SNL Energy
'Unstoppable' Marcellus development seen having far-reaching impacts

Wednesday, November 27, 2013

Natural gas produced from the northeastern United States is expected to continue to displace inbound supplies, creating a ripple effect that will likely extend to the Midcontinent and even as far as California, experts said at the LDC Gas Forums Toronto Nov. 19-20.

Marcellus supply has already intersected the Iroquois Gas Transmission System LP's market in New York, and in the coming years CERI expects the Iroquois pipeline to be reversed, taking gas from the Northeast into Canada.

The rolling loss of major markets in the U.S. also is presenting Canadian gas producers with a challenge, but those concerns may be alleviated by emerging forms of gas demand, Jack Weixel, BENTEK Energy director of energy analysis, said at the forum. The growing oil sands industry has become an increasingly avid natural gas user, and Canada is gearing up for LNG exports from its western coast, Weixel noted.

"There are uses for the gas other than going to heat up grandma's stove in Chicago," Weixel said.

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