US Methanol Breaks Ground on First Plant in West Virginia
US Methanol broke ground yesterday in Institute (Kanawha County), WV for its very first methanol production plant. In August 2016 MDN was the first to share the news that US Methanol is building at least two, rumored up to five, methanol plants in the Mountain State (see Rumor: US Methanol Building 5 Methanol Plants in WV). MDN shared a rumor (based on a reliable source) that until we disclosed it, was not public knowledge: The first methanol plant US Methanol plans to build will be in Institute, WV, and the second in Belle, WV–both in the Charleston region. Methanol plants convert natural gas into methanol, used as a chemical feedstock (or raw material) to create other things, like gasoline, antifreeze, plastic bottles–even LED and LCD screens. A number of dignitaries attended the groundbreaking in Institute, including colorful WV Governor Jim Justice. A really cool factoid: the plant will be constructed from a deconstructed methanol plant from Brazil. Usually it’s the other way around, plants get shipped from the U.S. to other countries. This time a plant is coming “home” to the U.S. The new plant, called Liberty One, will open in mid-2018–supplied with plenty of cheap and abundant Marcellus/Utica shale gas…
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Yet another anti-shale argument falls. You read and hear plenty about a community’s tax base (i.e. property values) going down when/if shale drilling and associated infrastructure, like processing plants, come to town. That’s fake news. Here’s real news: In Doddridge County, WV, prior to the shale revolution visiting the county, the total assessed value for all properties in the county added up to $457.5 million. Seven years later, in 2017, with multiple wells drilled and massive new MarkWest natural gas processing plants built, total assessed value for all properties in Doddridge is now $1.4 BILLION. That’s a three-fold increase in seven years! Most of the increase comes from the oil and gas industry. Quite frankly, there’s no end in sight. Values will continue to rise in Doddridge…
A group of 57 gentry landowners in Virginia and West Virginia, backed by an out-of-state Big Green group, have just sued the Federal Energy Regulatory Commission (FERC) in an attempt to gut the 80-year old Natural Gas Act that gives FERC the right to grant eminent domain for pipeline projects. Specifically, the colluding landowners oppose Dominion’s $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, and EQT’s $3.5 billion Mountain Valley Pipeline project, a 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The frivolous lawsuit filed yesterday in the U.S. District Court for the District of Columbia (full copy below) claims the landowners’ property is a “taking” not properly compensated under the U.S. Constitution–even though landowners are paid and they can continue to use their land as they see fit, as long as they don’t put a building overtop the pipeline. Here’s the latest on Big Green’s effort to oppose every square inch of new natural gas pipelines anywhere, including in the Marcellus/Utica…
A research team from West Virginia University spent the past year studying geologic regions in 50 counties in the Marcellus/Utica Shale region to see if our region would support a proposed $10 billion ethane storage hub. The conclusion was delivered last week at a meeting in Southpointe, PA: Heck yeah! Some 100 geologists, chemical engineers, oil and gas people members of academia gathered to hear about the results. WVU researchers released their findings in a published 181-page report titled “A Geologic Study to Determine the Potential to Create an Appalachian Storage Hub for Natural Gas Liquids” (full copy below). Among the study’s findings: A shale ethane storage hub could help create $36 billion in investment and more than 100,000 permanent jobs. It’s HUGE! Our region currently produces three times the amount of ethane that can be used by the mighty Shell ethane cracker, pointing out the need for more cracker plants. Here’s the exciting news that we need an ethane storage hub, and we need it bad…
An effort by Fayette County, WV to ban injection wells in the county has gone down to a final defeat. In January 2016, three liberal Democrat county commissioners from Fayette County, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see
E2 Energy Services, which operates numerous natural gas processing facilities in the Marcellus/Utica, has just recapitalized “through an equity commitment from Tailwater Capital.” MDN first heard of E2 back in October 2014 when EnLink Midstream transferred ownership (“dropped down”) its investment in E2 Appalachian Compression, LLC and E2 Energy Services, LLC from one EnLink corporate entity to another (see
