随着最大的上市公司不断收购较小的管道企业，中游整合正在进行中，但中型和区域性私营企业仍在该行业发挥着重要作用。

三家私营企业（Howard Energy Partners、Medallion Midstream和Momentum Midstream）的首席执行官最近与《石油和天然气投资者》分享了他们对管道行业现状和未来需求的看法。

霍华德是三者中规模最大、业务最多元化的一家，业务范围覆盖西德克萨斯州、南德克萨斯州和俄克拉荷马州，并在墨西哥运营 200 英里长的 Nueva Era 天然气管道。该公司在马塞勒斯页岩的天然气收集系统是其独特之处。

霍华德与Devon Energy合作，在二叠纪盆地建设天然气收集和处理系统，并在 Eagle Ford Shale 运营连接墨西哥和美国墨西哥湾沿岸的天然气管道和处理系统。该公司管理着位于科珀斯克里斯蒂和亚瑟港的德克萨斯州管道、海运和铁路物流枢纽，并运营位于科珀斯克里斯蒂的 Javelina 加工厂。

霍华德公司董事长兼首席执行官迈克·霍华德 (Mike Howard) 自 2011 年共同创立该公司以来一直领导该公司。此后，所有权发生了变化，阿尔伯塔投资管理公司 (Alberta Investment Management Corp.)将在 2022 年底前收购霍华德 87% 的股份。

自这次采访以来，Medallion Midstream 同意以 26 亿美元现金价格向ONEOK出售。

Medallion 专门在二叠纪盆地开展业务，为盆地的米德兰和特拉华两处提供综合中游服务。总裁兼首席执行官 Randy Lentz 于 2010 年加入 Medallion。

全球基础设施合作伙伴支持的 Medallion 在米德兰盆地拥有庞大的资产，拥有 1,200 英里的管道和收集系统以及 150 万桶的储存空间。其规模较小的德克萨斯南部特拉华州资产包括沃德县、佩科斯县和克兰县超过 130 英里的原油管道和超过 10 万桶的储存空间。

Momentum Midstream 的重点是其在 Haynesville Shale 的大型收集和加工网络。两年前从Midcoast Energy和Align Midstream收购后，其大部分资产位于德克萨斯州东部边境。Momentum 还向德克萨斯州和路易斯安那州墨西哥湾沿岸的液化天然气枢纽输送大量天然气。

过去 20 年来，该公司已开发或收购了超过 5,000 英里的管道、18 座加工设施和 3 座 NGL 分馏设施，并拥有超过 100 万桶的储存容量和约 500,000 马力的压缩能力。

Momentum 联合创始人兼首席执行官 Frank Tsuru 自 2004 年公司成立以来一直担任该职务。Momentum 得到了EnCap Flatrock的支持，还得到了Yorktown Partners、Ridgemont Equity Partners和 Blackstone Credit 的支持。

Howard、Lentz 和 Tsuru 与 Hart Energy 的编辑总监 Jordan Blum 讨论了中游行业的现状。

乔丹·布鲁姆，哈特能源编辑总监：从宏观角度来看，您如何看待北美中游行业，特别是美国页岩油的总体状况？

霍华德能源合伙人公司 (Howard Energy Partners) 董事长兼首席执行官迈克·霍华德 (Mike Howard)：霍华德能源是美国最大的私营中游公司之一。我们拥有独特的地位，拥有来自养老基金的强大资本支持，而且我们没有使用传统的“建造和转手”私募股权模式。与公开交易市场的季度思维模式相比，我们具有非常长远的眼光。

因此，作为一项投资，我们看好天然气相关基础设施，我们也看好 NGL 和成品油基础设施。我们认为，页岩天然气（除二叠纪盆地外，与油价相关的伴生气）的短期增长将受到挑战，因为天然气价格低廉，而且在天然气钻探回升之前缺乏新的基础设施需求。我们认为市场仍存在一些整合，因为自 2015 年以来，中游 IPO 对私营公司来说并不是一个好选择，而中型上市公司已经显示出难以满足投资者的期望。

Medallion Midstream 总裁兼首席执行官 Randy Lentz：总体而言，中游行业的状况非常强劲和稳定。随着生产商继续整合并将资本导向回报最高的盆地，中游公司也将效仿，并随着这些盆地产量的增加继续投资于增长机会。

