Natural gas production in the U.S. is dominated by the Marcellus and Utica in the northeast and the Permian in West Texas and New Mexico. However, the biggest driver of incremental natural gas production growth is likely to be the Haynesville shale. While historically a price-dependent swing producer, the Haynesville could see more steady growth given its proximity to the massive build-out of liquefied natural gas (LNG) export capacity on the Gulf Coast.
Key Takeaways
- The extensive build-out of new liquefied natural gas (LNG) capacity on the Gulf Coast will likely require more production from the Haynesville shale.
- Located in Northwestern Louisiana and East Texas, the Haynesville has long produced oil and gas but typically as a price-dependent swing producer.
- The Haynesville may see the greatest production growth of any U.S. shale play over the next decade, creating new pipeline opportunities for midstream names.
Growing LNG Exports Need Haynesville Gas.
In recent years, a key focus in energy infrastructure has been the robust outlook for U.S. natural gas demand growth over the next decade. In the medium term, the bulk of demand growth is expected to come from new liquefied natural gas (LNG) export facilities. Specifically, projects under construction on the Gulf Coast are set to add ~20 billion cubic feet per day (Bcf/d) of capacity, more than doubling the current capacity for the entire U.S. To a lesser degree, power generation and industry will also require more natural gas.
To meet this incremental demand, production will need to grow. The oil-focused Permian has been the biggest driver of natural gas production growth in recent years as output has become gassier. However, the Permian alone cannot shoulder the coming wave of demand. Instead, there is going to be a greater call on volumes from the gas-focused Haynesville. The shale play spans portions of east Texas and northwestern Louisiana, enjoying closer proximity to LNG export facilities than the Permian.
The Haynesville: Swing Producer but Not for Long?
The Haynesville has been home to natural gas and oil production for decades. It featured prominently in the shale boom, as hydraulic fracturing and horizontal drilling unlocked new volumes. Production more than doubled from less than 5 Bcf/d in 2009 to over 10 Bcf/d by the end of 2011. However, volumes then moderated as natural gas prices weakened.
With negligible oil production, activity and economics in the Haynesville are dependent on natural gas prices. As such, the region has functioned more as a swing producer, with output rising and ebbing with natural gas prices as shown below.
With the onslaught of demand expected, the Haynesville is poised for meaningful growth. Kinder Morgan’s (KMI) latest presentation cites a Wood Mackenzie forecast for production growth of 13.5 Bcf/d from 2025 to 2035, which would be an increase of 93%. On a volume and percentage basis, this would be the greatest growth of any region forecasted, eclipsing the Permian and Marcellus/Utica.
Williams (WMB) has similarly discussed Bcf/d of Haynesville growth for the next decade. Looking more near term, DT Midstream (DTM) cites S&P Global forecasts showing 9 Bcf/d of incremental Haynesville production from 2025 to 2030. This suggests most of the production growth will coincide with the wave of LNG projects coming online by 2031.
Midstream readies for Haynesville growth with new projects.
Midstream companies are seeing volume growth on existing Haynesville assets and are preparing for production to reach new highs in the coming years. KMI noted that volumes on its Kinderhawk gathering system in the Haynesville were up 54% in 2Q26 compared to 2Q25. The company is spending $500 million to add 1 Bcf/d of gathering capacity in the Haynesville, which is expected to be completed in 4Q26.
WMB has added significantly to its Haynesville footprint with the $5.5 billion acquisition of Momentum Midstream. Assets included 6 Bcf/d of gathering capacity and 4 Bcf/d of take-or-pay pipeline capacity. Take-or-pay features ensure that the pipeline operator is paid, regardless of the volumes actually shipped. The transaction has made WMB the largest gatherer in the Haynesville.
Accompanying the announcement, WMB unveiled two new expansion projects. The first will expand WMB’s Louisiana Energy Gateway system into the Shelby Trough, with 0.75 Bcf/d of capacity expected to start up in 2Q28. The second is a 2.25-Bcf/d expansion off the Transco System to meet power and LNG demand starting in 1Q29.
Alongside its 2Q26 earnings, DTM announced an expansion of its LEAP gathering system in the Haynesville by 0.2 Bcf/d, which will take the system capacity to 2.3 Bcf/d in 2H28. LEAP could be expanded up to 4 Bcf/d to meet LNG and industrial demand.
Large MLPs Energy Transfer (ET) and Enterprise Products Partners (EPD) also have pipeline assets serving the Haynesville. EPD mentioned that its two pipes are sold out, while ET noted that its selling capacity on its Haynesville pipes at really good rates.
Bottom Line
Rising natural gas demand, particularly from new coastal LNG export facilities, is likely to require a significant step-up in Haynesville production over the next 5-10 years. With this growth beginning to materialize, midstream companies are pursuing new projects to connect rising output with incremental demand.
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Related Research:
Midstream Scales Up Natural Gas Infrastructure
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