Commercial service has begun on the 1 Bcf/d Gillis Lateral, expanding the Acadian Haynesville Extension system in Louisiana, which would serve industrial markets and the burgeoning natural gas export market on the Gulf Coast, Enterprise Products Partners LP said Wednesday.

The 80-mile lateral originates near Alexandria on the Acadian system and extends to third-party pipeline interconnects near Gillis, “including multiple pipelines” that serve liquefied natural gas (LNG) export facilities, the Houston-based midstream giant said. 

“By leveraging the flexibility of our Acadian system, Enterprise is providing natural gas producers in the growing Haynesville Shale, one of the most lucrative natural gas plays in the U.S., with access to the higher valued global LNG market,” said Enterprise’s Natalie Gayden, senior vice president of Natural Gas Assets for the general partner. 

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Gillis, Gayden said, is an “environmentally responsible” pipeline project that is “fully subscribed with long-term, firm commitments from shippers.”

Opportunities Abound

Enterprise has estimated that the LNG export market for the Gulf Coast region includes design send-out capacity now operating or under construction of around 15 Bcf/d. 

During the 3Q2021 conference call, Co-CEO Jim Teague said the company was seeing “new opportunities arise” beyond the Haynesville from potential customers in the Cotton Valley, a tight gas play that is within the expansive Haynesville/Bossier formation.

In the most recent Drilling Productivity Report issued by the Energy Information Agency, researchers projected Haynesville gas production would increase from December into January. The estimates indicate output would rise by 104 MMcf/d to total slightly under 14 Bcf/d by next month.

To accommodate shipper requests for additional gas volumes from the Haynesville region, Enterprise increased capacity on Acadian to 2.1 Bcf/d from 1.8 Bcf/d by boosting horsepower at its Mansfield compressor station in DeSoto Parish.

The Legacy Acadian and Haynesville Extension pipelines are part of the Acadian Gas Pipeline system, which comprises 1,300 miles of gas pipelines and leased underground storage. The project links gas supplies in Louisiana and from the Gulf of Mexico to distribution companies, electric utility plants and industrial customers primarily in the Baton Rouge/New Orleans/Mississippi River corridor area.

Enterprise’s 378-mile Haynesville Gathering system has 1.3 Bcf/d of capacity and can treat up to 810 MMcf/d, which provides supply for the Acadian system.

Enterprise’s U.S. assets include 14 Bcf of storage capacity. It also has about 50,000 miles of pipelines and 260 million bbl of storage capacity for natural gas liquids, crude oil, refined products and petrochemicals.