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    Short Pipeline from NW Pa. to NE Ohio May Not Get Done This Year

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    Last October MDN brought you details about the proposed $86 million Risberg Line pipeline project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. In early May, the Federal Energy Regulatory Commission (FERC) said it will issue an environmental assessment (EA) for the project on or by June 29th (see FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29). Both the U.S. Army Corps of Engineers and the PA Fish and Boat Commission are “cooperating agencies” and part of the EA review process. Following the EA, the clock will begin ticking and FERC will have until Sept. 27th to make a final decision about the project. The original timeline for the project, from the beginning, has been to have it all built and operating by the end of this year. The builder, RH energytrans, is now cautioning that may not happen. Why? Because one never knows with regulatory agencies like FERC and the Army Corps and the Boat Commission. Deadlines come and go and get extended. FERC says the dates they given are targets and not carved in stone. If everything happened as FERC laid out, RH says it would be a challenge, but they can probably get the job done this year. But if the deadline slips, all bets are off…
    Read More “Short Pipeline from NW Pa. to NE Ohio May Not Get Done This Year”

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    Appalachian NGL Storage Hub Conference June 6-7 in Pittsburgh

    MDN has previously written about the Appalachian NGL (natural gas liquids) Storage Hub, a $10+ billion infrastructure project with no specific location identified as yet, but West Virginia often named (see M-U’s Next Mega Project: $10B Appalachian Storage Hub). An upcoming conference dedicated solely to the the Storage Hub is coming to the Pittsburgh area June 6-7. The Appalachian Storage Hub Conference is sponsored by our friends at Shale Directories (Joe Barone), along with TopLine Analytics (Tom Gellrich), in Canonsburg at the Hilton Garden at Southpointe. June 6th will see a cocktail reception in the evening and June 7th is the full conference. The conference will answer questions like, What in the world is a storage hub and why does the Marcellus/Utica need one? What are state governments doing to attract this project, and what remains to be done? What kinds of investment opportunities exist? And, How does our region compare with the Gulf Coast? If you have an interest in petrochemicals and NGLs like ethane, you need to attend this event. Oh! And did we say, seating is very limited? It is, so now is the time to act if you want to attend. There’s a few remaining slots…
    Read More “Appalachian NGL Storage Hub Conference June 6-7 in Pittsburgh”

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    Peak Oil Theorist Art Berman Predicts Doom & Gloom for Shale

    Hee Haw – “Gloom, despair and agony on me”

    Month after month and year after year America’s shale plays produce ever more oil and gas (see today’s story about the latest EIA Drilling Productivity Report). But don’t tell that to Art Berman. Why anyone continues to listen to Berman, the world’s preeminent “peak oil” theorist, is beyond us. For nearly 20 years Berman has predicted that the world is running out of oil and natural gas. And yet the opposite is true. But that doesn’t stop Art from pedaling his particular brand of insanity. Last Thursday at the Texas Energy Council’s annual gathering in Dallas, Berman told attendees that the Permian Basin has another seven years, at most, and then it’s done–out of oil. Oh, and the Eagle Ford, about 350 miles from the Permian–that’s toast too. Why the Texas Energy Council would invite Art to pedal his nonsense is beyond us, except maybe they enjoy a circus side show. In contrast to Berman’s wild fantasies of Permian oil drying up, we have analysis (below) from Richard Zeits, founder of Zeits Oil Analytics, who says the Permian is only just getting started…
    Read More “Peak Oil Theorist Art Berman Predicts Doom & Gloom for Shale”

  • Other Energy Stories of Interest: Tue, May 15, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Pigs to rigs lawyer caught up in “stupid is as stupid does” stunt by fractivist client; gas flows shifting across Texas as new supply outpaces new demand; Pentagon warns against offshore drilling in eastern Gulf of Mexico; shale drillers look beyond Texas as prices rise; most U.S. propane exports heading to Asia; Exxon loses a foe, gains an ally; four big factors influencing U.S. oil markets; U.S. LNG exports just quadrupled; and more!
    Read More “Other Energy Stories of Interest: Tue, May 15, 2018”

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    Atlantic Coast Actual Pipeline Construction Begins in WV

