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Senate Environmental Committee To Hold 2nd Joint Hearing With Ohio Legislature On Electric Grid Reliability Feb. 1; Will It Address Natural Gas Infrastructure Vulnerabilities?
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On January 16, a Tweet from the Senate Environmental Resources and Energy Committee announced the Committee will hold a second hearing February 1 with its counterpart in the Ohio Legislature on electric grid reliability within the PJM Interconnection. The first hearing was on November 2. Read more here. The new hearing will be held in the Ohio State House, Room 313, 1 Capitol Square, Columbus, OH starting at 10:00 a.m. 2024 Polar Vortex The hearing comes during the middle of another winter polar vortex with cold temperatures causing the PJM Interconnection to issue a Cold Weather Advisory through Jan. 21. Read more here. PJM also issued a Conservative Operations advisory on January 12 that will last through January 17 to maintain electric grid reliability as a result of winter weather impacts and pipeline fuel restrictions reported by natural gas pipeline operators. Read more here. When Conservative Operations is declared, PJM Dispatch reviews and considers recalling or canceling noncritical planned generation and transmission maintenance outages and may reduce transfers of electricity into, across or through the PJM system. Although information is preliminary, natural gas supply and transportation sectors have performed as expected, meaning any gas generation outages are within what is expected and planned for in frigid temperatures, based on new policies adopted by PJM after significant nonperformance by natural gas generators during Winter Storm Elliott in December 2022. During this year’s polar vortex, multiple news outlets are reporting winter weather is again resulting in a drop in natural gas supplies as wells and pipeline infrastructure freeze in the face of significant cold weather demands. Read more here. The Marcellus Drilling News reported January 16 US natural gas prices made a “huge jump” on deep freeze, some shale gas prices increased by 400%. The Public Utility Commission reported on November 29 some natural gas supply charges by Pennsylvania utilities are coming down after the price spikes caused by changes in the international price for natural gas in 2021 and 2022. The natural gas prices changes ranged from a decrease of 64.2% to an increase of 149%. Read more here. 2022 Winter Storm Elliott During Winter Storm Elliott in December of 2022, weather conditions resulted in significant, unanticipated forced outages of electric generation just when it was needed most to deal with low temperature conditions. PJM reported forced outages of natural gas-fired electric generation accounted for 70% of the total outages, coal 16% and the remainder were oil, nuclear, hydro, wind and solar. Read more here. On December 10, the Federal Energy Regulatory Commission approved a $1.25 billion PJM penalty settlement with electric generators who failed to perform during Winter Storm Elliott. Read more here. On December 15, PJM adopted multiple grid reliability-focused improvements in response to issues that became apparent during Winter Storm Elliott, including dealing with the significant nonperformance of natural gas-fired power plants. Read more here. During a December 10 House Environmental Resources and Energy Committee hearing, PJM said-- “The [PJM] system really struggled during Winter Storm Elliott this past Christmas and we had lost a lot of generating resources on Christmas Eve, Christmas day due to cold weather and winterization issues.” “We have taken strides since winter Storm Elliott to try and ameliorate that issue. “There's still quite a bit of work to be done in the sort of gas, electric coordination space. That's sort of utility industry jargon where they just operate on different spheres and trying to get them to coordinate themselves is a bit of a challenge.” “One is an immediate term issue, which is making sure that facilities are winterized.” “The North American Electric Reliability Corporation [and] others [are] pushing hard to make sure facilities are winterized.” Read More Here On November 8, the North American Electric Reliability Corp issued its 2023-24 Winter Reliability Assessment which finds much of North America is again at an elevated risk of having insufficient energy supplies to meet demand in extreme operating conditions. “Natural-gas-fired generator availability and output can be threatened when natural gas supplies are insufficient or when the flow of fuel cannot be maintained. “During Winter Storm Elliott, natural gas production rapidly declined with the onset of extreme cold temperatures, contributing to wide-area electricity and natural gas shortages. “Currently, natural gas production, transportation, storage, and a significant portion of the BPS [bulk power system] link together to form a single interconnected energy delivery system that extends from the natural gas wellhead to end-use electricity and natural gas customers. “The operation of this interconnected energy system can be disrupted