Cheniere Creole Trail Pipeline LP is seeking to amend its certificate approving the construction of its 117-mile main pipe system so it can build a small extension to accommodate a request of a liquefied natural gas (LNG) customer for flexibility.

Specifically it proposes to build an 18.1-mile, 42-inch diameter extension from the previously approved Cheniere Sabine Pass Pipeline terminal east of Johnson Bayou, LA, to the FERC-authorized Cheniere Creole Trail Pipeline that terminates near Rayne, LA. The extension would provide shippers on the Creole Trail line access to delivery points on the Sabine Pass Pipeline and vice-versa, Cheniere Creole Trail said in its application for an amendment [CP05-357-003].

The pipeline called on the Federal Energy Regulatory Commission to act on its application by February 2007 so that the extension can be constructed and placed in service for the 2008 winter heating season — concurrent with the proposed in-service date of the Sabine Pass LNG LP terminal in Louisiana, the Cheniere Sabine Pass Pipeline and the 117-mile main leg of the Creole Trail Pipeline.

FERC approved the Creole Trail line, which would serve the proposed Cheniere Energy Creole Trail LNG terminal in Cameron, LA, in June of this year. The 16-mile, 42-inch Sabine Pass Pipeline would serve the Sabine Pass LNG terminal, also to be located in Cameron.

Affiliate Cheniere LNG Marketing Inc. has requested that Creole Trail Pipeline construct the extension to interconnect with the Sabine Pass Pipeline so that it can make deliveries of gas from the Sabine Pass LNG terminal to PPM Energy, a subsidiary of Scottish Power PLC, at points on the Cheniere Creole Trail Pipeline, according to the application.

Cheniere LNG Marketing currently holds 100% of the capacity on the Creole Trail Pipeline. It has entered into a 10-year agreement with PPM Energy to provide supplies of regasified LNG from the Sabine Pass LNG terminal to PPM at delivery points on Creole Trail.

In addition to the extension, Cheniere LNG Marketing has asked the Creole Trail pipeline to place into service 2 Bcf/d of the certificated 3.3 Bcf/d of capacity on the 117-mile main leg in 2008 — concurrent with the targeted in-service date of the Sabine Pass LNG terminal and the Cheniere Sabine Pass Pipeline, but prior to the in-service date of the Creole Trail LNG terminal. When the Creole Trail terminal becomes fully operational in 2011, Cheniere LNG Marketing said its capacity obligation would increase to the full 3.3 Bcf/d.

©Copyright 2006Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.