A number of pipeline projects that have been approved, or are in various stages of the approval process, would increase capacity to transport natural gas from the Utica production region in Ohio to natural gas markets. Collectively, these projects could add up to 6.8 billion cubic feet per day (Bcf/d) of takeaway capacity out of the Utica region by the end of 2018.
Over the past several years, natural gas production in the Appalachian basin from the Marcellus and Utica shales has grown significantly. Because pipeline projects often have longer lead times than production projects, transport infrastructure for accessing natural gas demand centers and export locations in the Appalachian Basin has not kept pace with production capability. This situation has resulted in a lower price for natural gas from the Appalachian region relative to many other natural gas trading hubs in the United States.
Construction of a new interstate natural gas pipeline in the United States requires approval by the Federal Energy Regulatory Commission (FERC), which can be a lengthy process. Construction on a pipeline can begin once a final environmental impact statement is issued, pending that project receiving Clean Water Act, Coastal Zone Management Act, Clean Air Act, and other necessary state permits.
Key projects that are undergoing FERC review and may enter service in the next few years include:
Click here to read more.
Connect with us on Facebook and Twitter!