- Debottlenecking and capacity additions that are currently or soon to be in progress will lead Appalachia to take a much larger role in supply, though associated gas from the Permian Basin will remain a substantial—and low-cost—supply source for much of the US Gulf Coast.
- However, ongoing associated gas production and ample supply in the Permian Basin will limit Appalachian flows south; the Permian Basin is expected to remain the primary supply source for the US Gulf Coast.
- Based on these anticipated supply and demand drivers, we expect to see North American gas prices remain stable in the medium term.
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