ADI assessed the market value of natural gas and hydrogen storage assets near the U.S. Gulf Coast through a detailed analysis of regional pipeline interconnects and seasonal spreads. The work evaluated the premium commanded by high-deliverability salt caverns and the technical constraints of repurposing infrastructure for hydrogen.
The client
Natural gas midstream operator
The situation
Investment risk surrounding the configuration of existing pipeline and storage assets to serve LNG feedgas and industrial customers.
ADI’s contributions
Regional infrastructure mapping
ADI utilized proprietary GIS data to identify high-fit counterparties like LNG terminals and peaker plants along specific pipeline laterals.
Storage spread modeling
Analysis of winter/summer spreads and scarcity premiums provided a basis for negotiating value-based intrastate pipeline rates.
Technical cost estimation
ADI modeled capex for hydrogen salt caverns using inflation adjustments to define the breakeven for third-party storage providers.
Contract structure optimization
Recommendations for bundled storage and pipeline offerings with strict imbalance penalties to protect operational margins.
Key outcomes
- Developed a targeted commercial strategy prioritizing firm transportation for reliability-driven LNG and industrial counterparties.
More insights
Utility capital projects & 2026 energy trends
Utility capital projects are facing mounting delays and cost pressures in 2026, even as AI-driven demand fuels record capex. Meanwhile, the upstream oil and gas market is stabilizing around a normalizing shale cost curve, bulk liquid storage operators are shifting toward capability-driven growth, and the energy transition is exposing critical minerals bottlenecks that are pushing […]
U.S. refining capacity is gradually consolidating into larger, more complex facilities
U.S. refining capacity shows limited overall growth, but the structure of the system is shifting. Expansions at large, complex refineries are driving changes on the supply side, while smaller plants face cost and operational constraints that are forcing exits. This is steadily concentrating capacity in fewer, more sophisticated facilities. Key drivers capacity consolidation: Geographic concentration […]
Record utility spending meets project reality
U.S. utilities are entering the largest capital deployment cycle in their history, with total spending projected to reach roughly $1.4 trillion through 2030 and annual capex growing at double-digit rates. The single biggest driver behind this surge is the rapid growth in AI and data centers. Hyperscale facilities are significantly increasing load demand, often on […]