$1.37 Billion Deal to Buy Meade Pipeline by Nextera Energy Partners

NextEra Energy Partners L.P. announced to buy Meade Pipeline Co. LLC, co-owner of the Central Penn Line in Pennsylvania, in a deal valued at $1.37 billion.

Meade Pipeline owns a 39.2% interest in Central Penn Line and the majority is owned by Transcontinental Gas Pipe Line Company, which operates it as part of its Atlantic Sunrise project. The deal includes about $90 million in future capital contributions through 2022.

Central Penn Line is a 185-mile intrastate natural gas pipeline that provides the Marcellus natural gas producing region access to the mid-Atlantic and Southeastern regions of the U.S.

"Meade Pipeline is a very attractive acquisition for NextEra Energy Partners, and is expected to yield a double-digit return to NextEra Energy Partners' limited partner unitholders and generate a cash available for distribution yield of roughly 14%," said NextEra Chief Executive Officer Jim Robo.

He added that the deal will help expand NextEra’s investment in long-term contracted natural gas pipelines, “helping mitigate any potential resource volatility in the portfolio.”

Source:
marketwatch

FERC Granted Authorization for Jacksonville LNG Export Facility

U.S. Federal Energy Regulatory Commission has issued the order granting authorization for siting and constructing the proposed on-water Jacksonville liquefied natural gas export facility in Florida, Eagle LNG Partners LLC announced.

“The FERC authorization for Eagle LNG’s Jacksonville LNG Export facility has been many years and countless hours in the making. As one of only a handful of greenfield LNG project proponents to obtain their FERC Order, and the only project devoted to provisioning small-scale LNG projects in the Caribbean basin, Eagle LNG is one large step closer to delivering clean-burning, affordable, domestically produced U.S. natural gas.” said Sean Lalani, president of Eagle LNG.

The production capacity of the LNG export facility and terminal will be approximately 1.65 million LNG-gallons per day with 12 million LNG-gallons of storage plus marine and truck loading capabilities located on-site. The approximate construction cost of the export facility will be $500 million.

Once Eagle LNG’s Jacksonville LNG Export Facility is completed and its operations combined with Eagle LNG’s Maxville LNG Facility and the Talleyrand LNG Bunker Station, Eagle LNG will be providing the lowest cost LNG for bunkering in the southeast United States.

Source:
pgjonline

$367 Million Deal to Buy Mississippi Gas Storage

New Jersey Resources, a natural gas company in New Jersey said it will buy Leaf River Energy Center, a Mississippi natural gas storage facility from Macquarie Infrastructure Partners for $367 million.

New Jersey Resources said that the southeast Mississippi facility has three salt dome caverns and there's room to expand the storage facility. The facility connects to six interstate gas pipelines.

The purchase is expected to be completed later this year and buying the storage facility is as part of a long-term effort to increase profits, New Jersey Resources said.

New Jersey Resources best-known business is a natural gas utility serving more than 500,000 customers in parts of central New Jersey. The company said it could borrow up to $350 million to finance the purchase.

Source:
chron

FERC Pipeline Decision Will Be Challenged by New York Agency

Federal Energy Regulatory Commission's recent decision to allow construction of a 125-mile-long natural gas pipeline that would stretch from northern Pennsylvania to Schoharie County, west of Albany, will be challenged by the New York State Department of Environmental Conservation.

According to the Department of Environmental Conservation, the FERC decision sides with the fossil fuel industry over protecting the environment. But the Tulsa, Oklahoma-based pipeline firm says that the 30-inch-wide pipeline would have the capacity to serve 3 million homes and can help stabilize New York energy prices.

Environmentalists claim these lines will only serve to further the dependence on fossil fuels. The Army Corp of Engineers must approve plans before construction begins.

Source:
chron

Commonwealth LNG Permit Application Accepted by FERC

The permit application filed by Commonwealth LNG to build an export terminal in southwest Louisiana was formally accepted by Federal Energy Regulatory Commission on Tuesday morning.

