EIA looks at new shale natural gas lines in the East

The Energy Information Administration (EIA) said Oct. 30 that a series of natural gas expansion projects in the Marcellus shale region should primarily benefit the New York and New Jersey markets.

Expansion projects with expected in-service dates between 2013 and 2015 would add at least 3.5 billion cubic feet per day (Bcf/d) of additional capacity to New York/New Jersey and Mid-Atlantic markets. More than 2.0 Bcf/d of expansions are expected for this winter alone.

The largest of these is the New York-New Jersey Expansion Project on a portion of Spectra’s Texas Eastern Transmission Co. (TETCO) pipeline from Linden, N.J., to Manhattan, N.Y.

FERC recently authorized the start of initial service of the expansions.

New England consumers, however, would not significantly benefit from currently planned pipeline expansions until 2016.

The difference in construction activity for New York and New England markets is reflected in market prices for natural gas.

In addition to TETCO’s New York-New Jersey Expansion project, a number of projects are expected to increase the takeaway capacity of Marcellus gas this winter to consumers in the New York/New Jersey and Mid-Atlantic regions, or were planned for this winter but have experienced delays.

Subsidiaries of Dominion (NYSE:D) and Kinder Morgan are among the entities developing natural gas lines to service Northeast markets.

EIA reported Oct. 23 that North America leads the world in production of shale gas. The United States and Canada are the only major producers of commercially viable natural gas from shale formations in the world, even though about a dozen other countries have conducted exploratory test wells, according to a joint study between EIA and Advanced Resources International (ARI).

Shale gas as a share of total natural gas production in 2012 was 39% in the United States and 15% in Canada.

More information is available at:http://www.eia.gov/todayinenergy/detail.cfm?id=13591.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.