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Northeast Natural Gas Production Reduces Inflows

November 20, 2013 By William Opalka

Northeast gas inflowsInflows of natural gas into the Northeast from other sections of the United States have fallen by about half over the past five years, the US Energy Information Administration reports.

That’s because natural gas production in the northeastern United States increased six-fold from 2.1 billion cubic feet (Bcf/d) per day in 2008 to 12.3 Bcf/d in 2013. Reduced cost and increased supply of natural gas in the region has led to greater use of the fuel, especially for power generation. Inflow of natural gas has also decreased from traditional supply regions such as the Gulf of Mexico, the Midwest, and eastern Canada.

Historically, the Northeast relied heavily on natural gas supply from the Southeast. Most southeastern supply originates in the Gulf of Mexico, which is transported on four long-haul gas transmission pipelines. But much of that gas has been displaced in part by natural gas produced in the Appalachian Basin’s Marcellus Shale deposits. The Northeast now exports some gas. Increased production has occurred alongside expansions in capacity to move gas to northeastern consumers. Southeastern natural gas still accounts for three-fourths of the total flow to the Northeast, although total Southeast inflows may continue to decrease with additional expansions in Marcellus capacity.

Between 2008 and 2013, natural gas net inflow from eastern Canada to the Northeast fell by 82, in part due to higher demand in eastern Canada. Moreover, earlier this year, the Northeast began exporting greater volumes of natural gas to Canada by the Tennessee Gas Pipeline in Niagara, NY.

Credit: Bentek



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