Insight

Last-mile challenge: How will South Texas gas prices respond to Permian production, shifting flows and export demand?

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Given the current state of open pipeline interconnectivity in the South Texas region, Katy, Agua Dulce and the Houston Ship Channel prices have historically traded closely together. However, an influx of Permian and Eagle Ford supply will feed demand growth in South Texas and potentially uncover last-mile limitations in the region. What does this mean for Katy, Agua Dulce and Houston Ship Channel basis?

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