The project is expected to be in service by the second quarter of 2023 as per the timeline submitted in Commonwealth LNG's application. The proposed export terminal will receive 390.6 billion cubic feet of natural gas per day from a pipeline to make 8.4 million metric tons of LNG per year.

The company is seeking permission to build six liquefied natural gas production units known as trains on a 393-acre property along the Calcasieu Ship Channel about 50 miles south of Lake Charles.

FERC's formal acceptance of the permit application is an important step in moving the proposed project closer to a final investment decision, said Commonwealth LNG President and CEO Paul Varello in a statement.

Source:
chron

Natural Gas and NGL Infrastructure Expansions Announced by ONEOK

The plans to expand its natural gas and natural gas liquids infrastructure between now and 2021, was announced by ONEOK, Inc.

An expansion of a 200 million cubic feet per day Bear Creek natural gas processing facility and related infrastructure in the Williston Basin is expected to cost approximately $405 million and expecting to be completed in the first quarter of 2021. Following the completion of the Bear Creek expansion, ONEOK's Williston Basin natural gas processing capacity will increase to more than 1.6 billion cubic feet per day.

The 65,000 barrels per day expansion to ONEOK's Mid-Continent NGL fractionation facilities are expected to cost approximately $150 million. The expansion includes 15,000 barrel per day expected to be completed in the third quarter 2020 and 50,000 barrel per day expected to be completed in the first quarter 2021. 

The West Texas LPG pipeline expansion will add an additional 80,000 barrel per day on the West Texas LPG pipeline system and is expected to be completed in the first quarter 2020. The cost is expected to be approximately $145 million.

In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure will be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines.

Source:
worldpipelines

Atlantic Coast Natural Gas Pipeline Permit Cancelled by U.S. Court

The permit by the U.S. Fish and Wildlife Service that allowed Dominion Energy Inc. to build its Atlantic Coast natural gas pipeline from West Virginia to North Carolina was vacated by a U.S. appeals court on Friday.

The Fourth Circuit Chief Judge Roger Gregory said in the court’s opinion that the Fish and Wildlife Service “fast-tracked” its decision to reissue an incidental take statement in 2018 a mere 19 days after federal energy regulators resumed formal consultation with the agency following the court’s decision to stay a version of the permit from 2017. The permit allowed Dominion to build the pipeline in areas inhabited by threatened or endangered species.

“In fast-tracking its decisions, the agency appears to have lost sight of its mandate under the (Endangered Species Act),” Gregory said, noting the Fish and Wildlife Service’s decisions in granting the 2018 incidental take statement were “arbitrary and capricious.”

Dominion estimated that the 600 mile pipe, which started to build in the spring of 2018 would cost $6.0-$6.5 billion and be able to complete in late 2019. But with the current and other legal challenges, the company hopes to complete the project by the end of 2021 with a construction cost of $7.0-$7.5 billion.

Source:
reuters

Kinder Morgan Sues City of Kyle over Anti-Pipeline Ordinance

City of Kyle, an Austin suburb was sued by Kinder Morgan over the passage of an ordinance that the company says aims to keep the proposed $2 billion Permian Highway Pipeline project out of town.

The 430 miles, the 42-inch diameter Permian Highway Pipeline project will connect the fruitful Permian Basin of West Texas to the Katy natural gas hub near Houston and is designed to move 2 billion cubic feet of natural gas per day. The proposed route faces stiff opposition in the Texas Hill Country, Hays County and the City of Kyle.

The Kyle City Council passed an ordinance on July 2nd stating that all natural gas pipelines with a diameter of 30 inches or more would require a city permit. Kinder Morgan, in a 22-page lawsuit filed on Monday in U.S. District Court in Austin, alleges that the City of Kyle overstepped state and federal law.

“While municipalities have the authority to impose certain fees in discrete circumstances under Texas law, those fees must be both reasonably calculated and tied to the actual costs incurred by the city administering valid municipal regulations,” Kinder Morgan said in a statement.

