Oil & Gas Financial Journal
BENTEK Expects Marcellus Shale Takeaway Capacity to Double in 2 Years

Wednesday, October 26, 2011

BENTEK Energy, a Colorado-based research and consulting firm, issued a report on Oct. 26 saying that Marcellus Shale natural gas pipeline takeaway capacity will more than double in the next two years, jumping to 8.5 bcf/d by 2013. About 5.0 bcf/d of new Northeast expansion capacity is currently in the planning phase and scheduled to be operational during that timeframe.

These projects will help natural gas producers in the Marcellus grow production volumes and reach premium Northeast markets during peak winter demand. Access to local supply also is expected to mitigate supply disruptions from hurricanes in the Gulf and cold weather impacts in Texas, the Southeast Gulf, the Midcontinent and the Rocky Mountain regions, which all supply the Northeast.

Despite these expansions and supply growth, BENTEK expects New York citygate prices to continue trading at a premium to other Northeast hubs through this winter and winter 2012-13. Of the total incremental capacity, only 1.0 bcf/d will reach New York City by 2013, which is not expected to be enough to completely alleviate capacity constraints to the citygate market.

To access a complete copy of this report, please visit www.ogfj.com.