UGI to Buy Assets from TC Energy for $1.28 Billion

UGI Corp, a Pennsylvania based energy distributor would buy some assets of Columbia Midstream Group from TC Energy Corp, formerly known as TransCanada. The deal is set for nearly $1.28 billion to expand UGI’s midstream business.

“This transaction expands our midstream capabilities in the prolific gas producing region of the Southwest Appalachian Basin and provides an initial investment into both wet gas gathering and processing,” John Walsh, the chief executive officer of UGI, said.

With this deal, TC Energy could help finance the oft-delayed and controversial Keystone XL pipeline project and the new high-profile Coastal GasLink system project. These projects are likely to generate higher returns than these legacy assets.

Columbia Midstream Group operates in the Appalachian Basin and owns four natural gas gathering systems. It also has an interest in a company with gathering, processing and liquids assets, and a pipeline that runs through western Pennsylvania, eastern Ohio and northern West Virginia.

Source:
reuters

Portion of TransCanada’s Keystone Pipeline Remains Shut as Leak Investigations Continue

A portion of TransCanada Corp’s Keystone oil pipeline remained shut on Thursday for investigation.

TransCanada shut a portion of the TransCanada Corp’s Keystone oil pipeline as they investigate a possible leak on its right-of-way near St. Louis, Missouri, a company spokesman said.

The pipeline was shut down on Wednesday, and remains shut on Thursday as investigations go on.

Crews were dispatched to assess the situation which seems to have occurred between Steele City, Nebraska and Patoka, Illinois.

The Keystone pipeline has a 590,000 bpd output and is a critical part of Alberta to U.S. refinery crude.

The release of oil gas stopped on Wednesday and all that remains is finding the actual leak.

Source:
Reuters

Risk of Losing Nearly $1 Billion - Keystone XL Pipeline Fighting for Rights to Allow Pre-Construction

TransCanada is asking a judge to reverse his order blocking the project’s ability to begin pre-construction work. The company would like to proceed with purchasing materials and finalizing contracts.

Attorneys on behalf of TransCanada will argue in a Wednesday telephone conference that U.S. District Judge Brian Morris should clarify or amend his rulings to say the injunction does not include finalizing contracts, purchasing materials, and conducting land surveys and federal permit discussions.

TransCanada wants to keep preliminary work on track so they can be prepared to start pipeline construction as early as possible.

Delays as little as several weeks could delay the company’s 2021 target for oil to start flowing.

The company is at risk of losing nearly $1 Billion in earnings as well as missing out on the opportunity to employ 6,600 workers, Senior Vice President of the company said in a statement.

Source:
AP News

Environmental Group Blasts Trump Administration and Keystone Environmental Review

The Sierra Club has blasted the environmental assessment of the Keystone XL Pipeline, stating that the Trump administration is putting lives at risk to prop up the Canadian tar sands industry.

"Once again, the Trump administration is attempting to take a shortcut around the legally required review process on Keystone XL, putting our communities at risk for the sake of propping up the Canadian tar sands industry," said Kelly Martin, director of the Sierra Club Beyond Dirty Fuels Campaign.

The review released on Monday showed that the line had minor to moderate effects regarding noise and vibration, water resources, and biological resources. Soils, air quality and cultural resources, and negligible impact on land use would all be minorly affected as well.

The outcome of the report shows the current U.S. government’s support for the project.
President Donald Trump granted the project a permit last year, reversing his predecessor’s rejection of the pipeline.

Energy Secretary Rick Perry predicted the pipeline would be built when asked about it on Monday during a U.S. Chamber of Commerce event.

Source:
Houston Chronicle