A record amount of natural gas supply — close to 8.0 Bcf/d — from the Marcellus and Utica shale plays is making its way to the broader U.S. market. That’s happened with the help of a substantial build-out of pipeline infrastructure to reverse gas flows out of the now oversupplied Northeast, which has allowed regional production to grow to nearly 23 Bcf/d from less than 8 Bcf/d five years ago. One of the major target markets for this gas has been the Midwest. About a third of current outbound flows is heading to the Midwest, primarily via the reversal and expansion of Tallgrass Energy’s Rockies Express Pipeline, completed earlier this year. Moreover, midstream companies are due to install an additional 5.5 Bcf/d or so of takeaway capacity to target the Midwest and Canada by late 2020, with 70% of that due this year alone, starting with Energy Transfer’s Rover Pipeline. However, many of these expansion projects have been embattled by regulatory, environmental and political hurdles during the approval process. Today we provide an update of Rover and other Midwest- and Canada-bound takeaway projects.
This is a continuation of our series updating our analysis of pipeline expansions out of Appalachia. RBN’s Midstream Infrastructure Database Interface (MIDI) is currently tracking 20 takeaway projects with the potential to add about 17.5 Bcf/d of incremental outbound capacity for Marcellus/Utica producers: 2.8 Bcf/d along what we refer to as the East corridor targeting the Mid-Atlantic and New England markets, 5.2 Bcf/d to the Southeast via the Atlantic Coast, close to 4.0 Bcf/d headed to the Gulf Coast from Ohio, 5.0 Bcf/d to the Midwest and another 530 MMcf/d targeting Canada (see Figure 3 in Part 1 of this series for the map of the corridors).
Today, we focus on the projects making up the 5.5 Bcf/d targeting the Midwest and Canada.