Falling off the cliff: what happens if gas pipeline contracts are not renewed?

Over the next five years, more than 47% of current firm interstate gas pipeline contracts will expire. This represents 128 bcfd of contract commitments across North America. Contract renewals are not guaranteed, as uncertainties around supply and demand growth impact decisions of stakeholders across the gas value chain. In this insight, we investigated the potential impacts of de-contracting on the regional gas market by performing a sensitivity analysis based on our H1 2020 long-term outlook, using the Southeast Supply Header as a case study. Specifically, we examined flow changes on key pipelines and how regional basis prices may react to changes in contracting. The decision to renew contracts will likely depend on several factors. How can pipelines retain their shippers?