Although Gulf Coast LNG exports are expected to drive the bulk of U.S. natural gas demand growth in the coming years, Mexico and Arizona could play vital roles in easing natural gas takeaway constraints out of the Permian Basin, according to NGI’s Patrick Rau, director of strategy and research.


As evidenced by Waha spot prices dipping into negative territory this week, “egress is once again becoming very tight” out of the Permian, Rau said on a recent episode of the Hub and Flow Podcast.

Recently completed newbuild pipelines from the basin – namely Gulf Coast Express Pipeline LLC, Permian Highway Pipeline (PHP) and Whistler Pipeline LLC – all span west-to-east, connecting the Permian with either the Agua Dulce or Katy hubs.

While these projects helped to ease...