in August. Sunoco has asked the PA Environmental Hearing Board, a special court created to hear appeals of DEP decisions, to override the DEP’s demand to reroute ME2X.