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Permalink Reply by Steve P on August 11, 2014 at 15:23

This is, indeed, fascinating.  Heard a story about this on "Marketplace" on NPR while driving home today.

While there has been significant investment in gas pipelines in La and Tx over the past few years, and I'm not talking about "gathering" line, I'm talking about large transportation lines. there has not been similar investments in transportation lines in Pennsylvania to its logical markets, or from ND to its markets.  this seems almost criminal, but they have been and are currently "flaring" large amounts of NG production in ND.  The complexities and $$ required to build new pipelines to serve both of those "new" producing areas are huge.  Hopefully, the move by Kinder-Morgan will free up a few billions to invest in those projects.

Here's what is most fascinating to me.  40 years ago, there was a huge interstate pipeline network built to transport surplus NG from La to the MW and NE US for domestic and industrial use.  thanks to the petro-chemical expansion in La, now there's a local market for the gas produced from the Haynesville Shale and other regional gas plays, and now there's even the need to import gas from other areas to meet the growing market.

Hopefully, this consolidation by Kinder-Morgan will free up more funds for pipeline construction projects, particularly to tap the Bakken Shale.  If the consolidation simply adds to the bottom line for investors, then that's good for them, but not good for America.  This country has a rare opportunity for energy independence, but all the pieces need to work together to make that happen.  Flaring gas in ND and not being able to produce all the gas that's available in Pennsylvania is contra to that goal.

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