Changes Made for Natural Gas Shipment East

Article excerpt

Several natural gas transmission companies, including some firms in Oklahoma, are converting pipelines in order to move their product to the Eastern markets.

"We are seeing a lot of efforts being made to redesign, reconstruct pipelines and do whatever it takes to get the gas to flow in the direction generally opposite of what most of the pipelines were designed and built to do," said Marla Adams, director of transportation and control for Enogex Inc. of Oklahoma City.

Enogex is the natural gas gathering and transmission subsidiary of Oklahoma City-based OG E Electric Services.

Movement of Midwestern natural gas to Eastern markets continues to increase as Canadian gas enters California. With this movement of Canadian gas into that highly industrialized state, the industry continues to look for additional ways to move their product.

Natural gas from the San Juan and Permian basins, which historically made its way to California, is being displaced by the cheaper Canadian gas, Adams said. The natural gas from these basins of New Mexico and the Texas Panhandle is "being displaced and wanting to go east."

This provides more opportunity for Oklahoma intrastate pipelines to move gas from the West to the East, she said.

"Oklahoma intrastates are being utilized to move gas out of. . .the West to get it East to get interconnected with some other pipeline that will take it to Northeastern markets," Adams said.

Oklahoma intrastate pipelines have seen an increase in demand for the ability to move gas from the west half of the state to the east half, she said.

This change in directional flow of gas more to the Northeast as opposed to the Midwest and California has been going on for three to four years. …