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Williams considers ESG certification for gas from Transco, Haynesville Basinfrom SNL Daily Gas Report Williams considers ESG certification for gas from Transco, Haynesville BasinByline: S&P Global Platts Midstream operator Williams Cos. Inc. identified Transcontinental Gas Pipe Line Co. LLC and the Haynesville Basin as potential target areas for responsibly sourced gas development, the company's director of New Energy Ventures said Oct. 12 at the LDC Gulf Coast Forum. While the industry has yet to coalesce around a standardized definition for RSG, or certified gas, it generally involves certification by an independent third party as meeting certain environmental, social and governance standards. Methane emissions are frequently a key metric in certification. "Our big utility customers and power customers on Transco are asking for this sort of product," said Angela John, director for Williams' New Energy Ventures. John highlighted the Haynesville Basin's natural lower emissions intensity profile and its geographic location straddling East Texas and north Louisiana as key reasons for Williams' interest. In addition to Transco Pipeline, which traverses Louisiana and Texas on its 10,000 miles of pipe that extend into the Northeast, Williams owns and operates substantial gathering and processing assets in the Gulf of Mexico states. The Haynesville has emerged as a major potential certified gas corridor in recent months, bolstered by producer certification commitments and its proximity to Gulf Coast LNG export terminals. Earlier in the Oct. 12 conference, DT Midstream Inc. Vice President for the South Region Paul Teske laid out the operator's proposal to create a carbon-neutral "wellhead-to-water" pathway for gas to travel from Haynesville to LNG export terminals and industrial customers along the U.S. Gulf Coast. Boardwalk Pipeline Partners LP Director of Marketing and Business Development Brent Beitler also teased the midstream company's interest in pursuing a plan similar to DT Midstream's in Louisiana during his conference presentation's Q&A session. Should midstream operators provide a dedicated or more environmentally friendly route for certified gas to move to the water, ample certified gas production will likely be available. Chesapeake Energy Corp., its pending acquisition Vine Energy Inc. and Tokyo Gas Co. Ltd.'s TG Natural Resources LLC have all sought out certification for Haynesville production volumes in the last three months. Between the three producers, nearly 2 Bcf/d of gas is anticipated to complete certification by the end of 2021. Historically, movement in the certified gas space has been driven by producers; however, midstream operators have recently entered the fray. On Sept. 28, Tallgrass Energy LP announced that it would seek out Project Canary Inc. certification of its bidirectional 4.4 Bcf/d Rockies Express Pipeline LLC. Continuous methane emissions monitoring sensors will be placed on all 22 of the Rockies Express compressor stations. Just a week prior, on Sept. 21, Kinder Morgan Inc. partnered with Southwestern Energy Co. to transport the Appalachia producer's certified gas along Tennessee Gas Pipeline Co. into demand markets in the Northeast. The recent announcements reflect two potential methods of midstream participation: certifying the pipeline infrastructure itself or setting aside dedicated capacity to transport certified gas molecules. When asked which approach Williams might favor, John replied that the company is "still trying to figure out commercialization" and emphasized Williams' commitment to cost efficiency. Kelsey Hallahan is a reporter with S&P Global Platts. S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc. |
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