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Haynesville shale seen as key to LNG-driven U.S. gas growth

Projects under construction on the Gulf Coast are expected to add about 20 Bcf/d of LNG export capacity, more than doubling current U.S. capacity.

Reported · Written up by our desk · Energy

U.S. natural gas production is concentrated in the Marcellus and Utica shales in the northeast and the Permian in West Texas and New Mexico, but ETF Trends says the biggest driver of incremental growth is likely to come from the Haynesville shale.

According to ETF Trends, the Haynesville has historically behaved as a price-dependent swing producer, but could shift toward steadier growth because of its proximity to the Gulf Coast build-out of liquefied natural gas export capacity.

The outlet points to a robust outlook for U.S. natural gas demand growth over the next decade, with most medium-term demand growth expected to come from new LNG export facilities.

ETF Trends says LNG projects now under construction on the Gulf Coast are set to add roughly 20 billion cubic feet per day of capacity, more than doubling the current capacity for the entire U.S., and that production growth will be needed to meet the incremental demand.

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