Marcellus/Utica Gas May Head to GA & FL via Alabama Pipeline

Marcellus and Utica Shale gas will get access to an important new market, but not until 2019. Northeast gas will be able to service the very populous southeastern states of Georgia and Florida in about three years’ time with the construction of two new pipelines. The first pipeline is called the Sabal Trail, a 516-mile pipeline from Alabama through Georgia and then through much of Florida. Sabal Trail is a Spectra Energy, NextEra Energy and Duke Energy joint venture with Spectra taking the lead. Two weeks ago, after a 2 1/2 year-long process, the Federal Energy Regulatory Commission (FERC) approved the Sabal Trail project. But how would northeast gas get to Alabama? Good question! That’s where a shorter intrastate (Alabama only) pipeline project comes into play. Yesterday American Midstream Partners announced an “open season” to elicit shippers to sign up for capacity on a 45-mile extension of the Magnolia Intrastate pipeline. If built, the Magnolia expansion would connect Kinder Morgan’s Tennessee Natural Gas Pipeline’s 500 Line, which brings gas from north to southwest, with Williams’ Transco pipeline. Transco has a number of branches in the south, including a connection to the Sabal Trail when it gets built (see the map below). The Magnolia expansion, if built, will not be in service until 2019…

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