The ordinance states that the pipelines must be buried at least 13 feet below the surface and be located at least 200 feet away from schools, day cares, hospitals, retirement homes and other sensitive facilities.

Kinder Morgan has also filed a complaint with the Railroad Commission and the company says the Permian Highway Pipeline’s route affects the fewest number of landowners and is environmentally sound.

Source:
chron

Service Started on Orla 3

Enterprise Products Partners announced that the service began on the third train at its Orla cryogenic natural gas processing plant in Reeves County, Texas. This will increase the company’s natural gas processing capacity at the facility to 900 MMcfd and will allow Enterprise to produce in excess of 140,000 barrel per day of natural gas liquid.

“The three trains at Orla that have been brought online over the past year reflect Enterprise’s agility and commitment to providing timely and efficient solutions for facilitating production growth in the prolific Permian Basin,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.

Enterprise now has the capability to process 1.3 billion cubic feet of natural gas and produce approximately 200,000 barrel per day of NGLs throughout the Permian Basin.

The company’s Mentone cryogenic natural gas processing facility in Loving County, Texas, is on schedule for completion in the first quarter of 2020 and will have the capacity to process 300 MMcfd of natural gas and extract in excess of 40,000 barrel per day of NGLs.

The two cryogenic natural gas processing facility, Orla and Mentone, extends Enterprise’s value chain in the Permian and Delaware basins, linking customers to the company’s integrated pipeline network, including the recently completed Shin Oak pipeline and the Texas Intrastate natural gas system.

Source:
pgjonline

Kinder Morgan's Gulf LNG Project Gets Green Light from FERC

The Federal Energy Regulatory Commission gave Kinder Morgan the approval to build its Gulf LNG export project in Mississippi in a 3-1 vote. The proposed project would add 11.5 million metric tons of new capacity to Kinder Morgan's terminal in Pascagoula, Mississippi, which would include two liquefaction plants.

Some Democrats opposed and concerned about LNG terminals' impacts on climate change, but FERC Chairman Neil Chaterjee praised the vote tweeting, "This is big news for the US & our allies. Today's approval of #GulfLNG is significant for the economy & America's geopolitical interests."

The company initially developed the Gulf LNG site as a liquefied natural gas import terminal in 2009. But with record production from U.S. shale plays creating a surplus of natural gas, the company filed an application with FERC in July 2015 seeking permission to redevelop part of the site as an export terminal.

The project will also modify the existing Gulf LNG Pipeline allow for bidirectional flow. It's the fifth LNG export project the agency has approved so far this year.

Source:
chron

Kinder Morgan’s New Permian Pass Pipeline Will Head To East Texas

Kinder Morgan recently announced its latest natural gas pipeline project to be a supporter of the growing liquefied natural gas industry along the Gulf coasts of Texas and Louisiana and will stretch from West to East Texas. Kinder Morgan is still looking into specifics for an exact route for the Permian Pass Pipeline, however plans are for it to begin in the Permian Basin and carry 2 billion cubic feet of natural gas every day towards the Sabine River to LNG export terminals. The Sabine River is growing in its import and export terminal population because of companies like Cheniere Energy, Sempra Energy, Exxon Mobil and Qatar Petroleum.

Steven Kean, CEO of Kinder Morgan, observes “the supply growth out of the Permian Basin and the expected demand growth primarily as a function of demand from the LNG industry is still very robust and should translate itself into a firm, long-term commitment.”

While natural gas produced in the Permian Basin is very plentiful, the pipeline capacity in that area is very limited, causing produced oil to be burned off or flared. Kinder Morgan has plans for three pipelines in order to transport oil from West Texas to users in Mexico and along the Texas Coast.

Along with the Permian Pass Pipeline, Kinder Morgan has plans for a Gulf Coast Express Pipeline, set to begin transporting natural gas in September from the Permian towards Corpus Christi, and a Permian Highway Pipeline, which is still being contested by Texas Hill Country landowners.

