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

Maryland Sued Over Blocked Pipeline

Columbia Gas filed a lawsuit on Thursday against the state of Maryland to seek access to the property through eminent domain proceedings after a board of high-ranking state officials voted unanimously to reject a proposed pipeline that would across 3 miles of western Maryland.

The pipeline, which would carry natural gas, would run under the Potomac River near Hancock, Maryland. It would then extend from Columbia Gas' network in Pennsylvania to Mountaineer Gas' distribution system in West Virginia.

Environmentalists, residents and more than 60 state lawmakers have been vocal about opposing the pipeline. Against an easement for TransCanada's pipeline, Maryland's Board of Public Works, which includes Gov. Larry Hogan, Treasurer Nancy Kopp and Comptroller Peter Franchot, voted 3-0 in January.

Source:
chron

Natural Gas Main Leak Contained in Michigan

Ottawa County Emergency Management said in a statement that a leak from a broken high-pressure natural gas main in western Michigan has been contained.

During a construction project on Wednesday afternoon, the gas main was struck in the Spring Lake village, northwest of Grand Rapids. Crews monitored natural gas levels in the area, although no injuries were reported.

Emergency responders cleared the scene after it was contained Friday morning, Director Nick Bonstell said in a statement. The main is expected to be repaired by Thursday afternoon.

Source:
Chron

Kinder Morgan Seeks Dismissal of Permian Highway Pipeline Lawsuit

The lawyers representing Kinder Morgan filed a motion on Tuesday asking a state district judge in Travis County to throw out the lawsuit against the pipeline operator’s Permian Highway Pipeline route. They assert that the Texas Constitution and state law uphold the company's rights.

Opponents filed a lawsuit stating that the pipeline route unfairly runs through residential areas of Kyle, about 20 miles south of Austin, near the Lyndon B. Johnson National Historical Park in Stonewall and less than a mile away from Jacob's Well, a popular summertime swimming hole near Wimberley.

"The lawsuit is a prime example of why eminent domain exists – to allow important infrastructure projects that provide significant public benefits," Kinder Morgan said in a statement.

The 423-mile pipeline project will move 2 billion cubic feet of natural gas per day from the Permian Basin of West Texas to the Gulf Coast. Kinder Morgan maintains that the project will unlock production bottlenecks in the Permian Basin. But members of Texas Real Estate Advocacy and Defense Coalition, or TREAD contend that no alternative routes were presented to the public or considered.

Source:
chron

 

$30 Billion Louisiana Driftwood LNG Project Eyes Final Decision in 2019

Final investment decision to build the proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana will be taken in 2019, Tellurian Inc confirmed on Wednesday.

The company said that it is on track to make a final investment decision and start construction in 2019. The operations will begin in 2023 and is project is designed to produce 27.6 million tonnes per annum (MTPA) of LNG or about 4 billion cubic feet per day (bcfd) of natural gas.

The first phase will likely comprise 16.6 MTPA and together the projects would produce over 150 MTPA of LNG. The company is also developing three pipelines in Louisiana - the 4.0-bcfd Driftwood pipe, the 2.0-bcfd Haynesville Global Access and the 2.0-bcfd Delhi Connector - and the 2.0-bcfd Permian Global Access in Texas and Louisiana.

Source:
reuters

Kinder Morgan’s Steel Tariff Waiver Request Denied by Trump Administration

The Department of Commerce denied two requests from Kinder Morgan to buy tariff-free steel pipes from Turkish manufacturer Borusan Mannesmann in order to build the $1.75 billion Gulf Coast Express Pipeline in Permian Basin.

The company have a target service date of October 2019 for the 514-mile pipeline to move 2 billion cubic feet of natural gas per day from the Permian Basin of West Texas to the Agua Dulce hub near Corpus Christi.

Trump imposed a 25 percent import tax on steel and a 10 percent import tax on aluminum on most countries and extended them in June to Mexico, Canada and the European Union, in a decision taken on March 2018.

The company argued that the Gulf Coast Express Pipeline would boost exports, unlock more oil production in the Permian Basin. They also added that it will strengthen ties to Turkey, a key U.S. ally in the Middle East, but according to the Department of Commerce officials, there is a reasonable amount of pipeline available in the United States with "satisfactory quality" for the project.

Source:
chron

Deal Signed to Supply More Natural Gas to New York State by Kinder Morgan Pipeline

Tennessee Gas Pipeline Co, a subsidiary of Kinder Morgan has signed a deal with New York utility company Con Edison that will allow it to supply greater volumes of natural gas to upstate New York.

