Rapid Expansion in Southeast Natural Gas Demand and the Efforts to Serve It

Natural gas demand, particularly for power generation, has grown rapidly in the Southeast US. To meet this growth reliably, the utilities serving Southeast consumers need two things: (1) a great deal more pipeline connectivity to supply; and (2) an ability to compete with massive demands along the Gulf Coast. The result is upward price pressure such that Southeast natural gas prices will be consistently above the core natural gas industry pricing benchmark at Henry Hub.