US Shale Gas Reaches Britain -- First Time -- Wednesday, September 28, 2016

Presidential poll:

******************************************
Completing The Deal

TransCanada to buy Columbia Pipeline Partners for nearly $1 billion. Link here. From an earlier post:

Kinder Morgan Inc., with 32,000 miles of large-diameter pipeline, has more than double the mileage of TransCanada Corporation, which acquired Columbia Pipeline Group in July 2015. 

Also, back on March 17, 2016:

The deal is announced -- TransCanada will buy Columbia for $10.2 billion. It looks like Warren Buffett missed a deal.

From today's link:

Calgary, Alberta-based TransCanada Corp. TRP announced that it has offered $848 million to buy Columbia Pipeline Partners LP (CPPL), the master limited partnership affiliate of its newly acquired Columbia Pipeline Group Inc. unit. 

The Canadian oil company also announced its intention to take control of the other 53.8 million outstanding units in Columbia Pipeline Partners for $15.75 per common unit. The offer signifies a premium of about 3% over the limited partnership closing price of $15.30 on Sep 23, 2016. 

Active rigs in North Dakota:

	9/28/2016	09/28/2015	09/28/2014	09/28/2013	09/28/2012
Active Rigs	32	70	190	184	190

RBN Energy: estimating rates for a new pipeline.

Video of the day: Carson Wentz paper toss trick shots -- five-time world champion.


Two days ago it was reported that the first ethane shipment from US Gulf of Mexico arrived in Europe. Today, it is being reported that the first shale gas from the US has now reached Britain for the first time:

Chemicals giant Ineos shipped in Britain's first shale gas from the United States on Tuesday, sparking debate on the country's manufacturing future and Scotland's opposition to shale gas fracking.

Ineos is importing ethane, obtained from rocks fractured at high pressure -- or "fracking", in a foretaste of larger deliveries of liquefied natural gas (LNG) from shale set to reach Europe in 2018.

Chairman Jim Ratcliffe, one of Britain's richest men, argues that as the North Sea is unable to keep supplying the base ingredients to make chemicals, shale gas will be an important future energy resource.

"There simply is insufficient raw material (oil and gas) coming out of the North Sea to run Grangemouth so we're talking about 10,000 jobs in total that depend on that facility," Ratcliffe told BBC Radio Scotland.

"So were it not for the shale gas that we're bringing in from the U.S., Grangemouth would have closed three years ago," he said referring to the petrochemicals hub to the west of Edinburgh.

*********************************

The Market

Wednesday

 Futures: up 11 points.