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Permalink Reply by JHH on April 12, 2009 at 8:42

Thanks. That helps explain it. jhh

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Permalink Reply by lanadan Ds3 on April 12, 2009 at 23:15

FYI category, I guess:

Iroquois (sic?) gas pipeline co. has a large line coming into New England area from Canada, serves a great part of N/E and part of NYC. Therefore, Iroquis imports CANADIAN gas, not American, to feed its markets.

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Permalink Reply by Les Bamburg on April 13, 2009 at 16:50

Lanadan, you are correct that both the Iroquois and Maritimes Pipelines currently deliver Canadian gas to the Northeast US market.

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Permalink Reply by Les Bamburg on April 13, 2009 at 16:03

Jim, personally I consider the Eagle Ford Shale more of a South Texas play and as such is more likely to target the Texas Intrastate (Houston area) or Northern Mexico gas markets.

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Permalink Reply by sesport on April 13, 2009 at 2:19

Based on pipeline maps I've looked at, such as the up & coming Tiger, HS gas will be moving east and at various points transfered into lines traveling northeast. I haven't yet been able to determine the final delivery point(s). One possibility is new gas fired power plants?

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Permalink Reply by Les Bamburg on April 13, 2009 at 6:24

Sesport, natural gas delivered into the Perryville Hub area (NELA) can access markets in the Southeast, Northeast & Midwest regions via several major interstate pipelines. Eventually additional long haul pipeline capacity will be required out of the Perryville Hub.

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Permalink Reply by sesport on April 13, 2009 at 6:32

Thanks, Les, your input is always appreciated. Good news for NE LA area.

Best, sesport :0)

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Permalink Reply by Les Bamburg on April 13, 2009 at 15:53

JHH, the story is slightly misleading as the part of the deal involving North America was for LNG Terminal capacity and does not guarantee any actual gas deliveries to the US market. These type agreements are long term (20 years) and are required if parties need to gain access to the North American gas market in the future.

The US currently imports ~ 8 Bcfd of natural gas primarily from Canada. Canadian gas production is beginning to decline while their demand is projected to increase resulting in less gas available for export to the US. To the extent US gas production growth is not able to cover any decreased Canadian imports, LNG will be required to meet the shortfall.

Ultimately the natural price in the US versus the rest of the world will determine the level of LNG imports.

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Permalink Reply by sesport on April 14, 2009 at 3:32

JHH - You might find this helpful.

Best - sesport :0)

http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publication...



http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publication...

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