Tellurian Inc. has launched a binding open season for a natural gas pipeline that would carry at least 2 Bcf/d from the Permian Basin to the Louisiana coast.

Subsidiary Permian Global Access Pipeline LLC (PGAP) is proposing to build a 42-inch diameter pipe that would originate at the Waha hub in West Texas that would terminate at Gillis, LA, north of Lake Charles.

PGAP is one of three gas pipeline systems proposed by Tellurian that in part would serve its proposed Driftwood liquefied natural gas (LNG) export terminal, expected to be sanctioned this year.

“Permian producers have recently paid $9.00/MMBtu to move their natural gas away from the wellhead, reflecting the acute need for infrastructure development in the basin,” Tellurian CEO Meg Gentle said, referring to the recent gas price slaughter in the Permian.

“By contrast, Southwest Louisiana is a market expected to grow 300% in the next five years,” she said. “The Permian Global Access Pipeline is critical infrastructure that will interconnect stranded Permian gas production with growing markets, reduce flaring, and provide a valuable cleaner fuel to reduce urban pollution and carbon globally.”

PGAP, which could be in service in 2023, is expected to cost an estimated $3.7 billion. Depending on the results of the open season, which runs through May 24, construction could begin in 2021.

The Tellurian Pipeline Network would include PGAP and the proposed Driftwood Pipeline (DWPL) and the Haynesville Global Access Pipeline (HGAP) systems. Together, the trio could serve around 8 Bcf/d of incremental demand expected by 2025 in southwest Louisiana, according to Gentle.

DWPL, a 96-mile, 48-inch diameter gas pipeline, would transport up to 4 Bcf/d from near Gillis and terminate at Driftwood LNG. The proposed HGAP, a 42-inch diameter pipeline, would carry up to 2 Bcf/d and terminate near Gillis.

Tellurian, whose LNG export strategy allows partners to buy into U.S. upstream output to supply Driftwood LNG, in 2017 made an $85.1 million deal to buy gas-rich Haynesville acreage in northern Louisiana.

For information on the PGAP open season, contact President Joey Mahmoud or Vice President Mac Broderick at (832) 962-4000.