Crossroads is a 300 MMcf/d pipeline owned by TC Energy (TRP) that spans just over 200 miles from northwest Ohio to the Indiana/Illinois border. Crossroads has historically distributed gas from the Northeast into the greater Chicago market, but the modest pipe may undergo a big transformation.
On Feb. 9, Crossroads Pipeline posted a non-binding open season that could see it expand by 1.5 Bcf/d by 4Q30. Crossroads proposes to loop the mainline and add infrastructure on TC Energy’s existing pipeline system to expand delivery to ANR’s Joliet hub near Chicago, as well as to delivery points on Northern Border Pipeline between Illinois and South Dakota. The project would also add a new receipt point with Rover Pipeline in Defiance, OH and move gas from Rockies Express Pipeline (REX) northbound onto ANR’s Southeast Mainline (see project map from the open season announcement).
Demand in Illinois is expected to grow significantly in the coming years. East Daley Analytics is currently tracking 19 data center projects in Illinois in our Data Center Tracker in Energy Data Studio, most in Chicago or the surrounding counties. These projects would total almost 9 GW of power demand by 2035, translating to roughly 1.5-2 Bcf/d of demand if all were to rely on gas-fired generation. Data center development in Wisconsin will also draw gas from Chicago, adding further value to pipelines able to bring additional supply into the region.
Project Boosts Competition for Northeast Gas
While expanding Crossroads makes sense from a demand perspective, the project could face upstream constraints that limit its success.
Rover, which will add a new meter as part of the expansion, regularly runs at over 90% utilization (see figure at right). This leaves little capacity available to transport additional volumes on an expanded Crossroads without Rover itself expanding.
Meanwhile, volumes flowing through REX’s Zone 3, which covers the eastern end of the pipe, historically ran at capacity. But volumes began to decline in 2024, with losses compounded when Mountain Valley Pipeline (MVP) entered service that June and opened additional egress out of the Northeast. MVP drew some supply away and has opened seasonal capacity on REX. However, the seasonality could pose issues in supplying gas to a Crossroads expansion regularly.
Regardless, the project’s utilization of TC Energy’s system, in addition to third-party pipeline lease agreements, provides a sturdy foundation to support the expansion. Existing interconnects with ANR, Trunkline, Columbia Gas and Panhandle also provide the pipeline with supply flexibility. Meanwhile, power demand growth in Chicago and further downstream seems likely as data center developers continue advancing projects. – Ian Heming Tickers: TRP.
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