July 18, 2016

Rover Pipeline Can Ease Regional Gas Surplus

In recent months, our region’s energy industry has found itself with a surplus of natural gas. The Exponent Telegram covered this issue in an article titled “Oil and gas companies in north central West Virginia are optimistic despite industry decline,” highlighting the state’s ongoing issue of production exceeding demand in local markets. The piece features testimony from industry executives on the need for increased midstream infrastructure in the state.

As Charlie Burd, executive director of the West Virginia Oil and Natural Gas Association, relates:

“In the future, I don’t think there will be much relief … The market continues to slump due to the overall economy. The level of production is not likely to decrease and the level of consumption is not expected to increase. Major pipelines are being contemplated that would take the surplus gas out of the Appalachian Basin.”

The Rover Pipeline stands as one such project currently under review by federal regulators. According to Al Schopp, chief administrative officer and regional senior vice president of Antero Resources, Rover is among “the most synergistic [projects] to hook up to our existing network of pipelines” and transport natural gas to markets throughout the Northeast.

The Coalition for the Expansion of Pipeline Infrastructure encourages federal regulators to pursue a timely review process for projects like the Rover Pipeline. Echoing Mr. Burd’s sentiment, we “hope for a speedy approval of several proposed pipelines aimed at transporting the product to out-of-state markets.”

As the aforementioned article underscores, new midstream infrastructure is critical to relieving the current supply glut in West Virginia. Furthermore, construction will create thousands of local construction jobs and generate millions of dollars in state tax revenue, providing yet another layer of economic activity for the region. For these reasons, CEPI will continue to educate the public on the importance of responsible pipeline infrastructure.