Infrastructure – On April 1, Boardwalk Pipelines (BWPL) announced a non-binding open season for Borealis, a 2 Bcf/d expansion of the Texas Gas Transmission (TGT) system that would open new markets for Marcellus and Utica gas. If successful, the project could change the outlook for many Northeast assets.
BWPL proposes to build a greenfield line extending from existing infrastructure in Lebanon, OH to Clarington in eastern Ohio. Clarington is a major supply hub for Appalachian gas, connecting pipelines like Rockies Express, Texas Eastern, Rover, and Eastern Gas Transmission (see the pipeline map from East Daley Analytics’ Energy Data Studio). The project scope includes other modifications to TGT facilities to expand capacity south to the Gulf Coast.
Borealis could transform the regional market. Despite abundant gas resources, EDA currently forecasts constraints on Marcellus/Utica growth due to limited takeaway. Near-term production growth is marginal, supported by increasing in-basin consumption until Williams (WMB) expands the Transcontinental Gas Pipe Line (Transco) later this decade.
The open season also invites bids to extend the project upstream and connect directly to Marcellus and Utica supply sources. Operators could then secure the egress capacity required for a step-change in production.
Boardwalk gave no timeline to complete Borealis, but EDA speculates that a project of this size and in this geography could be delivered by the end of the decade. Egress projects out of the Northeast carry elevated risk, as shown by the challenges faced by Mountain Valley Pipeline and other canceled projects.
Borealis comes on the heels of Boardwalks’ final investment decision (FID) for the Kosci Junction project, which will extend the existing Greenville lateral on Texas Gas to Clark County, MS and deliver up to 1.6 Bcf/d of gas into Transco Station 85. Taken together, the projects would directly connect the Clarington hub to the premium Station 85 market for the first time, adding value to the TGT asset.
Boardwalk’s momentum could help other Northeast G&P operators, including Antero Midstream (AM), DT Midstream (DTM), MPLX and WMB. BWPL is also an increasingly interesting market participant given the strategic opportunities within its footprint and improving company financials. With its debt-to-EBITDA ratio falling from 4.2 in 2020 to 2.8 in 2024, BWPL has placed itself in a strong financial position to grow its asset base or explore sale and IPO opportunities.
Infrastructure – WhiteWater Midstream and partners MPLX, Enbridge (ENB) and Targa Resources (TRGP) will move forward with construction of the Traverse Pipeline in South Texas. The new 36-inch bidirectional line would connect the Katy hub outside Houston to the Agua Dulce hub in South Texas, giving shippers access to multiple demand centers.
On April 3, WhiteWater announced the final investment decision (FID) between the WPC joint venture (WWM 51%, MPLX 30% and ENB 19%) and a TRGP affiliate. The 1.75 Bcf/d Traverse Pipeline is expected to begin service in 2027.
The project will be wholly owned by the Blackcomb Pipeline JV and operated by WhiteWater. The Blackcomb JV is 70% owned by WPC, 17.5% by TRGP, and 12.5% by MPLX.
Traverse would boost downstream access for several WhiteWater-operated pipelines out of the Permian Basin, including Matterhorn Express Pipeline at Katy and Blackcomb Pipeline at Agua Dulce. North of Katy, WhiteWater is also developing the 3.5 Bcf/d Blackfin Pipeline with Venture Global (VG), designed to transport gas from the Houston Ship Channel market east to VG’s CP Express Pipeline for eventual delivery to the CP2 LNG project. CP2 recently received its non-FTA export license from the Department of Energy and could take more than 4 Bcf/d of feedgas by the end of the decade.
WhiteWater expects Blackfin to begin service by the end of 2025. However, without CP Express, which is still in the permitting phase, it is unclear how much gas can actually reach the premium Gillis, LA market via Blackfin. Nevertheless, WhiteWater is doing well to address potential capacity constraints before they arise. Blackfin and CPX will open up needed capacity between the Texas-Louisiana border, diminishing the risks of oversupply from Permian associated gas and downside basis moves at Houston Ship Channel.
WhiteWater also recently threw its hat into the Haynesville ring when the company took FID on the 1.75 Bcf/d Pelican Pipeline out of northwestern Louisiana. This latest FID on Traverse will provide a relief valve for Texas intrastate flows, reducing volatility at the Agua Dulce hub, which will see 3+ Bcf/d of new Permian supply much earlier than the 3+ Bcf/d of LNG demand slated to come online from the Rio Grande LNG and Texas LNG Brownsville projects. See East Daley Analytics’ Houston Ship Channel Supply & Demand Report for more information.
 
Storage – Traders and analysts expect the Energy Information Administration (EIA) to report a 24 Bcf net storage injection for the week ending April 11. A 24 Bcf injection would be 26 Bcf less than the 5-year average for the week, expanding the deficit to 64 Bcf. The storage deficit versus last year would expand by 22 Bcf to 472 Bcf.
Chilly weather across the Midwest and Northeast increased demand and is expected to break a string of four consecutive above-normal injections. However, forecasts predict warm temperatures across most of the Lower 48 for the rest of April that will cut into late-season heating demand and ramp injections.
Gas prices have continued to slide as traders worry that market conditions are loosening. The May ’25 Henry Hub contract settled Wednesday at $3.31/MMBtu, while futures have fallen below the $4 market until the 2025-26 winter. See the Macro Supply & Demand Report for more information.
Rigs – The US rig count decreased by 1 for the April 5 week, standing at 573. The Anadarko (-3), Marcellus + Utica (-3) and Bakken (-1) lost rigs while the ArkLaTex (+2), DJ (+1), Marcellus NE PA (+1) and Uinta (+1) added rigs on the week.
On the midstream side, Energy Transfer (ET) is up 5 rigs net with additions on its Permian, Eagle Ford and ArkLaTex systems. Enterprise Products (EPD) is down 6 rigs total with reductions on its Delaware, Midland and Eagle Ford systems.
East Daley’s weekly Rig Activity Tracker monitors rig activity by basin and by gathering and processing (G&P) system to better understand midstream impacts. We allocate rigs and monitor flows through 150+ public and privately owned G&P systems in every North American basin. Reach out for more information on the Rig Activity Tracker.
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