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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And the Deals Keep Comin’

And the Deals Keep Comin’

Getting hard to keep up. Six months after closing on the $1.6 billion acquisition of Texas-based Montage Resources, Houston’s Southwestern Energy (SWN) has snapped up something even bigger to further surf the Gulf Coast LNG wave. Reese Energy Consulting today is following the latest news from SWN which—following the Montage merger last December—was crowned the nation’s third-largest natural gas producer with a combined production of 3 BCFD, and all of it from the Marcellus and Utica. SWN has operated exclusively in the Appalachian region since the mid-2000s after selling its first-born E&P and midstream assets in the Ark., Fayetteville for $1.8+ billion. Now, Southwestern Energy will venture outside its eastern home base with the $2.7 billion purchase of Indigo Natural Resources and its sizeable gas prizes in northern La., bound for premium Gulf Coast markets. The deal includes 280,000 net acres in the Haynesville and Bossier shale plays and adds 1.1 BCFD of natural gas production to the company’s portfolio for a total 4+ BCFD.

What do you think? Learn more about Reese Energy Consulting and our range of natural gas, NGLs, and LNG services at www.ReeseEnergyConsulting.com.

Southwestern Energy

Southwestern Energy is a natural gas exploration and production company organized in Delaware and headquartered in Spring, Texas. The company is ranked 776th on the Fortune 500. The company’s primary exploration and production activities are in the Appalachian Basin in Pennsylvania and West Virginia.

www.swn.com

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Enable Gets a Green Light

Enable Gets a Green Light

Looks like it’s all systems go for construction on the proposed 135-mile Gulf Run Pipeline. Reese Energy Consulting today is following the latest news from Okla. City-based Enable Midstream, which has received a final FERC blessing on the $540 million natural gas project. Gulf Run will extend from northern La., to the Gulf Coast and run perpendicular to Enable’s 172-mile Line CP that currently moves gas supplies west to east. Modifications to the Line CP system will allow for bi-directional flow and delivery to Gulf Run. With a capacity of 1.7 BCFD, the new pipeline will enable access to gas supplies in the Mid-Continent, Haynesville, Marcellus, and Utica shales, and is backed by a 20-year commitment for 1.1 BCFD from anchor shipper Golden Pass LNG. Completion is slated for late 2022. Meanwhile, expansion of the Golden Pass terminal at Sabine Pass, Texas, is at full throttle with a finish line expected in 2024.

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

Enable Midstream Partners

Enable Midstream owns, operates and develops strategically located energy infrastructure assets that serve as a critical link between major producing basins and downstream markets.

www.enablemidstream.com

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