Alternatives

October 1, 2023

E&P Fourth Quarter 2023

Haynesville

Executive Summary

Haynesville production held-up reasonably well during the 2023 review period, particularly considering the sharp fall-off in the basin’s rig count.  Despite the Henry Hub natural gas front month futures prices ending the year well below their starting point, the outlook for the Haynesville basin is favorable.  Bhautik Gajera, writing for ADI Analytics, notes that Haynesville production is anticipated to continue growing due to rising demand from LNG facilities and petrochemical plant development along the U.S. Gulf Coast.  In addition, Gajera notes that while existing Haynesville-to-Gulf Coast pipelines are adequate for 16 Bcf/d capacity, three new pipelines to support LNG facilities under development will add 5 Bcf/d of capacity by the end of 2024.  

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