Exactly one week ago MDN brought you the exclusive news of WHO is selling a bunch of conventional wells and leases (and pipelines) located in West Virginia, Ohio and Virginia to Carbon Natural Resources (see
Researchers at West Virginia University have just published a new study that looks at how to reduce methane emissions from LNG (liquefied natural gas) and CNG (compressed natural gas) fleet vehicles in coming years. Today’s heavy-duty natural gas fueled fleet is less than two percent of the total fleet. However, in the next 20 years, the heavy-duty truck fleet is expected to undergo a massive change–to as much as 50% of those vehicles powered by natural gas. That is a HUGE number! And potentially a huge new market for Marcellus/Utica gas! Natgas has a lot of advantages over diesel fuel, but folks are concerned over the mythical global warming potential of methane leaking into the atmosphere. Hence this study which looks at ways to prevent that…
Anti-fossil fuel activists attempting to stop the unstoppable Rover Pipeline are doing their best to smear and prejudice people against the project. Rover has had its share of problems. We’ve chronicled those problems–like leaking 2 million gallons of drilling mud in Ohio when performing underground horizontal directional drilling (see
The West Virginia Public Service Commission will host a public hearing tomorrow on a proposed power plant in Brooke County, WV. The 750-megawatt Marcellus-fired electric plant will be built by Energy Solutions Consortium–the father and son team of Andrew and Matthew Dorn (based in Buffalo, NY). The Dorns are currently building another gas-fired plant–in Marshall County (see
The West Virginia Legislature has appointed a new Joint Committee on Natural Gas Development, composed of Senators and Delegates, to put their collective heads together to see how they can encourage more oil and gas development in the Mountain State. The committee will meet tomorrow for the first time. The effort is being supported by the West Virginia Oil and Natural Gas Association (WVONGA). In general, it certainly seems like a good idea–WV needs more drilling. However, WVONGA plans to use the committee as a platform to push its “modernized mineral efficiency laws”–i.e. forced pooling lite. As we reported last week, WVONGA is making an all-out push for new forced pooling laws in 2018 (see
Carbon Natural Gas Company, through its affiliate Carbon Appalachian Company, teased in a press release issued yesterday that the company has just completed the acquisition of “natural gas producing properties and related facilities” located “predominantly in the State of West Virginia” for $21.5 million. The release does not identify the seller–but MDN believes we know who it is: Cabot Oil & Gas. We supply our evidence below. Carbon Natural Gas is an independent oil and gas exploration and production company (i.e. “driller”) that owns, operates and develops oil and gas properties in the Appalachian, Illinois and Ventura Basin areas of the U.S. Most of the wells they own and operate are conventional. However, in April the company began dipping its toe into unconventional shale as well (see
It’s not often these days we come across a story that mentions a new lease signed, and the amount of money paid as a signing bonus. Such is the case in Ohio County, WV. The Wheeling Park High School has just signed a lease with Southwestern Energy for $3,500 per acre for 66 acres–giving the school district $231,000 of newly found revenue, thanks to the Marcellus/Utica industry. No drilling equipment will be placed on or near school property. When the drilling eventually happens UNDER the school, and the wells begin to flow, Wheeling Park High School will then get more revenue–18% royalties on all gas produced…
In January MDN told you that Italian company Pietro Fiorentini had signed paperwork to buy land to build a $9 million factory in Weirton, WV (see
Mountain Valley Pipeline (MVP) is not taking a ludicrous, outrageous lawsuit by anti-pipeline residents from West Virginia and Virginia lying down. They are fighting mad as recent court filings show. MVP is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. A lawsuit was filed in federal court at the end of July to block the MVP project (see
The West Virginia Oil & Natural Gas Association (WVONGA) plans to push, once again, for what MDN calls forced pooling lite in the next session of the legislature scheduled for early 2018. Forced pooling legislation in West Virginia has been put forward five times in the past seven years–and each time it has failed to win enough votes in the WV legislature. This year, WVONGA changed tactics and renamed forced pooling as co-tenancy and joint development (see