Natural gas infrastructure intelligence report.

Author:Breshears, Colette
 
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In today's commodity environment, being aware of ongoing decisions by producers and midstream players regarding planned projects is a critical component to understanding the future natural gas infrastructure landscape.

Experienced analysts collect and interpret the information to deliver a streamlined approach for understanding and quantifying the influence of planned projects on the market. Up-to-date, reliable insight into these decisions reduces blind spots for traders so they can make more informed, longer-term decisions.

Through summer 2015, Genscape is providing critical infrastructure intelligence alerts as they happen, including the tracked progress of processing plant, pipeline, and gathering line projects in the United States.

REX Flow East to West Increases as Seneca IV Likely Comes Online

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In anticipation of the Aug. 1 start date for the Rockies Express (REX) east-to-west project approaches, flow on the pipeline ramped up. Fed from a combination of points in and around Clarington, OH as well as the powerhouse processing plant at the end of REX's Seneca Lateral, flow in July exceeded 1.3 Bcf/d for the first time, and later in the month saw a further jump to above 1.4 Bcf/d.

When the full project begins to flow, westward-bound gas will fill the line to 1.8 Bcf/d, only about 400 MMcf/d above current flow.

The new flow came just after REX announced that partial east-to-west related service at the improved Chandlersville and Hamilton compressor stations had been approved by FERC and that bidirectional service there began July 9.

Since then, flow at both compressors has been steady, only filling above usual with a sudden increase that began July 12. Genscape is tentatively attributing this new strength of flow, which comes entirely from reported receipts on the Seneca Lateral, to the in-service of the fourth Seneca train.

MarkWest declined to confirm the status of the plant, but suggested that more details regarding Seneca IV will be announced in the near future.

The majority of the non-Seneca originating gas appeared to be re-routed from other pipelines or representative of production already accounted for, rather than representing an uptick of new production. Much of the push above 1.3 Bcf/d came from wells behind Rice's new point at Gunslinger in Monroe County.

Genscape's production forecast takes REX's staggered phase-in into account, with only a small additional new production bump expected in August as REX's east-to-west and...

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