Momentum Midstream 联合创始人兼首席执行官 Frank Tsuru：中游行业目前状况非常良好。自 2020 年以来，随着这些公司的资产负债表不断增强，我们看到上市公司的估值显著改善。该行业的财务状况对未来的并购活动来说是个好兆头。在 Momentum，我们专注于天然气。

是的，目前市场供应过剩，部分原因是冬季异常温暖。但我们不要忽视更大的图景。结构性支撑是存在的，由墨西哥湾沿岸液化天然气和电力部门的强劲需求增长以及最终发电厂从煤炭到清洁燃烧天然气的燃料转换所推动。可再生能源肯定会补充电力增长，但天然气涡轮机提供的供应和运行时间确定性仍将至关重要。我们继续将海恩斯维尔视为满足这一不断增长的需求的主要天然气供应盆地，这要归功于其优越的岩石质量、靠近主要需求中心以及德克萨斯州和路易斯安那州的宽松监管框架。

JB：您如何看待中游整合对行业的影响，尤其是在众多上游并购活动不断涌现的情况下？

RL：短期内，这种情况可能会持续下去，尤其是在上游并购整合规模最大的盆地。规模较大的[公共公司]将收购规模较小的私营公司，或可能寻求与其他[公共公司]合并或合资的机会，以获得更多的协同效应。

JB：随着大型中游公司的数量通过并购减少，这对私营公司有何影响？您对创办自己的私营中游企业的人有何建议？

MH：对于那些想要创办自己的私人中游公司的人，我们的建议很简单，不要这么做。这太难了。

抛开所有玩笑不谈，如果一定要说，选择一个盆地并弄清楚该地区的基础设施需求是关键。我们还发现，与任何其他业务一样，关系是最重要的。如果你能证明自己在保持关系导向的同时能够比别人做得更好，你就会击败竞争对手。资金是另一个主要因素。先找到交易，然后再获得支持它的资金可能不是最简单的方法——而且往往需要耐心——但从长远来看更有利。

2000 年代后期，随着页岩气的繁荣，我们经历了多家私营中游公司的成立。鉴于私营公司的退出和整合，小公司有机会蓬勃发展，尽管如今获取资本要困难得多。在霍华德能源，我们围绕需要快速行动和成本结构的项目建立了业务，而大公司通常不会追求这些项目。我们在复杂性和项目执行方面也表现出色，这让我们非常适合为大客户提供服务。我们具有独特的能力，能够找出需要填补的基础设施空白，并迅速采取行动解决这些问题。

RL：在优质盆地拥有优质资产的私营中游公司将继续拥有选择。虽然退出机会可能会减少，但随着大型上市公司的收购目标耗尽，稀缺价值可能会成为现实。 

由于缺乏新盆地，且现有盆地的基础设施不成熟，短期内启动新的私营中游业务将具有挑战性。不过，未来可能会有收购机会。随着公司的发展，维持效率变得更加困难，最终非战略性资产将进入市场。

JB：您认为最近发生的并购交易中出现了什么趋势吗？

RL：并购趋势表明，最好的盆地仍然是最好的盆地，而技术进步的出现释放了产量和库存，这是最近出现如此多并购活动的原因。

JB：从基础设施差距、需求增长等角度来看，该行业的主要需求是什么？

RL：天然气产量大幅增长将继续推动基础设施建设，包括增加天然气加工设施、NGL 和残渣输送管道。还需要增加或扩建 LNG 设施，以提供供应增长的市场。

FT：到本世纪末，北美液化天然气出口量将增长近一倍，其中大部分增长来自路易斯安那州和德克萨斯州。这一扩张可能需要超过 200 亿立方英尺/天的额外供应，正如我之前提到的，海恩斯维尔将成为墨西哥湾沿岸液化天然气的主要来源。管道扩建已经在进行中，包括我们的 NG3 收集系统，该系统可提供高达 22 亿立方英尺/天的低碳原料。然而，还需要更多的基础设施。我预计，从海恩斯维尔到墨西哥湾沿岸还需要另外两到三个区域管道项目才能满足预期的增长。供需将不均衡，因为每当一条新的区域管道投入使用时，就会有 15-25 亿立方英尺/天的输送能力可用。

