Continued low natural gas prices and the promise of a shale gas boom have altered the landscape both for gas and power markets. Surging shale supply will undoubtedly spur pipeline expansion. Long-time geographic flow patterns are likely to change, and the current midstream infrastructure is being tasked with moving gas in ways not anticipated when it was built.
While industry veterans continue to be mindful of the benefits of fuel diversity, cheap gas also poses the potential to move the power generation industry into another major gas “build-out.”
“Everyone in the gas value chain – from producers to pipelines to distributors and large end-users – is evaluating strategies to deal with and profit from tectonic changes in the industry arising from cheap shale gas and expanding environmental and safety regulations,”
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