Enbridge (ENB) plans to expand the Eastern Tennessee Natural Gas (ETNG) pipeline to meet new power generation demand in the Southeast region. The project, the Tennessee Ridgeline Expansion, is an example of new domestic demand we anticipate for natural gas, in addition to LNG export growth.
Enbridge introduced the Tennessee Ridgeline Expansion as a secured project in its 1Q24 earnings materials. At an estimated cost of $1.1B, the project will support new demand from Kingston Fossil, a coal plant the Tennessee Valley Authority (TVA) is converting to use natural gas..png)
In the ENB Financial Blueprint, East Daley Analytics estimates the expansion will generate ~US$160MM in annual EBITDA to Enbridge once in service, equal to a 6.9x build multiple.
The project includes 130 miles of 30-inch pipe looping, plus meter modifications and an 8 MW solar array to be installed behind the meter. The project will add 300 MMcf/d of firm capacity on ETNG to the Kingston plant in Morgan County, TN.
ETNG has filed with the Federal Energy Regulatory Commission (FERC) for a certificate to construct the project. The pipeline is seeking approval by November 1, 2024 to begin construction in 2025 and to start service by November 1, 2026.
Environmental groups including the Sierra Club and Appalachian Voices are opposing the ETNG project, challenging the market need in filings at FERC. The TVA has filed its own comments at FERC in support. The agency has entered a final environmental impact statement and a record of the decision to proceed with the Kingston plant conversion. In its letter to FERC, the TVA noted that the switch to gas would not be possible without the ETNG expansion.
East Daley expects to see more opportunities like Tennessee Ridgeline Expansion for midstream companies as switching from coal to gas continues. From 2012 to 2022, coal-fired generation by utilities has declined 45%, according to Energy Information Administration data (see figure). Between industrial reshoring, data center demand and coal-switching, the industry has ample opportunities to grow domestic demand. – Zach Krause Tickers: ENB.
Find East Daley at the EIC Investor Conference
East Daley is attending the Energy Infrastructure Council Investor conference in Aventura, Florida from May 21 – 23! Come see Rob Wilson, VP of Analytics, speak on May 23. Want to connect with us at EIC? Request a meeting.
Available Now: Ethane Supply & Demand Report + Data Set
The new Ethane Supply & Demand Report + Data Set is a comprehensive data file and report providing valuable insights into historical and forecasted supply and demand components for ethane. The report covers crucial metrics such as ethane supply from US gas processing plants, and demand from domestic ethylene steam crackers and ethane exports. Learn more about the Ethane Supply & Demand Report and Data Set.
Access the NEW G&P System Financial Dashboard
We are thrilled to introduce a groundbreaking addition to East Daley's suite of energy management tools: the G&P System Financial dashboard. This dynamic tool will revolutionize how you scope and analyze multiple financial metrics and throughput forecasts for individual G&P systems across the US. Clients can log in to Energy Data Studio to review the G&P System Financial dashboard prototype. Learn more here.
Energy Data Studio
East Daley Analytics has launched Energy Data Studio, a platform for our industry-leading midstream data and commodity production forecasts. All clients have access to the new client portal. If you have not yet logged in, please fill out the form to request a registration email be resent.
Energy Data Studio leverages our G&P data set for insights into midstream assets across every major oil and gas basin in North America. Users can navigate detailed visual dashboards by region, pipeline, or individual asset to understand crude oil, natural gas and NGL supply at the most granular level.
Energy Data Studio is available through data downloads from the visual interface, in Excel files, or as a direct feed delivered into subscribers’ workflow via secure file transfer. To learn more about Energy Data Studio, please contact insight@eastdaley.com.
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.
-1.png)