Marcellus Shale natural gas pipeline takeaway capacity will jump to 8.5 Bcf/d by 2013, more than double its current level, according to Bentek Energy LLC.

“About 5.0 Bcf/d of new Northeast expansion capacity is currently in the planning phase and scheduled to be operational during that timeframe,” the firm said in a market update last week. “These projects will help natural gas producers in the Marcellus grow production volumes and reach premium Northeast markets during peak winter demand.”

Nearly 1.0 Bcf/d of Marcellus takeaway capacity is scheduled to come online in the next month as a result of El Paso Corp.’s Tennessee Gas 300 Line Expansion project (see NGI, Oct. 10), Empire Pipeline Inc.’s Tioga Line Extension and National Fuel’s Line N expansion project in southwestern Pennsylvania, according to Bentek. The firm has said new capacity slated to come online in Line 300 will fill up quickly.

“The Tennessee expansion will boost forward-haul capacity on their 300 Line by 350 MMcf/d, increasing delivery capacity to interconnects with Algonquin, Transco and Con Edison in White Plains, NY. This additional supply to the premium Northeast market will put downward pressure on regional prices,” Bentek said Wednesday.

In addition, Equitrans LP, a subsidiary of Pittsburgh-based EQT Corp., recently received the go-ahead from the Federal Energy Regulatory Commission (FERC) to begin construction on a new pipeline in Pennsylvania and West Virginia that will provide additional takeaway capacity for Marcellus Shale gas producers (see NGI, Sept. 26). The $272 million Sunrise project, which would expand Equitrans’ existing mainline transmission system to accommodate the rapid development of natural gas from both the liquids-rich and dry areas of the Marcellus, is targeted for in-service in the summer of 2012.

But with only 1.0 Bcf/d of the total incremental capacity from those projects expected to reach New York City by 2013, the Bentek analysts said they expect the market to remain constrained and New York citygate prices to continue trading at a premium to other Northeast hubs this winter and in the winter of 2012-13.

Northeast access to local supply is expected to mitigate supply disruptions from hurricanes in the Gulf of Mexico and cold weather impacts in Texas, the Southeast Gulf, the Midcontinent and the Rocky Mountain regions, which all supply the Northeast, Bentek said.

But Empire, which is awaiting a response from FERC to start up its Tioga County Extension, may have hit a stumbling block. Last week the New York State Department of Environmental Conservation (NYSDEC) called on FERC to withhold approval for Empire to begin service until it has complied with state soil disturbance and stabilization requirements.

Earlier this month, NYSDEC said it issued a notice of violation (NOV) to Empire for allegedly violating its state pollution discharge elimination system permit (SPDES). “NYSDEC issued the NOV because soil disturbance activities at the project have not proceeded in compliance with the terms and conditions of the SPDES permit and Empire has failed to implement necessary temporary and/or permanent soil stabilization measures within seven days of ceasing soil disturbance activities as required by NYSDEC’s [letter]” last June, the state regulator said.

NYSDEC had required Empire to complete the installation of all erosion and sediment control measures by last Friday and then by this Friday (Nov. 4), Empire is required to stabilize all disturbed areas in accordance with SWPPP requirements. Moreover, it has directed Empire to retain a qualified inspector to inspect all erosion and sediment control measures.

Until all of the compliance issues have been corrected, the NYSDEC has urged the FERC to withhold its approval of Empire’s request to begin service on its Tioga County Extension.

The facilities that Empire is seeking permission to place into service would allow it to reverse flow on its system and would permit it to receive up to 350,000 Dth/d of Marcellus Shale production in Tioga County, PA, and transport that gas to the facilities of TransCanada Pipelines Ltd. at Chippawa, ON.

Empire said it has entered into precedent agreements for firm transportation service for the entire capacity of the project for an initial term of 10 years. The cost of the Tioga extension has been estimated at $46.7 million. FERC approved Empire’s request for a predetermination that it may roll the costs of the expansion project into its existing Empire Connector rates in its next Section 4 rate proceeding.

Marcellus Shale production has increased from 2.7 Bcf/d to 4.7 Bcf/d in the past year, according to FERC’s Winter 2011-12 Energy Market Assessment (see NGI, Oct. 24).

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