Producer guidance on 2017 growth falls short of pipeline expansion capacity

摘要

An analysis of 2017 guidance for major Northeast producersrnindicates a shortfall between planned production growth andrncontracted pipeline capacity held by those producers on upcomingrnexpansion projects.rnThe shortfall suggests new expansions are unlikely to be filled withrnnew production, but rather will follow a pattern similar to thernexperience of Rockies Express’s Zone 3 Capacity Enhancementrnproject, whereby existing production is rerouted to the expansionrncapacity. Such a phenomenon, should it play out, will be supportive ofrnbasis strengthening at Northeast supply hubs, such as Dominion Southrnand Texas Eastern Transmission M2.