(July 17, 2024) - DeLa Express has advanced its 690-mile Permian-to-Louisiana pipeline project, receiving FERC approval on April 15 to begin a pre-filing review. The project includes a 42-inch diameter pipeline, five lateral pipelines, eight compressor stations, and multiple meter stations, aiming to transport 2 Bcf/d of gas from the Delaware Basin to Lake Charles, LA, with an anticipated start date in July 2028. (NGI)
(July 16, 2024) - The Matterhorn Express Pipeline is set to enter service this summer, with potential gas flow beginning as early as July, and full operation expected by September or October, moving 2.5 Bcf/d. This 580-mile, 42-inch diameter pipeline, a joint venture among WhiteWater Midstream, EnLink Midstream, Devon Energy, and MPLX, will connect the Permian Basin to Katy, Texas, near Houston, significantly easing the current capacity constraints and increasing gas supply to the Texas Gulf Coast (Hart Energy)
(July 12, 2024) - The 1.7 Bcf/d ADCC Pipeline began commercial service on July 1, connecting Permian Basin natural gas to Cheniere's Corpus Christi LNG export facility. The 40-mile pipeline runs from the Whistler Pipeline terminus in Agua Dulce, Texas, providing Cheniere with access to Permian and Eagle Ford Shale volumes, and can be expanded to 2.5 Bcf/d to support Cheniere’s Stage 3 expansion. (Hart Energy)
(June 11, 2024) - Cash prices at Waha in West Texas rose above $1/mmbtu yesterday for the first time in almost four months, assessed at $1.08/mmbtu for June 11. An ongoing heatwave in the region is lifting demand in western markets, which provided support to cash prices at Waha, El Paso, San Juan, and SoCal Gas city-gate. Total gas consumption in the West was 8.4 Bcf/d from June 4-10, compared with 7.6 Bcf/d in the previous week.
(May 17, 2024) - Natural gas prices in the Permian Basin turned positive since May 14 as maintenance on the Permian Highway Pipeline neared its end
Over the past week, Permian gas producers paid end-users up to $6/MMBtu to offload excess supply due to limited transport capacity, with cash prices averaging minus-$2.57/MMBtu from May 7-14
Ongoing maintenance on El Paso Natural Gas is expected to restrict flows by nearly 375 MMcf/d May 15-19, 430 MMcf/d May 20-24, and 115 MMcf/d May 25-31, keeping West Texas gas prices volatile
(May 1, 2024) - El Paso Natural Gas Company is extending the repairs on Line 2000 near the Casa Grande C Compressor Station into June 2024 due to challenges with groundwater at the excavation site. For May, the operational capacities through the GILA and CASA C constraints will be reduced by 380,758 Dth/d and 320,200 Dth/d, respectively. (Bloomberg)
(April 23, 2024) - WhiteWater Midstream LLC's Blackfin pipeline, designed to improve Permian gas access along the Gulf Coast by avoiding bottlenecks, is under development and expected to be operational in September 2025 however, some analysts expect a potential delay until early 2026 (S&P Global)
(April 10, 2024)—DeLa Express seeks FERC approval for a 2 Bcf/d, 690-mile gas pipeline from the Delaware Basin in Texas to Lake Charles, Louisiana, with a 2028 launch target.
(February 21, 2024) - Enlink says the Matterhorn Gas Pipeline in the Permian is still on track for a 3Q 2024 startup date, and they are now looking into expanding storage capacity in Louisiana by as much as 9 Bcf.
(January 26, 2024) - FERC approved Williams Companies' 364 MMcf/d Transco pipeline expansion, enhancing Texas to Louisiana gas flows for LNG terminals, with a new compressor in Fort Bend and upgrades in Victoria and Hardin counties, targeting a Q1 2025 in-service.
