Chicago-based financial services firm Morningstar said in an analysis released this week that strong demand for natural gas is driving a surge in pipeline construction across Texas, Oklahoma and Louisiana. Morningstar said Monday 12 new and expanded natural gas pipelines are scheduled to be completed this year. They are expected to add 18 Bcfd of capacity. The report said LNG exporters and major industrial power consumers are actively investing in infrastructure to ensure access to discounted natural gas supplies and reliable year-around capacity.
The report added that additional pipeline takeaway capacity is intended to alleviate “bottlenecks” such as the Waha hub in west Texas by connecting growing associated gas supply to demand centers, including data centers, manufacturing, chemical production and LNG exports.
Supply growth has reinforced the need for new infrastructure. U.S. Energy Information Administration said associated natural gas production in Permian Basin increased at an annual rate of 20 percent from 2014 to 2024 to reach 12.5 Bcfd in 2024. Energy Transfer and Targa Resources are among the major midstream companies investing in the Permian Basin.