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5/4/2020

ATHENS — A joint venture between Greek utility DEPA and Italy’s Edison is seeking to shortlist two contractors to build part of a pipeline to carry natural gas from the eastern Mediterranean’s rapidly developing gas fields to Europe, DEPA said on Thursday.


European governments and Israel last year agreed to proceed with the $6 to $7 billion so-called EastMed project. The pipeline is expected initially to carry 10 billion cubic meters of gas per year from Israeli and Cypriot waters to the Greek island of Crete, on to the Greek mainland and into Europe’s gas network via Italy.


Greece, Cyprus and Israel in January signed a deal to build the 1,900 km subsea pipeline. The countries aim to reach a final investment decision by 2022 and have the pipeline completed by 2025 to help Europe diversify its energy resources.


Turkey opposes the pipeline and has said there is no need for it.

The contractors will design and build four offshore legs of the pipeline, DEPA said. The total cost of the four 1,470 kilometer legs will be 3 billion euros ($3.3 billion), DEPA added.


“The implementation of the project goes ahead despite the big turmoil that the (coronavirus) pandemic has caused to the world economy and the energy market,” Greek Energy Minister Kostis Hatzidakis said in a statement.


DEPA has signed a letter of intent with Energean, a gas producer with a focus on the Eastern Mediterranean, to buy two billion cubic meters of gas annually from Energean’s gas fields off Israel via the planned pipeline.

5/4/2020

Queensland and Northern Territory explorer Blue Energy (ASX: BLU) wants the federal and Queensland governments to build a Bowen Basin southern gas pipeline that could unlock 15,000 petajoules (PJ) of discovered gas to provide vital “timely and reliable” energy supplies to the eastern coast of Australia.


The company said the recent crash in oil prices could see exploration fall and an east coast gas shortage develop in less than three years.


Meanwhile, the company has begun a pre-feasibility study on a Bowen Basin fast-start gas fired power generation plant which it says would provide flexible, reliable and dispatchable electricity to “a fragile North Queensland grid”.


The case for tapping discovered gas and ensuring supply for domestic and industrial users on Australia’s east coast is outlined in the company’s report for the quarter ended 31 December 2019.

The gas shortage was identified by the March gas opportunities report issued by the Australian Energy Market Operator (AEMO). That report predicted a shortage in eastern states from 2023.


Blue Energy said it had drawn the attention of the two governments to Queensland’s Northern Bowen Basin as the largest onshore, discovered gas resource — and one that remains undeveloped and not connected to the east coast domestic gas market.

Gas supply crunch could happen before 2023

Blue Energy said the AEMO report did not take into consideration what could happen with previous commitments to develop gas projects following the recent collapse in oil prices.

These projects, termed by AEMO “anticipated developments”, underpin gas supply to the east coast of Australia from 2023.


“Failure of any of these anticipated developments to eventuate will leave the southern states in a precarious energy position sooner rather than the expected 2023 forecast,” the report noted.

AEMO needed to address the effects of the oil price crash and the drought in capital spending (capex) by the oil and gas companies, Blue has argued.


“The east coast gas market is dependent on more drilling (capex), largely by the LNG players, to provide our domestic gas supply,” the reported added.


Blue Energy controls 97,655sq km of ground and is operator of all the acreage held — and has uncontracted gas reserves and a resource base of 3,942PJ.

It holds ground in three proven basins (Bowen, Surat and Cooper/Eromanga) and in two emerging basins, Wiso and South Georgina.

Most advance, sizeable gas resource available

The quarterly report argues that, with “shovel-ready” infrastructure projects being critical to the economic recovery from the COVID-19 pandemic, a single, multi-user pipeline running 500km from Moranbah connecting to the Gladstone/Wallumbilla pipeline would be capable of delivering up to 300 terajoules per day to the domestic market.

The northern Bowen Basin has “the most advanced, sizeable gas resources that can be delivered to meet the shortfalls predicted by AEMO,” the company said.

“Government sanction and funding of the line is required to facilitate natural gas and energy field developments in the northern Bowen Basin.”

