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Tellurian Planning Two More NatGas Systems to Move Permian, Haynesville Supply to Gulf Coast

Houston-based Tellurian Inc. said Monday it is developing a three-pipeline attack to expand natural gas supply alternatives in southwestern Louisiana that would not only give its Haynesville Shale production more access, but also link to a massive export project in the works.

The Tellurian Pipeline Network would include the Driftwood Pipeline (DWPL), which is scheduled to start up in 2021. Two additional pipelines announced Monday could begin service by the end of 2022.

"The Tellurian Pipeline Network would serve the approximately 8 Bcf/d of incremental natural gas demand expected by 2025 in southwest Louisiana,” said Tellurian CEO Meg Gentle.

DWPL, a 96-mile, 48-inch diameter gas pipeline, would transport up to 4 Bcf/d from near Gillis, LA, and terminate at Tellurian’s planned liquefied natural gas (LNG) export project, Driftwood LNG.

The export terminal planned in Louisiana’s Calcasieu Parish, located south of Lake Charles, would be able to export up to 26 million metric tons/year, requiring up to 4 Bcf/d of feed gas. The design for the project, now set to go online in 2022, includes five plants, each composed of one gas pretreatment unit and four liquefaction units.

The Driftwood pipeline would deliver feed gas to the facility from the interstate pipeline grid, according to the filing with FERC [PF16-6].

Two additional pipeline systems, one that would carry gas from the Permian Basin, and the other to push more supply from the Haynesville Shale, would help to supplement LNG export plans.

The proposed Permian Global Access Pipeline (PGAP), a 42-inch diameter system running 625 miles, would be able to transport up to 2 Bcf/d.

PGAP would originate at the Waha Hub in West Texas and connect to the Permian and associated unconventional plays around Midland, then terminate near Gillis, with proposed deliveries from various gas pipeline systems in the region.

The third proposed gas system, Haynesville Global Access Pipeline (HGAP), also would be a 42-inch diameter pipeline that could carry up to 2 Bcf/d. The 200-mile-long system is proposing also to terminate near Gillis.

Last September, Tellurian veered into the upstream sector to make an $85.1 million deal to buy Haynesville acreage in northern Louisiana.

“When completed, PGAP and HGAP will deliver natural gas from multiple low cost production basins and debottleneck the existing pipeline infrastructure in southwest Louisiana,” Gentle said. “We intend to begin soliciting third-party shipper interest in the first half of 2018, and would seek to commercialize PGAP and HGAP by year-end 2018.”

The proposed Tellurian pipeline system, Gentle said, would represent nearly $7 billion of investment in infrastructure and 15,000 jobs in Texas and Louisiana. In November, Tellurian awarded Bechtel Oil, Gas and Chemicals contracts worth $15.2 billion to begin the groundwork for the LNG export project.

In related news, Joey Mahmoud has been appointed president of the pipeline network. He previously was executive vice president of engineering and construction for Energy Transfer Partners LP.

Tellurian was co-founded by the co-founder of Cheniere Energy Inc., Charif Souki, and former BG plc executive Martin Houston. 

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