While advancing projects to sustain exploration and production companies vying for the coming boom in the LNG export market, DT Midstream Inc. (DTM) executives said the firm also would focus on supporting power demand from industrial users to underpin the natural gas market.
The Detroit-based company increased 2024 capital guidance to $330-375 million from previous guidance of $265-375 million to fund projects reaching final investment decision, CEO David Slater said during a call to discuss second quarter earnings.
“In spite of the choppiness in the short-term market, which is trading on weather, our portfolio has remained very durable, and we continue to be bullish on the need for natural gas infrastructure in the long-term,” Slater said.
Demonstrating that bullishness, DTM’s infrastructure buildout leaped forward as the company brought online its Louisiana Energy Access Project (LEAP) Phase 3 expansion project in 2Q2024, earlier than expected. That increased capacity from 1.7 Bcf/d to 1.9 Bcf/d. The 150-mile, 36-inch diameter pipeline carries Haynesville Shale gas in Louisiana to the Gulf Coast for industrial use and liquefied natural gas exports.
Slater said discussions are underway for a fourth LEAP expansion amid strong demand for feed gas for Gulf Coast LNG projects such as Plaquemines LNG and Golden Pass LNG. “Producers understand the long-term value for production access to the Gulf Coast markets,” he said.
DTM also took steps during 2Q2024 to expand and diversify its supply access. Agreements were signed with three undisclosed private East Texas producers, supported by long-term contracts with sizable acreage dedications. Slater said the agreements include all of the system’s delivery point flexibility, including potential access to LEAP.
DTM also remains “highly focused” on gas infrastructure opportunities to advance power demand for new large industrial loads including data centers.
“We anticipate this power demand growth will require incremental pipeline and natural gas storage infrastructure,” Slater said. DTM has begun commercial discussions with six potential projects across its Louisiana network. He said all of the agreements are driven by incremental power demand underpinned predominantly by data center development.
Production Ramp
Haynesville activity is expected to rebound as natural gas prices improve, according to DTM. Major natural gas producers, including EQT Corp. and Chesapeake Energy Corp., recently said they would continue pulling back volumes because of ongoing price volatility.
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NGI’s Daily Historical Data show that the Henry Hub spot gas price ranged from $1.335/MMBtu to $2.800 through the second quarter, well below the $13.08 January high. Along the forward curve, the Henry Hub forward fixed price for the balance of summer stood at $2.038 on Wednesday (July 31), compared to $3.066 for summer 2025.
Meanwhile, DTM CFO Jeff Jewell said total gathering volumes across both the Haynesville and Northeast averaged about 2.9 Bcf/d in 2Q2024, steady with the total gathering volumes across both regions in 2Q2023. Volumes were down in both regions compared to the prior quarter.
Jewell said the volume decline in the Northeast reflected the impact of curtailments by producers. They were partially offset by the continued ramp-up on the Ohio Utica Shale gathering system. The greenfield project has a designed capacity of up to 200 MMcf/d. It began service in March.
In the Haynesville during the second quarter, volumes declined amid producer cutbacks and the impact of a planned treating plant maintenance outage.
DTM reported net income of $96 million (98 cents/share) in 2Q2024, versus $91 million (93 cents) in the same period last year.
