Northeast bound interstate natural gas pipeline companies are busy reconfiguring their assets to accommodate significant supply growth expected by 2017. At the same time, regional natural gas supply and distribution companies are taking advantage of the opportunities that new local production brings.
In three previous blogs in this series we focused on infrastructure changes by long haul interstate pipelines resulting from the growth in Marcellus and other Appalachian production (see Part 1, Part 2 and Part 3). This time we turn our attention to one of the regional pipeline systems, National Fuel Gas Supply Corp. (NFG).
NFG historically transported gas produced in the Appalachian areas of northwestern PA and western NY to consumer markets served by its affiliated LDC National Gas Fuel Distribution Company in both NY and PA (see asset map below). In addition, NFG received gas supplies from the Gulf Coast and Canada via interconnects with long haul pipelines. NFG assets surround the Marcellus field (the green shaded area on the map below). The company is now able to serve producers in both the “wet gas” drilling areas in southwest PA as well as the dry gas areas in Northwest PA. Strategically located close to the US/Canada border and the major interstate pipelines supplying the Northeast region, NFG is ideally situated to capitalize on the expansion in gas supplies from the Marcellus. NFG has responded with a number of projects that are already transforming its system and has others waiting in the wings for shipper demand to justify. NFG also owns production and gathering affiliates.