Privately held Voyager Midstream Holdings has snapped up a package of natural gas gathering and processing assets in the Haynesville Shale that include the Carthage hub, a trading and delivery point capable of handling 1 Bcf/d-plus.
The portfolio company of Dallas-Based Pearl Energy Investments did not disclose the price of the assets, which are being sold by Phillips 66.
The assets are in the heart of the Haynesville, within the East Texas counties of Harrison, Panola and Rusk, as well as in North Louisiana’s Caddo Parish.
“This transaction with Phillips 66 represents an important milestone for Voyager, as it positions us for significant growth in the core of the Haynesville Shale,” CEO Will Harvey said. “We are committed to growing our infrastructure footprint in East Texas and North Louisiana, and improving producer connectivity and netbacks.”
Carthage would provide access to LNG export markets in Louisiana and Texas, Voyager executives noted. In addition to the hub, the transaction includes about 550 miles of natural gas pipelines and associated compression, 400 MMcf/d of active cryogenic gas processing capacity and 12,000 b/d of liquids fractionation capacity.
The law firm Vinson & Elkins, which is advising Voyager in the purchase, said the acquisition is for DCP East Texas Gathering LLC, an indirect subsidiary of Phillips 66. Phillips 66 in 2023 bought DCP Midstream LP and its subsidiaries. The DCP East Texas venture initially included more than 500 miles of gathering pipelines and nearly 25,000 hp of compression, with processing capacity of nearly 800 MMcf/d across five plants.
“Voyager’s acquisition of these high quality assets positions the company for growth and success within the Haynesville, one of the preeminent shale plays with strategic connectivity to the U.S. Gulf Coast,” Pearl Energy partner Stewart Coleman said.
Exploration and production (E&P) activity has pulled back in the Haynesville this year as gas prices have fallen.
Spot gas at Carthage, for example, was trading at $2.280/MMBtu a year ago, but averaged only $1.925 on Wednesday (Sep. 4), according to NGI data. The hub averaged $1.645 for September bidweek, nearly 30.0 cents below the U.S. benchmark Henry Hub.
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The Haynesville is expected to see more E&P development once additional liquefied natural gas projects, both expansions and newbuilds, ramp on the Gulf Coast in 2025.
As an example, Precision Drilling Corp. CEO Kevin Neuveu signaled during the second quarter conference call that conversations were underway with Haynesville customers. Calgary-based Precision is one of the largest rig providers in North America.
“While our U.S. segment is stable, activity is a little slower than we would like,” Neveu said in August. However, Lower 48 demand “appears to have troughed. The combined drag effects of capital discipline, low natural gas prices, operator consolidation and delayed drilling plans seem to have bottomed out.”
An “encouraging” touchpoint for Precision are the discussions underway with several Haynesville E&P customers. E&Ps are in the “early stages of planning and anticipating increasing LNG export demand,” Neveu said. “The Haynesville is a region that has traditionally been a stronghold” for Precision rigs, he said.
In August, Precision had six available rigs in the region. Neuveu said, “we will have some additional reactivations before year end.”