(December 28, 2023) - The Permian's natural gas takeaway capacity will remain tight until the Matterhorn Express Pipeline, with a capacity of 2.5 Bcf/d, becomes operational in 2H 2024, despite temporary increases from the Permian Highway and Whistler Pipeline expansions, says S&P Global
(December 13, 2023) - Kinder Morgan has expanded the capacity of its Permian Highway natural gas pipeline by 550 MMcf/d, increasing total capacity to 2.65 Bcf/d, operational since Dec 1
(November 27, 2023) - The Permian Highway Pipeline is partially closed for leak repairs near a compressor station in McCamey, Texas, with Kinder Morgan planning to resume full service by Nov 28
(November 2, 2023) - Targa reported that early in 4Q23, they began operations at the new 275 Mmcf/d Greenwood Natural Gas Processing Plant in the Permian Midland. They are also progressing on the construction of the 275 Mmcf/d Wildcat II, 230 Mmcf/d Roadrunner II, and 275 Mmcf/d Bull Moose Plants in the basin
(September, 25, 2023) - The Permian Highway Pipeline (PHP) provided a second update on Sept. 19 in regard to the outage issued on Sept. 15 that all repairs were completed and capacity would be restored to full capacity of 2.1 Bcf
(September 12, 2023) - Saguaro Connector dependent on Mexican LNG export terminal. Oneok said that their planned 2.8 Bcf/d Saguaro Connector, which will link gas produced in the Permian Basin to Mexico's pipeline system, is dependent on the LNG facility obtaining an FID. The terminal in question is the Saguaro Energía liquefaction terminal planned for Mexico's Pacific coast.
(July 28, 2023) - Due to an operational incident, Kinder Morgan has halted the Permian Highway Pipeline, causing gas flow to cease and spot Waha prices to go negative. They expect to restore normal capacity by August 1.
(May 15, 2023) - After initiating scheduled maintenance on May 9, which reduced the throughput by up to 1 Bcf/d to the Gulf Coast, the Permian Highway Pipeline planned to resume its full capacity of 2.1 Bcf/d over the weekend.
(April 19, 2023) - Kinder Morgan delayed the Permian Highway Pipeline expansion from November to December 2023. This delay caused a flurry of hedge activity as some operators were hedged on Houston Ship Channel and now needed to reverse that hedge for select months.
(January 20, 2023) - The El Paso Natural Gas Line 2000 segment repair work may be completed by the end of January after being shut since August 2021 due to a rupture. The pipeline will provide much-needed takeaway capacity (around 500 MMcf/d or 0.5 Bcf/d) out of the Permian Basin and allow more gas to flow to gas-starved markets in Southern California.
(December 22, 2022) - As cold weather forecasts threatened West Texas, near-term Waha basis rose, and the following Winter 2023-2024 strip rose with it. Instead of the market anticipating changing fundamentals, we assign this small rally to trader expectations that next winter may perform much like this one, if cold weather arrives.
(December 13, 2022) - Waha prompt prices improved significantly amid bullish lower-48 weather forecasts. Weather models show the second half of December to be the coldest since 2013.
(December 6, 2022, EIA) - US revises forecasts for natural gas production in 2023, expecting to average around 100 Bcf/d for the first time. EIA said growth in natural gas production has been limited in the Permian Basin because of pipeline constraints and now forecasts that those constraints will be resolved more quickly than previously forecast.
(November 14, 2022, Bloomberg) - Flaring in the Permian is expected to rise due to increased production and lack of takeaway capacity. The first major pipeline expansions to help with the bottleneck won't start operating until 2H2023
Haynesville
(June 21, 2024) Momentum Midstream's NG3 pipeline project in Haynesville, with an initial capacity of 1.7 Bcf/d and is expandable to 2.2 Bcf/d, is moving forward after settling a legal dispute with Energy Transfer
This settlement allows the project, which includes 4,000 miles of pipeline and seven processing plants, to proceed.
(June 6, 2024) A Louisiana court ruled in favor of Williams against Energy Transfer regarding the Louisiana Energy Gateway (LEG) Project, covering all seven pipeline crossings and prohibiting Energy Transfer from interfering with its construction, operation, and maintenance.
The 1.8 Bcf/d LEG pipeline, now delayed to the second half of 2025, is designed to transport natural gas from the Haynesville shale field to the U.S. Gulf Coast.
(June 5, 2024) Amid ongoing production cuts, Haynesville Shale's natural gas production stands at 14 Bcf/d as of May, down from a peak of 16.3 Bcf/d in May 2023, with the market awaiting increased demand from upcoming LNG projects in Louisiana.
S&P Global anticipates a sharp rise in production tied to the start of new LNG terminals expected to start mid-summer. This increase will support the gas needs of major upcoming projects like Plaquemines LNG, targeting its first LNG in 2024, and Golden Pass LNG, aiming for a start in the first half of 2025.
(May 15, 2024) Chesapeake has committed to reducing its natural gas production by 22% to 2.7 Bcf/d for 2024, with ongoing cuts of 400 MMcf/d, primarily from the Haynesville and Marcellus Shale, citing market oversupply and focusing on operational efficiency and free cash flow.
