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Texas Prevents Out-Of-State Gas Shipments as ERCOT Crisis Worsens

February 17, 2021

As Texas continues to see extreme cold weather the natural gas industry is facing extreme pressure from all angles. Governor Greg Abbott has decided to act on the matter by forbidding sales to power producers outside its borders through Feb 21. Natural Gas suppliers will have to sell to Texas power generation assets until that date. Governor Abbott’s order is expected to help ameliorate the situation by ensuring available natural gas remains inside the state.

Texas’ crumbling natural gas supplies were affected by arctic temperatures, taking 19,800 MW of gas-fired generation offline and hindering ERCOT’s reliability. It is expected blackouts in Harris County may last up to two more days. This is the third day Texans face with frigid temperatures, no power, and no clear timeline of when the disaster will stop.

It is expected this order will bring about changes to the ERCOT market in terms of reliability, emergency preparedness, and regulations which in prior years have affected consumers.