The gas supply shortness in the US Southwest that has been driving up prices and pulling Permian Basin volumes that would otherwise be going to Gulf Coast demand centers is expected to continue in the near-term until production is able to rebound, S&P Global Platts Analytics data showed. A driving factor has been low supply amid growing demand, mainly in the form of LNG feedgas consumption. The dynamics mean that even with Kinder Morgan's Permian Highway Pipeline entering full commercial service in January, Texas Gulf Coast is still needing to price at a premium to incentivize gas flowing there.
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