Gas pipelines – Atlanti Gaz Mon, 16 May 2022 22:35:24 +0000 en-US hourly 1 Gas pipelines – Atlanti Gaz 32 32 Why Rattler Midstream Stock Jumped Today Mon, 16 May 2022 21:09:47 +0000

What happened

Shares of Rattler in the middle of the current (RTLR 14.16%) jumped 14% on Monday after the midstream oil and gas company agreed to be acquired by Diamondback Energy (CROC -1.60%).

So what

Diamondback created Rattler Midstream in 2018 to house its energy-focused infrastructure assets. The Partnership owns and operates oil and gas pipelines, gathering systems and processing facilities.

Today, however, Diamondback CEO and Rattler general partner Travis Stice says the two companies will be best served by operating under one umbrella.

“The energy landscape has changed dramatically since Rattler’s IPO in 2019, and we believe this corporate merger agreement is in the best interests of both Diamondback and Rattler stakeholders,” Stice said. “This merger will allow both companies to benefit from the simplicity and scale of the combined entity in the future.”

Image source: Getty Images.

Diamondback holds the majority stake in Rattler. Under the terms of the agreement, the oil and gas exploration and production company would acquire the units it does not already own for approximately $2.2 billion. Rattler unitholders would receive 0.113 of a unit of Diamondback shares for each Rattler unit held. This translates to a premium of around 17% over the unit price of Rattler on Friday.

The transaction is expected to close in the third quarter.

Now what

Separating midstream assets from upstream operations has made it easier for investors to own companies with risk and potential return profiles better suited to their individual goals. But limited partnerships can have slightly more complicated tax reporting requirements for investors than corporations.

Several large energy companies have bought out their intermediary partnerships in recent years to simplify their operations and the tax reporting obligations of their shareholders. Diamondback is the latest to attempt to do so, but it likely won’t be the last.

To stop Baton Rouge flooding, they dig a 12-mile river | Louisiana News Sun, 15 May 2022 05:01:00 +0000


ZACHARY, La. (AP) — You can’t see it yet from Plank Road or La. 19 near Zachary, but work crews are building a lazy river from scratch.

Inside a huge wide “V” dug into the earth, the concrete pillars of a bridge have been poured and smoothed by workers. Nearby, long-reach excavators placed large boulders along the sides of a canal, while other digging machines scooped up the earth and dumped it into trucks which transported it.

After decades of delays, political wrangling and roughly $580 million tinkering, the long-awaited Comite River Floodway is finally becoming a reality.

The U.S. Army Corps of Engineers and the State Department of Transportation and Development have divided construction of the Comite River Floodway into a series of phases, or segments, which can be constructed somewhat independently of each other at if an area experiences delays. Some of these areas, including Segment 3, have encountered problems due to delays in the negotiation of interstate gas pipelines owned by Florida Gas.

political cartoons

Critics of the 40-year-old construction work of the flood control project have derisively called it a “mess up” and simply a “drainage ditch”. But the contractors working for the Corps of Engineers are clearly building something much bigger than a ditch.

It’s a whole new body of water.

When the canal opens – in 2024 or 2025, officials hope – a diversion structure will continually redirect the Comite River once it exceeds a certain height. Experts say these higher water levels often contribute to flooding downstream, where hundreds of thousands of people live.

Excess water will be diverted west of the Amite River, where it normally flows, and down the new channel to the Mississippi River north of Baton Rouge.

The new waterway is carved into what was once solid earth. It will be able to channel the equivalent of the Arkansas River, reducing flooding in the middle Amite basin, according to Corps of Engineers estimates.

To achieve this goal, this straight, rock-lined waterway will need anything in its 12-mile path to swerve out of its way, over its banks or slide under its bottom. This includes roads, railroads, pipelines, wetlands and private property, according to Corps of Engineers plans.

The landscape will change so much that seven new bridges will be needed. They include the one that contractors are building near McHugh Road and farther west at US 61 and the Kansas City Southern Railroad.

Patrice Maguire, 53, lives just north of the McHugh Road Bridge construction area with her husband, Chris, 55. They heard the dirt material in the distance from the woods behind their house, and they saw the trucks driving past. from their home.

