If all prognostications are realized, U.S. supply and demand of natural gas looks to reach historic proportions in the 2019/2020 winter. Aside from soaring exports, the Marcellus—in particular—added 3.3 BCFD with total Appalachian gas production growing by nearly 8 BCFD in just the first nine months of 2019. This compares with Permian output of 2.2 BCFD. But unlike the Permian, the Northeast enjoys more takeaway capacity amid a steady drumbeat of more gas demand as the region looks to wean off heating oil for cleaner natural gas.
Williams handles 30% of the natural gas in the United States that is used every day to heat our homes, cook our food and generate our electricity. Williams works closely with customers to provide the necessary infrastructure to serve growing markets and safely deliver natural gas products to reliably fuel the clean energy economy. With interstate natural gas pipelines and gathering & processing operations throughout the country, we reliably deliver value to our employees, investors, customers and communities by running our business with authenticity and a safety-driven culture, leading our industry into the future.
RMR today is following the latest news from Tulsa, Okla.-based Williams, which just announced completion of its Gateway Expansion Project on the company’s Transco pipeline system. And get this—11 months ahead of schedule–just in time for the winter heating season. Williams has long served this chunk of the nation with its 10,000-mile behemoth Transco, which once landed the spot of longest pipeline in the country. Comprised of five natural gas lines that generally run parallel to each other, the Transco system extends from South Texas to New York City, delivering about 8% of the natural gas consumed in the U.S. Originally placed in service in 1949, this energy artery feeds utilities and large commercial and industrial users, and continues to spawn new pipeline veins via growth projects to meet the ever-growing demand for natural gas.
The Gateway Expansion, which began construction in early 2019, increases Transco’s pipeline capacity to 17.3 million dekatherms per day, and will serve daily home heating, hot water and cooking needs to about 280,000 homes in the Northeast. Gateway is one of nine growth projects on Williams’ capex agenda, including the proposed Northeast Supply Enhancement to decrease supply constraints in New Jersey and New York. The project would provide 400,000 dekatherms per day of additional natural gas supply to the National Grid.
What do you think?