Momentum Midstream sanctions Haynesville CCS
Momentum Midstream announced a final investment decision (FID) September 22 for its new gas gathering and carbon capture and storage (CCS) project in the Haynesville shale basin covering parts of Louisiana and Texas.
New Generation Gas Gathering (NG3) will gather gas produced in the Haynesville for re-delivery to premium Gulf Coast markets, including LNG export. The gathering and CCS project will have initial capacity of 1.7bn ft3/day, expandable to 2.2bn ft3/day, and will capture and sequester up to 2mn metric tons/year of CO2.
Operations are expected to begin in the second half of 2024, Momentum said.
Alongside the NG3 project sanctioning, Momentum said it had completed the acquisitions of Midcoast Energy’s East Texas business from an affiliate of ArcLight Capital Partners and Align Midstream from Tailwater Capital.
“With significant long-term volume commitments from several leading Haynesville shale producers, including Chesapeake Energy, we are pleased to reach a positive FID on our new gathering and treating project, which, combined with our existing capacity on the Midcoast system, will serve to address bottlenecks in the Haynesville shale and provide much needed capacity to the growing LNG markets on the Gulf Coast,” Momentum CEO Frank Tsuru said. Chesapeake Energy, with an anchor commitment to NG3, also has an option to acquire a 35% interest in the project.
With the addition of the Midcoast and Align Midstream assets, Momentum is now serving in excess of 2bn ft3/day of natural gas across 3,000 miles of gathering pipelines, 1.5bn ft3/day of treating capacity, 700mn ft3/day of processing capacity, 200,000 horsepower of compression and 820 miles of transportation pipelines.