Northeast Gas Pipeline Production Ramping Up

Bad weather has been taking the blame for the stock market’s correction last month, but it may have also temporarily saved the Northeast from a glut of gas production that it’s not yet prepared to export. Overproduction without sufficient export capacity could be a problem over the next year or two, but pipelines are being built and refitted (to allow for bi-directional flow) at a breakneck pace.

Northeast pipelines needed to export gas

“Over the last two years, we were concerned that rising Marcellus and Utica production would result in stranded long-haul capacity for large pipelines from the Gulf Coast into the Northeast,” write Citi analysts Faisel Khan and John Tysseland.  “With our production forecasts calling for 2.0Bcf/day of annual production...