TransCanada’s shale gas pipe cost soars
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.