BENTEK Top Stories

03/20/2017–
Canadian Observer

Waddington exports could fall this summer

Exports to the US Northeast on Iroquois Pipeline at the Waddington interconnect will be facing downward pressure this summer compared to last, as maintenance that supported exports at this point last year is not scheduled to be in effect this year. Last summer, maintenance related to the Algonquin Incremental Market project cut capacity on Algonquin’s system east of the Stony Point compressor station. In addition to supply from Canada, Iroquois gets gas from Algonquin in Massachusetts upstream of Stony Point at the Brookfield interconnect. The capacity cut at Stony Point led to Algonquin deliveries to Iroquois at Brookfield averaging 194 MMcf/d which was 200 MMcf/d below the prior three-summers. With Iroquois receiving its supply from either Waddington or Brookfield, this 200 MMcf/d drop from the three-year summer average may have led to a one for one increase in exports to Waddington. Warmer than average temperatures in the Northeast also helped to boost demand along Iroquois. Temperatures in New York and Connecticut averaged 1.4 degrees above normal, which was 0.8 degrees warmer than the prior three summers. This helped to drive deliveries to power plants and LDCs along Iroquois to a combined average of 517 MMcf/d, a gain of 30 MMcf/d from the prior three summers. If temps return to normal, less demand along Iroquois and no supply cuts from Algonquin could mean Waddington exports fall from last summer’s average of 394 MMcf/d.