This feature provides an overview of some virtual LNG pipelines that are planned or currently operated in North America, Europe, Australia and elsewhere.
Despite having 305,000 miles of interstate and intrastate gas transmission pipelines, the largest gas pipeline network in the world has supply issues as well as customers located beyond the reach of the existing gas grid. This makes virtual pipelines a necessity. For example, owing to capacity bottlenecks in the interstate gas pipelines linking the market of New England with shale gas supplies to the west, gas prices can reach highs of $25 per million British thermal units (MBTU) compared with a US average of $3.09/MMBtu for delivery in January 2017. In order to ameliorate pipeline capacity constraints and to moderate high winter gas prices, a monthly virtual pipeline consisting of three to four ocean tankers delivers LNG from Sabine Pass LNG export plant to Engie SA’s Everett terminal near Boston. It is then distributed by truck to towns and cities in New England. Read More