At present, only mounds of fresh earth and the tops of cranes and construction equipment are visible from Plank Road. But Maguire said she knew all that work would eventually come to pass, should the canal reach the River Comite east of her home.

“Every time I pass there and see what they’re doing, I’m like, ‘Are they going under that road? What will happen to Plank Road? “, Did she say.

Maguire had heard of the project. But failed to realize that extending the canal to the Committee meant that a new long bridge had to be built for Plank Road across what is now solid ground.

“Wow, that’s a lot of money,” Maguire said.

Plank Road and La. 19, which contractors from the State Department of Transportation and Development will manage, are the next digging and bridge projects slated for construction later this year, Corps and Department officials said. DOTD.

A short stretch of unexcavated canal near McHugh’s site shows how much earthworks are underway. It is almost as long as a football field on top and drops below the surface about 42 feet.

Corps officials estimate that the entire project will require the removal of nearly 9.2 million cubic meters of earth, enough to fill New Orleans’ Caesars Superdome roughly twice. A chorus of dump trucks piles this material into large spoil banks lining each side of the canal; they have removed 1.68 million cubic meters so far.

One of the most spectacular landscape alternations for the diversion is yet to come: three local bayous will be entirely redirected towards the canal.

Although the Comite River Diversion provides about 70% of the flood reduction benefits of the Comite Diversion, Bobby Duplantier, the Corps’ senior project manager, said shifting bayou flow would also make a big difference.

“It’s really going to bring…a lot of benefit to those neighborhoods in smaller events, you know, those events when you have a lot of untimely flooding,” Duplantier said.

Estimates from at least two decades ago – the latest available, although new estimates are forthcoming – suggest that the greatest benefit from the diversion will be in the Zachary and Baker areas, where more than a 6 feet of water levels during a 100-year flood are projected. The bayous will also retain some water in the diversion channel when the Committee is too low to divert. But the public interest has a permanent price.

The channel will bisect the bayous Blanc, Bâton Rouge and Cyprès. Their water north of the canal will be permanently diverted, according to Corps plans.

Artificial electric pumps will draw water from the future diversion channel and discharge it into the bayous so that the water continues to flow there under the channel. However, the diversion will remain a permanent barrier for aquatic fauna.

East Baton Rouge Parish, under prior agreement with the Corps, will have to keep these pumps running for wildlife, as well as most other long-term maintenance costs like debris removal, said Corps officials. Parish officials said they and Corps are still working out the total costs for the canal.

Corps plans originally called for expensive concrete structures that would have sent bayou waters spraying more than 25 feet of waterfalls into the channel, Duplantier explained.

But Corps officials met with their counterparts in Mississippi, where a less dramatic and less expensive option was already being used.

The so-called “rock falls” will slow the waters of the bayou 1,200 to 1,500 feet upstream, gradually easing the transition and channeling the water to the bottom of the floodway. The chutes widen as the bayous approach the channel.

In addition to cutting costs by about $25 million, Duplantier said the falls eliminated a safety concern: Spectacular waterfalls would likely have attracted curious onlookers. The diversion will not be a public access waterway, including for anglers and boaters.

“It’s a much less intrusive type of flow in our channel compared to a large waterfall, I call it, in the channel,” Duplantier said.

The Corps of Engineers has already awarded construction contracts for two of these falls, at White and Cypress bayous, but work is only just getting ready.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Five points: is talk of a recession justified? Follow the data Fri, 13 May 2022 11:47:11 +0000

Content of the article

(Refiles to change number on last theme to 5 of 4. No other changes to text) A deluge of data from major economies comes at a pivotal moment in the debate over whether central banks are raising interest rates. interest in potentially strong global growth slow down.

And with nervous investors dumping risky assets en masse, what comes next after a cryptocurrency rout is also in focus.

Here’s to your week ahead in the markets of Ira Iosebashvili in New York, Tom Westbrook in Singapore, Elizabeth Howcroft, Sujata Rao and Karin Strohecker in London.

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The Federal Reserve is almost certain to raise interest rates by 50 basis points in future meetings. The upcoming data should show whether a significant tightening will result in a hard or soft landing for the economy.

