Insight
Managing the nitrogen challenge: how Permian gas is reshaping US Gulf Coast LNG
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The boom in Permian Basin production is delivering a challenge to US LNG exporters: gas with high-nitrogen content delivered to the Gulf Coast — well above the 1-1.5 mol% typically required for safe LNG operations. By the mid-2030s, Permian supply will hit 10+ bcfd to Gulf Coast LNG facilities, or nearly one-third of regional feedgas demand. Eastern Texas and western Louisiana facilities will face exposure as new pipeline infrastructure expands the Permian's reach. In this insight we seek to answer: What are the potential solutions and their cost implications for the rising nitrogen challenge? Which Gulf Coast LNG facilities will be most exposed? Whose responsibility is it address this issue? Read on to discover nitrogen mitigation options, commercial considerations, and how this could create an opportunity for midstream operators to provide third-party solutions.
Table of contents
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Executive summary
- The scale of the nitrogen challenge
- Why nitrogen matters for LNG operations
- Safety and technical risks
- Commercial impact
- Solutions and economics
- Proven technology with global precedent
- Management options and cost analysis
- Economic reality: offsetting Permian advantages
- 6 more item(s)...
Tables and charts
This report includes the following images and tables:
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Average monthly nitrogen content on Tennessee Gas PipelineObserved nitrogen content in selected deliveries to US Gulf Coast LNG facilities (15-day rolling average)Permian gas supply delivered to LNG facilitiesMap of US LNG facilities with their portion of physical gas supplied from the PermianCost range estimates of nitrogen management options
What's included
This report contains:
