Originally published for customers November 15, 2023
Over the last two years, there has been a substantial increase in the use of intrastate pipelines for interstate services in Texas. Such services generated substantial revenues for some pipeline companies, which illuminates potential opportunities for others.
What’s the issue?
According to the Energy Information Administration, the United States added the least amount of interstate natural gas pipeline capacity ever recorded in 2022.
Why does it matter?
Lack of pipeline capacity can limit the production of natural gas, but in Texas, many of the pipelines are intrastate, which under certain conditions can provide interstate service to their customers.
What’s our view?
Our review of the data available regarding intrastate pipelines in Texas shows that over the last two years there has been a substantial increase in the use of the pipelines for interstate service, and in 2022 such service for Permian Highway and Gulf Coast Express generated substantial revenues.
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