DT Midstream (DTM) Expands LEAP Pipeline Capacity by 30%
Energy infrastructure provider DT Midstream, Inc. DTM has achieved a significant milestone with the successful commissioning of its Louisiana Energy Access (LEAP) Phase 1 expansion, increasing the conduit’s capacity from 1 billion cubic feet per day (Bcf/d) to 1.3 Bcfd. Notably, this completion took place ahead of the original expected in-service date, which was set for the fourth quarter of 2023.
Furthermore, the company provided insights into its expansion roadmap, affirming that the second and third phases are progressing as per plans. Phase 2 is expected to be in service by the first quarter of 2024, followed by Phase 3 in the third quarter of the same year. Eventually, this multi-phased initiative will boost the 155-mile LEAP's total capacity to an impressive 1.9 Bcf/d and establish scalability for further expansions up to 3 Bcf/d.
LEAP currently serves a crucial role in connecting production from the Haynesville formation in East Texas and Northwest Louisiana with the rapidly growing Gulf Coast markets. It is estimated that these markets — domestic industrial and international LNG — will expand by over 8 Bcf/d by 2030. At present, LEAP customers enjoy access to various existing and forthcoming LNG terminals, including Sabine Pass, Cameron, Calcasieu Pass, Plaquemines and Golden Pass via interconnects with Creole Trail, Cameron Interstate Pipeline, Texas Eastern and Transco.
The company emphasized that early completion of the LEAP expansion project is a vital stride toward providing customers “wellhead to water” access to premium LNG markets. This also supports U.S.-sourced LNG exports at a time when energy security and affordability are of utmost importance.
About DT Midstream
DT Midstream is a Detroit, MI-based company specializing in the transportation and management of natural gas across various regions in the United States and Canada. Their services include natural gas transportation, storage and gathering. As part of its sustainability efforts, DTM is actively working toward achieving net-zero greenhouse gas emissions by 2050, with a target of reducing carbon emissions by 30% by 2030.
Zacks Rank & Stock Picks
DT Midstream carries a Zacks Rank #3 (Hold) at present. Meanwhile, investors interested in the energy sector might consider the operators mentioned below. These companies currently sport a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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