Permian natural gas production is up nearly 40% over the past three years to 6.3 billion cubic feet/day (Bcf/d), and production could almost double to 12 Bcf/d by 2022. While there is 10.8 Bcf/d of existing gas takeaway capacity out of the Permian — suggesting that takeaway constraints are not imminent — much of the capacity to Mexico is not currently usable because of delays in related power-generation and pipeline projects south of the border. There also are limits to how much of the gas pipeline capacity from the Permian to California can be used for Permian takeaway, particularly during the off-season, when California can serve much of its incremental power load from hydro, solar and wind. The Midcontinent (Midcon) and Upper Midwest can only take so much Permian natural gas too; they’re taking gas from almost every direction. Put simply, takeaway constraints out of the Permian may be much closer than they appear. Today we consider existing natural gas takeaway capacity out of the Permian, how it compares with current and projected gas production in the region, and the potential for — and timing of — constraints that could reduce the prices that Permian producers receive for their gas.