Two Haynesville Area Pipeline Projects Due in 2021

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The Haynesville Shale play that straddles East Texas and Northwest Louisiana will soon welcome new infrastructure projects to transport natural gas to ever-growing demand markets. Two projects are due online this year, while others won’t bring additional egress capacity until Late 2022 or 2023. 

CJ Express Expansion will be first in service early 2021

Acadian Gillis Lateral in 4Q 2021

Enable’s Gulf Run due late 2022

Sources: Company presentations, EIA, Enverus, AEGIS

The most imminent project to benefit the Haynesville is Midcoast Energy’s CJ Express Expansion. CJ Express will add compression and pipeline facilities at multiple locations on Midcoast’s existing East Texas pipeline system.  The expansion will increase gathering capabilities in the Shelby Trough area of the Haynesville Shale and increase Midcoast’s Clarity pipeline transmission capacity to Gulf Coast demand centers to approximately 1 Bcf/d. CJ Express is expected to be fully in service in early 2021.

Next in-line is an intrastate lateral expansion off Enterprise’s Acadian System. Enterprise is constructing an 80-mile lateral from its mainline to terminate in Gillis, Louisiana. The lateral itself will be a 1 Bcf/d expansion with a net increase to the Acadian system of 300 MMcf/d to 2.1 Bcf/d from 1.8 Bcf/d. Enterprise shows a 4Q2021 in-service date on their latest presentation.

In late 2022, Enable’s Gulf Run is a new 135-mile pipeline project that would run from Westdale to Starks, LA. Gulf Run will increase outbound capacity from the Haynesville, south to near the Henry Hub and Gulf Coast demand centers. The project’s modifications to Line CP will enhance and repurpose some of Enable’s existing, underutilized infrastructure in northern Louisiana. Capacity on the pipe will be 1.65 Bcf/d. Golden Pass has committed to a 20-year deal to ship on Gulf Run. Golden Pass’s LNG facility is expected in late 2023 to early 2024.

Tellurian’s two infrastructure projects have yet to reach FID. Both the Delhi Connector and the Haynesville Global Access pipelines are expected to get a financial investment decision (FID) in 2021.

Delhi Connector: Tellurian Inc. is proposing to construct a 180-mile lone, 42-inch-diameter interstate natural gas pipeline. The project will originate at Perryville/Delhi in Northeast Louisiana, and terminate near Lake Charles, LA. Capacity on the line will be at least 2 Bcf/d. A final investment decision is delayed until 2021. Previously, construction was expected to start in early 2021, with an in-service date as early as 2023.

Haynesville Global Access: Haynesville Global Access Pipeline LLC (HGAP), a subsidiary of Tellurian Inc., is proposing to construct a pipeline with 160-miles of 42-inch diameter pipe. The pipeline will transport gas from the Haynesville to Gillis in south Louisiana. A Final investment decision delayed until 2021. Construction had been planned to begin in 2022, with an in-service date of mid-2023.

Sources: Company presentations, EIA, Enverus, AEGIS