Commodities
Midwest Gas Supply Cushion Faces Rising Competition by 2030
The Midwest's natural gas supply cushion is facing increased competition by 2030 due to rising LNG exports, growing power demand, and new pipeline outlets competing for gas flowing towards Chicago and the broader region.
LNG growth in the region is a significant factor in this shift. According to recent trends, LNG exports are competing with regional supply, which could lead to a decline in the Midwest's natural gas cushion by the end of the decade.
The Permian takeaway has also reshaped northern flows, further contributing to the increased competition for regional gas supply. Additionally, Chicago forwards have turned higher in the long term, indicating an expected increase in demand and potentially more strain on the region's gas supply.