Haynesville Gas Price and Fundamentals

For more discussion on basis price moves and the current forward curves:

JUMP TO OUR OUTLOOK AND CHART PACK 

For more discussion and charts, jump to our outlook and chart pack. Remember, the local market is influenced by the broader gas market. Consult our Gas Macro Outlook (note hyperlink to another article) for more.  

Recent Market-Relevant Events 

Infrastructure Outlook 

There is currently ample pipeline space available from the Haynesville into Southern Louisiana, due to the buildout in recent years and drop in production in 2024. Infrastructure and pipeline development will continue as supply grows sharply and more LNG export facilities are built. There are not expected to be any major constraints to getting gas out of the production area in the near-term.

For a discussion of production outlook:

JUMP TO LOCAL SUPPLY 

Below are the most market-relevant infrastructure projects that appear to be funded and going forward. The projects that offer intra-region capacity (egress) are also shown in the chart above.

Note: Deeper discussion included below the map.

Louisiana Energy Gateway - Williams’ LEG System will gather up to 1.8 Bcf/d from the Haynesville Shale formation and other natural gas production areas in Texas and Louisiana, and deliver to LNG export terminals and other markets along the Gulf Coast. The LEG System will be comprised of two segments: the Haynesville Spine and Juniper South.

New Generation Gas Gathering (NG3) - Momentum Midstream will gather natural gas produced in the Haynesville Shale for re-delivery to premium Gulf Coast markets, including LNG export. With the final investment decision, the natural gas gathering and carbon capture project will have an initial capacity of 1.7 Bcf/d and is expandable to 2.2 Bcf/d. The project is expected to start service in December 2025.

LEAP Expansion Phase 4 - Pipeline operator DT Midstream announced a final investment decision on another 200 MMcf/d expansion of its Louisiana Energy Access Pipeline gathering system, giving the project an in-service target of 2026 in line with projections of a wave of new LNG feedgas demand along the Gulf Coast.

Pelican Pipeline - The WhiteWater Pelican Pipeline will transport up to 1.75 Bcf/d through approximately 170 miles of 36-inch pipeline from Williams, Louisiana, to the Gillis Hub near Ragley, Louisiana. Expected to be operational in the first half of 2027, the pipeline project is currently pending necessary regulatory approvals.

Other Projects

Blackfin Pipeline - The WhiteWater Blackfin Pipeline is a 193-mile, 42-inch intrastate natural gas pipeline that will deliver up to 3.5 Bcf/d from the Houston Ship Channel to Jasper County in East Texas. From there, it will interconnect with Venture Global’s CP Express Pipeline, delivering feedgas to the CP2 LNG terminal in Cameron Parish, Louisiana. With CP2 expected to eventually draw more than 4 Bcf/d of gas, Blackfin will serve as a critical Permian-to-LNG corridor. Construction is underway, and the pipeline is expected to enter service in the third quarter of 2025.

NGPL TX-LA Expansion Project - The project will increase NGPL's capacity by approximately 0.3 Bcf/d. The project will primarily involve additional compression to increase natural gas deliveries from existing system receipts, the growing Haynesville and South Texas supply to growing LNG markets. The project is targeted to be in service by July 1, 2026.

Trident Pipeline - Kinder Morgan’s Trident Pipeline is a 216-mile, 1.5 Bcf/d intrastate system moving Permian gas from Katy, Texas, to the Port Arthur LNG corridor near the Louisiana border. By targeting demand from Gulf Coast export terminals like Golden Pass LNG, Trident introduces direct competition to Haynesville producers supplying the same markets. Trident is expected to enter service in early 2027, with capacity expandable to 2.8 Bcf/d.

Production

Operator Guidance

Rig Count

Local Demand

While gas consumption in Northern Louisiana, where most production is located, averages only 500 MMcf/d per month, the source of almost all US gas demand growth is directly to the south. LNG buildout in Southern Louisiana should drive growth in gas demand for the next few years. In addition, the Southeast region as a whole should see continued electricity demand growth, supporting gas-fired power burns.

LNG