Update on Adelphia Gateway – Converting Oil Pipeline to Flow NatGas
One year ago, in November 2017, MDN shared the exciting news that an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, had been purchased by a subsidiary of New Jersey Resources and will get converted to flow Marcellus natural gas to the greater Philadelphia region (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). The project/pipeline is called the Adelphia Gateway. In January of this year, NJ Resources filed an official application with the Federal Energy Regulatory Commission (FERC) to convert the existing pipeline to flow natural gas, and add various facilities, like meter stations and a compressor station (see Adelphia Gateway Pipeline Near Philly Files with FERC). The compressor station is planned for a residential neighborhood in Bucks County. The neighbors are most definitely not happy.
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Is Shell (or SWEPI, formerly known as Shell Western E&P Inc.) leaving its Pennsylvania Marcellus drilling program behind? You may recall we posted a story in June quoting Tonya Williams, general manager for Appalachia with Shell, as stating (during her talk at the DUG East event in Pittsburgh) that Shell plans to spend $150 million to drill wells on four pads in 2018, all of it in Tioga County (see 
Since our lead story today is about the spike up in the price of natural gas (see Price of NatGas Spikes to Highest Level in 4 Years – $4.84/Mcf), we thought it fitting to bring you a related story that caught our eye–on the price of natgas in Pennsylvania. For years PA, especially the dry gas northeast, has been plagued with some of the lowest natural gas prices in the U.S. Why? Prolific production and not enough pipelines to get all that production to higher-paying markets. The situation is changing, rapidly. Prices in the northeast Marcellus are catching up with the Henry Hub price in southern Louisiana, thanks to multiple pipelines coming online. What does it all mean for Pennsylvanians?
On January 29, 2017, EQT used underground horizontal directional drilling (HDD) to drill a hole under State Route 136 in Allegheny County, PA, to install a water pipeline. As they were drilling, using what we now know was an out-of-date map, EQT hit an abandoned coal mine full of water, and four million gallons of acid mine drainage (AMD) leaked into the Monongahela River. EQT worked hard and fast to stop the leak (stopping it two days later) and set up a system to prevent any further leaks. Now, nearly two years later, it’s time to pay the piper. EQT just agreed to a fine of $294,000 for violating the Clean Streams Law, and payment of an additional $100,000 to the Clean Streams Foundation to provide for maintenance, operation, and replacement of a system to keep AMD from leaking at the site in the future.
The last time we checked in (June) on a brewing frack ban in Penn Township (Westmoreland County), PA, a challenge to a local ordinance which allows Apex Energy and Huntley & Huntley to drill and operate wells rested with a county judge. Things have since rapidly progressed. We’re guessing the local judge ruled in favor of allowing the wells to be drilled because the case was appealed to PA Commonwealth Court. Late last week the judges in Commonwealth Court issued a ruling in favor of Penn Township’s “special exception” permits awarded to Apex Energy, allowing them to drill shale wells.
Last week MDN brought you the exciting news that New Fortress Energy is planning to build an LNG (liquefied natural gas) liquefaction plant in Wyalusing (Bradford County), PA (see 
Trout Unlimited (TU), previously outed as an anti-fracking organization (see 
Yesterday the muckety-mucks from Energy Transfer (ET) held a conference call with Wall Street analysts to discuss the company’s third quarter 2018 update. Inevitably on such calls there’s talk about what’s coming up in addition to what happened in the previous quarter. ET is a big midstream (pipeline) company. Among their projects are the mighty Rover Pipeline, which reaches from Pennsylvania, West Virgina, and eastern Ohio all the way into Michigan, and the Mariner East 2 Pipeline, which runs from eastern Ohio all the way through Pennsylvania to the Philadelphia area. Rover flows natural gas, ME2 (and ME2X) will flow NGLs, mainly ethane and propane. According to Tom Long, ET’s Chief Financial Officer, ME2 will be up and running sometime this quarter. Since the end of this quarter is around Christmastime, we prefer to think of ME2 as a Christmas present for Marcellus/Utica drillers.
It must really grate on Big Green supporters that their hero, lib Dem Tom Wolf (who just won reelection as governor of PA), continues to support fossil fuel projects. It must doubly grate on them that Wolf’s Dept. of Environmental Protection, when funding such projects, calls them “clean energy.” We love it! The PA DEP announced yesterday, two days after the big election, that they’ve just awarded $2.6 million in grants to 16 different “clean energy vehicle” projects. When you look at the list, all but $32,077 of that amount is going to fund either CNG or propane-powered vehicles. That is, fossil fuel-powered vehicles (mostly buses and trucks). And the DEP has the *audacity* (in the opinion of Big Green nuts) to call all of these projects “clean energy”! We’re laughing our considerable rear-end off.
We have some exciting news to share. A company called New Fortress Energy is planning to build an LNG (liquefied natural gas) liquefaction plant in Wyalusing (Bradford County), PA. The $800 million (!) plant will supercool and liquefy locally extracted Marcellus Shale gas and ship it first by truck, eventually by rail, to “customers in the U.S. as well as abroad.” Meaning exports. How cool is that? It seems that LNG liquefaction plants no longer have to be located along a shoreline to engage in exports. Which company will provide the gas to liquefy and export? MDN has the exclusive answer, and yes, you need to be an MDN paying subscriber to find out…
Yet another Range Resources alumnus is now working for someone else–himself. Matt Curry, a chemical engineer and Pittsburgh native who used to work for Range, along with Chris Combs, who’s worked for a number of drilling services companies in Texas, co-founded Praetorian Energy Solutions, a “pressure pumping and pumpdown services” headquartered in Canonsburg, PA. The company, launched earlier this year, is (so far) working in the Eagle Ford Shale play in Texas–because that’s where they bought their equipment. That equipment will be heading north soon to operate in the Marcellus/Utica. What is a pressure pumping/pumpdown company?
A number of times we’ve highlighted a cool training program offered by the The Gas Technology Institute (GTI). The 
The left-most contingent in the Pennsylvania Democrat Party wants to ban all fracking in the state. It’s fringe, but all such oddball movements start out as fringe. Of particular note in this election season is that a group of these ban-fracking nutters have gotten themselves on the ballot in 15 PA House and Senate races around the state. As you might expect, most of the ban-frackers are running in counties in the Philadelphia orbit (Delaware, Chester, Montgomery, Philly itself). There are some from outside (but still close to) Philly, in Northampton and Carbon counties. There are a few in Allegheny County (Pittsburgh area). There’s even one running in Centre County. We have the full list of 15 people that our friends in PA should be sure to NOT vote for in tomorrow’s very important election.