More pipelines needed to make Appalachian Basin a relevant supplier to new Gulf Coast LNG facilities
Tuesday, January 26, 2021
The outlook for the Marcellus and Utica shale plays is closely tied to demand for LNG exports, according to GlobalData analysts. However, additional pipeline capacity is needed to reach the Gulf Coast from the Appalachian Basin.
Currently, the US has an export capacity of 9.17 bcfd. Planned projects and those under construction increase export capacity to 11.97bcfd in 2023.
Plays near the Gulf Coast, such as the Permian Basin, Eagle Ford, and the Haynesville, are better located to provide natural gas to meet LNG feedstock demand. however, with additional pipeline the Marcellus and Utice shales could also play a relevant role in supplying natural gas to the new LNG facilities located on the Gulf Coast.
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.