Tran­sCanada’s shale gas pipe cost soars

The Star Malaysia - StarBiz - - Foreign News -

HOUS­TON: Tran­sCanada Corp won a 49% price in­crease for space on the pipe­line it’s build­ing to haul shale gas from Ap­palachian fields as labour short­ages and es­ca­lat­ing land prices pushed con­struc­tion costs al­most US$1bil higher.

US reg­u­la­tors ap­proved the Cal­gar­y­based com­pany’s re­quest to charge gas ex­plor­ers US$14.663 per dekatherm for space on its Moun­taineer XPress Project, a 275km in West Vir­ginia, ac­cord­ing to a fil­ing dated Aug 24.

That’s an in­crease from the US$9.827 rate ap­proved by the Fed­eral En­ergy Reg­u­la­tory Com­mis­sion just eight months ago.

“The re­cent surge of pipe­line con­struc­tion ac­tiv­ity in the Mar­cel­lus and Utica Shale re­gions caused costs as­so­ci­ated with land ac­qui­si­tion and con­trac­tor ser­vices” to soar, Tran­sCanada’s Columbia Gas unit said in the fil­ing.

As out­put of the fur­nace and power-plant fuel has surged, pipe op­er­a­tors such as Tran­sCanada, EQT Mid­stream Part­ners LP and Do­min­ion En­ergy Inc are vy­ing to build con­duits to carry the gas to ur­ban mar­kets.

The Ap­palachian re­gion ac­counted for 29% of to­tal US gas pro­duc­tion in July, ac­cord­ing to the En­ergy In­for­ma­tion Ad­min­is­tra­tion.

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