Forecasts for Tuesday’s U.S. retail sales data call for a 0.7% rise in April after a monthly increase of 0.5% in March. Signs of the extent of inflation, which is showing only the slightest signs of moderating, is pinching consumers may also be evident in Tuesday’s earnings reports from Walmart, Home Depot and Macy’s.

Friday’s existing home sales data could show how quickly rising mortgage rates are cooling the housing market.

The Fed’s determination to contain inflation fueled fears of a hard landing. The S&P 500 is on course for its worst year since 2008 – any sign that the economy is holding up to higher rates would be a welcome relief.

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Cryptocurrency aficionados and watchers will be watching the fallout from a dramatic price crash.

On Friday, Bitcoin was on course for a double-digit weekly decline and heading for a record losing streak. Other cryptocurrencies also slid as investors shunned risky assets as central banks got aggressive on inflation.

The question of whether so-called stablecoins can maintain their peg to the dollar as investor confidence plummets is key. Algorithmic stablecoin TerraUSD broke its peg and plunged as low as 30 cents as its complex balancing mechanism involving another floating token stopped working.

Others such as Tether, USD Coin, and Binance USD are confident that they will be spared the fate of TerraUSD as their cryptocurrencies are backed by reserves of dollar assets. These reserves may come under increasing scrutiny as investors assess whether these coins can handle a wave of redemptions.

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A data boost across Asia could recalibrate the outlook for regional assets.

Japan publishes data on growth, trade and inflation. If they beat expectations, even the most dovish central bank in the world could start to consider a more neutral stance – good news for a fragile yen.

China reports industrial production, retail sales and property prices, all likely sluggish. China is also setting benchmark rates, though traders see stability as the most likely outcome.

And in Australia, the wage and employment figures are out. Its central bank did not wait for data before raising rates on May 3 and markets suspect further hikes are ahead. Rates should be around 3% by the end of the year, any signs to the contrary could cause expectations to unwind.

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The consumer is in trouble. Soaring food and fuel prices are eroding disposable incomes, and lockdown-era savings that could have been spent on travel and shopping are rapidly dwindling.

Economists predict that COVID restrictions will have led to a 6% drop in April retail sales in China, almost double the falls in March. U.S. retail sales in April are expected to rise, but similar to March, gasoline and food could drive most of the increase.

British consumer confidence slumped in March to its lowest level in nearly half a century, research firm GfK said. A cost-of-living squeeze likely added to the sluggishness of shoppers in April.

Unsurprisingly, global consumer discretionary stocks have fallen nearly a third this year, outpacing a broader decline in the stock market index. Investors took note; many say they no longer rely on the consumer.

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The pressures on European gas markets show no signs of easing.

Moscow’s sanctions against Gazprom Germania, whose ownership was ceded to its gas producer Gazprom, and EuRoPol GAZ SA, owner of the Polish part of the Yamal-Europe gas pipeline, have driven up prices. A May 3 Kremlin decree prohibits Russian entities from entering into agreements with people on the sanctions list.

This affected flows to Europe already diminished after Ukraine declared a case of force majeure and said it would not reopen a key gas transit route from Russia to Europe until kyiv does not. wouldn’t get full control of its gas pipeline network.

And confusion still reigns among EU gas companies over a payment system decreed by Moscow in March that the European Commission says would breach EU sanctions as deadlines approach.

(Compiled by Dhara Ranasinghe; Editing by Emelia Sithole-Matarise)



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Growth in natural gas production in the United States will exceed demand this summer: NGSA Wed, 11 May 2022 21:32:00 +0000 Strong points

Summer-to-summer daily production growth forecast at 3.6 Bcf/d

Future production growth of 1 Bcf/d above demand growth

U.S. natural gas production will increase significantly this summer compared to the summer of 2021, outpacing increases in demand, according to the Natural Gas Supply Association’s 2022 summer outlook.

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The producers’ association’s summer outlook, released on May 11, predicted the balance between supply and demand would remain tight, but “production is clearly up [to] meet this challenge.”

