Natural Gas Pipeline and System Expansions
April 1, 1997
This special report examines recent expansions to the North American natural gas pipeline network and the nature and type of proposed pipeline projects announced or approved for construction during the next several years in the United States. It includes those projects in Canada and Mexico that tie in with U.S. markets or projects
During 1996, 26 pipeline expansion projects were completed and placed in service in the United States. These projects either added capacity directly to the interstate network, improved local intrastate service, or expanded access to producing fields or natural gas market centers. Eight of the projects added capacity that increased interregional transmission capability by 687 million cubic feet (MMcf) per day: 487 MMcf per day in the United States and 200 MMcf per day into Canada (Table SR1). These eight projects plus four others increased daily interstate capability by 1,282 million cubic feet. This amount, however, was only 85 percent as much as the interstate capacity added in 1995. Moreover, while the total number of completed projects was slightly more than in 1995 (26 vs. 21), the total amount of pipeline capacity added, 2,548 MMcf per day, was well below the previous year’s 3,450 MMcf per day, reflecting the smaller size of the 1996 projects.
Nevertheless, on an individual basis several significant projects were completed in 1996, including:
- Completion of the lower section of the TransColorado pipeline system. The southern 25-mile section of this proposed 266-mile pipeline system is now capable of moving 120 MMcf per day from the Ignacio area of the southern Colorado San Juan Basin to the Blanco hub in northern New Mexico (Figure SR1). When the northern section of the system is completed (proposed late 1998), this 1 recently completed section will expand its capability to more than 300 MMcf per day.
- Completion of Transwestern Pipeline Company’s San Juan Basin expansion. The finish of this project has expanded capacity on the New Mexico side of the basin, thus relieving a bottleneck that has hindered the flow of production out of the area for several years. It has also improved producer access to customers located in the eastern and midwestern markets of the United States. During 1996, Transwestern also acquired the pipeline assets of Northwest Pipeline Company located between the Ignacio area of the San Juan Basin and the Blanco hub (which is operated by Transwestern). A consequence of this acquisition has been a greater integration of gathering and processing capabilities in the area and the elimination of some flow bottlenecks and production constraints.
- Completion of the MidCon/TransTexas Pipeline from the North Bob West production field in south Texas to interconnections with the interstate system and market centers in the Katy area of east Texas. The completion of this intrastate pipeline project (275 MMcf per day) links the largest new production area ever developed in south Texas and provides local producers access to the interstate marketplace for the disposition of their production. Production from, and linkages with, the Bob West field also figure predominately in the proposed development of several export pipelines to Mexico over the next several years.
- Inauguration of the new offshore Shell Gas Pipeline and expansion of the Stingray system in the Gulf of Mexico. This represents an additional 675 MMcf per day of access to the growing natural gas development in the deep waters of the Gulf. Although neither line is currently flowing at rated capabilities, these systems are expected to be fully supported within a year. Completion of these two projects represents the prelude to a massive proposed expansion of pipeline and gathering system development in the Gulf during the next several years. Fully 16 such projects are on the drawing board or are pending before the Federal Energy Regulatory Commission (FERC) or other jurisdictional agencies for approval (see next section).