NGI - Flow Data Show Cheniere’s Sabine Drawing From Rover Volumes

October 27, 2017 - NGI's Daily Gas Price Index

Flow Data Show Cheniere’s Sabine Drawing From Rover Volumes

By: Jeremiah Shelor

In its first few months of service, the Rover Pipeline has opened up a route connecting Marcellus and Utica shale natural gas to liquefied natural gas (LNG) exports at Cheniere Energy Inc.'s Sabine Pass terminal, and it's shifted how gas flows between Appalachia and the Gulf Coast in the process, according to RBN Energy LLC.

Rover, sponsored by Energy Transfer Partners LP, began initial service on Sept. 1 on Mainline A between Cadiz, OH, and Defiance, OH, and has been transporting around 1 Bcf/d east-to-west, most of it delivered onto TransCanada Corp.'s ANR Pipeline.

Following the flow data, "either directly or indirectly" gas is moving from Rover to ANR and "is making it all the way south to the Gulf Coast,” specifically to Cheniere's export terminal at Sabine Pass, RBN's Sheetal Nasta said in a recent note to clients.

"Deliveries to the facility have climbed to nearly 3 Bcf/d in recent weeks as the fourth liquefaction train was brought online,” Nasta said. “Along the way, the Rover-ANR combo is increasing competition with other pipes that feed ANR, including other Marcellus/Utica takeaway pipelines such as" Rockies Express Pipeline (REX) and Dominion Transmission.

Nasta said gas flowing directly into Sabine Pass from Transcontinental Gas Pipe Line (Transco) via the Gulf Trace lateral has picked up in recent weeks, increasing to 860 MMcf/d, about 33% of the facility's total intake. This is in addition to deliveries from Transco to Cheniere's Creole Trail Pipeline.

"Between the Gulf Trace lateral and Creole Trail, Transco's share" of gas flowing into Sabine Pass "has climbed to nearly 1.3 Bcf/d," accounting for around half of the facility's total supply.

This comes as Transco's Zone 3 -- roughly the portion of the pipe that runs through Louisiana -- has flipped to moving gas east-to-west from a null point at Station 50 near Evangeline Parish, LA. Transco Zone 3 used to flow eastward through Zone 3 at around 0.5 Bcf/d net, but has shifted to flowing more than 1 Bcf/d westward starting around Station 50 and heading "toward the Transco laterals feeding Sabine Pass," according to Nasta…

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