FERC Thursday approved the merger of affiliates Cheniere Creole Trail Pipeline and Cheniere Sabine Pass Pipeline into a single line that would serve two liquefied natural gas (LNG) terminals in Cameron, LA.
Upon completion of the merger, Creole Trail will operate as an integrated 150.9-mile, 42-inch diameter pipeline system with a capacity of 2 Bcf/d, serving the proposed Cheniere Energy Creole Trail LNG terminal in Cameron and the Sabine Pass LNG terminal, which is expected to begin operation in early 2008 [CP07-426, CP05-357]. The Creole Trail terminal project was approved by FERC in June 2006, while the Sabine Pass LNG terminal got the green light to proceed in December 2004.
In a summary of the order, the Federal Energy Regulatory Commission said it approved the proposed merger because “it will provide significant benefits with a lack of adverse effects.”
In February of this year, FERC approved Cheniere Creole Trail Pipeline’s request to build an 18.1-mile, 42-inch diameter extension that would connect the Sabine Pass pipeline with Creole Trail’s line (see Daily GPI, Feb. 16). The Creole Trail Pipeline said it wanted the extension constructed and placed in service for the 2007-2008 winter heating season — concurrent with the proposed in-service date of the Sabine Pass terminal, the Cheniere Sabine Pass Pipeline and the main leg of the Creole Trail Pipeline.
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