Two new pipelines may be bringing Marcellus and Utica shale gasoline to Florida and Georgia in 2019. Alabama factors heavily into these plans, through which the pipelines will be able to connect and bring oil from the northeast to the southeast. These new pipelines may both improve upon gas and energy prices in the southeast and facilitate sales for northeast oil producers.
The Sabal Trail Pipeline and the Magnolia Expansion
The Sabal Trail pipeline is designed to go from Alabama, through Georgia, and finally into Florida. This project is being completed as a partnership between three separate energy companies: Duke Energy, NextEra Energy, and Spectra Energy. Sabal Trail was approved this year and is expected to take approximately two and a half years to complete development, finishing in 2019. However, this introduces another issue: bringing the gasoline into Alabama. The most viable route is from Tennessee, and is only 45 miles long. In order to complete the shale gas project, an extension will need to be built on the Magnolia Interstate Pipeline.
This extension is intended to connect directly to the 500 Line of Tennessee Natural Gas, which would facilitate a smooth transition of gas onto the Sabal Trail.
American Midstream Partners Announces Open Season
In response to these plans, American Midstream Partners has announced open season for those interested in transporting natural gas through the extension of the Magnolia pipeline. The natural gas delivery would begin upon completion of the Sabal Trail Pipeline in 2019 and would be transporting up to 500,000 dekatherms of material. The open season is designed to determine whether or not the pipeline will be economically viable and whether there will be enough traffic to support such a large installation.
The open season is slated to end on April 11, 2016, after which time American Midstream Partners will review the results. If it is found that the demand is sufficient, the pipeline project will likely continue, connecting much of the east coast in terms of gas shipping. This will also pave the way for further extensions and developments throughout the northeast and southeast states.
The domestic oil and gas industry has been steadily ramping up production, which leaves many logistical issues (such as shipping) still in development. With the production of additional pipelines throughout the country, it will become both easier and safer to transport high volumes of natural gas and crude oil throughout the country. Pipelines are the safest way to transport natural gas, which remains in very high demand.
At Keystone Containment, the focus is always on safety. Pipelines have far fewer incidents zoloftanxiety than train transportation and other natural gas and oil delivery methods. Contact Keystone Containment today for information about our containment products and services.