Report Volume XXIX, Number 11 February 1, 2018

January 31, 2018

INDUSTRY NEWS (Richmond, VA) – Dominion Energy has proposed the Sweden Valley Project to help meet growing demand for natural gas to serve Midwest markets.

The project will move natural gas from northern Pennsylvania for delivery in Ohio.

Total cost of the project is about $48 million. The project would provide 120,000 dekatherms per day of firm transportation service, which would supply enough natural gas for a single winter day to about 110,000 households. It would include modifications at an existing compressor station, new metering and regulation facilities, as well as a 1.75-mile interconnect and three miles of parallel pipe to Dominion Energy’s existing natural gas transmission system. The project is expected to be in-service in late 2019.

Dominion Energy filed an application in January 2018 for a Certificate of Public Convenience and Necessity with the FERC.



INDUSTRY NEWS (Houston, TX) – Adelphia Gateway LLC, which announced in November it is buying the underused pipeline for $189 million from Talen Energy Corp., filed with the Federal Energy Regulatory Commission (FERC). Adelphia, a subsidiary of New Jersey Resources, announced the filing in late January.

“This important project will utilize existing infrastructure to provide greater access to clean, safe, affordable natural gas to underserved markets in the Greater Philadelphia region,” Stephen Westhoven, chief operating officer of New Jersey Resources, said in a statement.

The company asked FERC to approve the project by Aug. 1 so that it can complete the purchase of the pipeline, which is now known as Interstate Energy Co. LLC.

The underground pipeline now delivers either oil or natural gas to two Talen power plants in Northampton County, but would be converted to exclusively transport gas. Adelphia Gateway plans to convert the southern 50-mile portion of the pipeline, which formerly carried oil and has been idle since 2014, to transport gas southward to customers in Montgomery, Chester, and Delaware Counties.

The Adelphia conversion project would require construction of two new 5,625-horsepower compressor stations, near Quakertown and in Marcus Hook. Adelphia also wants to build a new valve station at one of two proposed locations in Concord Township, Delaware County.

The plans include several meter and regulator facilities,  typically where the pipeline connects with customers or meets other pipelines, and eight new “blowdown” assemblies located at existing valve stations. A blowdown is the release of gas from a pipeline to the atmosphere to relieve pressure so the pipe can undergo maintenance.

Adelphia also proposes to build two new 16-inch-diameter lateral pipes to connect the planned Marcus Hook compressor station to the gas distribution systems of Peco Energy Co. and Delmarva Power.

The 18-inch diameter pipeline connects with the Texas Eastern natural gas pipeline at an existing interchange near Rich Hill Road in Richland Township, Bucks County, where a new compressor station is proposed. The pipeline also intersects with two other interstate pipelines.



INDUSTRY NEWS (Harrisburg, PA) – A $1.1 billion pipeline designed to bring Marcellus Shale natural gas from northeastern Pennsylvania to New Jersey has received federal approval, although the project lacks important permits in New Jersey.

PennEast Pipeline Company spokeswoman Patricia Koranic said recently that she anticipates construction on the roughly 120-mile pipeline will begin this year and take about seven months. The Federal Energy Regulatory Commission gave approval to the PennEast pipeline.

However, Kornick couldn’t immediately say whether construction will begin before the project receives pollution-control permits in New Jersey designed to protect wetlands and waterways. The pipeline consortium plans to apply.



INDUSTRY NEWS (Calgary, Alberta)TransCanada Corporation  announced it has successfully concluded the Keystone XL open season, securing approximately 500,000 barrels per day of firm, 20 year commitments, positioning the proposed project to proceed. Interest in the project remains strong and TransCanada will look to continue to secure additional long-term contracted volumes.

Last month’s announcement builds on the November 20, 2017 decision by the Nebraska Public Service Commission to approve the Keystone XL route through the state. The approved route was based on a comprehensive review of the evidence submitted by all parties in the hearing process as well as state agencies to ensure it has a minimal impact to the public and to Nebraska’s natural resources.

“Over the past 12 months, the Keystone XL project has achieved several milestones that move us significantly closer to constructing this critical energy infrastructure for North America,” said Russ Girling, TransCanada’s president and chief executive officer.

“We thank President Donald Trump and his administration for their continued support and appreciate the ongoing efforts of Nebraska Governor Pete Ricketts, the Nebraska legislative and congressional delegation, Omaha Federation of Labor, Nebraska State AFL-CIO, our customers and various stakeholders to advance this project.

Furthermore, we appreciate Alberta Premier Rachel Notley for her government’s commitment to the project which was instrumental to achieving the commercial support needed to proceed,” added Girling.

TransCanada is continuing outreach in the communities where the pipeline will be constructed and is working collaboratively with landowners in an open and transparent way to obtain the necessary easements for the approved route. Construction preparation has commenced and will increase as the permitting process advances throughout 2018, with primary construction expected to begin in 2019.

The project is expected to generate tens of millions of dollars in local tax revenues, supporting first responders, schools and hospitals, as well as roads and other local infrastructure. Enhanced standards and utilization of the most advanced technology will help ensure Keystone XL will be built and operated to uphold our fundamental commitment to safety and the communities we serve.



INDUSTRY NEWS (Houston, TX) – Plains All American Pipeline, L.P. announced that it has received sufficient binding commitments on its initial open season and that it is proceeding with construction of a new pipeline system from the Permian Basin to the Ingleside, TX area (the “Cactus II Pipeline”). Permitting, right-of-way and procurement activities are underway, and subject to receipt of necessary permits and regulatory approvals, the Cactus II Pipeline is targeted to be operational in the third quarter of 2019.

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