Houston-based Tellurian Inc. is gauging support for a proposed 42-inch diameter natural gas pipeline that would connect up to 2 Bcf/d of Haynesville and Bossier shale volumes to thirsty customers in southwestern Louisiana.
The nonbinding open season, launched Wednesday by subsidiary Haynesville Global Access Pipeline LLC (HGAP), is running through April 6. Construction of the estimated $1.4 billion project could begin in 2022, with start-up by mid-2023.
HGAP, one of the projects that are part of the proposed Tellurian Pipeline Network announced in December, represents one of the company’s up to $7 billion in U.S. infrastructure investments.
Tellurian late last year announced the network is initially planning three pipelines to expand gas supply alternatives not only in southwestern Louisiana but also from the Permian Basin. Included are two major Louisiana ventures, the Driftwood Pipeline (DWPL), scheduled to start up in 2021, and the proposed liquefied natural gas (LNG) export project, Driftwood LNG.
DWPL, a 96-mile, 48-inch diameter gas pipeline, would transport up to 4 Bcf/d from near Gillis, LA, and terminate at Driftwood LNG in Calcasieu Parish south of Lake Charles.
Projected to create as many as 15,000 jobs in Texas and Louisiana, the HGAP investment is incremental to the $15.2 billion proposal for the Driftwood projects.
“HGAP will connect the Haynesville Shale with growing markets in Southwest Louisiana, where natural gas demand is expected to triple, reaching approximately 12 Bcf/d by 2025,” said Tellurian CEO Meg Gentle.
“Louisiana continues to serve as the U.S. natural gas market hub, requiring additional infrastructure to efficiently deliver gas from fields in the Northeast U.S., the Midwest and Texas to local and global markets. HGAP will improve the connection between North and Southwest Louisiana, debottlenecking existing pipeline routes and providing shippers access to expanding markets.”
The proposed HGAP pipeline would stretch about 200 miles and interconnect with the Midcontinent Express and Gulf Crossing pipelines in Claiborne Parish, LA, and to other pipelines in Calcasieu Parish, LA. The pipeline system is expected to have multiple receipt and delivery locations, connecting industrial facilities and other third-party pipelines.
Driftwood LNG 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 DWPL system would deliver feed gas to the LNG facility from the interstate pipeline grid, according to a filing with the Federal Energy Regulatory Commission [PF16-6].
Tellurian has been gearing up to expand onshore gas delivery from Louisiana and Texas for awhile. Last September, it paid $85.1 million to build its Haynesville leasehold in northern Louisiana.
All together, Gentle has estimated the Tellurian Pipeline Network could serve about 8 Bcf/d of incremental gas demand that is expected by 2025 in Southwest Louisiana.
Another pipeline system planned by the Tellurian network would carry gas from the Permian Basin. The proposed Permian Global Access Pipeline, a 42-inch diameter system running 625 miles, would be able to transport up to 2 Bcf/d.
Information on the HGAP open season is available from President Joe Mahmoud at (832) 320-9228.