Northeast regional interstate pipeline companies are coming to terms with an extra 7 Bcf/d of new Marcellus production in the past two years and maybe another 10 Bcf/d of growth between now and 2017. Companies that traditionally delivered natural gas to the Northeast from outside the region are busy reconfiguring their assets. Today we continue our series on pipeline expansions with a spotlight on Spectra’s plans.
In Part I of this series (see Gulf Coast Gas, We Don’t Need Ya Anymore), we reviewed the different types of natural gas pipeline projects under development in the Northeast and described the projects being developed by Tennessee Gas Pipeline (TGP). Previously (see As Time Goes By) we discussed the reasons why there is a long gestation period for these projects to come to fruition once conceived. Today we look at the projects at another of the major pipeline companies with a large footprint in the Northeast, Spectra Energy, which owns both Texas Eastern Transmission (TETCO) and Algonquin Gas Transmission (AGT).
Source: TETCO Website
TETCO’s system originates with two main branches in the Gulf Coast production region, running north via Ohio to meet in Southeast Pennsylvania where the pipeline then splits into two transmission lines (see map above). TETCO’s two transmission lines both cross Pennsylvania. The southern line supplies southeastern PA and the Philadelphia market, while the northern line supplies New Jersey and continues into Staten Island where it delivers gas to National Grid, one of two local delivery companies (LDCs) that serve New York City. TETCO also interconnects with the affiliated Algonquin Gas Transmission (AGT) system at Lambertville, NJ from where AGT supplies other parts of NJ and continues north into New England. Spectra have reacted to the changing supply base resulting from increased Northeast production with a number of expansion projects designed to meet the needs of both producers and gas buyers.
New Jersey-New York Project
Spectra’s most significant expansion plan is the New Jersey – New York (NJ-NY) project (see map below). This project represents a bold and significant expansion of the gas delivery system in both states. Most importantly it provides a new natural gas delivery point into Consolidated Edison’s distribution system in Manhattan. The Island of Manhattan was previously served exclusively by Transcontinental Gas Pipeline (Transco). Historically, constraints on Transco’s system have created price volatility on peak days in this high value market. The NJ-NY project will reduce this volatility by providing additional deliverability into Manhattan. The project will also add new delivery capacity to New Jersey city gates within the Public Service Electric & Gas utility service territory to satisfy future growth needs in that market.