    On Friday, the Federal Energy Regulatory Commission (FERC) issued Dominion Energy permission to begin construction of the actual pipeline for the Atlantic Coast Pipeline (ACP) project–in West Virginia. ACP is a (now) $6.5 billion project, up from a projected $5 billion due to delays from regulatory agencies and frivolous lawsuits filed by Big Green groups, that will run from WV through Virginia and into North Carolina–almost to the border with South Carolina. Until now FERC had allowed prep work, like tree cutting. But now actual pipeline construction can begin, which is a momentous occasion, worthy of celebration!…
    Read More “Atlantic Coast Actual Pipeline Construction Begins in WV”

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    $325M Gas-to-Liquids Plant Coming to Floyd County, KY

    Last week RCL Chemical announced it has partnered with Y2X Infrastructure to build a $325 million gas-to-liquids (GTL) plant in Floyd County, Kentucky. GTL plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing GTL plants in the region. Although we’ve heard plenty of talk about such plants, we’ve only seen a few prototypes get built thus far. The RCL/Y2X story caught our attention because Kentucky hates new gas pipelines, yet wants to build a plant that will use gas coming from pipelines (see KY Court Decision Goes Against Pipelines re Eminent Domain). Perhaps attitudes in the Bluegrass State are changing? According to RCL, necessary infrastructure (pipelines) are already present in Floyd, one of the primary reasons RCL wants to locate in Floyd. The company says it will begin construction by the end of this year and have the GTL plant built and operating by 2020. The original plan, a few years ago, was to build a coal-to-liquids (CTL) plant in neighboring Pike County. That plan was eventually scrapped and this new plan to build a GTL project has taken its place…
    Read More “$325M Gas-to-Liquids Plant Coming to Floyd County, KY”

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    What’s Happening with Utica Marcellus Texas Pipeline (UMTP)?

    What’s happening with Kinder Morgan’s $4 billion Utica Marcellus Texas Pipeline (UMTP) project? In February MDN told you that Kentucky antis went to court to try and block a plan by Kinder Morgan to convert a portion of the Tennessee Gas Pipeline (TGP) that flows natural gas from the Gulf Coast to the northeast, to reverse the pipeline and flow natural gas liquids (NGLs) from the Marcellus/Utica region to the Gulf Coast (see Kentucky Antis File Lawsuit to Stop TGP NGL Pipe Reversal). We told you in April that a Kentucky county has also gone to court to try and stop the pipeline reversal (see Kentucky County Suing to Stop TGP from Reversing Pipeline for NGLs). The pipeline reversal is part of the UMTP project. UMTP involves converting 964 miles of natural gas service on TGP (to flow NGLs), the construction of approximately 200 miles of new pipeline from Louisiana to Texas, and new storage capacity and laterals in Ohio. UMTP was originally slated to be done later this year. Since Kinder hasn’t even gotten to first base with this project, that ain’t gonna happen. What’s the holdup? And, will UMTP ever get built?…
    Read More “What’s Happening with Utica Marcellus Texas Pipeline (UMTP)?”

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    Will Trump’s Iran Deal Pullout Affect M-U Drillers? Maybe

    Here’s a theme we have been writing about more and more–because it’s important. That theme is this: Oil drillers in Texas (and New Mexico), in the Permian Basin, are drilling so fast and so furious to get oil out of the ground, that they are creating an overabundance of natural gas that increasingly competes with Marcellus/Utica gas. How? Every time you drill for one hydrocarbon, like oil, other hydrocarbons often come of the ground with it. In this case, natural gas. The unintended but significant quantities of natgas coming out of the ground along with Permian oil is referred to in the biz as “associated gas.” As we wrote in March, natural gas prices in Texas did something that hasn’t happened in years–they became cheaper than the price of natural gas selling in the saturated Marcellus/Utica (see Natural Gas Prices in Texas Permian Drop Below Marcellus/Utica). Analysts have cautioned that in some cases the price of natural gas in Texas (in some locations) may actually go to zero! Giving it away!! So drillers can keep pumping oil. The natural gas produced by oil drillers is viewed as a “waste” product. Mind boggling. So how does that relate to Trump’s recent (very wise) action to pull out of the handshake Iran nuclear deal? Because we’re now out of that deal and sanctions are back on, Iran will have trouble selling its oil supplies. Meaning as the price of oil continues to rise due to lack of supplies coming from Iran, U.S. drillers will set up more rigs and drill more wells to produce more high-priced oil in the Permian. And as they do, more natural gas will come out of the ground, contributing to the existing “glut.” And drillers in the Permian will continue to aggressively look for new markets, like the Midwest and southeastern U.S., to try and sell (or give away) their extremely cheap gas. That Permian gas will increasingly compete with gas coming from the Marcellus/Utica. That’s how Trump pulling out of the Iran nuclear deal may impact M-U gas…
    Read More “Will Trump’s Iran Deal Pullout Affect M-U Drillers? Maybe”

