Is MVP Really Going to be the Last Pipe Built that Serves the Marcellus/Utica?

What’s the issue?

As Mountain Valley Pipeline has struggled to reach completion and as New York blocks all paths to New England, many are saying that if MVP ever gets built, it may be the last pipeline out of the Marcellus/Utica.

Why does it matter?

If that were to happen, the current pipeline capacity for the region would act as a permanent limit on the annual production from the largest natural gas basin in the country.

What’s our view?

Transcontinental Pipeline’s Regional Energy Access project may, however, offer a path for others to follow. Essentially by limiting the pipeline to be constructed to states that welcome such projects and otherwise using compression in the states that do not, it may have found a way out of the region. However, there remains one tremendous risk for future uses of this path and that is if FERC abandons the 1999 Certificate Policy Statement and its reliance on market signals as the best evidence of need.

 



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