A Blueprint for the Future of Natural Gas Infrastructure: A Gulf Coast Case Study

By Hon Xing Wong and Marina Slijepcevic

Future energy systems will rely as much on optimizing existing infrastructure as on deploying new technologies. Delivering reliability and economic value will depend on strategic planning that integrates both. The U.S. Gulf Coast’s existing natural gas infrastructure provides the foundational framework for accelerating the deployment of emerging fuels and ensuring a secure, resilient energy future for the nation.

A new case study from GTI Energy’s Reliable Affordable Infrastructure for Secure Energy (RAISE) collaborative — the first in a series of regional analyses — offers pathways for the U.S. Gulf Coast to set a national example in integrating emerging fuels. It tested how different economic growth scenarios could affect emerging fuels. It assessed economic and lifecycle assumptions for 16 hydrogen, four renewable natural gas, and four synthetic natural gas case studies.*

The results offer insights into future demand trends, potential incentives, and how energy prices could evolve through midcentury. The takeaway? Success will require integrated planning, smart investments, and a market-tailored approach.

Using Existing Networks and Localized Strategies to Build the Future

With the nation’s largest natural gas delivery pipeline network and a high concentration of industrial and petrochemical facilities, the U.S. Gulf Coast is uniquely positioned to leverage a varied and resilient fuel mix.

Modernizing and using existing networks to transport fuel blends avoids the lengthy and expensive permitting timelines that often slow new construction, and in many cases, is only a fraction of what new construction can cost. It also gives us reliable fuels that can be stored and used when needed, especially when intermittent resources like wind or solar are unavailable. This approach avoids wasting money on equipment we can’t use later and offers a model that other regions can replicate.

Because energy conditions vary widely across regions, localized planning is critical to success. Variations in feedstock availability, energy costs, and policy landscapes all shape what is feasible. For example, the average industrial price for natural gas is approximately $3 per million BTU in Texas, compared to around $13 per million BTU in Massachusetts, a difference that significantly alters the economic viability of certain fuel pathways.

Texas at the Crossroads of Integrated Fuels

Among the production pathways we evaluated, natural gas steam methane reforming with carbon capture and storage stands out for its balance of cost, scalability, and emissions reduction potential. Hydrogen is also a leading, near-term opportunity for the region.

Texas is particularly well-positioned to capitalize on these pathways due to its abundance of natural gas and well-developed carbon storage infrastructure. A near-term deployment strategy is to blend hydrogen into existing natural gas pipelines at volumes between 5% and 20%, which would support near-term emissions reductions across key economic sectors.

Renewable natural gas offers another near-term option. Landfill gas emerged as the lowest-cost feedstock among the gaseous fuels analyzed, and Texas’ abundant landfill resources enable the production of this “drop-in” fuel that is fully compatible with existing infrastructure. Looking further ahead, synthetic natural gas also has significant potential, particularly once hydrogen becomes widely available as a production feedstock.

Turning Plans into Progress: Deploying Innovation and Collaboration

Moving from ideas to projects takes more than good analysis, it takes collaboration between industry, government, and technology innovators. Resource estimates tell us only part of the story. Every project needs local feedstock agreements, a clear understanding of how existing systems and infrastructure are used, and careful coordination to connect all the pieces.

Early projects show that what works on paper must be tested in the field. Engineers need to assess local infrastructure, ensure pipelines and equipment are compatible with new fuel blends, and understand how end users will be affected. These efforts also highlight technology gaps that still need research, such as knowing which sectors can quickly adopt blended fuels or refining how we estimate feedstock supplies.

Public-private collaboration is also key. Aligned research priorities and supportive policies can help bridge the gap between what’s technically possible to what’s economically practical.

By taking an integrated approach, we can transform the U.S. Gulf Coast’s legacy infrastructure into the backbone of reliable, affordable, and secure energy for our country.

For the complete data and detailed analysis, read the full RAISE Gulf Coast Case Study here. Watch our GTI Energy Tech Talk on the topic here.

*Using OnLocation’s National Energy Modeling System with Energy Information Analysis’ economic projections to 2050, the analysis provides a snapshot of specific economic assumptions which can deviate from true market conditions.