By upgrading its compression facilities outside of the New York, Tennessee Gas Pipeline would provide the increased natural gas capacity to Con Edison's distribution system in Westchester County, New York.

Tennessee Gas Pipeline already supplies natural gas to the rural county just north of New York City but the upgrades are expected to boost volumes in Con Edison's distribution system. The increased capacity could be placed in service by November 2023, which is subject to regulatory approvals.

Through this deal, it will boosts the natural gas supplies without having to build a new pipeline as New York State has blocked pipelines companies from building new natural gas pipelines or expanding existing ones within the state.

Source:
chron

Open Seasons on Two Proposed Pipelines by Tellurian in Louisiana

Tellurian is seeking to secure prospective shippers for a previously announced natural gas pipeline, Haynesville Global Access Pipeline (HGAP) and newly proposed Delhi Connector Pipeline (DCPL). Both pipelines are expected to be a 42 inch diameter and will have the capacity to transport up to 2 billion cubic feet per day of natural gas.

The HGAP is approximately 160 mile interstate pipeline that will interconnect existing pipeline and production facilities in DeSoto Parish to the existing and proposed infrastructure located near Gillis in Calcasieu Parish, Louisiana. The DCPL is approximately 180 mile interstate pipeline connecting the Perryville/Delhi Hub in Richland Parish, Louisiana to Gillis, Louisiana.

HGAP is estimated to cost just over US$1 billion to construct and the construction is projected to begin in 2022, with an in-service date of mid-2023. DCPL is estimated to cost approximately US$1.4 billion to construct and the construction is projected to begin as early as 2021, with an in-service date as early as 2023.

“Tellurian has recognized the critical need we have in the US for additional natural gas infrastructure that can leverage our country’s prolific shale resources. We are willing to invest and build a pipeline network that connects to key US producing shale basins, detangling the existing pipeline and regional bottlenecks and facilitating the flow of natural gas to feed Southwest Louisiana’s growing industrial demands, which is estimated at 20+ billion ft3/d by 2025,” said Tellurian President and CEO, Meg Gentle.

Source:
worldpipelines

Snelson Awarded Contract to Complete $610M Saginaw Trail Pipeline Project

Washington based Snelson Companies, Inc., has been awarded a construction contract to complete the final phases of the Saginaw Trail Pipeline project. This project is essential to the safety and reliability of natural gas transportation throughout lower Michigan by replacing 78 miles of current infrastructure, which has been in place since the 1940s, with 94.4 miles of new pipeline.

The entire pipeline replacement project will be completed in four phases over four years. With Phases 1 and 2 complete, Snelson will enter the project with accountability for the construction scope of Phases 3 and 4, which are significantly larger than each of the first two phases.

Phase 3, which consists of installing 29.2 miles of new, larger pipeline between Clio City Gate to Grand Blanc City Gate, is anticipated to begin in Spring 2019. This phase not only replaces the existing 12- and 16-inch pipe with new 24-inch pipeline, but also reroutes the path around the urban area of Flint.

Phase 4 will begin in 2020. This phase will replace pipeline for the 28.2 miles between Grand Blanc City Gate to Clawson Control. Phase 4 groundwork – including surveying and obtaining necessary easements and permits – is already underway. The project's anticipated completion is December 2020.

With over 70 years of experience as a pipeline construction company, Snelson Companies, Inc. is a leading contractor for oil and gas pipeline, distribution, station and facility construction, and infrastructure integrity services.

Source:
prnewswire

Chevron and Anadarko Merging in $30+ Billion Deal

Chevron announced on Friday morning that they will acquire Anadarko Petroleum in a cash and stock deal valued at $33 billion.

The deal is expected to enhance Chevrons shale, deepwater, and natural gas operations.

“This takes a great company and makes it even better,” Chevron’s Chairman and CEO Michael Wirth told CNBC as the news broke.

“As our company has strengthened its financial situation over recent years, we’re always looking to make our portfolio even stronger.”

The deal represents the 11th biggest deal in the history of energy and power company acquisitions, Refinitiv reported.

Source:
CNBC

$1.6 Billion Closing Deal by Targa Resources to Sell Stakes in Bakken Assets

Targa Resources confirmed on Thursday that the company has closed a $1.6 billion deal to sell a minority stake in its Bakken Shale assets in North Dakota. The deal was to sell 45 percent of its subsidiary Targa Badlands LLC to funds managed by New York-based GSO Capital Partners and Blackstone Tactical Opportunities.

 Targa Badlands owns and operates 480 miles of crude oil gathering pipelines, 260 miles of natural gas gathering pipelines, crude oil storage terminals and a natural gas processing plant in the Bakken which is spread throughout western North Dakota.

