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Tellurian to develop 4-Bcf/d pair of gas pipelines to southwest Louisiana

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Tellurian to develop 4-Bcf/d pair of gas pipelines to southwest Louisiana

Tellurian Inc. plans to develop two natural gas pipelines in addition to its previously announced Driftwood pipeline, as the LNG developer seeks to link major gas production regions with an expected ramp-up in demand in southwest Louisiana.

The 625-mile, 42-inch-diameter Permian Global Access pipeline would be capable of transporting 2 Bcf/d of natural gas and would run from the Waha Hub in Pecos County, Texas, to Gillis, La. Tellurian's 42-inch-diameter Haynesville Global Access pipeline would be roughly 200 miles long and could also carry 2 Bcf/d. Both proposed projects would have deliveries to several interstate pipelines, including the Cheniere Creole Trail Pipeline LP, Cameron Interstate Pipeline LLC and Transcontinental Gas Pipe Line Co. LLC.

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"The Tellurian Pipeline Network would serve the approximately 8 Bcf/d of incremental natural gas demand expected by 2025 in southwest Louisiana," Tellurian CEO Meg Gentle said in a Dec. 18 news release. "When completed, [Permian Global Access and Haynesville Global Access] will deliver natural gas from multiple low cost production basins and debottleneck the existing pipeline infrastructure in southwest Louisiana."

The company said it plans to begin gauging third-party shipper interest in the first half of 2018 and to commercialize by the end of that year. Including the 96-mile, 48-inch-diameter Driftwood line, the three projects represent about $7 billion of investment.

Joey Mahmoud, former executive vice president of Energy Transfer Partners LP, will lead development of the proposed projects as the president of Tellurian's pipeline network. Mahmoud served as project executive for Energy Transfer's Dakota Access crude oil pipeline, which rose to national attention following months-long protests in 2016 and early 2017.

Tellurian is offering equity stakes in Driftwood Holdings for $1,500 a tonne. The investment would cover capital costs for the 27.6 million-tonne-per-annum Driftwood LNG export terminal, the construction of the Driftwood Pipeline and the purchase of upstream reserves for drilling. Tellurian spokeswoman Joi Lecznar said it is too early for the company to tell if the two new pipelines will be a part of Driftwood Holdings or Tellurian.

In a Dec. 12 interview, Tellurian co-founder and former Cheniere Energy Inc. CEO Charif Souki said the company plans to have a final investment decision for its Driftwood LNG project as soon as it receives its approval from the Federal Energy Regulatory Commission, which Tellurian has said it expects in mid-2018.