Appalachian Basin

Appalachian Basin Has More Than $23 Billion Worth of Pipelines In the Works

The oil and natural gas industry is well represented in the Appalachian Basin this week at the Shale Insights conference in Pittsburgh, Pa. Not surprisingly, one of the major points of discussion has been on pipelines and infrastructure. That’s because, as the Pittsburgh Business Times reported this week, there are “More pipelines needed in Appalachia, fast.”

From the PBT article,

“’We must continue to invest in the necessary infrastructure to transport oil and natural gas to markets more quickly,’ said XTO Energy President Sara Ortwein.”

While there are several pipeline projects in the works in the Appalachian states of Pennsylvania, Ohio and West Virginia, the process is years long and, particularly in the Northeast, projects have been delayed due to protests and litigation brought on by “Keep It In the Ground” activists. As PBT reported, this is having negative impacts not only on companies trying to sell an abundant supply of Marcellus and Utica gas, but also on consumers,

“’The Northeast has been particularly hard hit by pipeline delays, and consumers and businesses are paying high prices for natural gas despite abundant domestic supplies,’ Ortwein said. Residential customers in Northeast states, including Pennsylvania, pay 29 percent more than the U.S. average for natural gas and 44 percent more for electricity, Ortwein said. Industrial users pay twice the national average for natural gas and 62 percent more for electricity, she said.”

Currently there is more than $23 billion in planned investment for more than 3,200 miles of pipelines planned or under development in the tri-state area. When built, these pipelines would move more than 17 billion cubic feet of Marcellus and Utica natural gas and 345,000 barrels of natural gas liquids (NGLs) per day. Further, these projects are projected to collectively create more than 100,000 jobs for residents in the region, particularly those with the skilled trades.

Here are some of the projects currently under construction or planned for the Appalachian Basin:


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