when natural gas fuel supplies are not available for electricity generation as well as when electricity is not available to operate electricity-driven compressors and other critical infrastructure components in the natural gas supply chain. “Recent extreme cold weather events have shown that energy delivery disruptions can have devastating consequences for electric and natural gas consumers in impacted areas. “Winter Storm Elliott demonstrated the wide-area consequences for BPS reliability that can result from reduced natural gas production during periods of extreme cold weather. “In addition to wellhead impacts on production, natural-gas-fired generating units that lacked firm supply or transportation contracts to meet their winter peak electrical output faced challenging and often insurmountable fuel procurement issues when natural gas supply and available pipeline capacity became scarce. “During Winter Storm Elliott, natural-gas-related fuel outages occurred alongside generator outages, derates, and failures to start that resulted from freezing issues and mechanical/electrical issues that are closely correlated with falling temperatures.” “Moreover, a significant portion of generating units failed to perform at temperatures above their own documented minimum operating temperatures.” “Natural-gas-fired generation is vitally important to meeting winter electricity demand across much of North America.” The NERC report went on to say, “Furthermore, the natural gas industry relies on electricity to power some of its critical components. For instance, some compressors run on electricity while others are fueled by natural gas. “This means that the natural gas industry depends on the delivery of electricity to run as intended, and as stated in many other places, the electric industry depends on the delivery of natural gas. This can exacerbate the scale of impacts when either industry is threatened.” The NERC report projects extreme winter weather conditions impacting natural gas supplies and natural gas-fired generation and other generation outages could result in a PJM shortall in electric generation capacity of 12,000 MW. Read more here. Winter Cold Impacts On PA Gas Infrastructure Gas infrastructure in Pennsylvania experience significant problems during the December 2022 freeze, including-- -- Energy Transfer Revolution Cryogenic Natural Gas Processing Plant Explosion Christmas Morning: On December 25, 2022 the Energy Transfer Revolution Cryogenic Natural Gas Processing Plant in Smith Township, Washington County suffered an explosion and fire that burned for at least nine and a half hours resulting in an uncontrolled release of ethane and other gases. DEP arrived at the plant on January 3, 2023 to start its investigation. Read more here. Read KDKA report here. -- CNX Oak Springs Natural Gas Pipeline Pigging Station Uncontrolled Release Of 1.1 Million Cubic Feet Of Gas: On December 27, the CNX Oak Springs natural gas pipeline pigging station suffered an uncontrolled release of 1.1 million cubic feet of natural gas in South Franklin Township, Washington County. DEP arrived at the facility January 3, 2023 to start its investigation. Read more here. -- Hyperion Midstream [Olympus Energy] Natural Gas Gathering Line Smashes Into, Thru Westmoreland County Home: On December 30, 2022, a Hyperion Midstream natural gas pipeline under construction broke loose from its cribbing, slid down a hill and crashed into a through a family’s home in Allegheny Township, Westmoreland County making the home unlivable. On January 4, 2023, a DEP inspection report issued unrelated violations for erosion and sedimentation issues and later said it had no other jurisdiction over this issue. The Public Utility Commission also said it did not have jurisdiction over this incident. Read more here. -- MarkWest Liberty Midstream & Resources LLC 10,000 Gallon Pipeline Compressor Station Spill: In early May, MarkWest disclosed for the first time details about an estimated 10,000 gallon natural gas condensate spill that occurred on December 26, 2022 at the Imperial Compressor Station that not only contaminated the Station pad, but found its way off-site along Quicksilver Road. Read more here. Read more here. Gas Infrastructure Vulnerability/Grid Reliability The November 2 joint hearing by the Senate Environmental Committee did not address the significant vulnerabilities natural gas infrastructure has to winter weather conditions and the impact on electric grid reliability. It is a serious issue as multiple investigations have underscored, but will the February 1 hearing address it in any significant way? Sen. Gene Yaw (R-Lycoming) serves as Majority Chair of the Senate Environmental Committee and can be contacted by calling 717-787-3280 or sending email to: gyaw@pasen.gov. Sen. Carolyn Comitta (D-Chester) serves as Minority Chair and can be contacted by calling 717-787-5709 or sending email to: senatorcomitta@pasenate.com. NewsClips: -- Reuters: Severe US Cold Snap Prompts Peak Power, Natural Gas Demand, Drop In Gas Production [Freeze-offs Caused 17 Billion Cubic Foot Reduction In Gas Production; 19.6 Bcfd Reduction During Winter Storm Elliott; 