Assessing the potential power generation

Blue Energy continues to assess the potential for the development of gas fired, peaking electricity generation.

This could involve seven unconnected gas properties within its ATP 814 tenure in the Bowen Basin.

Those properties range from south of Moranbah up to Newlands in the Northern Bowen Basin.

The company is looking specifically at those properties with proximity to high voltage electricity transmission and substation infrastructure.

Blue believes that reliable dispatchable electricity generation will be required to augment the “massive” roll-out solar and wind energy projects in Queensland.

The comes against a background where traditional coal-fired base load power plants are becoming less economic to run and maintain.

This potential project would be in addition to providing natural gas for the southern, pipeline-dependent, market and the northern market of Townsville.

4/13/20

(Wyomissing, Pa.) – To meet the urgent and growing need for clean, low-cost natural gas, PennEast Pipeline Company LLC announced the filing of an amendment with the Federal Energy Regulatory Commission (FERC) to construct the federally approved PennEast Pipeline Project in two separate phases. Phase One would consist of 68 miles of 36-inch pipe, constructed entirely within Pennsylvania and ready to deliver natural gas by November 2021. The Phase Two portion would include the remaining route in Pennsylvania and New Jersey, with a targeted completion of 2023. Also includes a compressor station and 3 laterals.

4/13/20

(Billings, MT) - TC Energy recently said  that it’s started construction on the long-stalled Keystone XL oil sands pipeline across the U.S.-Canada border despite calls from tribal leaders and environmentalists to delay the $8 billion project amid the coronavirus pandemic.

A spokesman for TC Energy said work began at the border crossing in northern Montana, a remote area with sprawling cattle ranches and wheat fields. About 100 workers are involved initially, but that number is expected to swell into the thousands in coming months as work proceeds, according to the company.

The 1,200 mile pipeline was proposed in 2008 and would carry up to 830,000 barrels (35 million gallons) of crude daily for transfer to refineries and export terminals on the Gulf of Mexico.

It's been tied up for years in legal battles and several court challenges are still pending, including one that's due before a judge next week.

TC Energy's surprise announcement last week that it intended to start construction came after the provincial government in Alberta invested $1.1 billion to jump start work. Montana's Department of Environmental Quality on Friday issued the final state permits the company needed, agency spokeswoman Rebecca Harbage said.

Leaders of American Indian tribes and some residents of rural communities along the pipeline route worry that workers could spread the coronavirus. As many as 11 construction camps, some housing up to 1,000 people, were initially planned for the project, although TC Energy says those are under review because of the virus.

TC Energy says it plans to check everyone entering work sites for fever and ensure workers practice social distancing.

Opponents in January had asked Morris to block any work while the legal challenges are pending. They said clearing and tree felling along the route would destroy bird and wildlife habitat. Native American tribes along the pipeline route have said the pipeline could break and spill oil into waterways like the Missouri River.

For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough, that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia and death.

A hearing on the request to block work is scheduled for April 16 before U.S. District Judge Brian Morris in Great Falls.

4/13/20

(Bismark, ND) – The North Dakota Public Service Commission held a public hearing in Tioga on April 15th, regarding a proposal for a residue gas pipeline in Mountrail and Williams Counties.

Liberty Midstream Solutions, LLC, is proposing to construct an approximately 4.7 mile-long residue gas pipeline in Mountrail and Williams Counties. The pipeline would be an 8-inch diameter pipeline with an estimated throughput of up to 80 million cubic feet per day. The estimated cost of the project is $4.6 million.

The pipeline would originate at the existing Liberty County Line Gas Plant near Tioga and end at an interconnection with the Alliance Pipeline’s Tioga Lateral pipeline.

4/13/20

(Houston, TX) Enbridge Energy wants to build a roughly 4-mile-long tunnel beneath the Straits of Mackinac. It would replace the underwater segment of Line 5, a pipeline that runs between Superior, Wisconsin, and Sarnia, Ontario.

