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US NATURAL GAS—1: Gulf-region transport bottlenecks pose future supply, price dislocation

04/28/2008
Between 2010 and 2012, barring a drastic decline in the price of natural gas that would curtail the current growth trajectory of US production, incremental domestic production, combined with some nominal volume of increased LNG imports could exceed pipeline capacity out of the Southeast-gulf region.It is possible that capacity use out of the region could reach 100%, resulting in a market scenario similar to the which affected Rockies pricing during summer 2007, displacing gas supplies that have traditionally moved into the Southeast-gulf region from the Midcontinent and West Texas into lower-value markets in the western US.This first part of two articles outlines the infrastructural devel...
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