East Daley says LNG development could be threatened by needs of data centers

East Daley Analytics said rising natural gas demand from Gulf Coast pipeline expansions and gas-fired power generation for data centers could transform Permian Basin from a region known for gas constraints into one that may face a gas shortage.  At a webinar Oct. 28, according to American Oil & Gas Reporter, “The company’s analysis considers a scenario in which Permian gas production increases by more than 7.5 billion cubic feet of gas a day through 2036.  It envisions the incremental supply filling underused egress capacity and serving new in-basin demand, including data center generation.” 

Senior director Jack Weixel of East Daley said, “Seventy-five percent of expected data center demand is inside basins.  Some of the LNG guys might have first call on the molecules because they contracted years ago, but this next phase of LNG development could potentially be threatened by the needs these data centers are exhibiting.”  Data centers in Permian Basin could exacerbate a gas supply shortfall.  East Daley forecasts data centers’ demand for Permian gas will reach 2.8 billion cfd by 2036.