Energy Transfer’s (ET) Gulf Run Pipeline in Louisiana has seen significant growth in southbound deliveries over the summer, including flows to Golden Pass Pipeline (GPPL). The ramp could be the first of larger expansions ahead as Golden Pass LNG grows exports.
The Gulf Run system forms a large ‘T’ across Louisiana (see map). Zone 1 connects Haynesville supply to Perryville markets and has bidirectional capability, but Zone 2 will be the real money-maker. The Zone 2 line entered service in January ‘23 and provides ~1.65 Bcf/d of egress from the Haynesville with direct interconnects to LNG demand in southern Louisiana, including GPPL and ET’s Trunkline system.
In April ‘24, regulators approved a new section of the Golden Pass line for service, and since June over 300 MMcf/d of additional Haynesville volumes have been delivered to GPPL from Gulf Run (see figure), even though the Golden Pass expansion is still more than a year out from first LNG production. ET has guided to an additional 3 Bcf/d of potential expansions on the Zone 2 pipe, which will be necessary to fill the 2.6 Bcf/d Golden Pass line. Golden Pass LNG already has 1.1 Bcf/d of capacity contracted on Gulf Run through the summer of 2043.
For now, GPPL is being used to wheel gas around the Port Arthur area. The Golden Pass Pipeline interconnects with many interstate and intrastate systems plus the Golden Triangle storage field, providing great optionality value.
East Daley has observed the Golden Pass line dropping off the ~300 MMcf/d of Gulf Run receipts onto Texas Eastern (TETCO) and Kinder Morgan Tejas. The Tejas volumes (~70 MMcf/d) are flowing southwest into Katy, while the TETCO volumes (~190 MMcf/d) flow east. The remaining ~50 MMcf/d of supply from Gulf Run is filling Golden Triangle Storage. GPPL also interconnects with Florida Gas Transmission (FGT), Natural Gas Pipe Line (NGPL), KM Texas, and HPL Texoma in Texas, and the Transcontinental and Tennessee Gas lines in Louisiana.
While the simplest method for supplying Golden Pass would be via expansions on Gulf Run, East Daley is also considering scenarios where the incremental LNG demand is met via supply from East Texas on the various intrastates (KM Tejas & Texas, and HPL) out of Carthage. Currently those volumes flow further south into the Houston market. However, as Matterhorn and Blackcomb (2.5 Bcf/d each) ramp in early 2025 and 2026, GPPL and Golden Pass LNG could provide an outlet for intrastate volumes that would otherwise contribute to an oversupplied Katy market. – Oren Pilant Tickers: ET.
New Updates to Bakken-Guernsey-DJ Crude Oil Supply & Demand Report
East Daley is excited to announce new updates for our Bakken-GSNY-DJ Crude Oil Supply & Demand report. Updated monthly, this product now features an interactive dashboard and includes our forecast for the Uinta Basin. This report uniquely visualizes crude oil supply, demand and flows in the Bakken and Rockies regions. Learn more about the Bakken-Guernsey-DJ Crude Oil Crude Oil Report.
Sign Up for the Crude Oil Edge
East Daley’s Crude Oil Edge provides weekly updates on the US crude oil market including supply and demand fundamentals, basin-level views, and analysis of market constraints and infrastructure proposals. We explore sub-basin dynamics and provide market insights on crude oil flows, production growth, and import and export characteristics. Sign up now for the Crude Oil Edge.
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.
-1.png)