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    Study Confirms PA Enviro Laws ARE More Strict Than Federal Laws

    In April, the Pennsylvania Joint State Government Commission released a report (full copy below) tackling the question of whether or not PA’s environmental laws and regulations are more stringent than federal requirements. The report compared the main state and federal laws in place covering clean air, clean water, natural resources, waste management and more. The report says PA’s laws, “are generally no more stringent than their federal counterparts.” But in the same paragraph, the report says, “Where additional regulations have been made, it is generally justified as a compelling and articulable Pennsylvania interest and addresses definable public health, safety or environmental risks. The area of greatest deviation involves differences between the federal Clean Water Act and the Clean Streams Law. Other more stringent regulations are found in the areas of safe drinking water, the handling of hazardous materials, and mineral extraction. In some instances, Pennsylvania regulations build upon and supplement federal law; in others, Pennsylvania has acted in areas not regulated by the federal government” (pg 6). What does that say to you? It says to us: “Heck yeah, the enviro laws in PA are a lot more strict than federal laws, but there’s good reasons (according to the authors of the report) for it.” Are there good reasons for PA raising the bar higher than the federal government requires?…
    Read More “Study Confirms PA Enviro Laws ARE More Strict Than Federal Laws”

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    Free Webinar on Price of Natural Gas in Marcellus/Utica – May 17

    NGI’s Pat Rau

    The price of natural gas is the magic key that unlocks whether, and how much, drilling takes place in the Marcellus/Utica. Drillers (i.e. producers) live and die by the price of natural gas. Traders live and die by it too. And because it’s important to drillers and traders and others in the industry, the price of gas at various trading points along pipelines is of keen interest for landowners too. What controls the price? Supply and demand, of course. But there are other factors too. This Thursday, May 17 at 1 pm Eastern, NGI’s (Natural Gas Intelligence) Director of Strategy and Research, Patrick Rau, will give an online webinar talk EVERYONE needs to attend: “Appalachian Natural Gas Prices — How They are Determined and Where Are They Headed?” Pat is guest presenter for this month’s free Penn State Extension Shale Education monthly webinar series. MDN editor Jim Willis knows and has worked with Pat–and we can assure you, Pat is one smart cookie. He makes the complex world of natural gas pricing understandable. Here’s the announcement of what Pat will discuss on this can’t-miss-it webinar…
    Read More “Free Webinar on Price of Natural Gas in Marcellus/Utica – May 17”

  • Other Energy Stories of Interest: Mon, May 14, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Where PA’s GOP gov candidates stand on issues important to the gas industry; PTT ensuring possible Belmont County cracker will be on solid footing; Shell Polymers goes back to the future; more than half of Williamsport buses run on CNG; FERC asks court to dismiss Atlantic Sunrise lawsuits; Texas heat may increase natgas prices this summer; Boston electricity 65% higher than other regions; US will be “very strong” for 15-20 years thx to shale & petchem; gas exports will rise following Iran deal pullout; ethane rejection economics; and more!
    Read More “Other Energy Stories of Interest: Mon, May 14, 2018”

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    ETP Update: Rover Fully Online by June 1, Mariner East 2 Online 3Q18

    Yesterday Energy Transfer Partners held its quarterly conference call with stock analysts to discuss first quarter 2018 results. On the phone call we got some updated information about timing for two critical Marcellus/Utica projects: Rover Pipeline and Mariner East 2 Pipeline. As recently as last week MDN was under the impression that Rover–a $3.7 billion, 711-mile natural gas pipeline that runs from PA, WV and eastern OH through OH into Michigan and on to Canada via the Vector Pipeline–would be 100% done sometime by the end of June. Not so according to ET’s CFO Thomas Long, who said on yesterday’s call that Rover will be fully done and in service by June 1! That is really good news. That means the full capacity of 3.25 billion cubic feet per day of Marcellus/Utica gas will flow to the Midwest, Michigan and Canada within the next three weeks. As for Mariner East 2 (ME2), that project was knocked off its original schedule following an extended shutdown of construction by the Pennsylvania Dept. of Environment Protection. ME2 is actually two pipelines, not one. The first ME2 pipeline, according to Tom Long, will be up and running sometime by the end of September this year. The second ME2 pipeline, referred to as ME2X, will be done by “mid-2019.” Here’s a couple of excerpts from the conference call, along with the full ET 1Q18 update…
    Read More “ETP Update: Rover Fully Online by June 1, Mariner East 2 Online 3Q18”

