Louisiana Energy Gateway Highlights Haynesville Shale Benefits

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Researched by Industrial Info Resources (Sugar Land, Texas)--Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma) said last week it reached a final investment decision to move forward with the Louisiana Energy Gateway (LEG) pipeline project. The project will gather 1.8 billion cubic feet per day (Bcf/d) of natural gas produced in the Haynesville basin for delivery to the Transco pipeline system, industrial markets and liquefied natural gas (LNG) export facilities along the U.S. Gulf Coast.

Williams Chief Executive Officer Alan Armstrong said in a press release that the project "is a key component of our low-carbon, wellhead-to-water strategy, proving up what an important role natural gas can play in reducing emissions, lowering costs and providing secure and reliable energy at home and around the world."

The project is expected to go into service in late 2024. Williams said it plans "to create opportunities to pursue additional market access projects as well as develop carbon capture and storage infrastructure that will further decarbonize the natural gas value chain."

Williams said technology provided via its partnerships with Context Labs (Cambridge, Massachusetts), Encino Environmental Services LLC (Houston, Texas) and Satlantis (Bilbao, Spain) "will be integrated into the project and will enable the measurement of end-to-end, verifiable and transparent emissions data to demonstrate the low-carbon benefits of produced and delivered Haynesville natural gas."

"LEG is also ideally positioned to incorporate carbon capture and storage as a further decarbonizing solution for natural gas production in the rapidly growing Haynesville basin," said Chad Zamarin, senior vice president, corporate strategic development, for Williams. Earlier this year, Williams said it signed a memorandum of understanding with Quantum Energy Partners (Houston, Texas) to form a joint venture that would allow Quantum to become an equity investor and partner in the project. The equity firm bills itself as a "leading provider of private capital to the responsibly sourced energy and energy transition and decarbonization sectors."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for the LEG project report.

LEG highlights Williams' sharpened focus on the Haynesville Shale. The natural gas-rich formation covers 23 counties on the border of Texas and Louisiana, according to the Federal Reserve Bank of Dallas.

Williams recently closed on the acquisition of assets from Trace Midstream (Houston, Texas), valued at $950 million, which includes a long-term capacity commitment from a Trace customer in support of the LEG project. The combination of the Trace system with Williams' existing footprint increases the company's gathering capacity in the Haynesville Basin from 1.8 billion cubic feet per day to more than 4 billion cubic feet, according to the company. For related information, see May 4, 2022, article - Williams Companies Plows into Pipeline Projects, Feels Natural Gas Glow.

In addition to its proximity to LNG export terminals, gas from the Haynesville Shale is relatively clean in terms of methane intensities, according to S&P Global Incorporated (New York, New York), thus offering environmental, social and governance (ESG) benefits. About 53% of the basin's gas output will be certified by independent third parties as meeting ESG standards by the end of this year, according to S&P Global.

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