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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Don’t You Forget About Me

Don’t You Forget About Me

Alaska is having a mighty tough year, ya’ll. The state’s economy has taken a series of gut punches that has landed The Last Frontier dead last in CNBC’s America’s Top States for Business rankings. Alaska relies heavily on its vast natural resources. More than one-third of the state’s revenues are derived from oil and gas production, but those have declined by 36% since 2019 with production falling last year to its lowest level in more than 40 years. Reese Energy Consulting today is studying the latest news from Alaska, still reeling from the new Administration’s cease and desist of federal oil leases there. Then there’s the state’s proposed $38.7 billion Alaska LNG project, which includes construction of an 800-mile, 3.5 BCFD pipeline to flow natural gas from the North Slope to a new LNG export facility. Following six years of government scrutiny, the Department of Energy now has ordered a supplemental environmental review to measure the project’s methane emissions, although the project’s stakeholders say they’re still on track to break Tundra.

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

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