OREANDA-NEWS. August 21, 2017. Three small expansion projects on Tennessee Gas pipeline (TGP) will combine to increase takeaway capacity from the Marcellus shale by 460mn cf/d (13mn m?/d), likely supporting prices in that pipeline's zone 4 as early as the end of this year.

TGP zone 4 300 Line's winter discounts to the Henry Hub have tightened in recent months amid expectations of increased takeaway from eastern Pennsylvania. Recent Argus natural gas forwards showed winter 2017-18 prices at that index tightening to a 60?/mmBtu discount to the US benchmark. The same seasonal block traded at discounts of more than $1.20/mmBtu late last year.

One of the three expansions, the 135mn cf/d Orion project, is technically not scheduled to start until June 2018. But Orion could begin flows four months from now, according to anchor shipper Cabot Oil & Gas. The $143mn project is "now expected to be placed in service in December, which is significantly ahead of the original schedule," chief executive Dan Dinges said during Cabot's most recent earnings call. A Kinder Morgan spokesman this week said June 2018 is still the official start date for the project.

TGP has not yet filed paperwork with the US Federal Energy Regulatory Commission that indicates an early completion, but there might be some partial flows prior to the project coming fully on line, BTU Analytics analyst Matt Hoza said.

Orion includes 13 miles (21km) of pipeline looping in Pike and Wayne counties, as well as modifications to one compressor station in Pike County.

The 180mn cf/d Triad Expansion project is estimated to cost $87mn and is scheduled to come on line in November. The project will primarily supply gas to the new 1,000MW Lackawanna Energy Center in Jessup, Pennsylvania. The combined-cycle plant has already contracted with Cabot to provide its fuel, and should begin producing power by the end of 2018. At maximum capacity the plant will burn 232mn cf/d. The Triad project includes 7 miles of new pipeline looping.