Appalachia's Changing Role as U.S. Natural Gas Supplier, 2019 Study - ResearchAndMarkets.com

DUBLIN--()--The "Dog Days Are Over? - Appalachia's Changing Role as U.S. Natural Gas Supplier" report has been added to ResearchAndMarkets.com's offering.

The U.S. Northeast natural gas market is at a major transition point. For years, the region has been defined by rapid production growth, perpetual transportation constraints, distressed supply prices and stranded producers. These market conditions have had a domino effect on the broader U.S. gas market - turning a traditionally demand-driven market into a net gas supplier for the U.S., flipping interregional price relationships on their heads and prompting massive midstream investment to reverse gas pipelines so they flow out of the burgeoning Marcellus/Utica shale.

In this Drill Down Report, we examine recent developments in the Northeast gas market, starting with the latest production trends and an update of takeaway capacity additions. We then look at the impact of recent pipeline expansions on the utilization of existing takeaway routes, and, in turn, basis differentials. We conclude with our outlook for Northeast production growth, including future takeaway projects, and their implications for U.S. gas supply and Henry Hub prices over the next five years.

Key takeaways from the report include:

  • Appalachian natural gas basis differentials have strengthened to the highest levels since 2013, even as Northeast gas production sits at record highs.
  • Major capacity additions in recent months, including ETP's Rover, Enbridge/DTE's NEXUS, and Williams/Transco's Atlantic Sunrise have eased gas takeaway constraints from the Marcellus/Utica shale region -- at least for now.
  • At the same time, Midwest gas prices are under pressure as more Northeast gas supply pushes west via Rover and NEXUS and compete with Canadian and U.S. Midcontinent gas supplies.
  • Northeast gas production is expected to grow by at least another 8 Bcf/d by 2023, and total U.S. gas production will grow by more than 20 Bcf/d in that time.
  • The bulk of that incremental Appalachian gas will bear down on the Gulf Coast markets, with potential downside risk for Henry Hub prices, particularly if demand does not materialize as expected.

Key Topics Covered:

1. Introduction

2. Northeast Natural Gas Production Trends

3. Takeaway Capacity Additions and Utilization

3.1 Recent Takeaway Expansions

3.1.1 Energy Transfer Partners' Rover Pipeline

3.1.2 Williams/Transco Atlantic Sunrise

3.1.3 Enbridge/DTE Energy's NEXUS Gas Transmission

3.2 Utilization on Existing Takeaway Routes

3.2.1 Rockies Express Pipeline (REX)

3.2.2 Columbia Gas Transmission (CGT)

3.2.3 Tennessee Gas Pipeline (TGP)

3.2.4 Dominion Energy Transmission

3.2.5 Texas Eastern Transmission (TETCO)

4. Northeast Gas Prices

5. Downstream Market Impacts

6. Northeast Gas Supply Outlook

7. Implications for U.S. Gas Production and Henry Hub

8. Conclusion

Companies Mentioned

  • DTE Energy's
  • Enbridge
  • Williams

For more information about this report visit https://www.researchandmarkets.com/r/inikvi

Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
Related Topics: Natural Gas

Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
Related Topics: Natural Gas