Dawn Hub

In another key milestone for Northeast pipeline takeaway capacity expansions, Energy Transfer Partners’ beleaguered Rover Pipeline project began partial service on its Phase 1A portion on gas day September 1. The 3.25-Bcf/d project, which is due for completion in early 2018, is expected to provide relief for constrained Northeast producers while exacerbating oversupply conditions and gas-on-gas competition in the Dawn, Ontario, storage and demand market area and surrounding region. Within days of initial start-up, flows on Rover ramped up to 700 MMcf/d, and both Ohio and overall Northeast production already have posted record highs since then as a result. Today, we take a look at the project, including initial flows and the expected timing of full completion.

Canadian natural gas exports to the Northeast US fell from about 3Bcf/d in 2008 to around 1 Bcf/d in 2011 and have been at that level ever since. Last November significant US exports began to flow northward across the border into Canada at Niagara. Natural gas demand in Ontario is forecast to reach 3.25 Bcf/d by 2020. Today we describe how projects on the Canadian side will allow Marcellus gas to replace traditional Western Canadian supplies.