Living in Fast Forward Curves – Doing the Midwest Natural Gas Supply Stack Shuffle
<p>An average of 13 Bcf/d of natural gas flows into the Midwest from producing regions in Canada, the Midcontinent, the Southeast and the Rockies.</p>
<p>An average of 13 Bcf/d of natural gas flows into the Midwest from producing regions in Canada, the Midcontinent, the Southeast and the Rockies.</p>
As if there weren’t enough reasons to add new natural gas pipeline capacity through New England, it’s time to consider another: the Sable Island and Deep Panuke gas production areas off the coast of Nova Scotia are quickly losing their oomph, and soon the Canadian Maritimes will need to rely more heavily on gas from other, more distant sources, including the Marcellus. Developing pipelines to move large volumes of Marcellus gas through New England to New Brunswick and Nova Scotia will not be easy though. Today we continue our look at the challenges of supplying gas to New England and its northern neighbors.
Does it make sense to build natural gas pipeline capacity that will only be used a few weeks a year? That’s a question that continues to spark debate in New England, where the existing pipeline network is sufficient most of the year but unable to supply the region’s growing number of gas-fired power plants during the coldest winter days. What’s the answer? Building gas pipeline capacity that will remain largely unused? Relying on oil and LNG as a permanent gas-supply backup for power generators? Or maybe building pipeline capacity to provide not only peak, wintertime service to generators but off-peak service to LNG exporters? Today, we continue our look at a vexing dilemma with major implications for Marcellus gas producers.