Enbridge submitted a joint application to the Michigan Department of Environment, Great Lakes and Energy and the U.S. Army Corps of Engineers. Approval from both is needed for the project to go forward.

3/30/2020

Outside the 48 (Calgary, Alberta) — TC Energy Corporation announced that it has approved two new expansion projects totaling $1.3 billion on its wholly-owned natural gas pipeline systems. The $0.9 billion 2023 NGTL Intra-Basin System Expansion will deliver natural gas from the Western Canadian Sedimentary Basin (WCSB) to markets within Alberta on the NOVA Gas Transmission Ltd. (NGTL) System, while the US$0.3 billion Alberta XPress project will see the expansion of the ANR Pipeline (ANR) to provide a seamless path for Canadian production to access growing LNG export and other markets along the U.S. Gulf Coast.


“Our natural gas pipeline systems require expansion as customers continue to contract for incremental pipeline capacity to meet growing demand,” said Russ Girling, TC Energy’s President and Chief Executive Officer. “These new investments within our existing system footprints supplement our ongoing $30 billion secured capital program and demonstrate the long-term need across North America and in global energy markets for clean-burning natural gas, as well as the value of our existing infrastructure as a platform for organic growth.”


The 2023 NGTL Intra-Basin System Expansion is underpinned by approximately 309 million cubic feet per day (MMcf/d) of new firm service delivery contracts. Customers have executed agreements with 15-year terms, with service commencing in 2023, that will connect WCSB supply to growing Alberta market demand in the power generation, oil sands, petrochemical and utility sectors. The 2023 NGTL Intra-Basin System Expansion will include approximately 74 miles of new pipeline in existing rights-of-way and 90 MW of additional compression. Applications for approvals to construct and operate the facilities are expected to be filed with the Canada Energy Regulator in 2020 and, pending receipt of regulatory approvals, construction will commence as early as fourth quarter 2021.


The Alberta XPress project on ANR is underpinned by approximately 160 MMcf/d of new firm service contracts and will include compressor station modifications and additions within the existing ANR footprint, as well as utilize existing capacity on the Great Lakes Gas Transmission and Canadian Mainline systems. Customers have negotiated agreements, which include customary conditions precedent, with weighted average terms of 19 years and service commencing in 2022. Applications for approvals to construct and operate the ANR facilities will be filed with the Federal Energy Regulatory Commission (FERC) in 2020. Pending receipt of FERC approvals, construction will commence as early as third quarter 2021.

3/30/20

(Tulsa, OK) — Vacuworx is excited to announce the addition of two new Area Sales Representatives serving customers in the Gulf Coast Region.

Sebastian Castilla joins Vacuworx with 12 years of domestic and global pipeline sales experience, including prior procurement, sales support and business development roles at Welspun Corp. and Marubeni-Itochu Tubulars, as well as international sales relations experience in China, India, Japan and Latin America.

Castilla values collaborating with customers while helping broaden their exposure to the full range of capabilities and advantages associat- ed with Vacuworx lifting systems for a wide array of material-handling jobs. Based in Houston, his territory includes the greater metropolitan and surrounding area, Louisiana and Mississippi.

John Young brings to Vacuworx over 30 years of heavy equipment rental and sales experience and a zeal for connecting with operators in the oil and gas and pipeline construction fields. Young has been identified as a problem-solver with a safety-first mindset and proactive approach to saving customers valuable time and assets. Based in Canyon Lake, Texas, his territory encompasses West Texas, Central Texas, the Rio Grande Valley and Southeast New Mexico.

Each of the new hires will handle key accounts, uncover new growth opportunities and support authorized Vacuworx distributors while showcasing seven lines of heavy duty and compact lifting solutions designed for the oil and gas, water and sewer, highway and heavy construction, concrete construction and demolition, mining, manufacturing, and landscaping industries.

Castilla attended the University of Houston, earning a bachelor’s degree in supply chain management with an emphasis on Latin American studies. He was born in Colombia and grew up in West Texas, moving with his parents to the Houston area when he was fifteen. A former Division I athlete and American soccer player, Castilla enjoys spending free time away from work with his three-year-old son.