我们还需要考虑二叠纪盆地。新的州内管道将把伴生气生产连接到海岸，但二叠纪天然气的高氮含量对液化天然气行业提出了挑战。海恩斯维尔天然气的氮含量通常是首选液化天然气规格的两倍，而其较低的氮含量使其成为一种颇具吸引力的混合原料。供应量的大幅增长将需要对现场收集、CO2 和 H2 处理以及天然气处理基础设施进行大量投资。当生产商突破现有产能界限时，情况尤其如此。我们已经在海恩斯维尔看到了这种情况，特别是在谢尔比海槽和西海恩斯维尔，那里的产量有可能在短期内压垮当地的基础设施。

JB：具体来说，在二叠纪盆地，其他最重要的需求是什么？加工？长途天然气？混合和处理？还有什么被忽视了？

RL：重点将是天然气加工、残余气体和 NGL 压裂能力。鉴于二叠纪盆地的活动强劲，还需要在 18 到 24 个月内扩大原油输送能力。被忽视的是现场收集——即石油和水——将二叠纪生产物聚集并输送到加工厂或石油长途管道所需的基础设施。

JB：您如何看待国内电力需求——尤其是人工智能的发展——对行业的影响？为什么？您如何看待定价？

MH：我们认为能源需求和 GDP 增长有着内在联系。美国和墨西哥的能源需求正在增长，包括电气化、液化天然气出口、数据中心（包括人工智能）和制造业。天然气是满足这种需求增长的最可靠、低碳和低成本的能源。然而，我们的经验是，在短期内，由于我们创新的上游产业，美国的天然气供应可能远远超过需求。在当今的自由市场环境中，这让我们看好美国和墨西哥的能源需求，看跌长期（五年）的天然气价格。 

RL：电力是业内每个人面临的长期挑战。随着我们专注于减少范围 1 排放，通过使用更多可再生能源来满足电力需求成为算法中更重要的一部分，但电力供应的性质也成为一个重要因素。需要在所有形式的发电方面进行更多投资，以满足需求并控制电力成本。

FT：公用事业公司正在大力投资以支持电力需求增长，而天然气的可靠性使其成为发电结构的重要组成部分。正在开发峰值电厂以解决太阳能和风能造成的“曲线曲线”问题。这些电厂需要可调用的天然气，而这些天然气只能通过访问存储来即时提供。正在安装基载电厂以满足人工智能和数据中心增长的需求。这意味着公用事业公司需要长途管道上的稳定容量才能达到供应。天然气发电厂必须位于数据中心附近，虽然天然气基础设施对于这些决策很重要，但管道容量的未来可用性和成本对公用事业公司来说可能是一个真正的挑战，但这可以为中游公司创造机会。需求增加应该有利于定价，峰值电厂会导致波动性增加。

JB：现在定价有多困难和令人沮丧？不仅是 Henry Hub，还有 Waha 和其他公司？

MH：我们对长期天然气定价持悲观看法。根据我们的经验，该行业可以通过增加供应来快速解决短期价格错位问题，从而使天然气价格保持在历史低位。如果从短期来看，这可能会令人沮丧，但从长远来看，天然气确实是唯一能够满足电力市场所需的规模和间歇性的能源。新的天然气发电装置将有助于维持我们电网的可靠性，并支持我们因人工智能等技术进步而不断增长的能源需求。通过持续创新，我们的行业将像往常一样适应长期较低的天然气价格。

JB：绿地中游增长的潜力有多大？哪里的需求最大？

FT：在过去五到十年间，生产商的供应推动承诺帮助 FID 关键基础设施将生产盆地与终端市场（尤其是墨西哥湾沿岸液化天然气）连接起来。短期内，绿地中游增长将由需求拉动，由公用事业和工业推动。这些行业过去一直能够在其工厂采购交付的天然气，但由于液化天然气和数据中心需求的竞争加剧，它们现在专注于确保供应。现在，它们在拥挤的地区争夺同一种分子，如路易斯安那州的密西西比河走廊和德克萨斯州的亚瑟港和博蒙特。我们相信海恩斯维尔和二叠纪非常适合应对这些挑战，尽管这不会在一夜之间发生。这些项目需要不同公司的规模和合作，他们对如何解决当前问题有不同的看法。

