Ohio oil and gas production spur pipeline growth

Natural gas output is booming around the U.S., particularly in Ohio, which may see major expansions in its natural gas and oil pipelines soon, according to The Toledo Blade.

Natural gas output is booming around the U.S., particularly in Ohio, which may see major expansions in its natural gas and oil pipelines soon, according to The Toledo Blade.

Oil and natural gas production rose 49 percent during the third quarter of 2014, according to the Ohio Department of Natural Resources. Oil output hit more than 3 million barrels by the end of the third quarter, and gas output reached 132 billion cubic feet from July 1 to Sept. 30. The output levels were from 674 oil and natural gas producing wells. Forty-three wells reported no production during the quarter because they are waiting on pipelines, according to the Akron Beacon Journal.

High output means more infrastructure
There are currently three pipelines in the Federal Energy Regulatory Commission approval process. Dale Arnold, the director of energy services for the Ohio Farm Bureau Foundation, stated there is likely to be 38,000 miles of new pipeline constructed in the state over the next 10 years, The Blade reported.

The largest of the three pipeline projects currently up for approval is the Energy Transfer Partners L.P. Rover Pipeline, which consists of 823 miles pipeline running from southeast Ohio to Michigan and Canada. The main line will have nine new lateral pipelines ranging from 4 to 206 miles long. The Rover Pipeline is anticipated to move 3.25 billion cubic feet of natural gas every day once it is approved and completed.

Spectra Energy and DTE Energy are seeking approval of a 250-mile pipeline to move natural gas from Ohio to Michigan and Canada, and NiSource has proposed a 160-mile pipeline to send natural gas from West Virginia and Ohio to the Gulf of Mexico.

New pipeline approved
Texas Eastern, a subsidiary of Spectra Energy Corp., has received approval for its Ohio Pipeline Energy Network, also known as the Open Project, according to Columbus Business First. The pipeline will run from the Kensington process plant in Columbiana County, Ohio, to a Texas Eastern facility in Monroe County, Ohio. The company hopes finish pipeline construction by the end of 2015.

The company also plans to build a natural gas turbine compressor station in Belmont County, Ohio, to allow for bidirectional flow in the pipeline. Historically, natural gas flowed from the Gulf of Mexico to Ohio. However, Ohio's increased production now means it can ship the supplies to the Gulf.

More information on natural gas in Ohio can be found at PennEnergy's research area.

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