On the morning of Dec 4, Energy Transfer Partners submitted a request to FERC to bring Phase 1B of its Rover Pipeline in service by December 14, 2017. Although horizontal directional drilling (HDD) work was halted earlier this year, Phase 1B progress is actually slightly ahead of schedule according to our gas pipeline tracker. Phase 1B will increase Rover pipeline’s capacity to 2.2 BCFD from 1.25 BCFD, mainly on the receipts side. Production is expected to fill up the incremental capacity, with some ramping time, once FERC grants approval. The major shippers on Phase 1A and 1B are Antero (800 MMCFD), Eclipse (200 MMCFD), EQT (100 MMCFD), Range (200 MMCFD), EdgeMarc Energy (25 MMCFD) and Southwestern (25 MMCFD). This news may have contributed to the sell-off of the January 2018 Henry Hub contract, which dropped 12 cents early Dec. 4 despite a colder weather outlook.
Specifically, Rover’s Dec. 4 filing requested authorization to place in-service the following facilities:
- Clarington – all units
- Seneca – all units
- Cadiz – all units
- Berne Lateral – consisting of approximately 3.7 miles of 24-inch diameter natural gas pipeline in Noble County, OH
- Seneca Lateral – consisting of approximately 25.6 miles of 42-ince diameter natural gas pipeline in Noble and Monroe Counties, OH
- Clarington Lateral – consisting of approximately 32.6 miles of 42-inch natural gas pipeline in Monroe and Harrison Counties, OH
- Berne Receipt (350 MMCFD)– located on the Berne Lateral in Monroe County, OH
- Seneca Receipt (800 MMCFD) – located on the Seneca Lateral in Noble County, OH
- REX Delivery (400 MMCFD)– located on the Seneca Lateral in Noble County, OH
- Madison Receipt (400 MMCFD)– located on the Seneca Lateral in Monroe County, OH
- Gulfport Receipt (300 MMCFD)– located on the Seneca Lateral in Monroe County, OH
FERC approval is likely, though not guaranteed. The timely completion of Rover’s Phase 1B is vital, as it represents the largest opportunity for producers to meaningfully increase production in December. EVA expects Rover Phase 1B completion to be followed shortly thereafter by the completion of the Leach Express pipeline in January.