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Released August 25, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--According to the U.S Energy Information Administration (EIA), approximately 5 billion cubic feet per day (Bcf/d) of natural gas pipeline capacity was added in the U.S. between January and early July this year. While this bodes well for the delivery of natural gas to U.S. markets, the near-term future for natural gas pipeline project activity may not be as bright. The COVID-19 pandemic has caused a decline in gas demand, with natural gas inventories growing above normal rates. In addition, recent court rulings have put into jeopardy environmental permits, which have caused delays to some projects and caused some companies to abandon projects altogether.
Among the natural gas pipeline projects completed in the first half of the year is Tallgrass Energy Partner's (Leawood, Kansas) 71-mile Cheyenne Connector Pipeline in Colorado, which entered service in late June. The pipeline has a carrying capacity of 600 million cubic feet per day and runs from Anadarko Petroleum Corporation's (NYSE:APC) (The Woodland, Texas) Lancaster processing plant to an interconnection with Tallgrass' Rockies Express Pipeline, which stretches from northwestern Colorado and Wyoming to eastern Ohio. Construction kicked off in early 2019, with Hanging H Construction (Burlington, Washington) as the general contractor. For more information, see Industrial Info's project report.
Other pipelines completed in the first half of the year include Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Midcontinent Supply Header Pipeline (MIDSHIP). The 233-mile pipeline has the capacity to carry 1.4 Bcf/d of natural gas to a hub near Bennington, Oklahoma, near the Texas border. From there, gas can be delivered to markets in the southeastern U.S., including Cheniere's Sabine Pass liquefied natural gas (LNG) production plant in Louisiana. Construction began in late 2018, and the pipeline began operations in April 2020.
Although there are exceptions, natural gas pipeline projects that have substantially begun construction will probably be seen through to completion. However, low prices and demand, as well as permitting problems, have caused delays to projects in their early stages. Among the projects targeting a relatively near-term completion date is Equitrans Midstream Corporation (NYSE:ETRN) (Pittsburgh, Pennsylvania) Mountain Valley natural gas pipeline, which runs from northwestern West Virginia to southern Virginia and is aimed at an early 2021 start date. However, the project has faced regulatory and environmental hurdles and needs new approvals from the U.S. Federal Energy Regulatory Commission (FERC), the U.S. Fish and Wildlife Service and the U.S. Army Corps of Engineers to enable Equitrans to complete the last 8% of the project. For more information, see Industrial Info's project report. For more information, see Industrial Info's primary project report.
Among the setbacks that pipelines have faced and have caused project delays was a court-ordered freeze on projects that had received the U.S. Army Corps of Engineers' Nationwide Permit 12, which dealt with water crossings. However, in July, the Supreme Court reinstated the permit's use for construction of pipelines, with the exception of TC Energy's (NYSE:TRP) (Calgary, Alberta) Keystone XL crude oil pipeline. Click here for project reports.
Among the most highly visible projects to be cancelled due to increasing budgets and regulatory and environmental pushback was Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) and Duke Energy Corporation's (NYSE:DUK) (Charlotte, Virginia) Atlantic Coast natural gas pipeline, which was to have run from West Virginia to North Carolina. Among the environmental permitting problems the pipeline faced was a court case regarding the legality of permits issued by the U.S. Fish and Wildlife Service to allow the pipeline to run under the Appalachian Trail, part of the U.S. national parks system. In July, the companies cancelled the project. Dominion took a $2.8 billion charge to exit the project. For more information, see July 7, 2020, article - Dominion Energy Strategically Repositions After Terminating Atlantic Coast Pipeline Project and click here for Industrial Info's associated project reports.
Other natural gas pipeline projects canceled this year for environmental reasons include Williams Companies Incorporated's (NYSE:WMB) (Tulsa, Oklahoma) Constitution Pipeline, which was to have run from Pennsylvania to New York. The project faced continued opposition from politicians, environmental groups and regulatory agencies, including problems with a water permit in New York. After repeated delays and escalating costs, Williams cancelled the project early this year. For more information, see Industrial Info's project report.
Other major pipelines facing opposition from environmental groups, local councils and celebrities include Kinder Morgan Incorporated's (NYSE:KMI) (Houston) Permian Highway project, a $2 billion project that would carry natural gas from the Waha Hub in Texas to the Gulf Coast. Construction on the project began earlier this year. For more information, see Industrial Info's project report.
