North American Oil & Gas Pipelines

NOV-DEC 2018

North American Oil & Gas Pipelines covers the news shaping the business of oil and gas pipeline construction and maintenance in North America, including pipeline installation methods, integrity management innovations and managerial strategies.

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24 North American Oil & Gas Pipelines | NOVEMBER/DECEMBER 2 018 Natural Gas Demand to Drive New Pipeline Construction Until 2035 By Bradley Kramer 2018 U.S. NATURAL GAS PROJECTS P I P E L I N E R E P O R T A study released in June found that the United States and Canada will re- quire annual average natu- ral gas, oil and natural gas liquids midstream infrastructure invest- ment of about $44 billion per year, from 2018 through 2035. The report, "North American Mid- stream Infrastructure through 2035: Significant Development Contin- ues," conducted by ICF on behalf of the INGAA Foundation, updates a 2016 infrastructure report to reflect the changes in the natural gas, NGL and oil industry in recent years. "While we now are in the midst of a remarkable expansion of the pipeline network, this report con- firms that there will remain a need for new pipeline infrastructure," said INGAA Foundation President Don Santa. "Continued production growth, combined with growing consumption, particularly for natu- ral gas, will drive the need for ex- panded pipeline capacity to supply energy consumers in both domestic and export markets." Natural gas infrastructure makes up over half of the needed energy infrastructure identified in the re- port, with total investments forecast at $417 billion, or an average of $23 billion annually, from 2018 through 2035. Natural gas infrastructure in- cludes gathering and transmission pipelines, compressors, laterals, gas- lease equipment, processing, gas storage and LNG export facilities. Low natural gas prices have fostered growth in the power generation market as coal and nuclear plants continue to be retired across the United States. The U.S. Northeast is currently see- ing strong activity, with a number of pipelines coming online or in various stages of construction. The following is a roundup of some of the more sig- nificant natural gas pipeline projects currently under development in the United States. Atlantic Coast Pipeline Location: West Virginia, Virginia, North Carolina Stakeholder(s): Dominion Energy, Duke Energy, Piedmont Natural Gas, Southern Company Gas Overview: The 600-mile underground Atlantic Coast Pipeline will originate in Harrison County, West Virginia, travel to Greensville County, Virgin- ia, with a lateral extending to Chesa- peake, Virginia, and then continue south into eastern North Carolina, ending in Robeson County. Two addi- tional, shorter laterals will connect to two Dominion Energy electric generat- ing facilities in Brunswick and Greens- ville counties. The proposed route was developed after more than two years of extensive study and landowner en- gagement. After consulting with land- owners and performing extensive field surveys, more than 300 additional route adjustments were made to avoid environmentally sensitive areas and address individual landowner con- cerns. Three compressor stations have been planned as part of this project: one at the beginning of the pipeline in West Virginia, one in central Virginia and one near the Virginia-North Caro- lina state line. The project is currently delayed following the Virginia State Air Pollution Control Board's decision on Nov. 9 to defer action on the Buck- ingham Compressor Station draft air permit until Dec. 10. Constitution Pipeline Project Location: New York, Pennsylvania Stakeholder(s): Williams Overview: Approved by Federal Energy Regulatory Commission (FERC) in December 2014, the estimated $700 million Constitution Pipeline con- sists of a new 30-in., approximately 125-mile pipeline with a capacity to transport 650 million cubic feet per day (MMcf/d) of natural gas from the Marcellus shale to consumers in throughout New York, including New York City, Long Island, Westchester, the Hudson and Mohawk Valley, the North Country and Southern Tier. The project has been delayed by the rejec- tion of state permits by the New York regulators. Williams petitioned FERC to waive a state-issued water permit, but the U.S. Supreme Court rejected the project's challenge over the New York water permit on April 30. In July, Williams announced plans to appeal the decision, and on Nov. 5 FERC granted the project stakeholders a two- year extension.

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