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How BWP Benefits from Strong Natural Gas Demand Growth

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US natural gas demand

According to the recent STEO (Short-Term Energy Outlook) report by the EIA (Energy Information Administration), natural gas consumption is expected to increase to 76.6 Bcfpd (billion cubic feet per day) in 2016 and 77.8 Bcfpd in 2017. These consumption levels compare to 75.3 Bcfpd in 2015.

The increase in 2016 natural gas consumption is expected to come from higher demand from electric power utilities. Boardwalk Pipeline Partners (BWP) has secured long-term contracts to transport ~1 Bcfpd of natural gas to power utilities and industrial customers.
Demand growth

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Beyond 2017, LNG exports and industrial demand is expected to dominate. Boardwalk Pipeline Partners (BWP) is bullish on the LNG export opportunity. BWP noted in its August 2016 investor presentation that it has “secured long-term, firm contracts to transport approximately 1.7 Bcf/d of natural gas to serve two LNG export facilities under construction in the Gulf Coast.”

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