Unused Capacity

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.