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    Atlantic Coast Pipe Radicals Threaten Duke Energy CEO at Her Home

    Protesting something like a pipeline is one thing. March around, show your signs, talk to the press, make a horse’s rear-end of yourself. Whatever. But showing up at someone’s home and blocking their driveway and erecting a 20-foot tall tower and refusing to move until arrested? That’s something else. That kind of “protest” is threatening, menacing behavior. Bullying. And it’s all too easy for people who have crossed that line to tip over into outright violence. A group of criminal protesters did just what we described–blocked the driveway and erected a wall in the driveway–of Duke Energy CEO Lynn Good at her home in Charlotte, NC on Wednesday. Duke is partners with Dominion Energy in the $6.5 billion Atlantic Coast Pipeline (ACP) project, a natural gas pipeline from West Virginia through Virginia and into North Carolina. The criminal protesters showed up at Good’s home to oppose the project. The signs they carried revealed their irrational hatred of fossil fuels, which is what motivated them to protest in the first place. Wackos. Here’s how it went down at Good’s home earlier this week…
    Read More “Atlantic Coast Pipe Radicals Threaten Duke Energy CEO at Her Home”

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    EQT Continues to Fight PA DEP Fine re Wastewater Impoundment

    On Wednesday, Pennsylvania Commonwealth Court (an appeals court) heard oral arguments over how to prove whether contaminants in the soil have moved into groundwater. The case dates back to 2014 when the PA Dept. of Environmental Protection (DEP) slapped EQT with a $4.53 million fine for a leaky wastewater impoundment in Tioga County (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). EQT did not say there wasn’t a problem with leaks at the site, but they did say the way the DEP calculated the fine was unreasonable and arbitrary. EQT appealed the fine and the case all the way to the PA Supreme Court, and in early April the Supremes ruled in favor of EQT, saying that the DEP’s levied fine was excessive and that the DEP misinterpreted language in the 1937 Clean Streams Law (see PA Supreme Court Axes DEP $4.5M Fine in EQT Tioga Wastewater Leak). We thought (mistakenly) that was the end of the case. But it’s not. The Supremes ruled on “water to water” contamination in the case, but not on ground to water contamination. PA law allows for companies to be on the hook for each day a contaminant enters the water table. What lawyers argued this week was whether or not, and how, the DEP can prove contaminants in the ground, there because of EQT’s leak, can be proven to have leached into the water on any given day. DEP is calculating a revised $1.1 million fine based on assumptions about how many days the contaminants leaked out of the ground. EQT is forcing DEP to use more than just spitball estimates in calculating the fine…
    Read More “EQT Continues to Fight PA DEP Fine re Wastewater Impoundment”

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    PA Dem Senator from Philly Intros Bill to Steal Marcellus Money

    PA State Sen. Vincent Hughes

    Pennsylvania State Sen. Vincent Hughes from Philadelphia is in the back pocket of Big Education. And why not? Hughes has received $635,000+ from Big Education unions over the years. Therefore, Hughes does their bidding, since they pay him to. We previously told you about Hughes attacking the Marcellus industry with slanders, slurs and outright lies in an attempt to paint the industry as greedy because they have resisted a severance tax on top of an existing impact tax (see PA Senator from Philly Slanders Marcellus, Accepts $635K in Union $). Hughes is at it again. He’s just introduced a bill, Senate Bill (SB) 777, that allows the close-to-bankrupt Philadelphia school system to borrow a MASSIVE $5 billion, with a promise to raid Marcellus drillers via an obscene severance tax (on top of the existing impact tax) to pay back the $5 billion. This is what passes for smart around Philly. We suspect Hughes himself is a product of Philly’s failed education system…
    Read More “PA Dem Senator from Philly Intros Bill to Steal Marcellus Money”