Underground Infrastructure - November 2023 - 16

U.S. Midstream
" I feel like the Anadarko sometimes is written
off, but as LNG demand comes online,
we expect a big supply ramp coming from
the Anadarko because the Haynesville is not
going to be able to meet all that demand. "
markets. Kinder Morgan has noted supply
chain issues are resulting in delays
and expects startup in December 2023.
Haynesville aims south
There
are
currently
a half-dozen
natural gas pipeline projects in various
development stages to connect
Haynesville gas producers in the north
to Gulf Coast LNG exporters to the
south - that is, if the three-stages of DT
Midstream's Louisiana Energy Access
Pipeline (LEAP) expansion are counted
separately.
The existing LEAP Gathering Lateral
Pipeline is a 155-mile, 1 Bcf/d
line stretching from the Haynesville to
the Gulf Coast region. DT midstream
plans to increase LEAP capacity by 90
percent through compression and construction
expansions to 1.9 Bcf/d. The
three phases include a 300 MMcf/d
addition with expected in-service by
the end of this year, a 400 MMcf/d expansion
due online in the first quarter
of 2024 and a final 200 MMcf/d due in
the third quarter of next year.
Momentum Midstream is currently
developing the New Generation Gas
Gathering project, dubbed NG3 from
the Haynesville to coastal Louisiana
LNG markets, with 275 miles of additional
natural gas gathering pipelines
with 2.2 Bcf/day of capacity. The system
will be complemented with a Carbon
Capture and Sequestration (CCS) solution
to offer producers a net negative
CO2
emission solution. NG3 is expected
to be completed in 2024.
Williams announced in May 2022 that
it was committing around $1.5 billion to
expand natural gas capacity and grow
market access and followed up a month
later by sanctioning its Louisiana Energy
16 NOVEMBER 2023 | UndergroundInfrastructure.com
Gateway (LEG) project, which is designed
to move 1.8 Bcf/d of Haynesville
natural gas to several Gulf Coast markets,
including interconnection with its
Transco gas pipeline from Texas to the
U.S. Northeast, as well as industrial consumers
and Gulf Coast export plants.
Tulsa-based Williams expects start-up of
the LEG system by 2024.
Trends
Permian to Pacific - While most of the
Permian's natural gas projects aim father
east to Gulf Coast LNG markets, there is
also an appetite for Permian gas to fuel
LNG exports from the West Coast of
Mexico primarily to Asian markets.
ONEOK filed a Presidential Permit
application with the Federal Energy
Regulatory Commission in December
2022 to construct its proposed Saguaro
Connector Pipeline for natural gas export
at a new Mexican border crossing
in Hudspeth County, Texas. The 2.8
Bcf/d project from the Waha hub would
extend 155 miles to the border, where
it would connect with an as-yet unannounced
Mexican pipeline to that country's
west coast.
While no details of the potential
Mexican pipeline project or its ownership
have been released, it is expected
to deliver Permian gas to a new Mexico
Pacific Limited LNG liquefaction and
export facility recently renamed Saguaro
LNG. In addition to the shorter distances
for cargoes to travel to LNG-hungry
Asian markets, the development of LNG
export facilities on Mexico's would also
avoid the crowded Panama Canal.
Integration by acquisition - Across
both crude oil and natural gas pipeline
systems, Bakshani expects midstream
acquisitions to continue - not just for
growth's sake, but as a tool to consolidate
around key basins and achieve
greater vertical integration.
" As far as the Permian acquisitions
go, I think a lot of it is just about being
able to source supply and support your
long-haul assets so you're really benefiting
from vertical integration, in a sense, "
he said. " That way, you collect a fee at
pretty much every point of the midstream
value chain, so you're collecting
a fee to gather, process, to ship on your
pipe, to fractionate and then to export.
And so, I think that's where the markets
see a lot of value right now. "
Bakshani points to three significant
transactions as examples: Energy
Transfer's acquisition of Lotus, which
owns the huge Centurion crude gathering
systems in the Permian, Targa's
acquisition of Lucid Energy and
Enterprise Products Partners' acquisition
of Navitas Midstream.
" Some of the players who are big on
the NGL side, as far as long-haul pipelines,
fractionation and transportation,
are buying something closer to the wellhead.
I wouldn't be surprised if we continue
to see more of that. "
OK then! - While it pales in comparison
with the Permian and Haynesville
basins, East Daley's Bakshani sees growing
opportunities for Anadarko Basin
producers to connect to Haynesville systems
to supply Gulf Coast LNG markets.
As an example, he notes that Energy
Transfer's acquisition of Enable gave
Dallas-based ET a big G&P system in
both Haynesville and Anadarko. It also
bought Woodford Express, which also
expands their presence in the Anadarko.
" I feel like the Anadarko sometimes is
written off, but as LNG demand comes
online, we expect a big supply ramp
coming from the Anadarko because the
Haynesville is not going to be able to
meet all that demand, " Bakshani said.
" As we see it right now, it's going to be
pretty hard to get Permian gas all the way
across the border to Louisiana, whereas
Anadarko currently has a lot of that
plumbing already in place where they can
send it down to Carthage [Texas]. " UI
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