 With the deal now closed, Targa is planning to complete construction of another natural gas processing plant in the Bakken. The company plans to use proceeds from the $1.6 billion deal with GSO and Blackstone to pay down debt and fund part of its 2019 capital expenditure program.

Source:
chron

EagleClaw Midstream Announces Final Investment Decision on Delaware Link Pipeline

EagleClaw Midstream, a portfolio company of Blackstone Energy Partners and I Squared Capital, announced that it has made a final investment decision to proceed with construction of the Delaware Link pipeline.

Delaware Link pipeline is designed to transport residue natural gas from the Delaware Basin to the Waha hub, with access to further downstream takeaway connections. The approximately 40 mile, 30 in. diameter pipeline will originate at EagleClaw’s three existing natural gas processing complexes in Reeves County, Texas and will have transportation capacity of at least 1.2 billion cubic feet per day.

EagleClaw is also evaluating increasing the pipeline’s diameter and related transportation capacity. Delaware Link is intended to provide E&Ps in the Delaware Basin further flow assurance and improved price realization by providing a direct, cost-advantaged path to Waha and multiple interconnections at Waha to various takeaway pipelines.

These interconnections include direct access to the Permian Highway Pipeline, an approximately 2.1 billion cubic feet per day pipeline designed to transport gas from Waha to the US Gulf Coast and other premium priced markets.

Source:
worldpipelines

Lake Charles LNG: Final Investment Decision Taken by Energy Transfer and Shell

Energy Transfer and Shell announced that they had signed a project framework agreement to advance the proposed Lake Charles LNG export terminal and that they plan to issue an invitation to tender for engineering, procurement and contracting companies to start bidding on the project, in a joint statement released on Tuesday morning.

“We are pleased to be moving forward with Shell in progressing this major LNG export project," Lake Charles LNG President Tom Mason, President said in a statement. "We believe the combination of our assets and Shell's LNG experience will create a platform for exporting natural gas from the U.S. Gulf Coast to the global marketplace that is unmatched."

Shell entered into a 50-50 joint venture with Energy Transfer in 2016 to develop a liquefaction plant that can produce up to 16.45 million metric tons of LNG per year. Under the terms of their joint venture, Energy Transfer will own and finance the proposed liquefaction facility while Shell will oversee engineering, design and construction work as well as operate the terminal once it is complete.

"Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020's," Shell Vice President Frederic Phipps said in a statement.

If built, the export terminal project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational. Shortly after the shale revolution in 2015 that created a surplus of natural gas in the United States, Energy Transfer got permission from Federal Energy Regulatory Commission to build an export terminal at the site in 2015. The facility site was originally developed as an LNG import terminal in 2006.

Source:
chron

$34 Million Major Pipeline Construction Contract Awarded to Wood

A construction contract for 28 miles of new Risberg pipeline designed to carry natural gas from Pennsylvania to Ohio has been awarded to Wood. The $34 million contract from RH energytrans LLC was awarded through a competitive tender process.

The pipeline will connect to approximately 32 miles of existing pipeline, originating in the Meadville, Pennsylvania area, extending in a northwest direction and terminating at the North Kingsville Meter Station. Approximately 16 miles of new pipeline will be installed in Pennsylvania and 12 miles in Ohio.

The scope of the contract also includes the construction of the North Kingsville meter station in Ashtabula County, Ohio. The project is underway and is expected to be completed in summer 2019.

“We’re delighted to be playing a key role in this strategic project, helping to support the supply of domestic energy to Northeast Ohio communities and industries who have had limited access to natural gas sources.” said Andrew Stewart, CEO of Wood’s Asset Solutions Americas business.

“Wood provided the initial technical, environmental consulting and engineering services on this project. We now look forward to progressing that support to the construction phase,” Stewart added.

Source:
worldpipelines

Joint Venture to be formed by Williams and CPPIB on $3.8 Billion Marcellus-Utica Shale Gas

Canada Pension Plan Investment Board is joining with U.S. energy firm Williams Cos Inc. in a $3.8 billion joint venture to expand its presence in the North American natural gas market.

The joint venture includes Williams’ Ohio Valley Midstream system in the Marcellus shale basin and the Utica East Ohio Midstream system. Canada’s largest pension fund will have a 35 percent stake in the venture, with Williams holding the rest and operating the combined business, the companies said on Monday.

“This joint venture will provide CPPIB additional exposure to the attractive North American natural gas market, aligning with our growing focus on energy transition,” said Avik Dey, managing director, head of energy & resources, CPPIB.

Williams Cos Inc. holds pipeline assets in the Marcellus and Utica shale basins, the biggest gas-producing region in the United States.

Source:
reuters