Lower Prices for Natural Gas Coming to GA?
Regulators approved a major pipeline expansion to bring more natural gas into Georgia. At a cost of $3 Billion, Kinder Morgan’s South System Expansion 4 (SSE4) will add more than a billion cubic feet per day of natural gas supply. We can expect to see the pipeline running by 2028 or 2029, bringing more natural gas into our state. Upping supply to Georgia could lower our natural gas rates. However, growing demand from data centers may put a real damper on lower prices. So, let’s dig into how the new natural gas pipeline raises supply and if we’ll see lower prices in GA.
Could SSE4 Lower Prices for Natural Gas in Georgia?
SSE4 expands Kinder Morgan’s Southern Natural Gas system to help meet growing demand across the Southeast. Boosting pipeline room gives Georgia access to more natural gas and cuts problems with moving gas. This is even more impactful during periods of high demand.
Typically, more supply would mean cheaper prices. For example, we see this play out when we have high storage numbers in the states. Unfortunately, there is a lot more at play in this scenario. That means, more pipeline does not directly translate to lower residential bills from your natural gas supplier.
Firstly, the natural gas utilities pass on the $3 Billion cost to consumers. Through rate hikes on the supply side of your natural gas bill, you will be paying for this project. Tally that under an increase in your gas bill. Secondly, there is also massive uptick in power demand from new data centers in Georgia. In fact, data centers could account for around 80% of Georgia’s new electric load. Because burning natural gas generates most of our electricity, it will take big bite out of this new gas supply in our state.
Simply put, supply is going up, but so is demand and, likely, your base charge. So, we have to wait and see how it all shakes out on your natural gas bill.
What Are the Environmental Concerns?
While this project leaves future GA gas prices up in the air, there are environmental concerns to consider. The new pipeline largely follows existing pipe routes. However, the project will still dig through forests, wetlands, streams, wildlife habitats, and farmland across Mississippi, Alabama, and Georgia. Land clearing can fragment forests and increase erosion and runoff into waterways. Also, natural gas pipelines are durable but not perfect. They can release methane through leaks and through everyday functions. The FERC claims rules are already in place with specific measures to reduce these impacts.
What Does SSE4 Mean for Your Gas Bill?
Georgia consumers should not expect SSE4 to automatically produce cheaper natural gas plans. But it is a possible effect. Of course, GA gas prices depend mostly on weather, production, storage levels, LNG exports, pipeline constraints, demand, and more. Most of these things we cannot directly change. But one thing you, as the consumer, CAN control is which natural gas plan you choose. Comparing natural gas rates is one of the best ways to find a cheap plan and lower your bill. So, find your new natural gas plan today at https://www.georgiagassavings.com.