Gas Gets its Moment in the Sun

Gas Gets its Moment in the Sun

Natural gas is enjoying a spectacular moment as prices inch closer to the $4 mark–and, boy, are we in our element. Call it a celestial event of sorts when all the planets perfectly align, particularly in the Haynesville gas basin. The Reese Energy Consulting team is all hands on deck right now for our Haynesville clients, who continue to rev up drilling and well completions there to satisfy LNG’s appetite on the Gulf Coast. Let’s review this Haynesville constellation: Gas production this month surpassed 13 BCFD vs 11 BCFD last July. Feed gas demand from the Gulf’s four LNG terminals now averages 9.35 BCFD—more than three times the 3 BCFD in 2020. Fifty well completions and 99 new wells were drilled in May and June. The rig count is close to doubling from 2020—now at 55 vs 31 last May. On the midstream side, expanded pipeline infrastructure now offers more producer access to premium markets, enabling Haynesville production to grow unconstrained to about 14.3 BCFD which it’s expected to reach by year end. A starry turnabout to be sure.

What do you think? Learn more about REC and our natural gas marketing and contract audit expertise at www.ReeseEnergyConsulting.com.

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American LNG Flying High on the Gulf

American LNG Flying High on the Gulf

Reese Energy Consulting today is studying the latest news from the Gulf Coast, where LNG producers, processors, and ports are busier than John Kerry writing a climate doomsday speech aboard a chartered flight. First up, Houston-based Cheniere Energy, which is developing its Stage III project to include seven midscale liquefaction trains producing 10 mtpa of LNG. The company now has inked a 15-year gas supply agreement with Tourmaline Oil Corp., the largest natural gas producer in Canada. Investment giant Global Infrastructure Partners is shopping for a buyer for the firm’s stake in Houston-based Freeport LNG. GIP paid $850 million for a 26% share in Freeport before the export terminal launched operations in 2019. The three-train plant off the Texas Gulf Coast produces 15 million mtpa of LNG. Houston-based Delfin LNG has requested a third extension to put into service onshore assets to support the company’s proposed floating LNG export project off the coast of La. If built, the project would mark the nation’s first FLNG export terminal. And finally, the Port of Corpus Christi shipped a record 80.5 million tons of cargo in the first half of 2021, largely due to a 72% year-over-year increase of LNG exports.

What do you think? Learn more about REC and our natural gas and LNG services at www.ReeseEnergyConsulting.com.

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Deepwater Connections

Deepwater Connections

Tulsa-based Williams will expand its natural gas gathering and processing systems serving the Gulf of Mexico. Reese Energy Consulting today is following the latest news from Williams, which has inked an export agreement with Houston-based Beacon Energy. The company will provide gathering and transmission services to Beacon’s Shenandoah development, about 160 miles off the coast of La. The agreement will include construction of a five-mile offshore lateral pipeline to extend from the Shenandoah platform through the Discovery infrastructure, which Williams co-owns with DCP Midstream. Discovery will transport, process, fractionate, and market the gas. Williams operates extensive and interconnected offshore and onshore infrastructure serving oil and gas production in the Gulf, including 2,800+ miles of oil and gas gathering and transmission pipe and two processing plants. The company also has ownership of two floating production platforms and multiple fixed leg utility platforms. Services from the new expansion are slated forr late 2024.

What do you think? Learn more about REC and our natural gas marketing expertise at www.ReeseEnergyConsulting.com.

Williams Companies

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets. A Fortune 500 company, its common stock is a component of the S&P 500.

www.williams.com

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