Midstream’s AI Opportunity

How Data Centers Are Driving a New Era of Natural Gas Demand

Data center opportunities for oil & gas midstream companies will get most of my attention this week...

Here's why:

With the capital flowing into the data centers boom, everyone wants a piece of the action. And with that focus we have seen a surge of interest in gas fired power generation.

Source | Enverus Intelligence^® Research, Enverus Foundations – Power & Renewables

Reliable and dispatchable power are the key virtues of gas power. But you need gas at the plant gate to be reliable and dispatchable. Midstream serves that need and is poised to benefit. For example:

• Finding new ways to optimize underutilized assets, repurposing existing pipelines and processing facilities to serve power generation needs are an obvious opportunity. Is that really the limit? Which areas offer the most opportunity?

• Midstream firms with direct pipeline access to sites can enable behind the meter solutions. Will these solutions become a significant new demand center for midstream companies?

• Growing renewable capacity is changing the dispatch patterns for gas generation and increasing volatility in natural gas demand, creating new opportunities for price arbitrage. Is gas storage the real oppotunity?

• As global data center expansion drives LNG demand in regions with unreliable or insufficient grid capacity. Could this trend accelerate the development of new LNG infrastructure, and which companies are best positioned to capitalize?

I would appreciate your comments:

• Amongst oil & gas oriented businesses, will midstream be the big data center winners?

• What questions did I miss? What else should I be thinking about?

• Who would you suggest I connect with to explore these questions we more?