Haynesville shale to play bigger role as Gulf Coast LNG surges

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Louisiana’s Haynesville shale provides the biggest near-term growth opportunity for Williams, a mid-stream natural gas company, due to demand for feed gas supplies to serve surging U.S. Gulf Coast LNG exports, reports S&P Global.

The operator of the Transcontinental Gas Pipe Line and other midstream infrastructure wants to leverage its scale and relatively low capital requirements to maintain some of its assets to take advantage of the evolving market dynamics. Besides Louisiana, Williams’ West segment also includes assets in Texas,┬áColorado, Kansas, Oklahoma, Utah and Wyoming.

U.S. LNG feedgas deliveries have persisted at seasonally high levels, averaging volumes so far in May that imply terminal utilizations of around 94%, according to S&P Global Platts Analytics data. Producers in the Haynesville have consequently increased activity, boosting opportunities for pipeline, gathering, processing and storage companies. Read the full story.