The NGSA forecasts that gas production in the United States will increase by 3.6 billion cubic feet per day this summer compared to last year, with the gains expected to come from both associated and non-associated gas.

This forecast is around 600 MMcf/d, or 20%, above the 3 Bcf/d of summer-over-summer growth projected by S&P Global Commodity Insights in its April 20 short-term U.S. gas forecast. .

Some gains have already been seen, with data from S&P Global showing production averaged 93.6 Bcf/d so far in May, up 1.2 Bcf/d from the same period last month. last year. About half of the May-to-May increase can be attributed to higher Permian gas production, higher production also seen in the Haynesville and SCOOP/STACK basins.

Offer versus demand

As U.S. spot and futures gas prices trade at sustained levels not seen in more than a decade, pushed higher by supply issues, market watchers are watching the benchmark rate closely. supply growth relative to demand growth during the summer charging season.

The NYMEX Henry Hub monthly contract has averaged $7.84/MMBtu so far this month, more than double the $2.95/MMBtu average of the same time last year. . Before those April and May, the short-term gas futures contract last settled above $7/MMBtu in 2008.

The NGSA expects total U.S. gas demand, including exports, to climb 2.6 billion cubic feet per day this summer, driven almost entirely by higher export demand. According to the outlook, domestic gas demand will increase by only 100 million cubic feet per day this summer compared to last summer, with lower gas demand quashing expectations for higher industrial growth. Residential-commercial demand should remain the same as last summer.

Other recent gas market outlooks, such as S&P Global’s short-term U.S. gas forecast and the Energy Information Administration’s short-term energy outlook, also forecast production growth this summer. , but expect demand growth to outpace production gains. Both outlooks highlighted the potential for greater demand for gas-fired electricity, with low coal inventories and rail constraints for coal transport expected to limit the switch from gas to coal.

Production gains

One of the factors limiting production growth this summer may be the continued financial discipline of producers.

U.S. gas producers largely stuck to previous commitments to keep production at sustaining levels during the recent round of Q1 2022 earnings calls. Top priorities included debt repayment, returning cash to shareholders and the restoration of quality ratings.

Some executives at gas-weighted exploration and production companies have also pointed to infrastructure constraints as a barrier to production growth, especially for Appalachian producers. Efforts to build new gas pipelines in the North East have been met with legal challenges and costly delays in obtaining permits in recent years.

Gains in gas production are therefore more likely to be seen in associated gas basins, such as the Permian, this summer. While the Permian has struggled with carry-out capacity constraints in the past, a trio of new intrastate basins brought online in 2020 and 2021 have given the basin some room to grow before reaching limits.

Voluntary Natural Gas Pricing Policy Receives Updates from FERC Mon, 09 May 2022 21:53:57 +0000

On April 21, 2022, the Federal Energy Regulatory Committee (FERC) revised its guidance regarding voluntary reporting of natural gas transaction prices by market participants to price index developers (e.g., NGI, S&P, OPIS, Argus, ICIS and others). Specifically, FERC issued a Revised Policy Statement (RPS) amending the standards for such reporting to price index builders. In doing so, FERC broadly adopted the proposed policies for the first time in late 2020. The RPS comes into effect on December 31, 2022.

Since 2010, there has been a dramatic decline in voluntary reporting to price index developers by market participants of natural gas transaction prices. FERC hopes the changes to the RPS will help encourage more market participants to report their trades to price index developers.

The RPS revises price index policy standards for market participants. It will allow market participants to declare their transactions for the next day or the following month. Previously, for market participants who chose to report, both were mandatory. Additionally, FERC will now allow market participants who provide this data to self-audit twice a year rather than once a year.

The RPS also changes FERC’s price reporting standards to require price index developers to disclose when they use a market valuation other than transactions at the specified index location to calculate the index. prices. In addition, price index developers will be required to seek FERC approval or re-approval every seven years if they meet the standards set forth in the Initial Policy Statement (IPS). Finally, effective six months after the effective date of the RPS, interstate gas pipelines and utilities using price indices in jurisdictional tariffs will no longer be entitled to a rebuttable presumption that those indices provide tariffs. fair and reasonable, unless the benchmark price index developer has obtained FERC approval related to IPS.

