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Irrespective of the current LNG permitting pause, existing demand and a readily available supply are fueling the construction of thousands of miles of new natural gas pipelines from the Haynesville and Permian shale plays.
As many as eight pipeline projects continue to advance across Texas and Louisiana to feed five LNG export projects currently under construction along the Gulf Coast, according to the most recent data provided by the U.S. Energy Information Administration’s Natural Gas Pipeline Project Tracker.
As Business Report features in its latest issue, that equates to more than 20 billion cubic feet per day of new capacity to feed liquefaction trains coming online through the end of the decade.
And there’s no sign that things are slowing down.
Gordon Gorrie, vice president of oil and gas research at Industrial Info Resources in Houston, is currently tracking 155 projects totaling $22 billion in natural gas pipelines and compressor stations across the two states that are either planned, designed or under construction.
Gorrie, who monitors oil and gas investment worldwide, says most of the pipelines are making a beeline for the Gulf Coast to serve LNG facilities in Texas and Louisiana.
“The vast majority in Louisiana are coming out of the Haynesville Shale play, but the Permian Basin has opened up a bit, too,” Gorrie says. “Those come down to the Houston area and go from there across to Louisiana.
“And when a project is announced in Texas or Louisiana, there’s a good chance that it will move forward,” he adds. “The citizens of those two states are generally favorable toward putting in new pipelines, unlike in the Northeast and other places.”
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