RMR today is following the latest news from Houston-based private equity firm Quantum Energy Partners, which announced the merge of two of its midstream portfolio companies focused on building pipeline infrastructure from the Haynesville to the Gulf. Trace Midstream and Gemini Midstream—which will now operate as Trace Midstream—looks to expand the 50-mile Gemini Carthage Pipeline (GCP) extending from East Texas to Carthage. With a capacity of more than 1.2 BCFD, GCP says it’s experienced a “significant” ramp up in volumes from its two anchor producers since service began last May.
Trace also has begun construction of the 150-mile Gemini Gulf Coast Pipeline, which will stretch from Carthage to Beaumont and transport more than 1.5 BCFD of natural gas. Phase I of the project is expected to go online in May.
Less than six years ago, naysayers claimed the gas-rich Haynesville was in decline. Nobody wants your gas, nothing to see here, move along. Oh, how times have changed. Ladies and gentlemen, welcome the LNG export industry.
With its proximity and easy access to the Gulf Coast, the Haynesville shale play is now a natural gas superstar attracting a lot of attention these days from producers looking to feed more petrochemical plants and the growing LNG industry. Just ask Texas-based Comstock Resources, now a pure-player in Haynesville gas-to-LNG exports with an eye on Okla. City-based Chesapeake’s goodies there. The EIA reports gas production in the Haynesville has reached 11 BCFD, increasing 105 MMCFD month after month, and is expected to top 14 BCFD by 2025. Record exports of LNG continue to shatter as global demand for gas continues to rise. Keep those bones coming.
What do you think?