Natural gas production has reached record levels in the United States thanks to the Eagle Ford and other shale plays.
Although natural gas prices are trading near 10-year lows, producers are finding new markets and outlets for the clean-burning fuel, cheap natural gas from the Eagle Ford has created conditions allowing for billions of dollars of investment around South Texas ports.
In the Port of Corpus Christi, both Austrian steelmaker Voestalpine and China’s Tianjin Pipe Corp. are investing almost $2 billion in construction projects that are currently under way.
Crews at the Port of Corpus Christi have also started clearing land to make way for Cheniere LNG, a $12 billion project that will export natural gas from the Eagle Ford to overseas markets. Developers hope to create a 130-mile pipeline from the Agua Dulce hub just west of Corpus Christi to feed natural gas from the Eagle Ford to the port.
Further south, the Port of Brownsville is hoping to build five liquified natural gas export terminals representing billions of dollars of investments and hundreds of new jobs. If approved, the Port of Brownsville is poised to become the largest LNG export hub in the United States.
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After oil overload, a glut of natural gas may be next to flood the world’s energy markets(business.financialpost.com)