Gulf Coast Pipelines Boom: $50B Investment
Update: 2025-11-23
Description
The Permian Basin is experiencing a significant surge in new natural gas pipelines, driven by escalating demand from both domestic and international industries. This demand is primarily fueled by the growth of chemical manufacturing, data centers, and liquefied natural gas exports from the Gulf Coast.In response to this increased demand, pipeline developers are investing heavily in new capacity, particularly along the U.S. Gulf Coast. By the end of the decade, several new export plants are expected to open, further intensifying the need for expanded pipeline networks.With favorable regulations in Texas and Louisiana, and strong support for U.S. energy, numerous new pipeline projects are set to commence operations in the near future. In the upcoming year, twelve new or expanded gas pipelines are scheduled for completion across Texas, Louisiana, and Oklahoma.These projects are anticipated to augment the Gulf Coasts natural gas transport capacity by thirteen percent, marking the most substantial expansion since the shale gas boom began in 2008. This expansion is predominantly driven by liquefied natural gas exporters, utilities, and data centers, marking a shift from past expansions led primarily by producers.In total, companies have pledged fifty billion dollars to construct eight thousand eight hundred miles of new pipelines. This substantial investment aims to alleviate bottlenecks, particularly in the Permian, where gas prices have occasionally dropped to negative due to insufficient pipeline capacity, compelling producers to flare off excess gas.
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