New Gas Lines and LNG Terminals Expected to Enhance Market Dynamics
The Permian Basin in Texas produces a lot of natural gas that comes up with oil drilling. Soon, this gas market should grow much bigger because of new export terminals being built along the Gulf Coast.
Right now, eight big terminals are working to ship liquefied natural gas (LNG) to other countries. Five more are being built, and eighteen have been approved but not started yet. Countries in Europe and Asia pay about four times more for gas than Americans do, making exports very profitable.
New pipelines like the Matterhorn Express are moving gas from West Texas to the coast. More pipelines are planned to carry billions of cubic feet of gas per day.
Local businessman Kirk Edwards says the gas industry was slowed down by government delays under the previous administration, but things are moving again. He expects the gas glut in West Texas to last about two more years until new pipelines and export plants are finished.
Economist Ray Perryman says LNG exports are expected to grow by 19% this year. New data centers that need lots of electricity could also use more natural gas for power generation.
Both experts believe the future looks bright for Permian Basin natural gas once the new infrastructure is completed.