The United States last year added the most pipeline takeaway capacity from natural gas-producing regions since 2021. This year, more gas pipelines could be announced or revived, with the support of the Trump Administration, in what could be a shot in the arm for U.S. natural gas producers and a step toward reducing energy costs for consumers, especially in the Northeast.
Five completed pipelines to deliver natural gas from the producing regions to demand centers in the mid-Atlantic and along the U.S. Gulf Coast, another five projects to boost feedgas capacity to LNG export plants in Texas and Louisiana, and several new smaller interstate and intrastate pipeline projects increased America’s natural gas pipeline capacity by a total of 17.8 billion cubic feet per day (Bcf/d) in 2024, data from the EIA showed this week.
Mountain Valley Pipeline, Regional Energy Access Project, Louisiana Energy Access Project (LEAP) Phase 3, Matterhorn Express Pipeline, and Verde Pipeline boosted the natural gas takeaway capacity from the Appalachia, Haynesville, Permian, and Eagle Ford regions by 6.5 Bcf/d.
Another five pipeline projects completed last year in Texas and Louisiana increased capacity to deliver natural gas to U.S. LNG export terminals by approximately 8.5 Bcf/d, according to the EIA’s latest Natural Gas Pipeline Projects tracker.
These are the ADCC Pipeline to the Corpus Christi Stage 3 LNG project, TC Energy’s Gillis Access project that can transport natural gas from Haynesville to LNG export terminals along the Gulf Coast, Venture Global Gator Express’s Gator Express Pipeline of two pipeline segments to the Plaquemines LNG plant in Louisiana, and Texas Eastern Transmission’s Venice Extension Project that can move up to 1.3 Bcf/d of natural gas to the Plaquemines LNG export terminal.
Smaller interstate and intrastate pipeline projects added another nearly 3.0 Bcf/d combined of natural gas pipeline capacity last year, according to EIA’s pipeline tracker.
New gas pipeline takeaway capacity rose in both 2023 and 2024, from the 2022 lows when fewer than 5 Bcf/d of total new capacity was added in the U.S.
The 2024 additions were more than triple in capacity compared to the 2022 annual additions and the highest since 2021 when more than 20 Bcf/d of new gas pipeline takeaway capacity was added.
Increased takeaway capacity to move natural gas from the top shale gas plays in the Appalachia and Gulf regions is welcome news for U.S. gas-focused producers, which are set to raise output this year amid rising prices, after stagnation in 2024 and curtailments in well completions due to the multi-year low prices last year.
Takeaway capacity additions could accelerate in the coming months and years as the Trump Administration strongly favors increased oil and gas production and the build-out of infrastructure to bring more domestic energy to consumers.
Last week, Energy Secretary Chris Wright told Fox Business that work on the previously scrapped Constitution Pipeline to bring natural gas through New York into New England could start by the end of this year.
Williams Companies, which had proposed the Constitution Pipeline, axed it in 2020 after failing to receive all necessary approvals in the state of New York.
The pipeline would be “such a win, win, win,” Secretary Wright told ‘Mornings with Maria’ on Friday.
“No one loses by this, but silly politics of several years ago stopped these in the first go round. But I think it's quite likely these pipelines will be under construction before this year is over,” Wright said.
Williams Companies told Reuters that it appreciates President Donald Trump’s support for reviving the Constitution Pipeline project and could look to relaunch it if there is support from governors in the region, including New York Democratic Governor Kathy Hochul.
“We are interested in building the Constitution pipeline, provided there is sufficient customer demand and support from Northeast governors, including Governor Hochul, to mitigate the risk of costly permitting delays, court battles, and injunctions during construction,” Williams said.
By Tsvetana Paraskova for Oilprice.com
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