Tellurian today announced that its subsidiary Permian Global Access Pipeline LLC (PGAP) is holding a non-binding open season to secure prospective shippers for a proposed 42-inch diameter interstate natural gas pipeline connecting the Permian Basin in Texas to Southwest Louisiana. PGAP is estimated to cost approximately $3.7 billion to build and will have the capacity to transport two billion cubic feet of natural gas a day. Construction is projected to begin as early as 2021 and the pipeline is targeted to be in service as early as 2022.
PGAP is part of Tellurian’s previously announced proposed Tellurian Pipeline Network that represents a $7 billion investment in U.S. infrastructure, creating approximately 15,000 jobs in Texas and Louisiana. The investment is incremental to the $15.2 billion investment that Tellurian plans for Driftwood LNG, a proposed liquefied natural gas (LNG) export facility near Lake Charles, Louisiana.
“Natural gas production from the Permian is expected to exceed 12 billion cubic feet per day by 2023 and continue to grow through the middle of the decade,” President and CEO Meg Gentle said. “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.”
The proposed pipeline will run approximately 625 miles and connect supply sources originating at or near the Waha Hub in Pecos County, Texas and will deliver gas near Gillis, Jefferson Davis Parish, Louisiana. The pipeline system is anticipated to have multiple receipt and delivery locations connecting multiple common gathering points and third-party pipelines.
The open season will start at 12 p.m. central time on March 21, 2018 and concludes May 25, 2018 at 4 p.m. central time.