“Four interstate natural gas pipeline projects in the Northeast U.S. began commercial service in 2011, adding nearly 1.5 billion cubic feet per day of capacity (see map) and over 181 miles of new pipe. Average daily natural gas demand last winter (November 2010 – March 2011) in the Northeast was about 16 billion cubic feet per day. Recently, new Northeast pipeline capacity and a warmer-than-normal winter weather outlook have reduced the potential for pipeline constraints along the Northeast seaboard for the 2011/2012 winter. Despite these pipeline capacity increases, forward markets such as NYMEX ClearPort still reflect premiums of over $2 per million British thermal units (MMBtu) over the expected NYMEX natural gas futures contract in February at the Transco Zone 6 trading point. This signals that additional natural gas pipeline capacity may be needed to reduce peak winter premiums further in the big winter load centers like New York City and Boston that remain subject to pipeline constraints.”