How Do US Natural Gas Pipelines Move Gas to

Markets?
A massive transmission and distribution system, the natural gas pipeline network in the United
States is comprised of more than 210 pipeline systems spanning 305,000 miles that can deliver
to virtually anywhere in the Continental US.

U.S. Natural Gas Pipeline Network, 2009Source: www.eia.doe.gov

These pipelines have more than 11,000 delivery points, 5,000 receipt points and 1,400
interconnection points that transfer natural gas throughout the country, as well as 24 hubs that
offer additional interconnections. Ensuring a constant flow, there is a network of 1,400
compressor stations that maintain the pressure in the lines.
Importing LNG domestically, natural gas via pipeline from Canada, as well as exporting natural
gas to Mexico, there are 49 locations where natural gas can be imported or exported into the
US. Additionally, there are eight LNG import facilities and 100 LNG peaking facilities. There are
400 underground natural gas storage facilities, as well.

Regulations
The Federal Energy Regulatory Commission (FERC) defines the rate-setting methods for
interstate pipeline companies, as well as determines rules of business. Furthermore, the

governmental agency is solely responsible for authorizing the construction and operations of
interstate pipelines, storage fields and LNG facilities.
Should a company plan to develop a new or expand an existing pipeline, there are a number of
steps that must be undertaken, including obtaining regulatory approval from FERC. The
company must publicly announce the project, in addition to constructing and testing the pipeline.
On average, it takes approximately three years to bring a pipe into service from the time it is first
announced.
On the other hand, there remain major pipeline projects that take substantially more time than
that to construct and put into service. For example, it will take a number of years for BP and
Conoco Phillips to build the Denali Alaska gas pipeline currently under review. Another ongoing
pipeline construction project is Transcanada's Bison pipeline, which will link Wyoming natural
gas with Midwest US markets.

Transporting Natural Gas

There are a number of transfer and processing steps involved with getting produced natural gas
from the wellhead to the customer. Once leaving the well from which it was produced, natural
gas is directed via gathering lines, which transfer the flow to a processing plant.
After being processed at the plant, natural gas is transmitted via a mainline transmission
system, which is a wide-diameter pipeline that transports the gas for long distances to the
market areas. Market hubs are where these pipelines intersect and flows are transferred.
Natural gas can either be transported to the final customer or to underground storage facilities
for later use.
There are 11 unique transportation routes within the US. Those include five transmission lines
originating in the producing areas of the Southwest US, two pipelines that extend from the
Rocky Mountain region and four routes that enter the country from Canada.

Regional Delivery
The US is divided into six regions that encompass the lower 48 states. The Northeast region
includes Connecticut, Delaware, Massachusetts, Maine, New Hampshire, New Jersey, New
York, Pennsylvania, Rhode Island, Virginia and West Virginia. With 20 interstate natural gas
pipeline systems, there are 50 local distribution companies in this region.
Composed of Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin, the Midwest region is
served by 26 interstate and eight intrastate pipeline companies. This region gathers much of its
supply from Texas and Oklahoma, but production is also provided by Canada, and a new
pipeline, the Rockies Express, originating in the Rocky Mountains will also add production by
the close of 2009.
Made up of Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina
and Tennessee, the Southeast region is served by 23 interstate and eight intrastate pipeline
systems. A large majority of the gas supplied here comes from the Gulf of Mexico, Texas and
Louisiana.
Serving principally as an exporter to other regions in the US and Mexico, the Southwest region
provides natural gas from both onshore and offshore production sites. Consisting of Arkansas,

Louisiana, New Mexico, Oklahoma and Texas, the Southwest region houses some of the oldest
and largest pipeline systems in the US. The region contains more than 56,000 miles of natural
gas pipeline and more than 66 intrastate systems.
Colorado, Iowa, Kansas, Missouri, Montana, Nebraska, North Dakota, South Dakota, Utah and
Wyoming are served by the Central region. Here there are 22 interstate and 13 intrastate
pipeline companies. Because this area consumes less than it produces, it is an exporter;
supplies are also transported through the region from the south and east, as well as from
Canada to the north.
With 10 interstate and nine intrastate natural gas pipeline systems, the Western region consists
of Arizona, California, Idaho, Nevada, Oregon and Washington. About half of the supplies
entering the region are from domestic origins, and the other half comes from Canada.