New Outlet for Marcellus Shale Gas Opens for Business!

John Quigley - Tom Shepstone ReportsTom Shepstone
Shepstone Management Company, Inc.



Spectra Energy just created a new outlet for Marcellus Shale gas – great news for landowners and producers and a kick in the butt for fractivists.

It didn’t make big headlines, but our buddy Jim Willis picked up on some fantastic news. Marcellus Shale gas now has a new outlet to the Gulf Coast. Spectra Energy has asked FERC for approval to put much of its Texas Eastern Gulf Markets Expansion Project on-line. It’s celebration time for landowners and producers who have been crying for new ways to get Marcellus Shale gas to market. It’s also a sad day for fractivists. This is why they fight so hard against pipelines. It’s why the Heinz Endowments, the William Penn Foundation, the Park Foundation and NRDC gang trust-funders put so much money into funding shill organizations such as the Clean Air Council.

Pipeline companies aren’t very good at public relations. Spectra Energy’s website and news releases on this project are as dry as a bone. They’re technical to the point of tedium. Nonetheless, what’s happening is exceedingly good news. If tedium is what’s demanded to deliver it, so be it. They do offer a simple to understand map, though:


The project improvements are all located well outside the Marcellus Shale gas region but they mean so much to it. Here’s Jim’s take:

The project will shuttle supplies of natural gas from the northeast, along with supplies from Texas, to “meet the needs of demand growth in the power, industrial and LNG export sectors particularly in the Gulf Coast region of Louisiana and Texas.

Spectra began construction for the Gulf Markets Expansion Project in February. Construction will come in two stages, with the first stage targeted to go online in November. Spectra got done early and has asked for permission to begin operations at several compressor stations.

More than half of the eventual 650,000 decatherms per day of new capacity along the Texas Eastern pipeline will come in the northeast, moving Marcellus/Utica gas to the Gulf Coast. Marcellus drillers EQT and Range Resources are signed up to ship gas along the expanded-capacity pipeline. Facilities along the pipeline have been or are being upgraded in Texas, Louisiana, Mississippi, Tennessee, Kentucky, Ohio and Pennsylvania.

Got that? Marcellus Shale gas and Utica Shale gas are going to the Gulf Coast to meet industrial demand there. The gas is also being exported as LNG.

Forget what you here about trade from pandering politicians on both sides of the aisle. Trade is essential to economic development here at home. Trade in LNG is going to create jobs in Pennsylvania and Ohio. Moreover, who’d have thought a decade ago, we’d be shipping gas to Texas from the Northeast? It’s an astounding development, all thanks to fracking, combined with horizontal drilling. Together, they are revitalizing multiple regions of the U.S. while providing new energy choices across the globe. No wonder fractivists hate it so much!

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One thought on “New Outlet for Marcellus Shale Gas Opens for Business!

  1. And New York will stay in the Dead Zone, where politicians believe they know more about stimulating the economy than business people.

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