• 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”

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    Antis Ask Court to Overrule State, Feds and Stop Mountain Valley Pipe

    Apparently the more bizarre your actions, the more likely you are to become a minor celebrity. That’s what’s happening for Grandma Red, Theresa “Red” Terry, who took the bizarre action of climbing a tree on her property and living in the top of it for a month–all in an attempt to stop the tree from being cut to make way for the Mountain Valley Pipeline (MVP). In the end Grandma Red came down when a judge told her she would begin paying $1,000/day for her bizarre behavior. Now that she’s back on terra firma, Grandma Red is meeting with state officials and attending radical Big Green rallies, showered with praise for her “courageous” action. What’s next? The Tonight Show and The Late Show? Meanwhile, in a well-timed and coordinated attack, Big Green lawyers are asking the 4th U.S. Circuit Court of Appeals to overturn the decisions of state and federal agencies to allow MVP, simply because Big Green doesn’t like the decisions. Big Green argued the court should overturn a decision by the Virginia State Water Control Board to allow MVP to build, crossing streams, and to overturn a decision by the U.S. Forest Service to allow MVP to build pipeline through a tiny sliver of Jefferson National Forest. Twenty years ago these lawsuits would have been laughed out of court because the country followed the rule of law. Today, with courts packed with Obamadroids, you just don’t know…
    Read More “Antis Ask Court to Overrule State, Feds and Stop Mountain Valley Pipe”

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    Insider Reveals What’s Really Going On in NY Constitution Pipe Case

    One of the lawyers who filed a petition with the U.S. Supreme Court requesting the Supremes hear the Constitution Pipeline case has written a column that rips the mask off New York Gov. Andrew Cuomo and exposes him for the corrupt autocrat he is. The column is long and uses a number of legal references and arguments, but we can sum it up this way: (1) Cuomo has been caught admitting he has imposed an illegal moratorium on new pipelines; (2) Cuomo’s action in blocking the Constitution and other pipelines usurps federal authority; and (3) Cuomo’s actions in blocking pipelines threatens national energy security. It’s not often we get the inside thinking of one of the key players in a high-profile lawsuit. Read the following and learn…
    Read More “Insider Reveals What’s Really Going On in NY Constitution Pipe Case”

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    NTE Energy Plans 1000 MW Gas-Fired Electric Plant in SC

    NTE Energy, headquartered in Saint Augustine, FL, buys and builds electric generating plants and transmission facilities throughout North America. We’ve reported on a number of NTE projects, including a report from April 2016 when NTE announced three new gas-fired electric plants that will be fed by Marcellus/Utica gas (see NTE Energy Developing 3 NatGas-Fired Electric Plants in CT/NC/OH). You can add one more Marcellus-fired plant to the list. NTE announced earlier this week it will build a mammoth 1,000 megawatt (1 gigawatt) gas-fired plant in Anderson County, South Carolina. The $1 billion project will generate enough electricity to power 1 million SC homes and businesses. The announcement about the project does not specifically mention M-U gas feeding it, but since the mighty Transco Pipeline passes through Anderson and has been reversed to bring M-U gas from north to south, there’s no doubt about the gas that will feed the new plant. You may recall last month we reported on Duke Energy starting operations at a new 750-megawatt gas-fired plant in Anderson County (see Duke Energy SC Gas-Fired Plant Starts Up – Marcellus Connection?). An obvious observation: Big gas pipelines are a magnet for new electric generating plant projects…
    Read More “NTE Energy Plans 1000 MW Gas-Fired Electric Plant in SC”