October 12, 2017

Getting Carried Away in Appalachia's Energy Patch

Stratas Advisors

This excerpt is from a report that is available to subscribers of Stratas Advisors’ North American Shale Infrastructure service.

Already a subscriber?  Read the full report.  

We have quarterly updates regarding natural gas pipelines serving the Appalachian plays:

• The joint venture between DTE Energy Co. (NYSE: DTE) and Enbridge Inc. (NYSE: EBR) disclosed a new in-service date for the NEXUS Gas Transmission system. The pipeline, originally expected to come online in the fourth quarter of 2017, is now expected to come online in 2018. The pipeline will originate in northeastern Ohio and transport natural gas to existing pipeline system interconnects in southeastern Michigan. The 255 mile, 36-inch pipeline will be designed to deliver 1.5 Bcf/d of natural gas.

• Energy Transfer Partners (NYSE: ETP) announced that the Federal Energy Regulatory Commission (FERC) has approved the company’s request to resume Horizontal Directional Drilling (HDD) operations along the Rover Pipeline Project. Drilling operations on nine HDD locations approved by the FERC were expected to begin within the week with an emphasis on Captina Creek HDD in Belmont County, Ohio. The completion of the Captina Creek HDD will allow the full Phase 1 portion of Rover from Seneca, Ohio, to Defiance, Ohio, to be placed into service by the end of the year. Phase 1a of the Rover Project from Cadiz, Ohio, to Defiance, Ohio, was successfully put into service on Aug. 31, 2017. When completed, the 713-mile Rover pipeline will transport up to 3.25 billion cubic feet of natural gas per day from the Marcellus and Utica production areas to markets across the US as well as into Union Gas Dawn Storage Hub in Ontario, Canada.

• EQT Midstream Partners LP in its recent investor presentation disclosed that it plans to construct a 40-mile pipeline from PA to Mobley W. Va. The pipeline, which will be called Hammerhead Pipeline, is expected to have a transporting capacity of 1.2 Bcf/d and is scheduled to come online in the third quarter of 2019.

• Enbridge Inc.’s Algonquin Gas Transmission, LLC (AGT) withdrew its pre-filing application with the FERC for its proposed Access Northeast pipeline expansion. The Access Northeast project would have expanded or upgraded approximately 125 miles of the Algonquin pipeline system, which moves gas from an interconnect with the Texas Eastern Pipeline in New Jersey to the Boston area. The project would have added about 1.0 Bcf/d of capacity to the Algonquin pipeline’s existing 3.1 Bcf/d capacity (including connections to the Everett and Northeast Gateway LNG facilities).

• Enbridge Inc. disclosed it received authorization from FERC to construct and operate the 300 MMcf/d Bayway Lateral Project in Linden, N.J. The lateral project is expected to be completed in the first half of 2018.

• Enbridge Inc. announced the completion of phase II of the Gulf Markets Expansion project. The 300 MMcf/d expansion project included adding several compressor units and associated facilities on existing infrastructure along the Texas Eastern system. The project was completed in the third quarter of 2017.

• Enbridge Inc. disclosed a new in-service date for the Texas Eastern Appalachian Lease "TEAL" project. The project was expected to be completed in the fourth quarter of 2017 but is now expected to be completed in 2018.  The project is expected to increase energy diversity and reliability to the Ohio, Michigan, Chicago and Dawn, Ontario markets by delivering Marcellus supply to NEXUS Gas Transmission LLC.

• TransCanada Corp. disclosed that it received an environmental impact statement from FERC for its Gulf XPress and Mountaineer XPress projects. The Gulf Xpress project will include the installation of compression to existing and new stations along Columbia Gulf's system. The Gulf Xpress will provide about 860 MMcf/d of firm transportation capacity from Leach, Ky., to the Columbia Gulf Mainline Pool and other delivery points as far south as Rayne, La. The Mountaineer Xpress includes a 165-mile pipeline, as well as the expansion of Columbia Transmission's existing WB Line. The Mountaineer Xpress will create approximately 2.7 Bcf/d of firm transportation capacity from existing and new points of receipt along or near Columbia Transmission's system. Both projects are expected to come online in the fourth quarter of 2018.

• Williams Partners LP disclosed that the Pennsylvania Department of Environmental Protection (PADEP) and US Army Corps of Engineers have issued required permits for the Atlantic Sunrise pipeline project. The company also disclosed that construction began last spring on the mainline portion of the Atlantic Sunrise project designed to accommodate bi-directional flow on the existing Transco pipeline system. The project is expected to be completed in mid-2018 with a transportation capacity of 1.7 Bcf/d.

• Williams Partners LP announced that it has filed an application with FERC seeking authorization for its Rivervale South to Market project, which would create 190 MMcf/d of firm transportation capacity to northeastern markets in time for the 2019-020 winter heating season.

Not a subscriber? Read about the North American Shale Infrastructure service.