Energy Factoid: U.S. natural gas production grew by 4% in 2022 and higher growth is possible now that the Mountain Valley Pipeline cleared a legal hurdle today, March 29, 2023

The US Court of Appeals for the Fourth Circuit ruling could allow MVP to achieve it 2023 in-service goal

U.S. natural gas production grew by 4% in 2022, averaging 119 billion cubic feet per day (Bcf/d). Three regions, Appalachia, Permian, and Haynesville, accounted for 60% of all U.S. production in 2022.

The Appalachia region of the Marcellus Shale in the Northeast produced more natural gas than any other U.S. region, accounting for 29% of U.S. production. The Permian region in western Texas and New Mexico, the second-largest U.S. natural gas-producing region, accounted for 18% of U.S. production.

Natural gas production in the Haynesville region in Louisiana and Texas grew by 2.0 Bcf/d in 2022. The Haynesville region is a strategic location for additional natural gas because of its proximity to the Gulf Coast, where demand from liquefied natural gas export terminals and industrial facilities has skyrocketed. In addition, gross natural gas production in the Eagle Ford region of South Texas rose by 18%.

Even as Appalachia remained the most prolific U.S. natural gas-producing region, its growth had slowed because of insufficient pipeline takeaway capacity. As a result, no new major pipeline capacity additions from the Northeast came online in 2022.

The reasonable question is, why isn’t sufficient pipeline takeaway capacity available to transport natural gas out of the most prolific U.S. natural gas-producing region in the U.S.? It’s because the Mountain Valley Pipeline (MVP), which runs 303 miles from northwestern West Virginia to southern Virginia, has been held up for years by lawsuits from a group of anti-natural gas NGOs.

Environmental groups, including the Sierra Club, Appalachian Voices, and Wild Virginia, argued that the project wasn’t needed. They asked the D.C. Circuit to overturn FERC’s orders allowing construction to proceed. Groups led by Appalachian Voices also want the Fourth Circuit to reject the Fish and Wildlife Service’s finding that the project wouldn’t jeopardize protected species.

With the surge in European demand for LNG due to the invasion of Ukraine and the resulting sanctions against Russia, it is even more critical that MVP be completed. The good news is that the MVP cleared another legal hurdle today, March 29, 2023, which keeps its 2023 in-service goal within reach. This is breaking news, and more details will follow.