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Natural Gas Year-in-Review

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Pipeline Construction

Figure 12. Graph of natural gas pipeline capacity expansions, 2011)

At least 25 pipeline projects were completed in 2011, adding a total of about 2,400 miles of pipeline and 13.7 Bcf/d of capacity. While most of the projects, which include new pipelines and expansions, took place in the Southeast, several large projects were completed in the Northeast and West. Table 3 lists major pipeline projects for 2011.20 Figure 12 shows new expansion projects.

 

Table 3. Selected Major Pipeline Projects in 2011
Project Existing System Length of Entire System Capacity of Entire System Length of Expansion Capacity of Expansion Regions
Ruby Pipeline - 680 miles 1.8 Bcf/d - - West
FGT Phase VIII Expansion Florida Gas Transmission ~5,000 miles 2.3 Bcf/d 483 miles 0.8 Bcf/d Southeast
Tennessee 300 Line Project Tennessee Pipeline ~14,000 miles 6.7 Bcf/d 127 miles 0.4 Bcf/d Northeast
Bison Pipeline - 302 miles 0.4 Bcf/d - - West
Pascagoula Expansion Transcontinental Pipeline, FGT - Varies 16 miles 0.8 Bcf/d Southeast
Golden Pass Golden Pass LNG Terminal - - 33 miles 1.2 Bcf/d Southeast
Source: U.S. Energy Information Administration based on trade press and company postings.

Ruby Pipeline came into service on July 28, 2011. The 680-mile pipeline links Rockies natural gas with West Coast markets, ending at an interconnection on Pacific Gas & Electric's system. Ruby displaced some imports to the West that came in on the Gas Transmission Northwest (GTN) pipeline from Canada, although some of the displaced imports from Canada served as a marginal source of supply when necessary. Flows on GTN in early July 2011 were over 1.8 Bcf/d; by mid-September GTN's flows slipped to about 1.0 Bcfd.

Florida Gas Transmission's (FGT) Phase VIII Expansion project added 483 miles to FGT's existing system,21 which begins near the Gulf Coast of Texas and ends close to Miami, with several branches along the way. With no natural gas storage, Florida is dependent on two major pipelines to bring natural gas in times of high demand. The lack of storage and the state's peninsular geography often create bottlenecks and cause price spikes during very hot or very cold weather.  The expansion came into service on April 1, 2011.

Tennessee Pipeline's 300 Line Project added seven looping segments onto Tennessee Pipeline's existing system in New York and New Jersey, for a total of 127 miles. The project is designed to add natural gas from the Marcellus Shale area to the interstate pipeline system. As soon as the pipeline went into service, prices rose at Tennessee's Zone 4 Line 300 pricing point, where an abundance of supply and insufficient takeaway capacity had depressed prices.

The 302-mile Bison Pipeline, a major new pipeline that came online in January 2011, originates in Wyoming, runs through Montana, and ends in North Dakota where it interconnects with Northern Border Pipeline Company's system.

The Pascagoula Expansion and the Golden Pass pipeline projects were built to link LNG import terminals on the Gulf with existing pipeline systems.

 


Footnotes

21A detailed map of the system is available here: http://www.panhandleenergy.com/Map_LO-Package_v3.pdf