Currently, Kinder Morgan has hold of 40 percent of natural gas consumed in the U.S. and owns 70,000 miles of pipelines. The company’s chairman, Richard Kinder, expects the U.S.’s demand for natural gas to increase 30% by 2030 and plans for the company to stay connected to the growing supply and demand. Kinder stated, “Under almost any scenario, natural gas is a winner for years to come…connecting these vast U.S. supplies to growing demand markets will drive new infrastructure and higher utilization of existing assets and Kinder Morgan is very well positioned to take advantage of those opportunities.”

Source:
Chron

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

$145 Million Deal to Buy Shell Canada Gas Assets by Pieridae Energy

Pieridae Energy, based in Canada will buy gas assets from Royal Dutch Shell for 145 million, Pieridae said on Wednesday. This will secure supply for Pieridae’s proposed Goldboro LNG plant in Nova Scotia, which will be Canada’s first east coast LNG project, producing 10 million tons per year.

“Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry,” said Pieridae Chief Executive Alfred Sorensen.

All of Shell’s midstream and upstream assets in the southern Alberta Foothills area is included in the deal and these assets will produce 29,000 barrels of natural gas, natural gas liquids and condensate. Also Shell said in a statement that Pieridae will retain all site-based Shell employees and some Calgary-based employees who support the Foothills assets.

“We are pleased they (the assets) are going to a buyer with a strong focus on safety, community and environmental stewardship, and one that is well placed to take these assets to the next stage of their development,” Shell Canada President Michael Crothers said.

Source:
reuters

Mountain Valley Pipeline Timing Delayed, Raised Estimated Cost

Due to the ongoing legal and regulatory challenges, EQM Midstream Partners LP has raised the estimated cost of its Mountain Valley natural gas pipeline and also delayed the project completion time, Reuters reported.

The initial estimate when EQM started construction on Mountain Valley was about $3.5 billion and to be completed by the end of 2018. But those estimates were raised and now the estimated cost has been raised from $4.6 billion to $4.8 - $5 billion. Also the target to complete the project was delayed from the fourth quarter of 2019 to mid-2020.

The 303 mile Mountain Valley natural gas pipeline extends from West Virginia to Virginia and is designed to deliver 2 billion cubic feet per day of natural gas. EQM commented that it had submitted a land exchange proposal to the federal government in an effort to enable the pipe to cross the Appalachian Trail.

The company’s land exchange proposal would grant the federal government full ownership of private lands crossed by the Appalachian Trail, including certain private land located adjacent to the Jefferson National Forest and in exchange, the government would grant Mountain Valley a right-of-way to cross the trail using the pipeline’s previously planned underground method at an existing crossing location approved by the FERC in 2017.

Source:
worldpipelines

NJ Joins NY in Rejecting the Northeast Supply Enhancement Project

New Jersey rejected the plans for Northeast Supply Enhancement pipeline project to move more natural gas to New York City by the winter of 2020-2021, Kallanish Energy reports.

A similar decision was taken last month by New York regulators. The New Jersey Department of Environmental Protection has denied the water-quality certification needed by Williams for the project.

The agency said the project could “adversely impact surface water quality.” Williams is planning to resubmit the application. They have also refiled the permit application to New York regulators and is pending.

The Northeast Supply Enhancement project includes 10 miles of pipeline loops in Pennsylvania, three in New Jersey, 23 miles offshore in New Jersey and New York, a new compressor station in New Jersey and additional horsepower at an existing compressor station in Pennsylvania.

The project is being developed by Transcontinental Gas Pipe Line Co., a Williams’ subsidiary and in New York, the pipeline would stretch under New York Bay to the Queens area of New York City.

National Grid, the largest distributor of natural gas in the northeast U.S said the project is crucial because pipeline capacity to New York is at capacity and natural gas demand in the New York City region is projected to grow by 10% in the next 10 years.

