M-U’s Future Production Growth Stunted by Lack of Pipelines
Once again we return to the topic of pipelines in the Marcellus/Utica. Specifically, lack of pipeline capacity to handle all of the production we could be making were it not for constraints. Those constraints are because of vicious, anti-American leftists who oppose new pipeline projects by abusing our own court system. The M-U is forecasted to hit production of 42 billion cubic feet per day (Bcf/d) by 2025–and there it will stay because no new pipelines will get built or completed after 2023. We will be stunted.
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Baby, it’s cold outside! At least here in the northeastern U.S. Cold temps in the northeast are causing an increase in the use of natural gas for both heating and electricity production. That increase in demand is (you guessed it) causing an increase in prices, and the increase in prices is causing some natural gas flows to reverse course and head north instead of south out of the Marcellus/Utica.
Atlantic Coast Pipeline (ACP) had laid 31 miles of pipeline and had cut trees for 222 miles along the 600-mile route before Dominion Energy, the builder, decided in 2020 it no longer wants to be in the interstate pipeline business, canceling ACP (see
Energy Transfer’s (ET) Revolution Pipeline in southwestern Pennsylvania runs through Bulter, Beaver, Allegheny, and Washington counties. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see
Some really good (and expected) news to report. The West Virginia Dept. of Environmental Protection (WV DEP) issued a key permit for the Mountain Valley Pipeline (MVP) to finish work crossing rivers and streams in the Mountain State. MVP, a 303-mile pipeline from West Virginia into southern Virginia, is currently 94% built and in the ground. There are several portions left to complete it, including crossing rivers and streams in both Virginia and West Virginia. The permits needed to do so come from three sources: the U.S. Army Corps of Engineers, the Virginia Water Control Board, and WV DEP.
In early December the Pennsylvania Dept. of Environmental Protection (DEP) agreed to allow Energy Transfer to change the way it will install the Mariner East 2 (ME2) pipeline in the Marsh Creek Lake area in Chester County, PA (see
In November 2020 the town of Weymouth, Massachusetts dropped a legal fight to block an Enbridge compressor station under construction in the town (see 