In addition to pushback from environmental groups, U.S. natural gas pipeline projects also have been delayed or otherwise affected by the COVID-19 pandemic. Industrial Info is tracking nearly $900 million in U.S. natural gas pipeline projects that have been affected, including Enterprise Products Partners' (NYSE:EPD) (Houston, Texas) Acadian-to-Gillis natural gas pipeline lateral in Louisiana. The 80-mile line will carry up to up 1 Bcf/d from a Haynesville Shale gathering system to Gillis, near Lake Charles, where it will serve growing LNG market demand on the Louisiana Gulf Coast. The project originally was planned to be completed next summer, but this has shifted into the fourth quarter, along with the delay of the authorization for expenditure (AFE). For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Among the natural gas pipeline projects completed in the first half of the year is Tallgrass Energy Partner's (Leawood, Kansas) 71-mile Cheyenne Connector Pipeline in Colorado, which entered service in late June. The pipeline has a carrying capacity of 600 million cubic feet per day and runs from Anadarko Petroleum Corporation's (NYSE:APC) (The Woodland, Texas) Lancaster processing plant to an interconnection with Tallgrass' Rockies Express Pipeline, which stretches from northwestern Colorado and Wyoming to eastern Ohio. Construction kicked off in early 2019, with Hanging H Construction (Burlington, Washington) as the general contractor. For more information, see Industrial Info's project report.
Other pipelines completed in the first half of the year include Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Midcontinent Supply Header Pipeline (MIDSHIP). The 233-mile pipeline has the capacity to carry 1.4 Bcf/d of natural gas to a hub near Bennington, Oklahoma, near the Texas border. From there, gas can be delivered to markets in the southeastern U.S., including Cheniere's Sabine Pass liquefied natural gas (LNG) production plant in Louisiana. Construction began in late 2018, and the pipeline began operations in April 2020.
Although there are exceptions, natural gas pipeline projects that have substantially begun construction will probably be seen through to completion. However, low prices and demand, as well as permitting problems, have caused delays to projects in their early stages. Among the projects targeting a relatively near-term completion date is Equitrans Midstream Corporation (NYSE:ETRN) (Pittsburgh, Pennsylvania) Mountain Valley natural gas pipeline, which runs from northwestern West Virginia to southern Virginia and is aimed at an early 2021 start date. However, the project has faced regulatory and environmental hurdles and needs new approvals from the U.S. Federal Energy Regulatory Commission (FERC), the U.S. Fish and Wildlife Service and the U.S. Army Corps of Engineers to enable Equitrans to complete the last 8% of the project. For more information, see Industrial Info's project report. For more information, see Industrial Info's primary project report.
Among the setbacks that pipelines have faced and have caused project delays was a court-ordered freeze on projects that had received the U.S. Army Corps of Engineers' Nationwide Permit 12, which dealt with water crossings. However, in July, the Supreme Court reinstated the permit's use for construction of pipelines, with the exception of TC Energy's (NYSE:TRP) (Calgary, Alberta) Keystone XL crude oil pipeline. Click here for project reports.
Among the most highly visible projects to be cancelled due to increasing budgets and regulatory and environmental pushback was Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) and Duke Energy Corporation's (NYSE:DUK) (Charlotte, Virginia) Atlantic Coast natural gas pipeline, which was to have run from West Virginia to North Carolina. Among the environmental permitting problems the pipeline faced was a court case regarding the legality of permits issued by the U.S. Fish and Wildlife Service to allow the pipeline to run under the Appalachian Trail, part of the U.S. national parks system. In July, the companies cancelled the project. Dominion took a $2.8 billion charge to exit the project. For more information, see July 7, 2020, article - Dominion Energy Strategically Repositions After Terminating Atlantic Coast Pipeline Project and click here for Industrial Info's associated project reports.
Other natural gas pipeline projects canceled this year for environmental reasons include Williams Companies Incorporated's (NYSE:WMB) (Tulsa, Oklahoma) Constitution Pipeline, which was to have run from Pennsylvania to New York. The project faced continued opposition from politicians, environmental groups and regulatory agencies, including problems with a water permit in New York. After repeated delays and escalating costs, Williams cancelled the project early this year. For more information, see Industrial Info's project report.
Other major pipelines facing opposition from environmental groups, local councils and celebrities include Kinder Morgan Incorporated's (NYSE:KMI) (Houston) Permian Highway project, a $2 billion project that would carry natural gas from the Waha Hub in Texas to the Gulf Coast. Construction on the project began earlier this year. For more information, see Industrial Info's project report.
In addition to pushback from environmental groups, U.S. natural gas pipeline projects also have been delayed or otherwise affected by the COVID-19 pandemic. Industrial Info is tracking nearly $900 million in U.S. natural gas pipeline projects that have been affected, including Enterprise Products Partners' (NYSE:EPD) (Houston, Texas) Acadian-to-Gillis natural gas pipeline lateral in Louisiana. The 80-mile line will carry up to up 1 Bcf/d from a Haynesville Shale gathering system to Gillis, near Lake Charles, where it will serve growing LNG market demand on the Louisiana Gulf Coast. The project originally was planned to be completed next summer, but this has shifted into the fourth quarter, along with the delay of the authorization for expenditure (AFE). For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
