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New $1B Marcellus Gas Pipeline Coming from NE PA to MD
3/2/11

Three companies are joining forces to spend $1 billion to build a new Marcellus natural gas pipeline that runs from northern Pennsylvania to Maryland. Most major pipelines head in the other direction, trying to tap into northeastern markets like New York and Boston. But Inergy, UGI and WGL, the three partners, have a different take. They want to send gas in the other direction—to the Mid-Atlantic region—and along the way service markets including Philadelphia, Baltimore and Washington, D.C.

Dubbed the Commonwealth Pipeline, this new 200 mile, 30-inch pipeline will start in Lycoming County, PA where Inergy is currently building a gathering pipeline to connect Marcellus wells in Bradford and Sullivan counties, and from there go south through central and eastern PA, eventually connecting to WGL’s gas distribution system near Rockville, MD. The new pipeline will connect with other major pipelines along its route allowing gas to move bi-directionally.

From the Inergy press release:

Inergy Midstream, L.P., a subsidiary of Inergy, L.P., yesterday announced plans to jointly market and develop a new interstate natural gas pipeline known as the Commonwealth Pipeline with affiliates of UGI Corporation and WGL Holdings, Inc. The proposed 200 mile, 30-inch pipeline is expected to transport at least 800,000 dekatherms per day of natural gas when it is placed into service; and affiliates of UGI and WGL are expected to execute precedent agreements to become anchor shippers on the new pipeline. The parties anticipate placing the new pipeline into service in 2015.

The Commonwealth Pipeline will extend from the southern terminus of Inergy Midstream’s MARC I pipeline in Lycoming County, Pennsylvania, through UGI’s utility service areas in central and eastern Pennsylvania to a point of interconnection with WGL’s gas distribution system near Rockville, Maryland. The pipeline will connect attractive demand centers in the Mid-Atlantic region, including Washington D.C., Baltimore, and Philadelphia to abundant and reliable supplies of natural gas production from across Pennsylvania while providing a more cost-effective transportation path versus traditional routes.

“We are pleased to be working with UGI and WGL to develop this significant infrastructure project, which will provide direct access to new demand markets for gas producers,” said Bill Moler, Senior Vice President and COO of Inergy Midstream. “Gas production in the Northern tier of Pennsylvania has been limited by the lack of take-away capacity in existing interstate pipelines, most of which currently serves markets in the Northeast. The Commonwealth Pipeline is expected to provide much-needed transportation capacity to desirable new and growing demand markets in the Mid-Atlantic.”

John Sherman, President and CEO of Inergy Midstream, added, “This project is a natural extension of Inergy Midstream’s storage and transportation platform in the Northeast. We are committed to developing the critical infrastructure that natural gas customers desire. For our investors, this project adds to our plans for high quality, fee-based cash flows that underpin the stability and growth of our cash earnings.”

The pipeline is expected to cross and interconnect with a number of interstate pipelines along its route, providing customers greater supply diversity while providing producers direct access to expanding markets that are currently served only through legacy interstate pipelines. Upon completion of the MARC I and the Commonwealth Pipeline, shippers will have the ability to move volumes bi-directionally to or from multiple pipelines (including Dominion Transmission, Tennessee Gas Pipeline, Millennium Pipeline, Transco, and TETCO) across an interconnected platform of assets to demand markets in the Northeast and Mid-Atlantic.

The sponsors expect to own equal equity interests in the project company formed to own the Commonwealth Pipeline. The plans are for Inergy Midstream to construct and to operate the pipeline, which is expected to cost approximately $1.0 billion and be funded equally among the sponsors.

A non-binding open season will be announced in March 2012 for shippers interested in acquiring capacity on the proposed Commonwealth Pipeline.*
 

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That pipeline will end up in Baltimore and make it easier to send it overseas....... and I have no problem with that, just don't go and get that fuzzy feeling just yet. LOL
 

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There are plans to build an export LNG facility in some east coast port, but forget where? It is an expensive propostion to do that, but if there's enough money in it, someone will probably do it.
 

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I believe we created such facilities ti IMPORT gas, and now those facilities will be made to export it.

Make no mistake, some of this piepline will be used for "us", but much of it will be exported.

The problem here is we have no demand for gas. The demand needs to be created, and then infrastucture can expand.

Which came first, the chicken or the egg kinda thing.

Personally, if I can get a dual fuel work van the next time, I will, and I'll install a fueling station for it in my shop.
 

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bearhollow said:
When did the free market become such a negative thing?
It isn't.

But, I can hear the howls from people if the Chinese bought one of our gas companies. Then, suddenly, even the right wingers hate the free market. LOL
 

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Dutch said:
bearhollow said:
When did the free market become such a negative thing?
It isn't.

But, I can hear the howls from people if the Chinese bought one of our gas companies. Then, suddenly, even the right wingers hate the free market. LOL
The Chinese own us, now. All of us!
 

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Which came first, the chicken or the egg kinda thing.

Personally, if I can get a dual fuel work van the next time, I will, and I'll install a fueling station for it in my shop.
You're correct about which comes first, the chicken or the egg. Right now there is great interest in building Compressed Natural Gas (CNG) retail facilities across Penna. The reasoning is all this Natural Gas is in our back yard.
Just last week my Distributor attended a meeting in Illinois which was designed to bring together owners of Tucking Firms and possible CNG retailers. It was surprising how many people were in attendence.
Trucking Firms aren't sure if fueling sites will be available and CNG retailers aren't sure if there will be vehicles available to fuel.
Make no mistake, it'll be a large investment on both sides, but the profits could be huge.

