East Daley Analytics – Dissecting the Energy Value Chain
Energy Insights and News

Transco Project Boosts Flows to Mid-Atlantic Market

Comments: 0

The Daley Note: November 30, 2023

Williams (WMB) has started partial service on an expansion of the Transcontinental Gas Pipe Line (Transco) in the mid-Atlantic, lifting flows for Appalachian producers ahead of the winter.

Transco placed the Regional Energy Access (REA) project in service the last week of October, adding 450 MMcf/d of capacity along the Liedy line into the Transco Zone 6 (non-New York) market. Largely backed by regional utilities, REA adds more connectivity from the Leidy storage hub in north-central Pennsylvania to the northern end of the Transco system in New Jersey. WMB will place the project’s remaining 379 MMcf/d of capacity into service in 4Q24.

tdn 11.29

Pipeline samples in the Northeast show production from the Marcellus/Utica shales is up 2% M-o-M (~0.6 Bcf/d) in November. The REA project could be contributing to this increase by allowing more gas to access a premium market.

Transco Zone 6 prices historically trade at a premium to Leidy in the winter, with the Leidy-Zone 6 spread pushing upwards to a $1.00/MMBtu. Last year, weather-related demand caused the spread between Transco Zone 6 and Leidy to widen to over $30.

Flows through Station 515 of the Leidy line have increased by about 0.5 Bcf/d since the in-service of the REA project, averaging 2.46 Bcf/d so far in November vs 1.95 Bcf/d in November 2022 (see figure). Downstream at Station 505 in northern New Jersey, deliveries on the Leidy line have averaged 2.29 Bcf/d in November vs 1.92 Bcf/d in November 2022. Flows are lower at Station 505 as more natural gas is delivered along the route.

The increase in flows into Pennsylvania and New Jersey should soften the seasonal premium paid by gas consumers this winter. Looking ahead, East Daley expects the Leidy-Transco Zone 6 spread to narrow this heating season as a result of REA. Start-up of the second phase will bring more gas into the Zone 6 market prior to next year’s heating season.

In the Williams Financial Blueprint, EDA projects the Transco expansion will generate ~$63MM of EBITDA over the next year while in partial service. Following the full in-service in 4Q24, we estimate annual EBITDA from the REA project will step up to ~$139MM. – Zach Krause Tickers: WMB.

 

 

East Daley, Hart Bring NEW Gas & Midstream Weekly

East Daley is teaming up with Hart Energy on the NEW Gas & Midstream Weekly newsletter. This new report combines the strengths of Hart Energy's journalistic reporting and analysis on natural gas, LNG, midstream energy and deal-making with EDA's deep research and intelligence of hydrocarbons, storage and transportation. 
  
Published every Thursday morning, this new
powerhouse newsletter is an interactive and enlightening read highlighting breaking news, exclusive interviews, videos, charts, maps and more. The newsletter utilizes East Daley's Energy Data Studio tools for natural gas predictive analytics with Hart Energy's Rextag mapping tools to present a holistic view of pricing triggers, infrastructure growth, pipeline and processing bottlenecks, regulatory and legal hurdles, and the inevitable solutions. 

 

Energy Data Studio

East Daley Analytics has launched Energy Data Studio, a platform for our industry-leading midstream data and commodity production forecasts. All clients have access to the new client portal. If you have not yet logged in, please fill out the form to request a registration email be resent.

Energy Data Studio leverages our G&P data set for insights into midstream assets across every major oil and gas basin in North America. Users can navigate detailed visual dashboards by region, pipeline, or individual asset to understand crude oil, natural gas and NGL supply at the most granular level.

Energy Data Studio is available through data downloads from the visual interface, in Excel files, or as a direct feed delivered into subscribers’ workflow via secure file transfer. To learn more about Energy Data Studio, please contact insight@eastdaley.com.

The Daley Note

Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.

 

About the AuthorEast Daley Analytics

prev
Next

Upcoming Events

Dirty Little Secrets Part 2: Take Me to the Gulf

December 04, 2024

Register Here