JB：中游在碳捕获和储存、氢能和其他新能源领域目前和未来扮演着什么角色？

MH：我们相信，中游企业将成为新能源企业的主要参与者，因为我们拥有建设工业基础设施的经验和资本。作为资本家和中游企业，我们专注于通过满足日益增长的能源需求和倾听市场对低碳能源的需求，最大限度地提高投资者的回报。这种理解这些重点目标的二重性、同时把握两个事实的能力，是我们的独特之处。

Howard Energy Partners 通过我们的低碳解决方案小组，在得克萨斯州南部的 Coastal Bend 地区开展了一个 CCS 项目，该项目得到了美国能源部 (DOE) 的资助。我们还在位于科珀斯克里斯蒂的 Javelina 工厂生产低碳密集型氢气，其中包括与 E-fuels 生产商 Infinium 的合作。我们还拥有得克萨斯州最大的可再生柴油物流设施。这些和其他新能源风险投资项目只有在获得可接受的投资回报的情况下才会实现。

FT：在 2019 年出售 M5 Midstream 之后，我们花了很多时间探索低碳和废物转化为燃料的项目。产生可接受的回报并大规模部署资本是一项挑战。我们在 Momentum 的新业务重点是具有经济意义的 CCS。

我们目前正在建设的项目 NG3 是一个很好的例子，它展示了 CCS 如何以经济的方式大规模部署。我们正在利用 45Q 税收抵免政策（就像 NG3 一样，这些政策是为了鼓励中游投资而制定的），为客户提供差异化​​、具有成本竞争力的收集和处理解决方案，该解决方案的净值为负，这意味着我们封存的二氧化碳将多于我们排放的_二氧化碳。

JB：哪种中游技术发展最让您兴奋？

RL：人工智能在日常运营中的应用及其在维护方面的预测性。它可以改变游戏规则。

JB：您正在关注哪些当前和潜在的全球地缘政治影响？

MH：我们特别关注我们能够影响的能源需求，即墨西哥湾沿岸液化天然气和墨西哥。由于海外公司的工业近岸外包，墨西哥北部的天然气和电力需求创下了历史新高。

我们的 Nueva Era 管道将 Eagle Ford 页岩气直接连接到墨西哥蒙特雷的工业中心。我们认为，需要在这一地区建设更多基础设施，以满足当前的需求。在液化天然气方面，我们关注 Cheniere Corpus Christi 和布朗斯维尔的 NextDecade 设施不断增长的液化天然气需求，并寻找向他们供应 Eagle Ford 低氮气的方法。

JB：对于中游行业的未来，您最担心的是什么？

MH：德克萨斯州和美国的糟糕能源政策让我夜不能寐。过去几年，我们逐渐意识到能源倡导的必要性以及所有能源从业人员在这一领域可以发挥的作用。能源政策的短期思维（本应是长期、数十年的思维）很难克服，而且事实证明，面对日益增多的负面言论，这将是一场艰苦的战斗。为了对抗这种短期思维方式，我们必须专注于能源教育，鼓励我们的能源领导人站出来成为倡导者和政策制定者。

Midstream consolidation is ongoing as the biggest public players scoop up smaller pipeliners, but midsized and regional private players still play a significant role in the industry.

CEOs of three of the private players—Howard Energy Partners, Medallion Midstream and Momentum Midstream—recently shared their views on the current status and future needs of the pipeline industry with Oil and Gas Investor.

Howard, the largest and most diversified of the three, is big in West Texas, South Texas and Oklahoma, and operates the 200-mile Nueva Era gas pipeline in Mexico. The outlier position is the company’s gas-gathering system in the Marcellus Shale.

Howard is in a partnership with Devon Energy for gas gathering and processing systems in the Permian Basin, and operates gas pipelines and processing systems in the Eagle Ford Shale that connect to Mexico and the U.S. Gulf Coast. The company manages Texas hubs for pipeline, marine and rail logistics in Corpus Christi and Port Arthur and operates the Javelina processing facility in Corpus Christi.

Howard Chairman and CEO Mike Howard has led the business since he co-founded it in 2011. Ownership has shifted since then, with the Alberta Investment Management Corp. buying up an 87% stake in Howard by the end of 2022.

Since this interview, Medallion Midstream agreed to a $2.6 billion cash sale to ONEOK.

Medallion works exclusively in the Permian Basin, with integrated midstream services in both the Midland and Delaware lobes of the basin. President and CEO Randy Lentz joined Medallion in 2010.

