Momentum to build Haynesville gathering, sequestration network; completes acquisitions

M6 Midstream LLC (Momentum) has taken final investment decision (FID) on its new natural gas gathering and carbon capture and sequestration project, New Generation Gas Gathering (NG3). NG3 will have an initial gas gathering capacity of 1.7 bcfd, expandable to 2.2 bcfd. It will also capture and permanently sequester up to 2.0 million tons/year of CO₂. The project is expected to commence operations in second-half 2024.

The system is anchored by long-term volume commitments from Haynesville shale producers, including Chesapeake Energy Corp., which also has an option to own 35% of the project. It will deliver to US Gulf Coast markets.

Momentum also completed acquisitions of Midcoast Energy LLC’s East Texas business (Midcoast ETX) from an affiliate of ArcLight Capital Partners LLC and Align Midstream Partners II from Tailwater Capital. Both businesses are also active in the Haynesville.

The combined assets of Midcoast ETX and Align Midstream bring Momentum’s current gathering capacity to more than 2 bcfd across roughly 3,000 miles pipeline. It also now has 1.5 bcfd of gas treatment, 700 MMcfd of gas processing, 200,000 hp of compression, and 820 miles of transportation pipelines delivering gas to Gulf Coast markets in southeast Texas and the Carthage and Bethel hubs in east Texas. 

Terms of the transactions were not disclosed.