Largest Gas-Fired Power Plant in the U.S. Coming in Western Pa.

This is VERY exciting news. The former Homer City Generating Station, previously the largest coal-fired power plant in Pennsylvania (Indiana County, 50 miles east of Pittsburgh), will be transformed into a more than 3,200-acre natural gas-powered data center campus, designed to meet the growing demand for artificial intelligence (AI) and high-performance computing (HPC). The new gas-fired plant will be THE LARGEST gas-fired power plant in the country, capable of producing up to 4.5 gigawatts (4,500 MW) of electricity. And yummy Marcellus gas will feed it! Put another way, it will use roughly 750 million cubic feet per day (MMcf/d) of Marcellus gas—some three-quarters of a Bcf every single day. Massive! Read More “Largest Gas-Fired Power Plant in the U.S. Coming in Western Pa.”

In January 2020, the Pennsylvania Supreme Court ruled in THE most consequential lawsuit for Marcellus Shale drilling we’ve seen, a case called Briggs v Southwestern Energy (see
A Washington County, PA, man and his anti-fossil fuel lawyer won a victory with the Pennsylvania Environmental Hearing Board (EHB), a special court in PA set up to hear appeals of Department of Environmental Protection (DEP) decisions. The man, Bryan Latkanich, alleges Chevron used PFAS “forever chemicals” in fracking fluids in 2011-2012 when Chevron drilled two wells some 500 feet from his home. Latkanich claims his water well was damaged, as well as his health and the health of family members who drank the “contaminated” water. EQT now owns the wells.
Ten years ago, MDN told you that Chesapeake Utilities, a diversified energy company with businesses in natural gas distribution, transmission and marketing, electricity distribution, propane distribution and wholesale marketing (nothing to do with Chesapeake Energy) had purchased a small midstream company in Ohio—Gatherco, Inc (see
Another record bites the dust. According to data from LSEG, the U.S. exported a record high amount of liquefied natural gas (LNG) in March, selling 9.3 million metric tons (MT). The previous record was 8.6 MT in December 2023. March’s record “smashed” the old record, and there’s no sign that the higher volumes will retreat. There’s no going back!
Two weeks ago, Federal Energy Regulatory Commission (FERC) staff issued the agency’s annual State of the Markets report for 2024 (full copy below) to provide the industry and public with key information on market conditions and emerging issues in natural gas and electricity markets as well as significant market trends and fundamentals for the year. According to FERC Chairman Mark Christie, “The combination of rapidly increasing electricity demand, driven by hyperscale customers such as data centers, paired with the alarming rate of base load generation retirements and lack of new dispatchable generation, is not sustainable and must be addressed.” FERC is sounding the alarm that more dispatchable (i.e., natural gas) power generation is urgently needed.
MARCELLUS/UTICA REGION: Avangrid delivers first energy from Powell Creek solar project to Ohio grid; OTHER U.S. REGIONS: Maryland energy reform bills focused on new power generation pass the Senate; New York could save New Englanders $1B if it stopped blocking a natural gas pipeline; NATIONAL: May natural gas futures bounce back above $4; US senators urge energy secretary to follow law on clean energy grants, loans; Judge hammers EPA over lack of proof of wrongdoing in terminating $20B in climate grants; USA crude oil inventories rise more than 6MM barrels week on week; Oil rises, but doubts dominate; May natgas contract looking to establish new post-winter trading range; Climate change lawsuits on tenuous legal grounds; Trump’s climate policy shift could save American farmers from disaster; Trump’s tariffs already have a major carve-out…oil and gas; Years of climate action demolished in days.
This is VERY exciting news! Boardwalk Pipeline Partners announced yesterday an open season to offer an extra 2 billion cubic feet per day (Bcf/d) of capacity along its 5,975-mile Texas Gas Transmission pipeline network that stretches from Ohio to Louisiana, running through Indiana, Illinois, Kentucky, Mississippi, and Arkansas along the way. According to the announcement, the expanded capacity’s express purpose is to connect Marcellus/Utica gas supplies with growing demand from electric utilities, LNG exporters, industrial users, and data centers in the Midwest and Gulf Coast.
Yesterday, pipeline giant Williams announced the successful commissioning of two Transco pipeline projects that can flow Marcellus/Utica gas to the southeast and Gulf Coast. The Southeast Energy Connector in Alabama supports the conversion of electric power generation in Alabama from coal to natural gas. It provides 150 MMcf/d of natural gas to meet the area’s clean energy needs. The Texas to Louisiana Energy Pathway along the Gulf Coast expands Transco’s capacity in Texas and Louisiana by 364 million cubic feet per day (MMcf/d) to support reliability and diversification of energy infrastructure along the Gulf Coast, namely for LNG exports.
Ascent Resources, founded as American Energy Partners by gas legend Aubrey McClendon, is a privately held company focusing 100% on the Ohio Utica Shale. Ascent, headquartered in Oklahoma City, OK, is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. Yesterday, the company announced a tender offer to repurchase up to $25 million of its common units, specifically Series A and Series B units, through an “unmodified reverse Dutch auction” with a price cap of $23.75 per unit. Why?
Penneco Environmental Solutions wants to build a second wastewater injection well in Plum Borough (Allegheny County), PA, next to an existing injection well. Penneco’s first wastewater injection well in Plum finally opened for business in mid-2021, overcoming all sorts of smears, slanders, and lawsuits by the enviro-left (see
During a webinar yesterday, the Pennsylvania Department of Environmental Protection (DEP) announced it would use a new state General Air Quality Permit to implement Biden-era federal oil and gas facility methane reduction requirements. The DEP is pushing forward with implementation even though the Trump EPA has publicly announced it is revisiting those onerous regulations with an eye on revising them. Perhaps this is a no-win situation for the DEP. If they don’t implement the stated, in-effect (new) regulations by the Bidenistas, they could be dinged by the EPA. Yet, if they implement these onerous Biden-era regulations (via a new permit) and the Trump EPA rolls it all back, the DEP will have to redo the work all over again. Darned if they do and darned if they don’t.
We’re still coming to grips with understanding how the power generation market works with respect to providing electricity for AI data centers. Data centers can potentially be huge and important new customers for natural gas—especially Marcellus/Utica molecules, as some 25% of all the data centers currently operating in the country are located in northern Virginia, where they use M-U molecules. In February, we brought you a post to help you better understand the various scenarios for how powergen gets provided to these data centers (see
The State of West Virginia’s fiscal year begins on July 1 each year and runs through June 30 of the following year. Looking at the state’s most recent fiscal year of July 1, 2023, through June 30, 2024, the natural gas and oil industry in WV accounted for over $660 million in state revenue via severance and property taxes. That’s according to the Gas and Oil Association of West Virginia (GO-WV). In addition, the O&G sector employed over 15,000 direct jobs and an additional 73,000 indirect jobs, with an average annual salary of more than $97,000. Shale energy has been an economic miracle in the Mountain State!
GREAT news! The Ohio Oil and Gas Land Management Commission (OGLMC) met for about 15 minutes on Friday and voted to award Encino Energy the right to drill under (not on) 62.5 acres of Leesville Wildlife Area located in Carroll County. Encino will pay a $218,715 signing bonus and 18% royalties on any oil and gas produced. Landowners in Carroll County, pay attention: That works out to be a hefty $3,500 per acre for a signing bonus.