"I" of the Storm

Learn how infrastructure investment in the Southeast/Gulf region is affecting the industry.

Over the past two years, the pattern of gas flows in North America entered into a new era, driven by a level of infrastructure investment in the Southeast/Gulf region that the industry has not experienced in decades. Dozens of new natural gas pipeline, storage, and LNG terminal projects have been placed in service, resulting in shifting flow patterns, disrupting regional pricing relationships, and realigning the value of firm transportation across the pipeline grid.

Pipeline projects from Boardwalk, Centerpoint, Spectra, Energy Transfer, Enterprise, Kinder Morgan, Enbridge and others added over 7 Bcf/d of pipeline capacity from the prolific Barnett, Woodford and Fayetteville shales and the Bossier Sands across the Southeast/Gulf region. New LNG terminals added sendout potential of 10 Bcf/d. Several new storage facilities are in place. And approximately 1 Bcf/d of Southeast/Gulf supplies that have traditionally moved into the Ohio region have been displaced by Rockies Express deliveries. 

These developments are occurring within a geographic area defined by Platts as the Southeast/Gulf Region. This area is an approximately 650-mile-wide swath from the Bossier Sands and Fort Worth producing basins in Texas eastward to Transco Station 85 in Choctaw County, AL, extending down to the Florida Panhandle. The “I” in the title of this series refers to Platts' unique model of regional gas capacities, flows and pricing relationships used to organize and simplify the highly intricate network of pipelines in the Southeast/Gulf region.