So, before you invest in a home CNG fueling station, check in at Ephrata. I might be able to fill your tank!
 

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bearhollow said:
When did the free market become such a negative thing?
When the oil speculators were allowed to manipulate prices outside the economic laws of actual supply and demand...that's when.
 

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LDD said:
bearhollow said:
When did the free market become such a negative thing?
When the oil speculators were allowed to manipulate prices outside the economic laws of actual supply and demand...that's when.
Can you explain exactly how they are manipulating oil prices?

I'm guessing you are in favor of eliminating the commodities markets. It's gambling. There will be winners and losers. Oil speculators win and lose. The price of oil today is directly related to the devaluation of the US dollar. This is one of the hidden effects of the current policies in Wash. I think the current slump in US nat gas prices is a natural reaction of the market.

Speculation on the price of orange juice after a group of meteorologists predicted a hard freeze in Florida made them a fortune and this became the basis of Accu-Weater.
 

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Exactly, it is the government involvement in bringing down the value of the dollar tht is causing a lot of cost problems.
 

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bearhollow said:
LDD said:
bearhollow said:
When did the free market become such a negative thing?
When the oil speculators were allowed to manipulate prices outside the economic laws of actual supply and demand...that's when.
Can you explain exactly how they are manipulating oil prices?
I'm guessing you are in favor of eliminating the commodities markets. It's gambling. There will be winners and losers. Oil speculators win and lose. The price of oil today is directly related to the devaluation of the US dollar. This is one of the hidden effects of the current policies in Wash. I think the current slump in US nat gas prices is a natural reaction of the market.

Speculation on the price of orange juice after a group of meteorologists predicted a hard freeze in Florida made them a fortune and this became the basis of Accu-Weater.
ok...here ya go...

http://www.cbsnews.com/2100-18560_162-4707770.html
 

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We just had a Texas Eastern Gas line come through our area ruining alot of land. Now there is word of two more coming through York County. And one to cross the river into Lancaster county somewhere near Holtwood. Add to that the huge super high power electrical transmission lines from W VA across MD, southeastern PA and up to North Jersey. All crossing one another here in York County. The electric line ROW is to be 300 ft wide and the two gas lines will each be ROW's 50 ft wide. That is a huge land use loss for a single area. Lots of permanent woodland loss.

That is a lot of resources expended and land lost. Which could be unnecessary if we had spent more 20 years ago, developing increased efficiency and other sources of energy.
 

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Goosehunter said:
Which came first, the chicken or the egg kinda thing.

Personally, if I can get a dual fuel work van the next time, I will, and I'll install a fueling station for it in my shop.
You're correct about which comes first, the chicken or the egg. Right now there is great interest in building Compressed Natural Gas (CNG) retail facilities across Penna. The reasoning is all this Natural Gas is in our back yard.
Just last week my Distributor attended a meeting in Illinois which was designed to bring together owners of Tucking Firms and possible CNG retailers. It was surprising how many people were in attendence.
Trucking Firms aren't sure if fueling sites will be available and CNG retailers aren't sure if there will be vehicles available to fuel.
Make no mistake, it'll be a large investment on both sides, but the profits could be huge.

So, before you invest in a home CNG fueling station, check in at Ephrata. I might be able to fill your tank!
Hey, I'll let you know, once they start making the work vans with dual fuel capabilities. I see they will be making Silverado 3/4 ton pickups pretty soon. But, I ain't running to Ephrata every time I need a fill up. Also, if I put a filling station here at my shop and at camp, I'm set!!!!
 

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LDD said:
bearhollow said:
LDD said:
bearhollow said:
When did the free market become such a negative thing?
When the oil speculators were allowed to manipulate prices outside the economic laws of actual supply and demand...that's when.
Can you explain exactly how they are manipulating oil prices?
I'm guessing you are in favor of eliminating the commodities markets. It's gambling. There will be winners and losers. Oil speculators win and lose. The price of oil today is directly related to the devaluation of the US dollar. This is one of the hidden effects of the current policies in Wash. I think the current slump in US nat gas prices is a natural reaction of the market.

Speculation on the price of orange juice after a group of meteorologists predicted a hard freeze in Florida made them a fortune and this became the basis of Accu-Weater.
ok...here ya go...

http://www.cbsnews.com/2100-18560_162-4707770.html
Ok, got it now. Commodity speculation equates to commodity manipulation.

Oh, and Steve Kroft/CBS have no axes to grind, especially in early 2009.
 

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Yes, commodity speculation manipulates the supply and demand market. It creates false perceptions in the market and the speculators make money from those perceptions...and we pay them at the pump for it. It's a great system. I've often thought of becoming involved in it myself. But, raising three kids and working two jobs I just don't have the expendable income right now. Just because it's legal doesn't mean it's not manipulation. The skids have been greased between Wallstreet and D.C. for many years. They all swap jobs periodically.

How'd I know that you would imply that Steve Kroft isn't being an ethical journalist? His job as an investigative journalist is to grind axes in a fair and ethical manner. What's the problem?...here's a good example of the connection between Wallstreet/Big Business and our lovely politicians in D.C. conducted by none other than Steve Kroft...pay particular attention to the line of questions he asks Pelosi at 2:53 and on...I'm glad there's still some axe grinding journalists out there that don't bow to the Republican or Democrat agenda. Once they're all gone, so is our democracy. I firm believe that 60 minutes is one of the last bastions of real journalism.

http://www.cbsnews.com/8301-504803_162-5...t-heads-to-d.c/
 
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