from NGI
Meanwhile, there appeared to be two liquefied natural gas (LNG) tankers docked at Massachusetts Bay ready to take advantage of higher New England prices given the stretch of bitter winter weather. Bloomberg reported that Spanish-flagged Cadiz Knutsen and Belgian-flagged Exemplar arrived in Massachusetts Bay last week with cargoes from Atlantic LNG in the Caribbean nation of Trinidad and Tobago.
This is a disgrace as there is a ton on NG in PA but NY politicians won't let in flow to New England
A few years ago we imported LNG from Russia
Just more lame demented policies from greenies
NE buying LNG
Lack of Pipelines
From the Marcellus Daily news
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.
There are a handful of pipelines under construction (like Mountain Valley Pipeline, 94% done and scheduled to go online this year), and a few projects approved but not yet under construction (like National Fuel Gas Company’s Northern Access Pipeline project). After that handful of projects is done, FERC, the EPA, the Dept. of Interior, etc. under the Biden administration have promised no new pipelines will get built. What a shame. What a waste.
Biden has also banned completely safe LNG-by-rail. In other words, we have no way to get our production to new (or more production to existing) markets because of pipeline constraints.
Consulting firm GlobalData summarizes the sad state of affairs with respect to lack of pipelines in the M-U stunting production:
Natural gas production from the US’s Marcellus and Utica shale plays is forecast to cross the 42 billion cubic feet per day (bcfd) mark by 2025, according to GlobalData — assuming gas prices stay above $3.5 per one million British thermal units (mmbtu). The leading data and analytics company notes that no new pipelines are expected to come online after 2023, despite the fact that North America is the largest gas producer and supplies approximately 40% of the total natural gas production in the US.
Svetlana Doh, Senior Upstream Oil & Gas Analyst at GlobalData, comments: “Environmental opposition in Pennsylvania, home to the majority of Appalachia basin production, created an onerous and exhausting approval process for pipeline operators. Pipeline projects in both the Atlantic Coast and PennEast were canceled on environmental grounds, and it appears that getting approval is going to be challenging for any future major pipeline in the Northeast.”
While the Appalachia basin has the potential to ramp up production to 47 bcfd by 2030, pipeline and infrastructure limitations put the play at risk of curtailing production in the future based on the midstream factor alone.
Doh continues: “The combined power of both current pipeline infrastructure and the eleven gas pipelines planned to be built in Pennsylvania, Ohio and West Virginia by 2023 will be able to support a mere 41 bcfd of natural gas flowing capacity.”
click for larger version
Doh adds: “With respect to liquefied natural gas (LNG) production, Marcellus and Utica could play an important role in driving demand for natural gas supply in the US, given their resource potential. However, it will require additional pipeline capacity to bring natural gas to the Gulf Coast, where most of the under-construction and approved plants are to be located.”
Although there is additional natural gas from other plays such as Permian and Haynesville, with a combined growth of 6.9 bcfd of natural gas by 2025, future LNG capacity can require much more. In only six years, US LNG capacity increased from zero to almost 11 bcfd, and, currently, the pool of LNG approved projects totals 26.3 bcfd. With natural gas demand worldwide expected to continue to increase, US LNG developers can have the economic incentive to accelerate the addition of new capacity.
Doh adds: “The US has large accumulations of natural gas that could be developed in the current price environment, and coupled with additional LNG capacity, can further increase the US’s natural gas exporting capacity. Shale operators have generally recovered from the lows caused by demand destruction during the 2021 pandemic-related crisis and have also remained competitive. This means that even with the increase in Henry Hub prices, given natural gas prices in other world regions, US LNG exports are quite profitable.
“With new LNG terminals launching next year, the US is on track to become the largest LNG exporter in the world and an important player to partially fill the demand gap in Europe and Asia.” (1)
In RBN Energy’s “10 energy prognostications” for 2022, the experts at RBN echo what GlobalData says and predict the M-U (called Appalachia in their post) will hit a major bottleneck beginning this year. Here is prognostication #7:
They’re back! Natural gas capacity constraints and wide basis coming to Permian and Appalachia. For years both the Permian and Appalachia suffered with constrained pipeline capacity and the consequent squeeze on natural gas prices in the basins. In the Permian, from August 2018 to April 2020, the natural gas price at the Waha hub languished at $1.60/MMBtu below Henry Hub, with many days of prices below zero. But two new pipes (Permian Highway and Whistler) came online last year and, if you factor out Winter Storm Uri in February, Waha was only $0.31/MMBtu below Henry during 2021, a major boost for Permian producers. In Appalachia, capacity constraints and wide basis have been an on-again, off-again problem for producers since 2013, with periodic cycles of pipeline construction, basis relief, and then relapse over the years, with the shoulder months (spring and fall) being particularly problematic. In 2022, both basins will be experiencing more severe capacity constraints and wider basis differentials as production climbs while pipeline capacity does not keep pace. The only questions are when it will hit, and how bad it will be. (2)
We’re normally glass-half-full kind of people. But in this case, there’s not much good news as long as the Bidenistas are in power. With one year down and three to go, we’re hopeful (indeed confident) the election of 2024 will remove the Bidenistas from power and install a conservative who will repair at least some of the damage now being done
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.
