Phase 1 of Rover
In Energy Transfer Partners’ (ETP) 2Q17 earnings call, the company stated that Phase 1A of its Rover pipeline will become operational as soon as it gets approval from the FERC (Federal Energy Regulatory Commission). The construction of this phase—from Cadiz to Defiance—is substantially complete. ETP expects Phase 1B of the project to complete within 40 days of receiving approval from FERC for horizontal directional drilling.
However, FERC halted new horizontal drilling after a major spill occurred in local wetlands—millions of gallons of drilling lubricant—near the project site. ETP expects to put the entire pipeline in service by November or December of this year.
In response to a question as to whether approval by FERC is contingent upon resolving the drilling fuel release issue, Matthew Ramsey, ETP’s President and COO (chief operating officer), stated: “I don’t think that’s going to be an issue as far as putting the pipeline into service. They’ve made things pretty clear that we have been completely transparent with them. So I think that we will get through that issue with FERC without any real big problems.”
ETP has said that it is working closely with the Ohio EPA (Environmental Protection Agency) to clean up the Tuscarawas River.
Notably, on July 31, 2017, Energy Transfer Partners announced the sale of 32.4% stake in the Rover Pipeline project to Blackstone for ~$1.6 billion.
The 713-mile Rover Pipeline would transport nearly 3.3 billion cubic feet per day of natural gas from the Marcellus and Utica Shales to markets across the US and Canada. The project’s expected cost is $4.2 billion.
Up to 68% of the natural gas would be delivered to markets across the US. The remaining 32% of the gas will be delivered to markets in Michigan. Natural gas that is not delivered to Michigan markets would be transported to the Dawn Hub in Ontario, Canada.