20.4 Bcfd Reduction In Feb. 2021] -- Marcellus Drilling News: US Natural Gas Prices Make Huge Jump On Deep Freeze; Some Shale Gas Prices Increase By 400% -- Bloomberg: US Deep Freeze Force LNG Natural Gas Exporters To Cancel, Delay Shipments -- Reuters: US Natural Gas Supplies Drop Due To Frozen Wells, Record Demand Forecast Due To Extreme Cold -- Reuters: US Natural Gas Demand Eyes Record As Arctic Blast Dents Output -- Bloomberg: US Oil Production Falls By 10 Million Barrels Amid Cold Snap -- Reuters: North Dakota Oil Output Falls By Half Due To Extreme Cold -- Reuters: OPEC May Need Further Crude Oil Supply Curbs To Balance Market -- Bloomberg: US Deep Freeze Force LNG Natural Gas Exporters To Cancel, Delay Shipments -- Financial Times: The LNG Natural Gas Glut Will Chill The Gas Ambitions Of Oil Majors -- Bloomberg: EU Sees Natural Gas Storage Levels More Than Half Full By Winter’s End -- Reuters: US Natural Gas Supplies Drop Due To Frozen Wells, Record Demand Forecast Due To Extreme Cold [Again] -- Bloomberg: LNG Natural Gas Tankers Divert From Red Sea As Qatar Warns Of Escalation -- Financial Times: The LNG Natural Gas Glut Will Chill The Gas Ambitions Of Oil Majors -- Financial Times: US Energy Security Role In Question As Natural Gas Exports Receive New Scrutiny -- Pittsburgh Business Times: EPA Announces It Will Set Fee On Waste Natural Gas Emissions -- Financial Times: Petrochemical Glut Makes New Plastic Cheaper Than Recycled Related Articles - Grid Reliability: -- PUC Vice Chairman [Now Chair]: During Winter Storm Elliot We Learned Natural Gas Can Be An Intermittent Generator Of Electricity Just Like Renewables [PaEN] -- Federal Energy Regulatory Commission, NERC Final Report On Winter Storm Elliott Says Legislative Action Needed To Establish Reliability Rules For Natural Gas Infrastructure [PaEN] -- New NERC Winter Reliability Assessment Finds Elevated Risk Of Blackouts In Extreme Weather Conditions; Natural Gas Supplies Still Vulnerable To These Conditions With 'Devastating Consequences' [PaEN] -- S&P Global: Federal Inquiry Finds Same 3 Causes Driving U.S. Generate Outages In Extreme Cold - Reliability Of Natural Gas System Remains A Concern [PaEN] -- PJM Urges United Action To Sustain Grid Reliability Through The Energy Transition, Avoid Unreliability Issues Of Natural Gas, Other Generators [PaEN] -- FERC Approves PJM $1.25 Billion Winter Storm Elliot Settlement With Non-Performing Natural Gas, Other Electricity Generators [PaEN] -- PJM Makes Multiple Reliability-Focused Improvements To Prepare For Winter To Deal With 70% Natural Gas, Other Generator Nonperformance In 2022 [PaEN] -- House Hearing: Shapiro Administration Supports Expanding Alternative Energy Portfolio Standards; Renewables Lower Energy Costs; Increase Grid Reliability; More Work Needed To Improve Gas Reliability [PaEN] -- PUC Winter Natural Gas Reliability Overview Reports Now Available; But Do Not Address Winter Storm Elliot Issues [PaEN] Weekly PA Oil & Gas Industry Public Notice Dashboards: -- 4 Months Later, XTO Energy, Inc. Said They Will Plug 4 Shale Gas Wells DEP Found To Be Abandoned And Not Plugged In September [PaEN] -- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment - January 20 [PaEN] -- DEP Posted 41 Pages Of Permit-Related Notices In January 20 PA Bulletin [PaEN] 2023 Oil & Gas Compliance Reports: -- DEP Issued At Least 512 Violations To 95 Conventional Oil & Gas Operators For Abandoning Wells Without Plugging Them In 2023; 10 Shale Gas Operators Were Issued NOVs For Abandoning Wells [PaEN] -- DEP Issues Record 6,860 Notices Of Violation To Conventional Oil & Gas Operators In 2023-- Nearly 52% More Than In 2021; ‘Culture Of Non-Compliance’ Continues [PaEN] -- 2023 Shale Gas Operator Compliance Report: 1,310 Violations; Explosions; Pad Fire, Evacuation; Uncontrolled Gas Venting; Frack-Outs; Polluting Water Supply; Spills; Pipeline Crashing Thru A Home; More [PaEN] -- PA Environment Digest: Articles On Oil & Gas Facility Impacts Related Articles This Week: -- PJM Interconnection Issues New Cold Weather Alert For Western Region Jan. 19-22 [PaEN] -- DEP Releases Final Guidance On Environmental Considerations In Using Trenchless Technology To Construct Natural Gas, Other Pipelines [PaEN] -- Susquehanna River Basin Commission Sets Feb. 1 Hearing On Water Withdrawal Requests, Including 8 Related To Shale Gas Development; And On Cooperative Fish Nursery General Permit [PaEN] -- Susquehanna River Basin Commission Approves 25 Shale Gas Well Pad Water Use General Permits In Bradford, Lycoming, Potter, Sullivan, Susquehanna, Tioga, Wyoming Counties [PaEN] -- DEP Hosts In-Person, Virtual Q/A Sessions On Applying For $5 Million Shell Petrochemical Plant Mitigation Grants In Beaver County [PaEN] -- Health Effects Institute Hosts Annual Conference April 28-30 In Philadelphia; Call For Abstracts [PaEN] -- PA Cong. Thompson, Deluzio Introduce Bipartisan Bill To Provide Flexibility To States Implementing The Federal Conventional Orphan Oil & Gas Well Plugging Program [PaEN] [Posted: January 17, 2024]
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1/22/2024 |
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