Underground Infrastructure - January 2023 - 22

Construction Outlook
deliveries beginning Jan. 1. Co-CEO Marshall McCrea told analysts
last year that the Dallas-based company also was making
progress toward potential FID for its own LNG export project at
Lake Charles, Louisiana.
Quicker with intrastate
and Louisiana and the Permian Basin of West Texas and New
Mexico are stepping up to meet most of the surging European
demand. Canada is also moving forward with natural gas
pipeline and LNG export projects, but with cargoes primarily
aimed at Asian markets.
Both the Haynesville and Permian can deliver natural gas to
LNG facilities on the U.S. Gulf Coast via intrastate pipelines,
potentially streamlining permitting and construction. As a
predominantly dry gas basin, activity in the Haynesville shale
has historically been limited by low natural gas prices, but its
fortunes have reversed with higher prices and ever-increasing
demand forecasts tied to nearby LNG plants.
Haynesville production growth has been made possible
with expanded pipeline takeaway capacity, including Midcoast
Energy's CJ Express pipeline, which entered service in April
2021, and Enterprise Products Partners' Gillis Lateral pipeline.
The related expansion of Enterprise's Acadian Haynesville
Extension also entered service in December 2021.
Those three projects added 1.3 Bcf/d of takeaway capacity
from the Haynesville area, raising its total estimated takeaway
capacity to 15.9 Bcf/d, according to PointLogic. That figure
suggests excess takeaway capacity out of the Haynesville is at
or below 900,000 Mcf/d, or about 7 percent of total capacity.
In response, Energy Transfer started construction of the
1.65 Bcf/d Gulf Run pipeline to move gas from the Louisiana
Haynesville to the Gulf Coast. That project, which Energy Transfer
gained via its acquisition of Enable Midstream in December 2021,
is backed by a 20-year agreement with the $10 billion Golden
Pass LNG export plant now under construction in Texas by
QatarEnergy (70 percent) and Exxon Mobil (30 percent).
Energy Transfer completed the trunk line of Gulf Run before
the close of 2022 and was conducting an open season for
22 JANUARY 2023 | UndergroundInfrastructure.com
As pipeline operators look toward intrastate pipelines as the
fastest path to expansion, two distinct corridors are developing
for egress from the Haynesville, with pipelines from the
Louisiana side aimed at LNG facilities on the Louisiana coast
and proposed projects from the Texas Haynesville targeting
Texas LNG exports, along with increasing Permian volumes.
Williams announced in late June that it has reached a final investment
decision (FID) to build its proposed Louisiana Energy
Gateway (LEG) project to gather natural gas produced in the
Haynesville. The project is set to move 1.8 Bcf/d of gas to several
Gulf Coast markets, including its Transco gas pipe from Texas to
the U.S. Northeast, industrial consumers and LNG export plants.
Williams said LEG, which is expected to enter service in late
2024, will enable it to pursue additional market access projects,
including development of carbon capture and storage infrastructure.
Kinder Morgan has said it also is evaluating a project
to link the Texas Haynesville with LNG export points on the
Texas side of the border.
Additional North American LNG export capacity will be
added with the expected 2023 startup of the $17 billion LNG
Canada Export Terminal, which is currently under construction
in Kitimat, British Columbia. It will have a production capacity
of 14 mtpa from the first two trains, with the potential to
expand to four trains.
LNG Canada, which will supply Asian markets, will get its
natural gas supply via the 48-inch, 416-mile Coastal Gaslink
natural gas pipeline now under construction by TC Energy.
It will be the first major transmission pipeline to move natural
gas across the Canadian Rockies to the British Columbia coast.
The pipeline was approaching 65 percent completion, as its
June project update.
Canada is also looking at LNG export expansion on its east
coast to expand capacity to Europe, but Environment Minister
Steven Guilbeault said existing natural gas infrastructure
would only be able to supply one of two proposed options: an
LNG facility in New Brunswick by Spain's Repsol or in Nova
Scotia by Pieridae Energy.
Guilbeault, who said the idea of constructing new gas pipelines
to supply east coast export facilities is not " very realistic, "
told Reuters that Repsol is " probably the fastest project that
could be deployed, because it requires minimal permitting, "
with a pipeline already in place.
In Mexico, New Fortress agreed with Comisión Federal de
Electricidad (CFE) in July to increase its supply of natural gas
to multiple CFE power generation facilities in Baja California
Sur and the development of a new LNG hub off the Gulf of
Mexico coast at Altamira, Tamaulipas, with multiple FLNG
units of 1.4 MTPA each. CFE will supply natural gas via existing
pipelines to two FLNG units. UI
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Underground Infrastructure - January 2023

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