Young has been married to his wife Dannette for 31 years and has three sons. Away from work, he can generally be found fishing for fun or in a tournament, as well as spending time with any of his seven grandchildren. Born in Kermit, Texas, he grew up in West Texas, attended Odessa College and studied at various Cat, Volvo and Link-Belt Cranes equipment training schools.

“We welcome John and Sebastian as valuable additions to our Gulf Coast team with their tenure working with construction materials and equipment in the oil and gas fields,” said George Denny, Vacuworx Gulf Coast Sales Director. “They are demonstrating their ability to ask the right questions; questions that will help us respond effectively with highest value product and service offerings best suited to meet our customers’ unique geographic requirements and industry specific needs.”

3/27/20

Tulsa, Oklahoma, March 2020 — As part of our commitment to continuous innovation, Vacuworx has engineered significant updates to our flagship line of RC Series Vacuum Lifting Systems. All changes are designed to maximize safety while minimizing down time on the job. In addition, the lifters are “smarter” than ever before by incorporating a CAN bus system to provide real-time diagnostics and enhanced safety features.

Adapter

Although the installation for RC Series lifters is already quite simple, we have made several key enhancements to the adapter (the part that connects the lifter to the host machine such as an excavator) which improve the process even more!

The adapter now features removable top caps, which allows the installer to position and secure the adapter pin easily. The standard pin size is 110 mm, but the adapter will also accommodate pin sizes down to 50 mm using bushings. Vacuworx also offers an adapter for 120 mm pins and larger.

A flow control block has been incorporated into the adapter to allow for more safe and convenient adjustment of the hydraulics. This puts the flow controls within easy reach, rather than higher up on the arm of the excavator. In addition, the part of the adapter that connects to the base plate on the lifter, referred to as the “tombstone,” is now a replaceable part of the assembly rather than being welded to the adapter. This is designed to minimize time and overall cost of repairs.

Belt Drive

The traditional gear box has been replaced with a belt drive. This will provide a longer service life and drastically reduce repairs. There is virtually no maintenance required. The belt drive is environmentally friendly with no oil to replace. In addition, the system design keeps the engine bay temperatures cooler.

CAN Bus System

Vacuworx has implemented an innovative application of CAN bus technology for vacuum lifting systems. Commonly used in passenger vehicles and other equipment, a Controller Area Network (CAN bus) allows internal devices to communicate with each other without a host computer. Utilizing a central logic controller, the system is designed to monitor for faults and quickly diagnose specific problems.

The new dashboard gauge on one side of the lifter shows error codes, oil and fuel levels, pressure level, number of lifts and engine hours. The logic controller increases safety by ensuring that the electronic components are operating correctly.

Virtual Circuitry

The simplified wiring design of the system has fewer components and no mechanical switches. The system incorporates pressure transducers instead of a vacuum switch for greater accuracy. All circuits can be monitored and diagnosed through the logic controller. There are no fuses to repair or replace—all faults are reset electronically. In addition, the design helps promote safety by identifying any incorrect repairs or environmental damage.

3/23/2020

FRANKFURT: A group of gas grid operators, oil and utility firms is planning a 80 mile hydrogen pipeline to supply industrial customers in north-west Germany, Open Grid Europe (OGE) said.

German companies are keen to convert power from renewables into hydrogen, which emits water when it burns in oxygen rather than the CO2 released by coal, oil and natural gas. Germany is due to adopt a hydrogen strategy soon.

OGE, which is part of the consortium including BP, speciality chemicals firm Evonik, grid firm Nowega and RWE Generation, said that the pipeline will supply chemicals plants and refineries from a hydrogen plant to be built by RWE at Lingen in Lower Saxony from 2022.

