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Dozens of projects set to ramp up US gas pipeline capacity through 2019

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Dozens of projects set to ramp up US gas pipeline capacity through 2019

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A procession of U.S. natural gas pipeline and storage projects will march through development stages over the next eight years, with more than 40 MMDth/d scheduled to come online by the end of 2019, followed by a dip in projects going into service in 2020 and later.

About 80.5 MMDth/d of new pipeline capacity has been announced, with most of this moving through some stage of development or construction and slated be put in place and turned on in the next eight years, according to an analysis of S&P Global Market Intelligence project data. The pipeline project numbers include new interstate transmission projects, intrastate pipelines, and gathering and processing systems.

About half of that gas transportation capacity is due in service in the next two years because of the nature of development and construction schedules. Interstate pipeline projects can spend up to three years in development and another year or two in construction, depending on their size and complexity, so the view of future pipeline projects gets fuzzy about six years out.

Many in the gas industry have said development time is getting longer because of organized opponents and the number of opportunities for public comment. Environmentalists and others that oppose pipeline projects have told the Federal Energy Regulatory Commission, which reviews applications to build interstate gas infrastructure, that they would like more input and would like the commission to do a more thorough analysis on the environmental impacts and the need for such projects.

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The pipeline capacity due in service in 2018 adds up to about 23.6 MMDth/d, and most of that is in the process of being built. Developers of 2018 pipelines that are not yet this far along will have to hustle or adjust their projected schedules. Capacity due in service in 2019 steps down to about 18 MMDth/d, with only a small portion, about 2 MMDth/d, in construction. Capacity due in 2020 drops to about 6 MMDth/d, with no projects yet in the construction phase, and then the capacity totals for projects due in 2021 and 2022 recover to more than 9 MMDth/d in each year. In-service dates can slip as projects hit delays in commercial development, regulatory review or construction.

Some of the big projects due in 2018 include Energy Transfer Partners LP's 3.2-MMDth/d Rover Pipeline LLC project; Enbridge Inc. and DTE Energy Co.'s 1.5-MMDth/d Nexus pipeline joint venture; the EQT Midstream Partners LP-led, 2-MMDth/d Mountain Valley pipeline; and Williams Pipeline Partners LP's 850,000-Dth/d Atlantic Sunrise expansion.

The class of 2019 includes the Dominion Energy Inc.-led, 1.5-MMDth/d Atlantic Coast pipeline and the 1.1-MMDth/d PennEast Pipeline Co. LLC project. Past that is the second phase of Williams' 206,660-Dth/d Hillabee expansion in 2020 and the 106,660-Dth/d third phase in 2021 as well as pipelines tied to LNG export terminals and other pipeline projects.

There is a significant amount of capacity with unknown year-in-service information. Most of these projects are early in development, and some do not have the visibility of the pipeline projects under FERC jurisdiction.

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There are also a handful of U.S. gas storage projects in the works. Construction has begun on Northwest Natural Gas Co.'s North Mist expansion in Oregon. The four caverns of the Magnum Gas Storage project in Utah and the 15-MMDth-plus expansion project at the Pine Prairie Energy Center LLC are in advanced development.

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