GCX Expansion Shifts Permian Congestion to Agua Dulce

Kinder Morgan's Gulf Coast Express (GCX) expansion has alleviated congestion in the Permian Basin, but it may be shifting the natural gas supply glut to Agua Dulce. The GCX expansion, which added 570 MMcf/d of capacity, was designed to uncork bottlenecks in the region. However, as Waha prices have recovered since June and trading volumes hit a record high, some analysts are warning that the pressure may be shifting south to Agua Dulce. According to data, Agua Dulce prices trail behind Waha's recovery, suggesting that the supply glut is indeed migrating down to this area.