Analysts warn in‑state tariffs could be high unless pipeline sees large demand or export scale
Summary
Wolford told lawmakers that Southcentral consumer tariffs would be high if the pipeline serves only in‑state customers at current demand levels (≈300 MMcf/d); tariffs fall substantially if flow increases toward 500 MMcf/d or the full export scale (≈3 Bcf/d).
The committee heard a technical section on gas tariffs and how in‑state consumer price depends on pipeline scale. Wolford illustrated that with only existing Southcentral demand (~<300 million cubic feet per day) a 42‑inch pipeline would produce a disproportionately high tariff to recover capital; the consultant said tariffs become materially lower only if in‑state volumes rise toward ~500 MMcf/day or if the project reaches export scale (~3 Bcf/day).
"Once you get it up to about 500,000,000 standard cubic feet per day...then you're starting to kind of edge down to the sort of tariff that's certainly been talked about," Wolford said, noting tariffs shown in the slides did not include costs for gas processing, property tax or the ABT/AVT proposals.
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