It’s not all about Henry Hub – where are the opportunities in the US regional gas markets?

Despite Henry Hub's history as the North American natural gas benchmark price, regional market fundamentals will play a crucial role in the evolution of the market. The rise of the liquids-rich Permian and Mid-Con will pressure dry-gas basins such as the Haynesville and Northeast in the near term, but long-term potential remains in those dry-gas plays. After this round of Northeast export pipeline projects, new de-bottlenecking will be aided by the associated nature of supply in the Permian and industry-friendly states, which should accommodate the pace of production growth. Southern markets will see demand growth from LNG exports and industrial projects, but theirs is not the only demand swell, and higher renewable penetration in New England and California will ultimately cut into gas demand in the long-term. The end result: ever-evolving market dynamics where supply and demand ebb and flow in different regional markets.