Source:
kallanishenergy

Natural Gas Pipeline Expansion Receives Construction Approval from FERC

Transco’s Northeast Supply Enhancement project received approval for construction from FERC. The pipeline expansion project will carry natural gas from the shale fields of Pennsylvania to New York, and will expand on the company’s existing pipeline infrastructure in New Jersey, New York, and Pennsylvania.

The project will add approximately 36 miles of new pipeline and add two new natural gas compressors at exiting compressor stations. The NSE project will replace the use of 900 thousand barrels of heating oil annually in the region with 400,000 dekatherms per day of natural gas by converting about 8,000 customers per year from heating oil to natural gas in the Northeast.

By displacing oil with cleaner burning natural gas, the project would result in the reduction of a variety of air pollutants in the region and could result in lower greenhouse gas emissions overall, since natural gas emits less carbon dioxide than oil on a volume basis when burned.

“After carefully balancing the need for the project and its environmental impacts, I find the project is in the public interest,” Cheryl LaFleur, a Democratic appointee said in her remarks while approving the project’s certificate of construction.

Source:
heartland

Construction Starts on Wyoming Natural Gas Pipeline

The construction work has started on a new 4.5 mile natural gas pipeline that will support the city of Laramie and the University of Wyoming. The pipeline will run from West Lyon Street to East Harney Street in the City of Laramie.

“The City of Laramie and the University of Wyoming are experiencing a great deal of growth, and this project provides reliability for our expanding community,” Rachael Sisneros, Supervisor of Gas Operations in Laramie, said. “The investment is necessary for Black Hills Energy to continue to provide our customers with safe and reliable natural gas service.”

Although the construction will impact residents throughout the area, natural gas service will not be interrupted during construction. The pipeline construction will be handled by TRC Construction, Inc.

Source:
dailyenergyinsider

Altus Midstream Acquires 27% Stake in Permian Highway Pipeline

Altus Midstream Processing LP decided to acquire an approximately 26.7% equity interest in the estimated US$2.1 billion Permian Highway Pipeline.

The pipeline is expected to have approximately 2.1 billion cubic feet per day of natural gas transportation capacity. It runs from the Waha area in northern Pecos County, Texas, to the Katy, Texas area, with connections to Texas Gulf Coast and other markets.

“We are very excited to participate in the Permian Highway Pipeline,” said Clay Bretches, Altus Midstream Chief Executive Officer and president. “This is a high-quality project supported by take-or-pay contracts with creditworthy counterparties.”

In September 2018, the final investment decision to proceed with the project was made and the pipeline is expected to enter service in October 2020. Altus Midstream Processing, Kinder Morgan and EagleClaw Midstream Ventures, each owns approximately 26.7% of the pipeline. The remaining 20% is owned by an anchor shipper affiliate.

Source:
worldpipelines

Natural Gas Pipeline Owners Receives Landslide Warning

An advisory bulletin to remind owners and operators of natural gas and hazardous liquid pipelines was issued by The Pipeline and Hazardous Materials Safety Administration (PHMSA). The notice states the potential for damage to pipelines caused by earth movement from landslides and subsidence in variable, steep and rugged terrain and for varied geological conditions.

“These conditions can pose a threat to the integrity of pipeline facilities if those threats are not identified and mitigated,” PHMSA said. The administration said it was “aware of recent earth movement and other geological-related incidents/accidents and safety-related conditions throughout the country, particularly in the eastern portion of the United States.”

PHSMA advised operators to identify areas that may be prone to large earth movement, utilizing geotechnical engineers during design, construction and operation of pipelines, and developing design, construction, monitoring and mitigation plans for pipelines and to take a series of actions to ensure pipeline safety.

According to PHSMA, flooding, soil erosion and landslides in five states over past three years caused natural gas spills as well as pipeline ruptures. Landslides was blamed for some notable events that included an Energy Transfer Partners pipeline in Western Pennsylvania that slipped and exploded in September and for an explosion on Columbia Gas Transmission LLC’s Leach Xpress in June 2018.

Source:
naturalgasintel

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