New research from S&P Global Commodity Insights says a South Texas Gulf Coast LNG project development creates a market for the western Eagle Ford shale’s dry-gas window in far Southwest Texas’ Webb County. Researchers say this dry-gas window could become an emerging growth play with the potential to deliver significant natural gas resources in lockstep with growing LNG export capacity and become a key component of global LNG supply.
Webb County, which sits on the Rio Grande and borders three Mexican states, is both vast and remote – at nearly 3,400 square miles (8,740 km2), Webb County is larger than Delaware and Rhode Island combined and approximately 200 miles from Brownsville, Texas, where a connecting pipeline and new LNG projects are underway. With this new export infrastructure in the works, Webb County may soon be a key destination for natural gas producers and a major supplier of feedstock for LNG.
Read our latest whitepaper and discover how this project:
- Has the potential to deliver significant resources for LNG feedstock (researchers estimated 550 gross development (non-producing) wells could produce approximately 3.5 billion cubic feet (BCF) of natural gas per day between 2024—2026)
- Could be setting the stage for a more active deal market – currently, play development depends mainly on private E&Ps (exploration and production companies) and investors, who are exhibiting the best performance, but public E&P interest is growing
- Creates less reliance on the US gas market
- Creates a window of opportunity for investment for operators whose projects have a medium-term investment horizon