3/10/2020

(Williston, ND) - ONEOK wants to start construction on a 75-mile-long pipeline in Williams County by April 1. Friday's Public Service Commission hearing in Williston brought ONEOK one step closer to making the $100 million project a reality. Nobody from the public objected to the pipeline. The company explained to the state PSC its agreements with landowners and precautions it's taking to lessen the 16-inch pipeline's environmental impacts. The Bakken Pipeline will pump 30,000 barrels of natural gas liquids every day from Hess Corporation's Tioga Gas Processing Plant to another pipeline in Eastern Montana.

Brad Borror, ONEOK manager of communications, said: “We execute these projects on almost a daily basis. So, we’re looking forward to this new exciting project, and connecting a region up near Tioga, that historically has had difficulties getting these products out.”

The pipeline will mean less flaring in the Bakken and more products that can be refined for home heating and creating petrochemicals, which are found in everyday products like plastics, medicines, cosmetics, furniture, and electronics.

ONEOK wants the pipeline to be operational by the fourth quarter of 2020.

3/4/2020

(Kansas City, MO) - Load King, LLC, a wholly owned subsidiary of Custom Truck One Source (Custom Truck), announced that all Terex Services locations will be Authorized Service Centers for Load King Cranes. As an Authorized Service Location, Terex Service Centers will now provide maintenance, repair and parts for Load King products.


“We are very excited to partner with Terex Services to offer their existing knowledge of after-sales support for our products in this important market,” said John Lukow, Senior Vice President of Load King Cranes.


“Through this exciting relationship with Load King Crane, we look forward to providing service support to their customers,” says Richard Gunderman, Vice President, Parts & Service for Terex Services. “By working strategically with our customers, we are able to provide multiple avenues of assistance through our service offerings, parts support and equipment training throughout the United States.”

In all 19 Terex Service Centers in the United States, positioned coast-to-coast, Terex Services will now provide services for Load King boom trucks, truck cranes and Terex® legacy products for Load King customers within 150-mile radius of each Terex Service Center location. For assistance, Load King customers can contact Terex Service Centers directly at 1-844-TEREX-4U (1-844-837-3948), in addition to customers contacting Load King’s call center at 1-833-281-7911.

For more information about Load King Cranes products and services, please visit www.loadkingmfg.com. For more information about Terex Service Center locations and services, please visit:

https://www.terex.com/utilities/en/service/equipment-services.https://www.terex.com/utilities/en/service/equipment-services

3/2/2020

(Kansas City, MO) Load King LLC, a wholly owned subsidiary of Custom Truck One Source (Custom Truck), announced that ML Utilities, a division of ML Cranes & Equipment, is now an Authorized Service Center for Load King cranes.


With locations in Charlotte, North Carolina, Baltimore, Maryland, and Cleveland, Georgia, ML Utilities will service Load King boom trucks, truck cranes, and Terex legacy products for customers in the Mid-Atlantic and Southeast regions, including Maryland, Delaware, Washington DC, Virginia, North Carolina, South Carolina, Georgia, Florida and Alabama. The experienced team at ML Utilities will provide maintenance, repair and parts for Load King products.


“We are very excited to partner with ML Utilities to offer after-sales support for our products in this important market,” said John Lukow, Senior Vice President of Load King Cranes. “ML Utilities has a rich history and strong team in place that will benefit our customers through accurate diagnostics and on-hand repair parts.”


“ML Utilities is excited to be named as an Authorized Service Center for Load King, LLC,” said Mickey Hodges, Co-President of ML Utilities. “This partnership aligns very well with our business model, current geographic locations and allows ML Utilities to provide service excellence to the Load King brand along with the legacy Terex Crane products. Our factory trained technicians are highly skilled and we pride ourselves on performing each job safely and efficiently.”


ML Utilities will provide service to Load King customers who contact them directly in addition to customers contacting Load King’s call center. For more information about Load King crane products and service, please visit www.loadkingmfg.com.

3/2/2020

HMI Technical Solutions Project Manager of Integrity Management Rod Rheaume presented a paper about External Corrosion Direct Assessment (ECDA) surveys at the 2020 Pipeline Pigging & Integrity Management (PPIM) Conference in Houston, TX on Friday, February 21, 2020. PPIM is the pipeline industry’s only forum devoted exclusively to pigging for maintenance and inspection, as well as integrity evaluation and repair.


