CA - The Permian Negative Waha Prices And LNG Reliance

2024-05-20 16:58:24 ET

Summary

• Several liquefied natural gas export projects in the United States have already received approvals and will add 11.0 Bcf/d of export capacity by 2028.
• The Waha Hub in Texas, a major gathering point for natural gas, has experienced price volatility due to oversupply and limited pipeline capacity.
• A joint venture between MPLX, Enbridge, and Whitewater Midstream aims to address the pricing issues at the Waha Hub by building new pipelines and storage facilities.

While the Biden Administration put what it called a "temporary pause" on pending licenses for liquefied natural gas export facilities, as I (and much of the financial media) have emphasized, a number of projects already have the necessary approvals from the Department of Energy and Federal Energy Regulatory Commission to be built regardless today. Corpus Christi Stage III, Golden Pass, Rio Grande LNG, and Port Arthur LNG all will be online between late 2024 and 2028, adding 11.0 Bcf/d of incremental export capacity; total United States LNG capacity will exceed 25.0 Bcf/d. While we can speculate on what exactly happens in the 2030s, that feedgas demand looks mighty guaranteed....

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