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New Pipeline Projects to Boost U.S. Exports Adapted from Information by the U.S Energy Information Administration According to a recent report from the U.S. Energy Information Administration (EIA), the recent number of completed and up- coming natural gas infrastructure projects are expected to increase the reach of natural gas produced in the Marcellus and Utica regions of the Northeastern United States. Over the past several years, natural gas production in the area has increased significantly. With a combined growth of 12 billion cubic feet per day since 2011, pro- duction from the Northeast area accounts for 89% of the country's total growth in natural gas production. Due partially to strong domestic production growth, both domestic natural gas consumption and exports of natural gas by pipeline have increased. However, because infrastructure projects often have longer lead times than production projects, infrastructure growth in the Northeast has not kept pace with the increased production growth, and capacity has not been sufficient to move natural gas out of the area to demand centers and export locations. These projects have the potential to change things. Recently, several new pipeline projects have come online to move natural gas either to nearby market areas in the Mid-Atlantic area (New York, New Jersey, and Pennsylvania) or to feed into existing infrastructure which delivers natural gas to more distant regions, especially the U.S. Gulf Coast. Key projects that came online in late 2015 or early 2016 include: j The Rockies Express Pipeline (REX) reversal project had added westbound capacity to flow natural gas to the Midwest in 2014. In late 2015, Texas Eastern Transmission Company’s OPEN project added 550 million cubic feet per day (MMcf/d) of pipeline takeaway capacity out of Ohio. j Columbia Gas Pipeline's East Side Expansion, a 310 MMcf/d project that flows natural gas produced in Pennsylvania to Mid-Atlantic markets. j Tennessee Gas Pipeline's Broad Run Flexibility Project, a 590 MMcf/d project originating in West Virginia that moves natural gas to the Gulf Coast states. j Tetco’s Uniontown-to-Gas City project flows up to 425 MMcf/d of natural gas produced in the Marcellus region to Indiana. j Williams Transcontinental Pipeline's Leidy Southeast project provides additional capacity to take Marcellus natural gas to Transco's mainline, which extends from Texas to New York. From there, the natural gas serves Mid-Atlantic market areas, as well as the Gulf Coast. Several other projects plan to add natural gas transmission capacity later in 2016: j The Algonquin Incremental Markets expansion project will add 342 MMcf/d of capacity to Algonquin Gas Transmission's pipeline in the highly constrained New England region. j The Constitution Pipeline will have the capacity to transport up to 650 MMcf/d of natural gas from the Appalachian Basin to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in New York, which will provide access to markets in the Northeast and New England. j TheWright Interconnect Project expands Iroquois's facilities and supports the Constitution Pipeline where the Iroquois and Constitution pipelines interconnect in Wright, New York. Other projects currently under con- struction, including liquefaction projects in Maryland and along the U.S. Gulf Coast, will enable natural gas produced in the Appalachian Basin to reach markets over- seas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orldWide Drilling Resource ®