Hang on to your hats in the gas-rich Haynesville. Reese Energy Consulting today is studying a sequence of events that foretell a nice fat bump for producers there through at least the first half of 2021. With a return to record-breaking LNG exports and record demand for feedstock, the shale play shows Moves like Jagger with production narrowing in on pre-COVID levels at more than 13.5 BCFD. Producers added 10 rigs in 4Q last year for a total of 46—a full fleet recovery in the only major U.S. basin to do so. A beehive of activity to expand much-needed pipeline capacity also is buzzing along with recent projects adding 1.75 BCFD of throughput. Two of those expansion projects helmed by Houston-based Midcoast Energy play a big part to relieve the area’s bottlenecks, and now a third is slated for completion before March. MidCoast’s CJ Express will add compression and pipeline facilities on the company’s 4,000-mile East Texas system, expanding Haynesville capacity by another 1 BCFD and offering producers connectivity to more Gulf Coast demand centers.
What do you think? Learn more about REC’s complete range of midstream services at www.ReeseEnergyConsulting.com.