In his presentation, Mr. Rheaume acknowledged the effectiveness of using ECDA surveys to perform assessments on un-piggable lines and educated operators on ways to ensure the validity and compliance of the ECDA process. Mr. Rheaume noted, “Assessments on un-piggable lines can be challenging for most operators. Having a fully developed procedure for the ECDA survey process can help operators avoid pitfalls and comply with the necessary regulations and codes.”


Mr. Rheaume’s presentation was a relevant and informative addition to the PPIM Conference, which drew engineering management and field operating personnel from both transmission and distribution companies concerned with improved operations and integrity management.

An expert in the field of corrosion, Mr. Rheaume is a NACE Certified Cathodic Protection Specialist and a NACE Certified Internal Corrosion Technologist. He has a BSME degree from Worcester Polytechnic University and nearly 30 years of internal and external corrosion and cathodic protection experience.

2/24/2020

BISMARCK — 

Pipeline operator Energy Transfer Partners will now look to build a $40 million pump station about five miles from Linton in Emmons County that would make it possible to increase the capacity of the pipeline from 570,000 to 1.1 million barrels of oil (23.9 million to 46.2 million gallons) per day. The company has said it will aim to begin construction on the pump station this spring and finish about 10 months later.

2/19/2020

(Houston, TX) – A new natural gas pipeline is being proposed to be built north of Medicine Hat by TC Energy with an estimated potential of generating 500 jobs.

TC Energy is proposing the 38.5 mile pipeline to be located just north of Medicine Hat to meet increased demand for natural gas in the city and surrounding areas.

The project’s timetable estimates construction could start in the third-quarter of 2022 with an in-service date of 2023.

2/19/2020

(Houston, TX) - Texas Eastern has proposed the construction of a 1.5-mile natural gas pipeline extension from its existing pipeline to supply a power plant in the Woodbridge Energy Center.

According to FERC documents, the 20-inch pipeline would be located along an existing utility right-of-way and railroad corridor.

The new pipeline would connect two other pipelines owned by Texas Eastern – the company's mainline, which runs along Conrail tracks through the northern part of the township and Metuchen, and the existing Woodbridge Lateral, which delivers natural gas to a 725-megawatt power plant in Woodbridge owned by CPV Shore Holdings.

Preliminary maps show the new pipeline would extend from the Woodbridge Lateral, just south of the intersection of Route 1 and Amboy Avenue, then go directly north just west of Roosevelt Park connecting to the mainline near the Metuchen border.

The project would require would about 19.3 acres of land. According to FERC, Texas Eastern would grade, restore and replant all areas disturbed by construction.

The pipeline is tentatively scheduled to be in service by June 1, 2021.

2/5/2020

(Kansas City, MO) Load King LLC, a wholly owned subsidiary of Custom Truck One Source (Custom Truck), announced that Stevenson Crane will be the first Authorized Service Center for Load King cranes.

With locations in Bolingbrook and South Holland, Illinois, Stevenson Crane will service Load King boom trucks, truck cranes, and Terex legacy products for customers in the northeast Illinois area, including greater Chicago. Stevenson Crane will provide maintenance, repair and parts for Load King products.

”We are very excited to partner with Stevenson to offer after-sales support for our products in this important market,” said John Lukow, Senior Vice President of Load King Cranes. “The depth of experience Stevenson has with operating and maintaining cranes will benefit our customers through accurate diagnostics and on- hand repair parts.”

“We are honored that Load King Cranes selected Stevenson Crane Service as their authorized service center. This is a good fit for us as our utilization experience with the Terex legacy products (Terex truck crane models T 340, T 560-1, & T 780 and Terex Boom Truck models; BT 2047, BT 3870, TM 3851, BT 5092, BT 28106, BT 70100, RS 70100, & Crossover 8000) dates back over 30 years,” stated Bob Stevenson.

