GlobalData: Haynesville shale expected to play crucial role in meeting future natural gas demand
Published by Nicholas Woodroof,
The company’s latest report, ‘Haynesville Shale in the US, 2019’, reveals that the increasing natural gas production from the Haynesville Shale play will propel it as the main supplier to LNG operations along the US Gulf Coast (USGC).
According to the Energy Information Administration (EIA), the US produced just under 81 billion ft3/d in August 2019. The Appalachia Basin and Haynesville sites accounted for over 50% of the total value, and are currently showing an increasing trend in their production levels - with the Appalachia Basin producing over 32 billion ft3/d , and the Haynesville over 11 billion ft3/d .
Andrew Folse, Oil and Gas Analyst at GlobalData, commented: “The demand of natural gas feedstock for conversion into LNG is focused on the USGC. This demand is expected to steadily increase over the next five years as there is approximately US$18 billion to be invested in planned LNG facilities in Texas and Louisiana. Furthermore, an additional US$7.9 billion is related to announced facilities, which could further increase natural gas demand. Given Haynesville’s proximity to the Gulf Coast, the natural gas produced in the play will have easy access to market, specifically to LNG plants which will depend on gas produced in the region.”
The Haynesville shale is spread across Northwest Louisiana and East Texas, in the US, covering an area of around 9000 miles2. The strategic location of this shale play - near some of the world’s largest petrochemical complexes, LNG export facilities, and the Gulf of Mexico - makes it one of the most revenue-generating shale plays in the US. The facilities around the shale formation help in rapid ‘spud-to-sale’ cycle times, thus, making it more attractive to investors.
Folse added: “In 2018, the most active-producing areas in the Haynesville shale were De Soto, Caddo, Red River and Bossier parishes in Louisiana, as well as San Augustine County in Texas.”
Folse concluded: “Chesapeake Energy, Indigo Natural Resources, Comstock Resources, BP and Range Resources were the leading producers in the Haynesville shale play in 2018.”
Read the article online at: https://www.oilfieldtechnology.com/special-reports/13112019/globaldata-haynesville-shale-expected-to-play-crucial-role-in-meeting-future-natural-gas-demand/
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