Barnett

Several large-scale LNG export projects have reached a final investment decision this year along the U.S. Gulf Coast, with most expected to start up between 2029 and 2031. They will be supported by new pipeline capacity to deliver natural gas from producing areas, but how and where will production increase to meet this new demand? In today’s RBN blog, we detail the movement of gas throughout Texas and Louisiana and highlight the key findings in the newest edition of our Arrow Model.

New power plants in Mexico have spurred natural gas demand south of the border––and fast-rising gas imports from the U.S, particularly Texas. Thus far, pipeline exports from Texas to Mexico have primarily been supplied by gas produced within the Lone Star State, but a big squeeze is on as nearby Texas production volumes decline (particularly the Eagle Ford) and export demand continues to increase, not just from Mexico but from new liquefaction/LNG export terminals along Texas’s Gulf Coast. Today, we unpack the shifting Texas supply and demand balance and potential implications for the market.