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

Supreme Court Received Request for More Time on Atlantic Coast Appeal

U.S. Solicitor General Noel Francisco requested a one-month extension to the Supreme Court for the time the government has to file a petition. The extension was to get enough time to appeal on a circuit court decision that is preventing Dominion Energy Inc., from building the Atlantic Coast natural gas pipeline across the Appalachian Trail in Virginia.

The time will expire on May 28 without an extension and the Solicitor General is requesting the extension till June 25. The project's costs have ballooned due to legal and regulatory delays. Dominion would cancel the pipeline if the Supreme Court does not hear the case, analysts say.

If the Solicitor General joins the appeal, it would increase the chances the court will hear the case, said Dominion's Chief Executive Thomas Farrell and the company welcomed the news that the Solicitor General would join the case.

The company initially estimated that the 600-mile pipeline project would cost $6 billion to $6.5 billion and will be able to complete in late 2019. But due to the legal challenges the cost went up to $7 billion to $7.5 billion and the company is hoping to resume construction in the third quarter and complete it by early 2021.

The pipeline construction was suspended in early December after the Fourth Circuit stayed a U.S. Fish and Wildlife Service permit that authorized building the pipe in areas inhabited by threatened or endangered species.

Source:
pgjonline

$3.2B Appalachian Natural Gas Pipeline Gets Approval from FERC

U.S. Federal Energy Regulatory Commission has approved the full in-service of the Mountaineer XPress, a 170-mile natural gas pipeline project in West Virginia, TransCanada said on Friday.

The pipeline will increase natural gas capacity by 2.7 billion cubic feet per day. Together with related infrastructure such as new compressor stations and modifications to existing compressor stations, it will represent a total investment of US$3.2 billion. This will help link the Appalachian basin’s natural gas supplies and growing markets in the U.S. and beyond.

The approval of the full in-service of Mountaineer XPress will allow TransCanada to start partial in-service of its Gulf XPress Project, a network of seven new compressor stations in Kentucky, Tennessee, and Mississippi, which will significantly increase the reach of low-cost, U.S.-produced natural gas from the Appalachian Basin.

“Mountaineer XPress and Gulf XPress are extremely important to TransCanada as they provide much-needed takeaway capacity for our customers, while also growing our extensive footprint in the Appalachian Basin,” TransCanada President and CEO Russ Girling said.

Souce:
oilprice

Leach Xpress Natural Gas Pipeline Receives Approval, Returns to Service

TransCanada Corp’s Columbia Gas Transmission said that the section of its Leach Xpress natural gas pipeline that was damaged in June’s West Virginia blast returned to service July 15th after permission given by PHMSA. 

The return means that gas output in the Appalachian region will be boosted with the expected production rising to 28.7 billion cubic feet per day on Monday from 28.1 bcfd on Friday.

Prior to the June 7th blast, output was about 27.5 bcfd.

PHMSA gave Columbia 30 days to respond to a list of concerns that would improve the safety of the Leach Xpress including mechanical and metallurgical testing as well as enhanced surveillance and monitoring, among other actions required.

Since the blast, Columbia identified six other areas that PHMSA said were concerning based on soil conditions and steep slopes. The soil condition was the cause of a landslide that put stress on the pipelines resulting in a blast, according to preliminary investigations.

Shutting down the Leach Xpress forced producers to find other pipes to ship gas out of Marcellus and Utica shale regions of Pennsylvania, West Virginia, and Ohio.

The blast damaged sections of the pipe that could affect 1.3 billion cubic feet per day, which is enough energy to fuel more than 5 million U.S. homes a day.

Energy analysts said that the blast hardly affected Appalachian region’s overall output because of other pipes being found by different producers.

Source: 
Reuters