A huge shift is expected in natural gas flow in the Southeast/Gulf region because of 40 new projects are underway, says new report of Bentek Energy LLC.
According to a new study conducted by Bentek Energy LLC, a firm involved in giving information on energy market, a huge shift is expected in the flow of natural gas, as 40 new infrastructure projects will begin in the Southeast/Gulf region in 2008, as reported by Bizjournal.
The study disclosed that 11 storage projects for natural gas, 25 natural gas pipeline projects, and 4 liquefied natural gas terminals are anticipated to completely change the gas flow pattern and pricing system at the regional level. They will also badly hamper the value of transportation system in North America, known for its complex pipeline network, during early 2008 and mid 2009. Several projects are tapping in East Texas areas and will transport gas into northeast and southeast markets.
The fall in the incremental production of gas moving into the Southeast/Gulf is going to cause serious disruption in flows and pricing of gas. Besides, cost effective and favorable tariff structures in many of the new gas pipeline projects will replace the existing pipelines that provide gas throughout the region.
Moreover, the impact of new pipelines will bring an increase in demand in production areas and a hike in gas supplies in areas which enjoy high prices. The new projects will significantly reduce the price difference between the prolific Barnett, Fayetteville Shales, Woodford, the Bossier Sands region and the dear Southeast markets.
Additional four LNG import terminals will be completed in next 16 months in the Southeast/Gulf region. They will add 7.1 Bcf/d high delivery send out capacity to Texas coast and the Louisiana. All these new projects are coming up in an area which surrounds Henry Hub - the delivery zone of NYMEX natural gas future contracts and point of reference for natural gas basis.
