New Permian-to-Gulf Gas Pipelines to Shake Up Regional Flows and Basis

Sunday, 10/11/2020  Published by: Jason Ferguson  RBN Emergy

Link to full article:

https://rbnenergy.com/some-beach-part-2-new-permian-to-gulf-gas-pip...

Excerpt:

Permian natural gas production is now expected to grow at a subdued pace over the next five years, as lower oil prices and a focus on capital discipline have slashed rig counts. Few observers see the Permian situation changing anytime soon, especially as crude oil prices continue to hover around $40/bbl. That said, the Permian gas market will be anything but dull over the months and years ahead. More than 4 Bcf/d of new outbound pipeline capacity from the Permian to the Gulf Coast will be coming online next year, throwing natural gas flows from West Texas into flux and deeply impacting neighboring markets. While natural gas basis at the Permian’s primary Waha hub should improve dramatically, outflow to the Midcontinent will likely fall sharply and potentially reverse, and the Texas Gulf Coast will see an influx of supply on the new pipelines.