EIA: U.S. Adds 4.4 Billion Cubic Feet per Day of Natural Gas Pipeline Capacity
Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. added approximately 4.4 billion cubic feet per day (Bcf/d) of new natural gas pipeline capacity from November 2020 through January, as four projects entered service, according to the U.S. Energy Information Administration (EIA). Meanwhile, Industrial Info is tracking about $5 billion in U.S. natural gas pipeline-related projects that are planned for completion in the final three quarters of 2021.
Among the projects that contributed to the new capacity are Kinder Morgan Incorporated's (NYSE:KMI) (Houston, Texas) 430-mile Permian Highway Pipeline, which came online in January. The pipeline brings up to 2.1 Bcf/d of natural gas capacity from West Texas to the Katy, Texas, area near Houston. For more information, see Industrial Info's project report, and January 5, 2021, article - Kinder Morgan Begins Commercial Operations on Permian Highway Pipeline, Takes Hard Look at Other Big Projects.
Also in West Texas, WhiteWater Midstream (Austin, Texas) and MPLX LP's (NYSE:MPLX) (Findlay, Ohio) Agua Blanca Pipeline, started operating in late January. The project connects almost 20 natural gas processing sites in the Delaware Basin, and transports 1.8 Bcf/d from Orla, Texas, to the Waha hub in the Permian Basin. For more information, see Industrial Info's project report.
The Agua Blanca pipeline will interconnect with the estimated $725 million Whistler Pipeline. Scheduled for completion in the third quarter, the pipeline is expected to transport up to 2 Bcf/d from Waha to parts of southern Texas, including Wharton County, which is outside of Houston. The Whistler project is being jointly developed by WhiteWater, MPLX LP, Targa Resources Corporation (NYSE:TRGP) (Houston, Texas) and NextEra Energy Resources (NYSE:NEE) (Juno Beach, Florida). For more information, see Industrial Info's project report.
According to the EIA, Texas remained the largest natural-gas producing state in 2020, although production of 28.1 Bcf/d was down from 28.4 Bcf/d in 2019.
The two projects that entered service in late 2020 are Consumers Energy's (Jackson, Michigan) Saginaw Trail Pipeline, which runs across three counties in Michigan. For more information, see Industrial Info's related project reports.
Columbia Gas Transmission LLC, a subsidiary of TransCanada Corporation (NYSE:TRP) (Calgary, Alberta), saw its Buckeye Xpress project in Ohio and West Virginia begin operations in December, adding 275 million cubic feet per day of capacity; pipeline replacements switched out older line with 66 miles of more reliable pipeline across Ohio's Vinton, Jackson, Gallia and Lawrence counties. The new line is accompanied by a $45 million unit addition at a compressor station near Jackson, and a $45 million unit addition at another station near Summerfield, Ohio. The project also included a 2.4-mile pipeline lateral between Vinton and Jackson counties, and compressor station modifications in Ceredo, West Virginia. For more information, see Industrial Info's project reports on the pipeline replacements, Jackson and Summerfield, pipeline lateral and Ceredo projects.
Natural Gas Pipeline Project Completions from April through December
WEC Energy Group Incorporated's (NYSE:WEC) (Milwaukee, Wisconsin) 49-mile, estimated $180 million Lakeshore pipeline lateral near Milwaukee, will supply natural gas from Racine County to Walworth County. Completion is expected in December. For more information, see Industrial Info's project report.
Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) expects completion in July of its 5.1-mile West Loop pipeline in Pennsylvania. The line expansion will transfer up to 150 million standard cubic feet per day (MMSCFD) of natural gas along five miles within Beaver County, which sits atop the Utica Shale. For more information, see Industrial Info's project report.
According to the EIA, U.S. natural gas end-use deliveries in 2020 averaged 75.8 Bcf/d for the year, the second-highest annual amount since 77.6 Bcf/d in 2019, despite generally mild weather and the effects of COVID-19.