Rover Pipeline LLC is a new interstate natural gas project to transport 3.25 billion cubic feet per day (Bcf/day) of domestically-produced natural gas to markets in the Midwest, Northeast, East Coast, Gulf Coast and Canada, with direct deliveries to Ohio, West Virginia, Michigan, and into the Dawn Hub in Ontario, Canada which has a broader network of distribution points back into the U.S., the Northeast and into the Canadian market.
Rover will connect Marcellus and Utica shale supplies to markets in the Midwest, Northeast, East Coast, Great Lakes and Gulf Coast regions of the United States and Canada. The pipeline is substantially subscribed through 15 and 20 year fee-based contracts.
The approximate $4.2 billion pipeline will gather gas from processing plants in West Virginia, Eastern Ohio and Western Pennsylvania for delivery to the Midwest Hub near Defiance, Ohio, where roughly 68 percent of the gas will be delivered via interconnects with existing pipelines in Ohio and West Virginia for distribution to markets across the U.S.
The remaining 32 percent of the natural gas will be delivered to markets in Michigan via an interconnect near Livingston County, Michigan with the existing Vector pipeline, which has established delivery points to local distribution companies and the vast Michigan storage fields throughout the state. Additionally, Vector will transport natural gas that is not delivered to Michigan markets on to the Dawn Hub in Ontario, Canada.
Approximately 70 percent of the Rover pipeline will be under agricultural land, and will parallel existing pipelines, power lines, or roads whenever possible
Timeline: Following the issuance of a Certificate of Public Convenience and Necessity on February 2, 2017, by the Federal Energy Regulatory Commission (FERC), Rover anticipates beginning construction in the first quarter of 2017, and completing the 713-mile pipeline by November 2017.
U.S. natural gas production is forecast to increase by 44% by 2040; however, most new production will originate in the Marcellus and Utica formations, where pipelines - such as Rover - will carry this abundant new supply to market. Rover will provide a reliable long term supply of low cost natural gas to the Michigan and Ohio regions, which are largely dependent on out of state production to meet their supply needs.
The majority of the Rover Pipeline will be utilized by customers on the U.S. segments of the pipeline, including multiple take-off points in Michigan, West Virginia and Ohio. The Michigan and Ohio access points interconnect with multiple Local Distribution Company gas systems serving customers throughout the states and in West Virginia, the gas will be delivered to multiple take-off points in the North East, Gulf Coast and the East Coast.
The volume not consumed in the U.S. will be transported to the Union Gas Hub in Canada where it will be traded on the open market, for consumption either back in the United States, in Michigan, into the Northeast such as New York or New Jersey, or to customers in Canada. Furthermore, although the gas may be transported to Canada, it will be traded on the open market where a portion of the gas will come back into the United States for consumption, further amplifying the purpose and need of the pipeline to transport much needed gas from the production area to market (including markets in Ohio and Michigan).