Global Infrastructure Partners-backed Medallion has a massive Midland Basin footprint, with 1,200 miles of pipeline and gathering systems as well as 1.5 MMbbl of storage. Its smaller Texas Southern Delaware assets include more than 130 miles of crude pipeline in Ward, Pecos and Crane counties and more than 100,000 bbl of storage.

The focus for Momentum Midstream is its large gathering and processing network in the Haynesville Shale. Following acquisitions two years ago from Midcoast Energy and Align Midstream, a large portion of its assets are on the East Texas side of the border. Momentum also has significant gas delivery to LNG hubs along the Texas and Louisiana Gulf Coast.

The company has developed or acquired more than 5,000 miles of pipeline, 18 processing facilities and three NGL fractionation facilities over the past 20 years, and has more than 1 MMbbl of storage with roughly 500,000 hp of compression.

Momentum co-founder and CEO Frank Tsuru has been in his role since the company’s inception in 2004. Backed by EnCap Flatrock, Momentum also is supported by Yorktown Partners, Ridgemont Equity Partners and Blackstone Credit.

Howard, Lentz and Tsuru discussed the state of the midstream sector with Jordan Blum, Hart Energy’s editorial director.

Jordan Blum, editorial director, Hart Energy: On the macro level, how do you see the overall state of the midstream sector in North America, especially U.S. shale?

Mike Howard, chairman and CEO, Howard Energy Partners: Howard Energy is one of the largest private midstream companies in the U.S. We are in a unique position with strong capital backing from a pension fund, and we have not used the traditional build-and-flip private equity model. We have a very long-term outlook versus the quarter-to-quarter mindset of the publicly traded market.

So, as an investment, we like natural gas-related infrastructure, and we like NGL and refined product infrastructure. We see short-term growth in shale natural gas—besides the Permian, which is associated gas tied to oil prices—to be challenged due to low natural gas prices and a lack of new infrastructure needs until natural gas drilling picks up. We believe there is still some consolidation in the market since a midstream IPO has not been a great option for private companies since 2015, and mid-tier public companies have shown to have a hard time growing to meet investors’ expectations.

Randy Lentz, president and CEO, Medallion Midstream: Overall, the state of the midstream sector is very strong and stable. As producers continue to consolidate and direct their capital to the highest-return basins, midstream companies will do the same and continue to invest in growth opportunities as volumes in these basins increase.

Frank Tsuru, co-founder and CEO, Momentum Midstream: The midstream sector is in an extremely healthy position. Since 2020, we’ve seen a significant improvement in public company valuations with these companies strengthening their balance sheets. The financial health of the sector bodes well for future M&A activity. At Momentum, we’re focused on natural gas.

Yes, the market is currently oversupplied, partly due to an unusually warm winter. But let’s not lose sight of the bigger picture. The structural support is there, driven by the strong demand growth in Gulf Coast LNG and the power sector and, finally, the fuel switching of power plants from coal to clean-burning natural gas. Renewables will certainly supplement power growth, but the supply and runtime certainty provided by natural gas-fired turbines will remain essential. We continue to see the Haynesville as the primary gas-supply basin to meet this growing demand, thanks to its superior rock quality, proximity to key demand centers, and an accommodating regulatory framework in Texas and Louisiana.

JB: How do you see midstream consolidation continuing to play out for the industry, especially amid all of the upstream M&A?

RL: In the near term, it will likely continue, especially in the basins where the largest upstream M&A consolidation is occurring. Larger [publics] will acquire smaller private companies or possibly look at mergers or JV opportunities with other [publics] to capture more synergies.

JB: As the numbers of major midstream companies shrink through M&A, what kind of an effect does that have on the private companies? And what advice would you give to someone starting their own private midstream business?

MH: Our advice to someone looking to start their own private midstream company is simply, don’t. It’s too hard.

All kidding aside, if you must, picking a basin and figuring out the infrastructure needs in that area are key. We have also found that, like any other business, relationships are everything. If you can prove that you can execute better than others while remaining relationship-oriented, you will beat out the competition. Capital is the other major factor. Finding the deal first, then the capital to back it may not be the easiest approach—and often requires patience—but is more beneficial in the long run.