There are a handful of pipelines under construction (like Mountain Valley Pipeline, 94% done and scheduled to go online this year), and a few projects approved but not yet under construction (like National Fuel Gas Company’s Northern Access Pipeline project). After that handful of projects is done, FERC, the EPA, the Dept. of Interior, etc. under the Biden administration have promised no new pipelines will get built. What a shame. What a waste.
Biden has also banned completely safe LNG-by-rail. In other words, we have no way to get our production to new (or more production to existing) markets because of pipeline constraints.
Consulting firm GlobalData summarizes the sad state of affairs with respect to lack of pipelines in the M-U stunting production:
Natural gas production from the US’s Marcellus and Utica shale plays is forecast to cross the 42 billion cubic feet per day (bcfd) mark by 2025, according to GlobalData — assuming gas prices stay above $3.5 per one million British thermal units (mmbtu). The leading data and analytics company notes that no new pipelines are expected to come online after 2023, despite the fact that North America is the largest gas producer and supplies approximately 40% of the total natural gas production in the US.
Svetlana Doh, Senior Upstream Oil & Gas Analyst at GlobalData, comments: “Environmental opposition in Pennsylvania, home to the majority of Appalachia basin production, created an onerous and exhausting approval process for pipeline operators. Pipeline projects in both the Atlantic Coast and PennEast were canceled on environmental grounds, and it appears that getting approval is going to be challenging for any future major pipeline in the Northeast.”
While the Appalachia basin has the potential to ramp up production to 47 bcfd by 2030, pipeline and infrastructure limitations put the play at risk of curtailing production in the future based on the midstream factor alone.
Doh continues: “The combined power of both current pipeline infrastructure and the eleven gas pipelines planned to be built in Pennsylvania, Ohio and West Virginia by 2023 will be able to support a mere 41 bcfd of natural gas flowing capacity.”
click for larger version
Doh adds: “With respect to liquefied natural gas (LNG) production, Marcellus and Utica could play an important role in driving demand for natural gas supply in the US, given their resource potential. However, it will require additional pipeline capacity to bring natural gas to the Gulf Coast, where most of the under-construction and approved plants are to be located.”
Although there is additional natural gas from other plays such as Permian and Haynesville, with a combined growth of 6.9 bcfd of natural gas by 2025, future LNG capacity can require much more. In only six years, US LNG capacity increased from zero to almost 11 bcfd, and, currently, the pool of LNG approved projects totals 26.3 bcfd. With natural gas demand worldwide expected to continue to increase, US LNG developers can have the economic incentive to accelerate the addition of new capacity.
Doh adds: “The US has large accumulations of natural gas that could be developed in the current price environment, and coupled with additional LNG capacity, can further increase the US’s natural gas exporting capacity. Shale operators have generally recovered from the lows caused by demand destruction during the 2021 pandemic-related crisis and have also remained competitive. This means that even with the increase in Henry Hub prices, given natural gas prices in other world regions, US LNG exports are quite profitable.
“With new LNG terminals launching next year, the US is on track to become the largest LNG exporter in the world and an important player to partially fill the demand gap in Europe and Asia.” (1)
In RBN Energy’s “10 energy prognostications” for 2022, the experts at RBN echo what GlobalData says and predict the M-U (called Appalachia in their post) will hit a major bottleneck beginning this year. Here is prognostication #7:
They’re back! Natural gas capacity constraints and wide basis coming to Permian and Appalachia. For years both the Permian and Appalachia suffered with constrained pipeline capacity and the consequent squeeze on natural gas prices in the basins. In the Permian, from August 2018 to April 2020, the natural gas price at the Waha hub languished at $1.60/MMBtu below Henry Hub, with many days of prices below zero. But two new pipes (Permian Highway and Whistler) came online last year and, if you factor out Winter Storm Uri in February, Waha was only $0.31/MMBtu below Henry during 2021, a major boost for Permian producers. In Appalachia, capacity constraints and wide basis have been an on-again, off-again problem for producers since 2013, with periodic cycles of pipeline construction, basis relief, and then relapse over the years, with the shoulder months (spring and fall) being particularly problematic. In 2022, both basins will be experiencing more severe capacity constraints and wider basis differentials as production climbs while pipeline capacity does not keep pace. The only questions are when it will hit, and how bad it will be. (2)
We’re normally glass-half-full kind of people. But in this case, there’s not much good news as long as the Bidenistas are in power. With one year down and three to go, we’re hopeful (indeed confident) the election of 2024 will remove the Bidenistas from power and install a conservative who will repair at least some of the damage now being done