Haynesville Gas Takeaway Grows With Leg Pipeline Launch
(P&GJ) — Williams Companies has placed its 1.8 Bcf/d Louisiana Energy Gateway (LEG) pipeline into service, marking a new growth phase for Haynesville shale gas production as Gulf Coast LNG demand increases, according to recent report by East Daley Analytics.
The report showed that initial flows on LEG reached about 75 MMcf/d on July 23 into the Transcontinental (Transco) system in Beauregard Parish, Louisiana, rising to roughly 145 MMcf/d by July 25.
The project’s startup follows earlier delays tied to a right-of-way dispute with Energy Transfer. Williams overcame major legal hurdles last year, including a favorable Louisiana district court ruling in June 2024 and a Federal Energy Regulatory Commission decision in September 2024 affirming LEG’s status as a state-regulated gathering system.
LEG provides critical southbound egress relief for Haynesville gas, where flows to the Louisiana Gulf Coast averaged 5.7 Bcf/d through June and ran near 89% utilization in April and May, East Daley noted. The firm expects LEG to ramp up steadily and operate at full capacity by next summer.
The pipeline’s launch comes as Venture Global ramps up Phase 2 of its Plaquemines LNG terminal in southeastern Louisiana, which has averaged 2.68 Bcf/d of feedgas in July. Plaquemines is expected to reach about 3.6 Bcf/d at full capacity.
Additional takeaway capacity from projects like Momentum Midstream’s NG3 pipeline, slated for service in the second half of 2025, will further support growing LNG demand along the Gulf Coast through 2026.
THE HAYNESVILLE SHALE, FROM AI:
The Haynesville Shale is a prolific natural gas-bearing geological formation primarily located in northwest Louisiana, East Texas, and parts of southwestern Arkansas. Characterized by its organic-rich shale, the Haynesville formation lies at depths typically ranging from 10,500 to 13,500 feet, requiring advanced horizontal drilling and hydraulic fracturing techniques to economically recover its natural gas reserves. Discovered and actively developed starting around 2008, the play rapidly became one of the largest natural gas-producing basins in the United States, significantly contributing to the nation’s energy supply and reshaping regional economies.
Known for its exceptionally high-pressure wells and extensive reserves of dry natural gas, the Haynesville Basin has attracted significant investment from major oil and gas companies. The play’s proximity to existing pipeline infrastructure and liquefied natural gas (LNG) export facilities along the Gulf Coast has further enhanced its commercial viability. Today, ongoing technological advancements in drilling and completion techniques continue to drive down costs, improve efficiency, and sustain high production levels, solidifying the Haynesville Shale’s role as a critical asset within the U.S. energy landscape.
MPLX to Buy Northwind Midstream for $2.38 Billion, Boosting Permian Sour Gas Capacity
(Reuters) — MPLX LP said on July 31 it will acquire Northwind Midstream for $2.38 billion in cash to expand its sour gas gathering and processing footprint in the Permian Basin, as producers ramp up drilling in New Mexico.
Northwind, backed by Five Point Infrastructure, operates in Lea County, New Mexico, with a network spanning more than 200 miles of pipeline and covering over 200,000 dedicated acres.
The company currently treats 150 million cubic feet per day (MMcfpd) of sour gas and has two acid gas injection (AGI) wells in service, with a third permitted.
AGI safely disposes of hydrogen sulfide and carbon dioxide, common sour gas byproducts, by injecting them deep underground to prevent harmful emissions.
An ongoing expansion is expected to increase Northwind’s treating capacity to 440 MMcfpd by the second half of 2026.
Demand for sour gas treatment in the Delaware Basin has exceeded available infrastructure, as limited AGI permitting and capacity have slowed the pace of some producer activity.
MPLX said the deal would allow it to offer faster solutions to both existing and new customers in the region.
“The addition of 200,000 dedicated acres will increase MPLX’s access to natural gas and NGL volumes,” MPLX CEO Maryann Mannen said in a statement.
Dealmaking in the midstream sector has been picking up pace as some companies look to cut costs or add scale and gain access to attractive oil- and gas-producing regions as well as export facilities on the U.S. Gulf Coast.
The deal, financed with debt and expected to close in the third quarter, is expected to be immediately accretive to MPLX’s distributable cash flow.