We experienced the creation of multiple private midstream companies in the late 2000s with the shale boom. Given the private company exits and consolidations that have occurred, there is an opportunity for smaller companies to thrive, even though access to capital is much more difficult these days. At Howard Energy, we built a business around projects that require moving at speed and cost structures that bigger companies often don’t pursue. We punch above our weight in sophistication and project execution as well, which makes us well suited to providing services to large customers. We have the unique ability to figure out the infrastructure gaps that need to be filled and work quickly to address them.

RL: Private midstream companies with good assets in good basins will continue to have options.  While there could be fewer exit opportunities, scarcity value could become real as large publics run out of acquisition targets. 

Starting a new private midstream business in the near term will be challenging, given the lack of new basins and the infrastructure maturity of existing basins. However, there could be acquisition opportunities down the road. As companies grow, it is much harder to maintain efficiencies, and ultimately, non-strategic assets will be on the market.

JB: Are there any trends you see emerging from the M&A deals that have happened recently?

RL: The M&A trends are showing that the best basins continue to be the best basins, and the onset of technological advancements to unlock production and inventory is the reason there has been so much M&A activity as of late.

JB: What are the primary needs for the industry in terms of infrastructure gaps, growing demand, etc.?

RL: Significant increases in natural gas production will continue to drive infrastructure in the form of additional gas processing facilities and NGL and residue takeaway pipelines. Additional LNG facilities or expansions also will be needed to provide a market for supply growth.

FT: North American LNG exports are set to nearly double by the end of the decade, with most of this growth coming from Louisiana and Texas. This expansion could require over 20 Bcf/d of additional supply, and as I mentioned earlier, the Haynesville will be a key source for Gulf Coast LNG. Pipeline expansions are already underway, including our NG3 gathering system, which can provide up to 2.2 Bcf/d of low-carbon feedstock. However, more infrastructure will be needed. I expect another two or three regional pipeline projects from the Haynesville to the Gulf Coast will be necessary to meet the projected growth. The supply and demand will be lumpy as 1.5-2.5 Bcf/d of takeaway capacity will become available every time a new regional pipeline comes on.

We also need to consider the Permian. New intrastate pipelines will connect associated gas production to the coast, but the high nitrogen content of Permian gas presents challenges for the LNG industry. With nitrogen content often twice the preferred LNG specifications, the Haynesville—with its lower nitrogen content—becomes an attractive blend stock. Significant supply growth will require large investments for in-field gathering, CO₂ and H₂S treating, and gas-processing infrastructure. This is especially true as producers push the boundaries of existing plays. We’re already seeing this in the Haynesville, particularly in the Shelby Trough and Western Haynesville, where production has potential to overwhelm local infrastructure in the near term.

JB: In the Permian specifically, what are the other top needs? Processing? Long-haul gas? Blending and treating? And what gets overlooked?

RL: The priorities will be gas processing, residue gas and NGL-frac capacity. With robust activity in the Permian, an expansion of crude takeaway capacity also will be needed in 18 to 24 months.  What gets overlooked is the in-field gathering—gas, oil and water—infrastructure required to aggregate and deliver Permian production to processing plants or oil long-haul pipelines.

JB: How do you see domestic power demand—especially with the growth of artificial intelligence—impacting the industry? And why? How do you see pricing playing out?

MH: We believe that energy demand and GDP growth are intrinsically linked. The U.S. and Mexico are experiencing energy demand growth of electrification, LNG export, data centers [including AI] and manufacturing. Natural gas is the most reliable, low-carbon and low-cost energy source to meet the increase in this demand. However, our experience is that, in the near term, natural gas supply in the U.S. can far outstrip demand due to our innovative upstream industry. In the free-market environment that we have today, it makes us bullish on energy demand in the U.S. and Mexico and bearish on long-term, five-year natural gas prices. 

RL: Power is a long-term challenge for everyone in the industry. As we focus on reducing Scope 1 emissions, power needs through the use of more renewable energy become a bigger part of the algorithm, but the nature of that power availability becomes a large factor, too. More investment is needed in all forms of power generation to meet both demand and manage power costs.

FT: Utilities are investing heavily to support power-demand growth, and the reliability of natural gas makes it a crucial part of the generation mix. Peaker plants are being developed to address the “duck curve” problem created by solar and wind. These plants need callable gas, which can only be provided instantly through access to storage. Baseload plants are being installed to meet the needs of AI and data center growth. This means utilities need firm capacity on long-haul pipelines to reach supply. Gas power plants must be sited near data centers, and while gas infrastructure is important for these decisions, the future availability and cost of pipeline capacity can be a real challenge for utility companies, but that can create opportunity for midstream companies. Increased demand should be beneficial for pricing, with peaker plants leading to increased volatility.

