# Constraints to Gulf Coast gas market to drive widening basis discounts | S&P Global

> Pipeline constraints into Louisiana and East Texas are expected to widen basis discounts at US gas hubs next summer. Forward prices at Carthage and Columbia Gulf are 10 and 24 cents per MMBtu below Henry Hub, and Chicago and Dominion South are discounted further.

- Date: 2020-01-10 · published 2020-01-10T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/55278-constraints-to-gulf-coast-gas-market-to-drive-widening-basis-discounts-s-and-p
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Widening regional basis spreads show that Gulf Coast LNG-linked demand is absorbing gas capacity, which can raise feed-processing energy costs in the Gulf while lowering prices at Midwest and Northeast hubs. Pipeline congestion may also affect regional energy costs for crushing and ethanol plants.

## Read by commodity

- NATGAS: neutral

## Sources

- spglobal.com: https://www.spglobal.com/energy/en/news-research/latest-news/natural-gas/011020-constraints-to-gulf-coast-gas-market-to-drive-widening-basis-discounts

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.