Engineering Inc - November/December 2017 - 6
MARKETWATCH
Proposed New Pipelines, Infrastructure
Set to Energize Natural Gas Market
By Gerry Donohue
A
ppalachia has been on the front lines from the
beginning of the shale gas revolution. Now the
region is poised for a substantial boost with
the construction of several pipelines and at
least one ethane cracker plant. Looking into
the future, government and industry leaders
are working together to grow the natural gasfueled industrial base in this economically
(Quadrillion Btu)
challenged area.
The Marcellus and Utica shale formations, which underlay
parts of New York, Pennsylvania, Ohio, West Virginia and
Kentucky, are the largest source of natural gas in the United
States and among the largest in the world. Until 2008, the gas
was mostly untapped because it was trapped in low-permeability
shale. The improvement of horizontal directional drilling and
hydraulic fracturing technologies in the early 2000s began an
energy boom in the region. From virtually zero output in 2008,
the Marcellus/Utica formation now produces more than 20
billion cubic feet per day (Bcf/d), which is about 30 percent of
the nation's production.
The U.S. Energy Information Agency forecasts that Marcellus/
Utica will produce more than 40 Bcf/d by 2040, over half of total
U.S. shale gas production.
Engineering firms working with gas producers in the region
have had a bumpy ride over the past three years. A global glut
of natural gas pushed down prices from $4.50-$5/million Btu
(MMBtu) in early 2014 to $1.75-$2/MMBtu in early 2016.
Prices have since rebounded to around $3/MMBtu.
"Two challenges of working in this
industry are its cyclical nature and velocity,"
says Patrick O'Hara, senior vice president at
40
Woodard & Curran, a national environmental
35
consulting firm serving industry, government
and institutions. "Your firm needs a lot of
30
27.92
27.40
flexibility in capabilities and staffing. This
25
industry moves really fast, addressing lots
of dynamic technological and regulatory
20
changes."
KEEPING UP WITH SUPPLY
While production in the Marcellus/Utica has
increased at a rapid pace over the past decade,
infrastructure investment has severely lagged.
The output dwarfs the regional demand, but
there's a shortage of pipelines to transport the
6
ENGINEERING INC.
NOVEMBER / DECEMBER 2017
natural gas to high-demand areas, such as Mont Belvieu on the
Gulf Coast, where a massive network of chemical processing and
industrial plants use it as both an energy source and feedstock.
The consequent oversupply has resulted in a lower price for
Marcellus/Utica natural gas, making extraction less profitable.
Many wells drilled in the region have not been brought online
because of the insufficient infrastructure.
That situation is poised to change with several new pipelines
moving through permitting and/or already under construction.
The $4-billion, 713-mile Rover pipeline is scheduled to come
online in early 2018, transporting 3.25 Bcf/d from southeastern
Ohio to northwestern Ohio where it will connect to pipelines
heading to the Gulf Coast, Michigan and the Gas Dawn Hub in
Ontario.
Several other pipelines are slowly making their way through
permitting, delayed partly because the Federal Energy Regulatory
Commission did not have a quorum to vote on projects during
the first half of 2017.
The 600-mile, $5 billion Atlantic Coast Pipeline will transport
1.5 Bcf/d from West Virginia to Virginia and North Carolina
to meet heating and electric generation demand. If construction
begins on schedule in 2018, the pipeline will enter service in
2019.
The 304-mile, 42-inch-diameter Mountain Valley Pipeline
would transport 2 Bcf/d from northwestern West Virginia to
southern Virginia where it will connect with the Transcontinental
Gas Pipe Line. The pipeline faces strenuous opposition from
U.S. Natural Gas Production
28.77
30.07
31.99
32.28
32.80
34.15
31.81
33.48
31.07
2019
2020
2021
2022
2023
2024
2025
15
10
5
0
2015
2016
2017
2018
SOURCE: U.S. ENERGY INFORMATION AGENCY
Table of Contents for the Digital Edition of Engineering Inc - November/December 2017
Engineering Inc - November/december 2017
Contents
Standing Up to Mother Nature
Fall Conference
P3s to the Rescue
Young Professionals of the Year
Self-Sustainability
Navigating the Marketplace
Creating Meaningful Connections
From Acec to You
Market Watch
Legislative Action
Guest Column
Mergers and Acquisitions
Members in the News
Florida M.o. Adopts Powerful Acec Brand
Business Insights
Engineering Inc - November/December 2017 - Intro
Engineering Inc - November/December 2017 - Engineering Inc - November/december 2017
Engineering Inc - November/December 2017 - Cover2
Engineering Inc - November/December 2017 - Contents
Engineering Inc - November/December 2017 - 2
Engineering Inc - November/December 2017 - 3
Engineering Inc - November/December 2017 - From Acec to You
Engineering Inc - November/December 2017 - 5
Engineering Inc - November/December 2017 - Market Watch
Engineering Inc - November/December 2017 - 7
Engineering Inc - November/December 2017 - Legislative Action
Engineering Inc - November/December 2017 - 9
Engineering Inc - November/December 2017 - Fall Conference
Engineering Inc - November/December 2017 - 11
Engineering Inc - November/December 2017 - 12
Engineering Inc - November/December 2017 - 13
Engineering Inc - November/December 2017 - Standing Up to Mother Nature
Engineering Inc - November/December 2017 - 15
Engineering Inc - November/December 2017 - 16
Engineering Inc - November/December 2017 - 17
Engineering Inc - November/December 2017 - 18
Engineering Inc - November/December 2017 - 19
Engineering Inc - November/December 2017 - 20
Engineering Inc - November/December 2017 - 21
Engineering Inc - November/December 2017 - P3s to the Rescue
Engineering Inc - November/December 2017 - 23
Engineering Inc - November/December 2017 - 24
Engineering Inc - November/December 2017 - 25
Engineering Inc - November/December 2017 - 26
Engineering Inc - November/December 2017 - Young Professionals of the Year
Engineering Inc - November/December 2017 - 28
Engineering Inc - November/December 2017 - Self-Sustainability
Engineering Inc - November/December 2017 - 30
Engineering Inc - November/December 2017 - 31
Engineering Inc - November/December 2017 - 32
Engineering Inc - November/December 2017 - 33
Engineering Inc - November/December 2017 - Navigating the Marketplace
Engineering Inc - November/December 2017 - 35
Engineering Inc - November/December 2017 - 36
Engineering Inc - November/December 2017 - 37
Engineering Inc - November/December 2017 - Creating Meaningful Connections
Engineering Inc - November/December 2017 - 39
Engineering Inc - November/December 2017 - 40
Engineering Inc - November/December 2017 - 41
Engineering Inc - November/December 2017 - Guest Column
Engineering Inc - November/December 2017 - 43
Engineering Inc - November/December 2017 - Mergers and Acquisitions
Engineering Inc - November/December 2017 - 45
Engineering Inc - November/December 2017 - 46
Engineering Inc - November/December 2017 - 47
Engineering Inc - November/December 2017 - Members in the News
Engineering Inc - November/December 2017 - 49
Engineering Inc - November/December 2017 - Florida M.o. Adopts Powerful Acec Brand
Engineering Inc - November/December 2017 - 51
Engineering Inc - November/December 2017 - Business Insights
Engineering Inc - November/December 2017 - Cover3
Engineering Inc - November/December 2017 - Cover4
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