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Written by John Egan for IIR Energy (Sugar Land, Texas)--"Go west and grow up with the country," newspaper editor Horace Greeley urged entrepreneurs in 1851. Gas pipeline developers are certainly heeding Greeley's advice today, as the multi-year, multi-billion-dollar expansion of the nation's pipeline network continues to unfold. Increasing volumes of gas are being transported in new directions, from the East to the West, South and Southwest, to meet burgeoning demand from power plants, industrial facilities and liquefied natural gas (LNG) export terminals that are under construction or under development.
IIR Energy's NatGasLive application is tracking billions of dollars in planned expansions, reversals and grassroot construction of gas pipelines designed to move gas from the Eastern U.S. to future demand centers in the West, South and Southwest. Construction of these pipelines is scheduled to begin between 2015 and 2017, and the pipelines have in-service dates of between 2016 and 2020. Units of Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), TransCanada Corporation (NYSE:TRP) (Calgary, Alberta), Spectra Energy Corporation (NYSE:SE) (Houston) and TransContinental Pipeline (Tulsa, Oklahoma)) are among the most active pipeline developers. TransContinental is a subsidiary of the Williams Companies (NYSE:WMB) (Tulsa).
"Although gas production in the Marcellus and Utica shales has dipped modestly in recent months, the long-term trend is for strong production growth over the next two decades," said Jesus Davis, Industrial Info's vice president of research for Oil & Gas Production, Pipelines and Terminals. "Demand, particularly from power plants, planned LNG export terminals, and petrochemical complexes, also is expected to continue growing. Financial and physical participants in the gas and power markets can track the pipeline buildout using IIR Energy's NatGasLive application."
One of the forces driving the buildout is the rapid rise of gas production from the Marcellus and Utica shales. Production at those two formations is scheduled to rise from a combined 20 billion cubic feet per day (cf/d) this year to about 35 billion cf/d in 2035. As an example of how rapidly production from the Marcellus/Utica shale is rising, production there grew by more than 2.2 billion cf/d since January 2014, Javier Diaz, a manager of energy analysis for BENTEK Energy (Denver, Colorado), a unit of McGraw Hill Financial (NYSE:MHFI) (New York, New York), recently told an Oil & Gas Industry conference.
Diaz said gas pipeline expansions, reversals and grassroot construction would add a total of 5.9 billion cf/d of new transportation capacity from the Marcellus/Utica shales to the Gulf Coast between 2015 and 2017. An additional 7.7 billion cf/d of new pipeline capacity is headed westward from the Marcellus/Utica area and is scheduled to be operating between 2015 and 2017.
For more information on five large interstate gas pipeline projects under development, see September 24, 2015, article - Marcellus Gas Pipeline Projects Should be Finished Before Winter. Beyond those five, NatGasLive also is tracking these large interstate gas pipeline projects under development:
"All of this new infrastructure is good news for consumers, producers and traders of natural gas," Davis continued. "In recent years, as production surged in one area, bottlenecks developed, which distorted pricing and complicated deliveries. Going forward, we see a lot of those kinks being worked out, as more transport capacity is added to bring the gas from production sites to consumption sites."
A unit of Industrial Info Resources (IIR), IIR Energy is the leading provider of supply-side market intelligence for the energy market, including Electric Power Generation; Oil & Gas Storage; Oil & Gas Transmission and Production; Alternative Fuels, such as biodiesel, ethanol, and coal gasification; and the Petroleum Refining industries. IIR Energy provides time-sensitive, critical market information that enables asset owners, developers, regulators, and financial & physical participants to enhance their trading strategies and minimize market risk.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten 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.
IIR Energy's NatGasLive application is tracking billions of dollars in planned expansions, reversals and grassroot construction of gas pipelines designed to move gas from the Eastern U.S. to future demand centers in the West, South and Southwest. Construction of these pipelines is scheduled to begin between 2015 and 2017, and the pipelines have in-service dates of between 2016 and 2020. Units of Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), TransCanada Corporation (NYSE:TRP) (Calgary, Alberta), Spectra Energy Corporation (NYSE:SE) (Houston) and TransContinental Pipeline (Tulsa, Oklahoma)) are among the most active pipeline developers. TransContinental is a subsidiary of the Williams Companies (NYSE:WMB) (Tulsa).
"Although gas production in the Marcellus and Utica shales has dipped modestly in recent months, the long-term trend is for strong production growth over the next two decades," said Jesus Davis, Industrial Info's vice president of research for Oil & Gas Production, Pipelines and Terminals. "Demand, particularly from power plants, planned LNG export terminals, and petrochemical complexes, also is expected to continue growing. Financial and physical participants in the gas and power markets can track the pipeline buildout using IIR Energy's NatGasLive application."
One of the forces driving the buildout is the rapid rise of gas production from the Marcellus and Utica shales. Production at those two formations is scheduled to rise from a combined 20 billion cubic feet per day (cf/d) this year to about 35 billion cf/d in 2035. As an example of how rapidly production from the Marcellus/Utica shale is rising, production there grew by more than 2.2 billion cf/d since January 2014, Javier Diaz, a manager of energy analysis for BENTEK Energy (Denver, Colorado), a unit of McGraw Hill Financial (NYSE:MHFI) (New York, New York), recently told an Oil & Gas Industry conference.
Diaz said gas pipeline expansions, reversals and grassroot construction would add a total of 5.9 billion cf/d of new transportation capacity from the Marcellus/Utica shales to the Gulf Coast between 2015 and 2017. An additional 7.7 billion cf/d of new pipeline capacity is headed westward from the Marcellus/Utica area and is scheduled to be operating between 2015 and 2017.
For more information on five large interstate gas pipeline projects under development, see September 24, 2015, article - Marcellus Gas Pipeline Projects Should be Finished Before Winter. Beyond those five, NatGasLive also is tracking these large interstate gas pipeline projects under development:
- Sabal Trail, a $3 billion project that will extend for 474 miles from eastern Alabama through southwestern Georgia and into south Florida. The 36-inch-diameter pipeline will connect with two other smaller pipeline projects under development to bring as much as 1.1 billion cf/d to gas-fired power plants in Florida. Construction is scheduled to begin in early 2016, and gas should be flowing through Phase I of the pipeline in 2017.
- NEXUS Pipeline, a 1.5 billion- to 2 billion-cf/d project, will bring gas from the Utica Shale to Michigan and Ontario. This 250-mile, $1.5 billion project, being developed by Spectra Energy Corporation, is scheduled to break ground next October and be operating by yearend 2017.
"All of this new infrastructure is good news for consumers, producers and traders of natural gas," Davis continued. "In recent years, as production surged in one area, bottlenecks developed, which distorted pricing and complicated deliveries. Going forward, we see a lot of those kinks being worked out, as more transport capacity is added to bring the gas from production sites to consumption sites."
A unit of Industrial Info Resources (IIR), IIR Energy is the leading provider of supply-side market intelligence for the energy market, including Electric Power Generation; Oil & Gas Storage; Oil & Gas Transmission and Production; Alternative Fuels, such as biodiesel, ethanol, and coal gasification; and the Petroleum Refining industries. IIR Energy provides time-sensitive, critical market information that enables asset owners, developers, regulators, and financial & physical participants to enhance their trading strategies and minimize market risk.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten 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.
