National Fuel Gas Supply Corp. (NFGSC), a unit of National Fuel Gas Co., has proposed building a 324-mile pipeline that would carry natural gas produced in the Rocky Mountain region to markets in the Northeast U.S.
NFGSC's West to East (W2E) project calls for building a natural gas pipeline from the eastern terminus of the Rockies Express (REX) pipeline in Clarington, Ohio, to Leidy, Pa., and/or Corning, N.Y. At Leidy, W2E would tie into Williams' Transco, Spectra's Texas Eastern Transmission Co. (TETCO), and Dominion Transmission, Inc. (DTI) pipeline systems. W2E would link to the Empire Connector (National Fuel) and Millennium (NiSource, National Grid, DTE Energy) pipelines at Corning.
Beginning in production areas in Colorado and Wyoming, REX is being developed by Kinder Morgan Energy Partners, Sempra Pipelines and Storage, and ConocoPhillips. The 638-mile "REX East" segment currently under construction will span from Audrain County, Mo., to the Clarington Hub in Monroe County, Ohio, where it will interconnect with three pipelines: DTI, Dominion East Ohio, and Texas Eastern Transmission LP (Duke Energy).
Should NFGSC pursue the W2E project, the pipeline would initially move 550,000 to 750,000 dekatherms per day (Dth/d) of Rockies gas via 24- or 30-inch pipeline in a pipeline corridor that is largely (75%) in existing right-of-way. There would be three to four compressor stations along the route, and the pipeline would offer access to new and existing storage facilities.
In addition to shipping natural gas originating from the Rocky Mountain region, W2E would be capable of receiving natural gas from two regional sources via a new "Appalachian Lateral" pipeline. These regional sources include the Cove Point LNG terminal in Maryland and gas fields in the Appalachian Basin (including the burgeoning Marcellus Shale play). The Appalachian Lateral would extend from Leidy -- where it would interconnect with the Transco, TETCO, and DTI pipelines -- northwestward to Lamont, Pa. It would also offer shippers the opportunity to move gas to and from National Fuel's 8.5-Bcf storage expansion project involving the Galbraith, East Branch, and Tuscarora fields.
NFGSC has not made a final decision on W2E and the Appalachian Lateral, and it is holding an open season to gauge market demand. Should the project move forward, it could be in service in the summer or fall of 2011.