(April 11, 2024) Louisiana 2nd Circuit Court of Appeal ruled 3-0 on April 10 to overturn a preliminary injunction against DT Midstream, allowing it to cross pipelines on land with the existing Energy Transfer ETC Tiger Pipeline
DT Midstream's 200 MMcf/d Phase 3 expansion of the LEAP pipeline, aiming for 1.9 Bcf/d capacity, remains on schedule for Q3 2024 despite legal challenges
Williams' 1.8 Bcf/d LEG pipeline faced delays due to Energy Transfer’s legal actions but can now progress, aiming for in-service by late summer 2025 after the favorable court decision
Momentum Midstream's 1.7 Bcf/d NG3 pipeline litigation with Energy Transfer introduces timeline uncertainties, with a trial set for Sept. 9, 2024
(March 12, 2024) Golden Pass and Delfin LNG have fully subscribed to Kinder Morgan's Texas-Louisiana Expansion, a $72 million project increasing NGPL capacity by 300 MMcf/d from Eagle Ford, Haynesville, and Permian Basin, set for completion by July 2026.
(February 15, 2024) Williams has pushed back the in-service of its 1.8 Bcf/d Louisiana Energy Gateway pipeline project from 4Q 2024 to 2H 2025 amid ongoing legal challenges with midstream rival Energy Transfer over easement crossings.
(December 6, 2023) DT Midstream announced the early mechanical completion of its Phase 2 LEAP expansion. The 400 MMcf/d expansion is now expected to be available for firm service on January 1, 2024. The Phase 2 expansion follows the successful Phase 1 expansion that was completed in August 2023, and will increase the overall capacity of LEAP to 1.7 Bcf/d.
(November 7, 2023) Williams' Haynesville developments advance with the South Mansfield system adding 300 Mmcf/d in 3Q23 and an additional 550 Mmcf/d expected from Mansfield and Haynesville West. Additionally, the Louisiana Energy Gateway (LEG) is on track for a Q4 2024 start, allowing for 1.8 Bcf/d of new delivery capacity, expandable to 2.1 Bcf/d or more, into the Transco pipeline system
(September 25, 2023) Transcontinental Gas Pipeline announced planned maintenance for Compressor Station 100 in Autauga, AL, from Sept. 18 to Nov. 6, 2023. This may limit south-to-north transportation services, including primary firm services at Station 100. North-to-south transactions remain unaffected
(May 31, 2023, Enterprise Products) Enterprise Products has expanded the capacity of the Acadian Haynesville extension from 2.1 Bcf/d to 2.5 Bcf/d by adding additional compression
(February 22, 2023) Chesapeake Energy announced they would reduce drilling activity and drop two rigs in the Haynesville region due to lower gas prices. Comstock Resources also announced that they will reduce their Haynesville rigs from nine to seven.
(February 6, 2023) Haynesville continued to lead natural gas production growth in January with 14.92 Bcf/d (PointLogic). Natural gas production from Haynesville is expected to rise by 145 MMcf/d monthly to 16.585 Bcf/d in February, according to the EIA.
(December 13, 2022, NGI) Haynesville is expected to continue to lead natural gas production growth month over month, accounting for 152 MMcf/d of growth and increasing its output to 16.409 Bcf/d, according to EIA's latest Drilling Productivity Report
(November 9, 2022, TC Energy) - TC Energy sanctioned the $400 million Gillis Access project, a 1.5 Bcf/d header system that would connect growing supply from the Haynesville basin to Louisiana markets, particularly the quickly growing Louisiana LNG export market. The project is expected to be completed in 2024.
(October 28, 2022, DT Midsream) - DT Midstream reached the final investment decision on the Phase 3 expansion of the LEAP system, which will expand the system to 1.9 Bcf/d Q3 2024.
(August 3, 2022, Energy Transfer) - "Energy Transfer recently completed a non-binding open season on its Gulf Run Pipeline Project. Customer discussions are ongoing, which will likely necessitate facilities beyond the initial design of 1.65 Bcf/d". AEGIS notes that Gulf Run will provide much-needed North-to-South takeaway capacity for Haynesville producers. Forward Haynesville basis indicates less stress on Haynesville egress as basis improves beyond Winter '22-'23.
(June 29, 2022, Business Wire) - Williams Reaches Final Investment Decision on Louisiana Energy Gateway Project. The pipeline will gather 1.8 Bcf/d of natural gas produced in the Haynesville basin for delivery to premium markets along the Gulf Coast.
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