LNG Daily
BENTEK’s Braziel: US shale boom likely to upset gas flow patterns

Monday, September 28, 2009

The development of several shale gas plays in the eastern US could force a fundamental shift in how gas flows through pipelines across North America, an industry analyst said Friday.

Gas flows in the US are closely watched by the global LNG industry because they play a major role in determining where the highest-priced points would be for delivering cargoes to the US.

“The economical motivation to move gas on all of these pipelines from west to east that have been built over all these years is becoming less of a motivation than it was when we first looked at this two years ago, BENTEK Energy Managing Director and Vice President Rusty Braziel said at the Platts Pipeline Development and Expansion Conference in Houston.

“Gas in the East is cheap and gas in the West is expensive,” Braziel said. “Gas in the East is going to be more profitable to produce and gas in the West is going to be less profitable to produce. It’s been a long time since this industry has seen that sort of dynamic.”

For a complete copy of this report from Platt’s LNG Daily, please click on the following link: http://www.platts.com/