© Steptoe & Johnson LLC. All rights reserved.National Law Review, Volume XII, Number 129

Tennessee passes bill that protects oil and gas industry : NPR Sat, 07 May 2022 21:44:57 +0000


As cities across the country pursue their climate change goals, some states are passing laws to protect the oil and gas industry. The Tennessee Legislature just approved a bill that prevents local governments from banning fossil fuel projects or even regulating pipeline safety. Caroline Eggers of member station WPLN has this report.

CAROLINE EGGERS, BYLINE: Tennessee lawmakers passed the bill after Memphis shut down a planned oil pipeline through predominantly black neighborhoods and above the city’s drinking water. Among the opponents of the project was former Vice President Al Gore.


AL GORE: This pipeline project is an irresponsible and racist scam.

EGGERS: This was an unusual victory for environmental justice in a country where many black and brown neighborhoods have historically lived with disproportionate levels of pollution. And as Memphis environmentalist Justin Pearson says, Tennessee lawmakers were quick to respond.

JUSTIN PEARSON: By taking that power away and handing it over to executives who don’t care about Tennessee, who don’t live here, and who only use our land for their own gain.

EGGERS: During the legislative session, Republican Rep. Kevin Vaughan defended the bill with talking points about the fossil fuel industry.


KEVIN VAUGHAN: It gives certainty to the regulated community, local governments as well as the general public to ensure that the necessary critical infrastructure can be developed.

EGGERS: Focusing on the economic case for developing fossil fuel infrastructure, he said…


VAUGHAN: Markets, rather than governments, are driving future energy innovation and ensuring that all citizens of Tennessee have access to affordable and reliable energy.

EGGERS: But Vaughn ignored some important details, like the impact of fossil fuels on the climate, the environment and people. For example, the bill prevents cities from regulating or enforcing pipeline safety. Since gas pipelines can explode on rare occasions, neighbors often want them away. While the bill was explicit in some areas, such as the exclusion of solar power, it is vague in others. The bill never defines what would be considered a ban on the siting or development of fossil fuels. George Nolan, an attorney at the Southern Environmental Law Center, said courts may have to interpret the text.

GEORGE NOLAN: There is general language in this bill that pipeline companies, energy companies could use to bully local governments into not standing up for their communities.

EGGERS: By intimidate, he means threatened with prosecution. This legislation follows a trend in Tennessee of predominantly white state leaders limiting the influence of local governments with large black populations, including in Memphis and Nashville. Sarah Houston, a Memphis water advocate, also spoke out against the fossil fuel infrastructure bill, saying it should be a national concern.

SARAH HOUSTON: Although we think it’s an industry bill that they’re trying to replicate in multiple states to just get their infrastructure out there without any local opposition.

EGGERS: Energy legislation like this has already been tested in Tennessee. After Berkeley, Calif., became the first city to ban natural gas service in new buildings, Tennessee became one of the first states to anticipate such action. Now, at least 21 states have this type of law. For NPR News, I’m Caroline Eggers in Nashville.

Copyright © 2022 NRP. All rights reserved. Visit the Terms of Use and Permissions pages of our website at for more information.

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Europe Is About to Ban Russian Oil: What Happens Next? Wed, 04 May 2022 09:05:00 +0000

Russia’s decades-long dominance of the European energy market is crumbling, and the biggest blow is expected this week as the European Union moves towards a ban on Russian oil.

Wednesday, European Commission President Ursula von der Leyen has proposed a complete ban on Russian oil imports with a phase-out of crude oil over six months and a halt to refined products by the end of the year, subject to the approval of Member States.

With this phased approach, “we are maximizing pressure on Russia, while minimizing collateral damage for us and our partners around the world,” she said.

Oil prices rose after the announcement. Brent crude rose more than 3.7% on the day.

Analysts say it will be possible to sever Europe’s oil ties with Russia, but the effort will take time and could lead to shortages and higher prices of gasoline, diesel, jet fuel and oil. other products – a situation that could penalize consumers already struggling with inflation and ultimately derail the economic recovery from the pandemic.