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Energy Transfer (NYSE: ET) continues to scale its natural gas infrastructure footprint in Texas, receiving approval from the Railroad Commission of Texas (RRC) for a sweeping pipeline permit that spans more than 8,100 miles. By increasing connectivity in the Delaware Basin, ET strengthens its feedstock supply chain for Gulf Coast terminals.
The report examines the effects on AECO hub gas pricing, the Canadian benchmark price for natural gas, from what is expected to be exceptional levels of condensate-directed Montney drilling in the coming years. This will result in substantial demand growth for in-basin condensate volumes because of increased need for diluent.
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The gushers were oil wells where the oil and gas were under so much pressure; they sprang out when the well got drilled. We know how to handle gas and liquids under massive pressure. Gas injection does the same: the gas expands in the well and displaces the oil, which gets forced to flow up.
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