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Mountain Valley Pipeline Outlines Plan to Achieve Carbon Neutrality07/31/2021
Mountain Valley Pipeline LLC is aiming to resolve concerns regarding its ecological consequences through a newly disclosed plan to buy carbon offsets for its energy transition.
The company would obtain energy transitions to keep the pipeline's operational carbon neutral for the very first decades of service, according to the proposal. As shown in a press statement issued on July 12, it would also make it one of the first statewide natural gas transmission pipelines to obtain energy transition for its operational emissions.
According to Diana Charletta, COO and president of Equitrans Midstream, the Mountain Valley Pipeline's operator, they are aware of the sensitivity of large-scale building projects combined with environmental sustainability.
The pipeline is a planned underground natural gas pipeline that runs approximately 303 miles across northwestern West Virginia to southernmost Virginia. It has been delayed multiple times, owing to legal and regulatory battles with environmental and community groups.
Mountain Valley Pipeline LLC is scheduled to begin operations in the summertime of 2022, transporting natural gas from the Utica and Marcellus shale areas to markets in the Southeast and Mid-Atlantic regions of the United States. The pipeline, which started building in February 2018, was supposed to be operational by late 2018.
The environmental officials in Virginia have also asked the U.S. Army Corps of Engineers to extend the assessment time for the pipeline's water security certification applications, which Equitrans Midstream disclosed in May.
On the other hand, Mountain Valley is expecting to buy more than $150 million of carbon offsets during its first ten years in business. These carbon offsets will be generated via a methane abatement program in Virginia, which is expected to hit full operation in 2023, according to a contract with a company of NextEra Energy Resources.
The methane abatement project, once accomplished, is planned to be the world's biggest of its sort, according to Matt Schafer, VP of interstate pipelines for NextEra Energy Resources, which also holds shares in the pipeline.
The company also stated in the press release that it is continuing to expand its ecological stewardship and preservation efforts in Virginia. Hence, it is currently investigating new techniques for decreasing greenhouse gas emissions and conserving critical resources.
Mountain Valley Pipeline is also managed by Consolidated Edison Inc., AltaGas Ltd., and RGC Resources, in relation to NextEra Energy and Equitrans.
This Energy Transition Looks Safe
The year 2020 could be regarded as a pivotal point in the energy transition. According to industry professionals, it is the time when carbon neutrality global demand rises compared to fossil fuels.”
According to propane industry experts, refineries designed to generate sustainable diesel may also produce renewable propane as a byproduct. This year, renewable propane has been a hot issue in the business. Because it has a renewable component, conventional propane, which is already clean, is included in the all-important renewable energy.
The energy transition must be "safe," with energy production chains offering high-quality services for people's everyday lives, commercial operations, and government services.
Fossil fuels and well-established standard technologies still lead the industry energy sector today. In 2019, oil, coal, and natural gas contributed roughly 85 % of primary energy, with sustainable energy accounting for about 12 % and nuclear accounting for 4%.
The energy transition entails connecting the end platform with renewable resources via suitable energy technologies in an accessible system, with the goal of increasing the share of sustainable energy to at least 90%, though not 100%.
NGL Energy Partners LP conducts an open season for Grand Mesa Pipeline, LLC, which carries crude oil from the Denver-Julesburg Basin going to the Cushing hub.
Southland Royalty sold its San Juan Basin assets to MorningStar for $17.3 million. We go over the basics with an emphasis on the data needed to evaluate Southland Royalty's acreage in the San Juan Basin.
Shareholder’s payout target was increased by 50% after the largest U.S. independent oil producer surpassed Wall Street’s earnings estimates on growing energy prices, said Houston-based Conoco Phillips Co. on Aug. 4. Due to Western sanctions on major producer Russia throttling energy supply amid a rebound in demand from pandemic lows, oil and gas #prices have soared. Crude has been trading more than 25% higher since the start of the year and results also benefited from high natural gas prices. Meanwhile, shares were down a fraction, to $91.03, in early trading but are up about 26% year to date. Conoco Phillips stated, that the average price obtained for a barrel of oil and gas accelerated 77% from a year earlier to $88.57. The company acknowledges that it has not hedged any of its oil and gas sales to make the most of higher market prices. The capacity of 1.69 million boe/d was in line with Wall Street estimates, however, the company expected the current quarter’s output would be between 1.71 million and 1.76 million boe/d.
California oil joint venture, Aera Energy, of Exxon Mobil Corp. and ShellPlc is being sold to German asset manager IKAV, according to the agreement of Sept. 1. Shell noted that the sale of its 51.8% membership interest in Aera Energy is for a total consideration of about $2 billion in cash with additional contingent payments based on future oil prices, subject to regulatory approval. However, the total transaction value was not disclosed. Being one of California’s largest oil and gas producers, Aera Energy accounts for nearly 25% of the state’s production. The sale by Exxon Mobil and Shell ends a 25-year-long partnership in California, meanwhile, it persists a streak of divestments of mature oil and gas properties by the two supermajors. Aera Energy LLC operates about 13,000 wells in the San Joaquin Valley in California, producing oil and associated gas. In 2021, Aera took out about 95,000 boe/d. Exxon Mobil’s interests in the Aera oil-production operation in California contained a 48.2% share of Aera Energy LLC and a 50% share of Aera Energy Services Co. held by Mobil California Exploration & Producing Co. Moreover, Exxon Mobil affiliates have signed a separate agreement for the sale of an associated loading facility and pipeline system. The sale effectively ends Shell’s upstream position in California. The company reported that the divestiture is valued to result in a post-tax impairment of $300 million to $400 million, subject to adjustments.
The completion of the merger between Centennial Resource Development Inc. and Colgate Energy Partners II LLC happened on Sept. 1, sealing the debut of Permian Resources Corp., which is considered the largest pure-play E&P company in the Delaware Basin. Permian Resources’ idea was to combine two successful E&P companies, creating a better, stronger, and more strategically compelling company. Centennial and Colgate announced an agreement to merge in May, denying rumors that Colgate, a privately held independent Midland-based company, had been seeking an IPO. The merger estimated Colgate at about $3.9 billion and consists of 269.3 million shares of Centennial stock, $525 million of cash, and the assumption of approximately $1.4 billion of Colgate’s outstanding net debt. Permian Resources, being the combined company, has a deep inventory of “high-quality” drilling locations on around 180,000 net acres the companies anticipate will provide more than $1 billion of free cash flow in 2023 at current strip prices, in accordance with the company release on Sept. 1.