Stevenson Crane will provide service to Load King customers who contact them directly in addition to customers contacting Load King’s call center. For more information about Load King crane products and service, please visit www.loadkingmfg.com.

2/4/20

(Houston, TX) Trace Midstream and Gemini Midstream each a portfolio company of Quantum Energy Partners (“Quantum”), announced the combination of management teams to focus on the continued growth and expansion of the Gemini Carthage Pipeline (“GCP”), an existing 50-mile natural gas system in Harrison and Panola Counties, Texas, capable of delivering in excess of 1.2 billion cubic feet per day (bcf/d) of high pressure, dry natural gas into the Carthage area.The combination of Trace and Gemini’s highly skilled workforces and senior management teams provides customers with a dedicated team of energy professionals. Going forward, the combined team will operate as Trace Midstream and Josh Weber will assume the role of Chief Executive Officer with John O’Shea as Chairman of the Board.“Since its initial in-service date of May 2019, GCP has seen a significant ramp in volumes from its two anchor producers, Rockcliff Energy and Tanos Exploration,” said Josh Weber, Trace Chief Executive Officer. “GCP offers its customers access to premium and growing liquified natural gas export and industrial markets along the Texas and Louisiana Gulf Coast. We look forward to continuing to offer safe, reliable and competitive midstream services that our producer customers have come to expect from the Trace team.”Additionally, Trace has begun construction of the Gemini Gulf Coast Pipeline (“GGCP”), a new 36-inch, 150-mile natural gas pipeline capable of delivering 1.5 bcf/d of natural gas to downstream markets in the Beaumont area. Phase I of GGCP is expected to be operational in May 2020.Trace will remain headquartered in Houston, Texas and will continue to operate its East Texas assets from its field office in Marshall, Texas.

2/4/2020

(Washington, D.C.) In a 2-1 vote, the Federal Energy Regulatory Commission on Jan. 30 issued a declaratory order that the PennEast Pipeline Co. had a right to exercise eminent domain over state-owned land in New Jersey for its proposed nearly $1-billion, 116-mile natural gas pipeline project running from Pennsylvania to New Jersey.


The ruling may bolster PennEast's position when it petitions the U.S. Supreme Court to review the issue following unfavorable appellate court rulings last yea.

During the open commission meeting, FERC Chairman Neil Chatterjee cited the Natural Gas Act as the basis for the decision in PennEast's favor, saying that the "text, legislative history and precedent regarding [the law's] Section 7H all demonstrate Congress’ intent to delegate the authority to condemn state property to certificate holders.”

The order conflicts with a Sept. 10 ruling by the Philadelphia-based Court of Appeals for the Third Circuit, which said PennEast’s eminent domain approvals violated the Constitution's 11th Amendment, overturning earlier court decisions.


“The Third Circuit already held that a private pipeline company like PennEast lacks the authority to condemn state properties, and nothing about FERC’s action today changes that," said a spokesman for New Jersey's attorney general's office in an email to ENR. "Despite PennEast’s best efforts, the Third Circuit correctly sided with New Jersey’s interpretation of the Natural Gas Act and the Eleventh Amendment, and the court’s judgment remains in effect.”

Dissenting FERC Commissioner Richard Glick said “the majority is trying to use this petition for a declaratory order to try to influence PennEast’s effort" to get a Supreme Court review, adding, “In my opinion I don’t think we should be pushing out an order just to bolster a private party’s litigation position.”


PennEast plans to file a petition before the high court’s March 4 deadline, the company has said.

In a change to previous plans, the company also announced it intends to build the pipeline in two phases. In the first, a 68-mile, 36-in. pipe would be built in Pennsylvania, coming on line by November 2021.


The second phase would involve continuing the line in Pennsylvania and through New Jersey, with a planned 2023 completion. “Building the project in phases allows PennEast to meet the clear public need in the short term in Pennsylvania, and in the long term in New Jersey by affording sufficient time for permit and legal issues to be resolved,” said Anthony Cox, chair of PennEast's board of managers, in a release.

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