Sempra Energy and Boardwalk Pipeline Partners LP are joining the competition to carry natural gas from the Permian Basin to the Texas Gulf Coast, after launching a nonbinding, open season through Sept. 14 to solicit interest in a 470-mile pipeline.
The proposed 42-inch diameter Permian-Katy Pipeline (P2K) as initially designed would transport up to 2 Bcf/d from the Waha Hub in the Permian. If the open season proves successful and regulatory approvals are received, P2K could begin phased-in service in December 2019.
The pipeline is expected to provide a combination of gas for liquefied natural gas (LNG) export, power generation, petrochemical use and Mexico export projects.
“The proposed P2K project's initial capacity will range between 1.5 Bcf/d and 2 Bcf/d with estimated transport rates between 45-55 cents, depending upon individual shipper's daily transport quantity, final project design capacity and requested receipt and delivery locations,” a Sempra spokesperson said.
Boardwalk officials during the 2Q2017 conference call earlier this month said continued Gulf Coast demand growth would be driven by exports to Mexico and via LNG. Boardwalk has been advancing about $1 billion in growth projects, including its 1.4 Bcf/d Coastal Bend Header project designed to serve the Freeport LNG terminal on the Texas coast.
The P2K proposal joins one by Kinder Morgan Texas Pipeline LLC, which also wants to build the Gulf Coast Express Pipeline to carry gas from the Permian to the Gulf. NAmerico Energy Holdings LLC’s Pecos Trail Pipeline Co. also plans a 468-mile intrastate gas system from the Permian to points around Corpus Christi, TX.
For information on the Permian-Katy open season, contact P2Kinfo@sempraglobal.com.