JB: How difficult and frustrating is pricing right now? Not just Henry Hub, but Waha and others?

MH: We have a bearish outlook on long-term natural gas pricing. It has been our experience that the industry can quickly address short-term price dislocations with an increase in supply, which keeps gas prices historically low. This can be frustrating when approached in the short term, but when we look at the long term, natural gas is really the only energy source that can meet the scale and intermittency required in the electricity market. New gas generation installations will help to maintain the reliability of our power grids and support our growing energy demand from technological advances like AI. Through continued innovation, our industry will adapt to the lower-for-longer gas prices like we always have.

JB: What is the potential for greenfield midstream growth, and where is the need greatest?

FT: Over the last five to 10 years, supply-push commitments from producers have helped FID critical infrastructure to link production basins with end markets, particularly Gulf Coast LNG. In the near term, greenfield midstream growth will be demand-pull, driven by utilities and industrials. These sectors have historically been able to procure delivered gas at their plants, but they are now focused on securing supply due to increased competition from LNG and data center demand. Now, they are competing for the same molecules in congested areas like the Mississippi River corridor in Louisiana and Port Arthur and Beaumont in Texas. We believe the Haynesville and Permian are well suited to address these challenges, though it won’t happen overnight. These projects require scale and cooperation from different companies with different views on how to fix the problem at hand.

JB: What is the current and future role of midstream in carbon capture and storage, hydrogen and other new energies ventures?

MH: We believe the companies in the midstream business will be a major player in new energy ventures since we have the experience and capital to build industrial infrastructure. As capitalists and a midstream company, we focus on maximizing the return of our investors’ dollars by meeting the increased demand for energy and listening to the market’s desire for lower-carbon forms of energy. This ability to understand the duality of these focused goals, holding two truths at the same time, is what makes us unique.

Howard Energy Partners, through our Low Carbon Solutions group, has an active project for CCS in the Coastal Bend area of South Texas supported by a DOE [U.S. Department of Energy] grant. We also produce low-carbon-intensive hydrogen at our Javelina facility in Corpus Christi that includes our partnership with E-fuels producer, Infinium. We also own the largest renewable diesel logistics facility in Texas.  These and other new energy venture projects will only happen if they make an acceptable return on investment.

FT: Following the sale of M5 Midstream in 2019, we spent quite a bit of time exploring low-carbon and waste-to-fuel projects. Generating acceptable returns and deploying capital at scale was challenging. Our new ventures focus at Momentum is on CCS where it makes economic sense.

Our project currently under construction, NG3, is a great example of how CCS can be economically deployed at scale. We are using 45Q tax credits, which were put in place to encourage midstream investment just like NG3, to provide our customers with a differentiated, cost-competitive gathering and treating solution that is net negative, meaning we will sequester more CO₂ than we emit.

JB: What midstream technological development has excited you the most?

RL: The use of AI in everyday operations and its predictive nature regarding maintenance. It can be a gamechanger.

JB: What current and potential global geopolitical impacts are you watching?

MH: We are specifically focused on energy demand that we can impact, which is Gulf Coast LNG and Mexico. We are experiencing record natural gas and electricity demand in northern Mexico due to the industrial nearshoring from overseas companies.

Our Nueva Era Pipeline connects Eagle Ford Shale gas directly to the industrial center of Monterrey, Mexico. We believe more infrastructure in this area is needed to keep up with current demand. On the LNG front, we watch the growing LNG demand from Cheniere Corpus Christi and the NextDecade facility in Brownsville and look for ways to supply them with the low-nitrogen gas of the Eagle Ford.

JB:  What are the things that concern you most about the future of the midstream sector?

MH: Bad energy policy in Texas and the United States is what keeps me up at night. Over the last several years, we have come to appreciate the need for energy advocacy and the role all energy employees can play in this space. The short-term thinking of energy policy—when it should be long-term, multidecade-level thinking—is difficult to overcome and has proven to be an uphill battle with the mounting negative rhetoric. To combat this approach to short-term thinking, we must focus on energy education and encouraging our energy leaders to step up as advocates and policymakers.