Tellurian Inc. on Tuesday began testing support for its third natural gas system, one that would move up to 2 Bcf/d from the Permian Basin to southwestern Louisiana, where it has an export project underway.
The nonbinding open season through May 25 is gauging shipper interest for the pipeline project by subsidiary Permian Global Access Pipeline LLC (PGAP), which is proposing to build a 42-inch diameter interstate pipeline that would cost $3.7 billion.
“Natural gas production from the Permian is expected to exceed 12 Bcf/d by 2023 and continue to grow through the middle of the decade,” said Tellurian CEO Meg Gentle. “New pipeline infrastructure will be needed to reach growing export and industrial demand in Southwest Louisiana and to establish crude production flow assurance.
“We hope to attract interest in PGAP from both producer and consumer shippers and look forward to securing commitments to begin the regulatory permitting process in the next few months.”
With enough shipper support, construction could begin as early as 2021 with service as soon as 2022.
The proposed pipeline would stretch about 625 miles from West Texas, connecting supply sources originating at or near the Waha Hub in Pecos County to Gillis, LA, in Jefferson Davis Parish. The pipeline system is expected to have multiple receipt and delivery locations connecting multiple common gathering points and third-party pipelines.
PGAP is one of three proposed pipelines in the planned Tellurian Pipeline Network announced in late 2017.
Tellurian’s estimated $7 billion investment to expand U.S. gas infrastructure also includes the 48-inch diameter Driftwood Pipeline to transport 4 Bcf/d from near Gillis to its proposed liquefied natural gas (LNG) export project, Driftwood LNG.
The export terminal in Louisiana’s Calcasieu Parish 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 Driftwood pipeline as designed would deliver feed gas to the facility from the interstate pipeline grid, according to a filing with the Federal Energy Regulatory Commission [PF16-6].
The third proposed pipeline by Tellurian, the 42-inch diameter Haynesville Global Access Pipeline, could carry up to 2 Bcf/d. The 200-mile-long system, also proposing to terminate near Gillis, began testing support in February with an open season.
The three pipeline projects together represent a $7 billion investment and would create an estimated 15,000 jobs in Texas and Louisiana, according to Tellurian. The investments would be incremental to the $15.2 billion poured into Driftwood LNG.
For information on the PGAP open season, contact President Joey Mahmoud at (832) 320-9228.
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