Report: $13.6 Billion in U.S. Energy Pipeline Activity Threatened by Delays, Cancellations

Researched by Industrial Info Resources (Sugar Land, Texas)--At least $13.6 billion in economic activity originating from energy pipeline infrastructure projects in the U.S. is at risk due to delays, obstruction and cancellations, according the Consumer Energy Alliance (CEA). The pro-pipeline group blames "anti-energy interest groups and allied policymakers, regulators and even judges" for the situation, which comes at a time when the U.S. economy already is struggling due to the COVID-19 pandemic.

Industrial Info is tracking more than $69 billion in active capital Oil & Gas Pipeline projects across the U.S. About $7.7 billion worth of U.S. pipeline projects have been impacted by COVID-19, resulting in delays and cancellations.

Click on the image at right for a graph showing U.S. pipeline activity by market region.

According to the CEA report, opposition to pipeline development in New York, New Jersey and Pennsylvania puts at risk more than $3.5 billion in economic activity, and more than 17,000 jobs and nearly $52 million per year in tax revenues.

"The Northeast Supply Enhancement project alone would have saved residential customers 65% on their utility bills and prevented the annual carbon emissions equivalent of 500,000 cars from going into the atmosphere," the CEA said. Williams Companies Incorporated's (NYSE:WMB) (Tulsa, Oklahoma) project would carry gas from Pennsylvania into New York City. The project has faced issues obtaining water quality permits from New York and New Jersey. Industrial Info assesses the project as having a low probability (0-69% chance) of moving forward as planned. Click here for related projects.

Earlier this year, Williams Companies cancelled its Constitution Pipeline, which would have carried natural gas from Pennsylvania to New York. The project ran into a number of environmental permitting problems. Click here for related projects.

In Virginia, West Virginia and North Carolina, $2.8 billion worth of economic activity stemming from pipeline projects has seen potential or actual harm, according to the CEA. This summer, Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) and Duke Energy Corporation (NYSE:DUK) (Charlotte, Virginia) cancelled the Atlantic Coast natural gas pipeline, which was to have run from West Virginia to North Carolina. The pipeline had run into a slew of environmental permitting problems and court cases. For more information, see July 7, 2020, article - Dominion Energy Strategically Repositions After Terminating Atlantic Coast Pipeline Project and click here for related project reports.

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 of this year, according to the U.S. Energy Information Administration (EIA). However, an estimated 8.7 Bcf/d of pipeline projects were canceled during the first half of the year. For related information, see August 25, 2020, article - EIA: 5 Billion Cubic Feet per Day of Natural Gas Pipeline Capacity Added in First Half of Year.

The CEA report goes on to cite at-risk oil pipeline projects in the western U.S., such as the Dakota Access Pipeline, majority-owned by Energy Transfer Partners LP (NYSE:ETP) (Dallas, Texas), and TC Energy Corporation's (NYSE:TRP) Keystone XL Expansion project, both of which are ensnared in court cases. Click here for related Dakota Assess Pipeline projects and here for Keystone XL Expansion projects.

For related information, see July 8, 2020, article - Federal Judges Deal Two Defeats to Trump Administration's Vision of Energy Dominance.

While the CEA report blames environmental activists, state governments and the courts for the current state of affairs, some pipeline projects get cancelled for another reason: economics. Enterprise Products Partners LP (NYSE:EPD) recently cancelled the 450,000-BBL/d Midland-to-ECHO 4 crude oil pipeline project in Texas amid the drop in oil production in the Permian Basin. Click here for 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.