Southeast Region

With U.S. natural gas production continuing to hit all-time records, the big question for the gas market is demand. Where is all that gas going to go?  Well, we are pretty sure that most of the supply growth will be absorbed by the triad of new gas fired power generation, industrial demand and exports.   The funny thing is that most of the volumes associated with these demand sources are located in one region – the southeastern U.S., with a heavy concentration of demand in Louisiana, home of the Henry Hub.  This shift is turning what was a major supply area into an epicenter of natural gas demand, with the need for extensive new transportation paths into, rather than out of, the region.  Today, we explore the implications of this transformation.