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LNG developer Tellurian seeks shippers for gas pipe from Haynesville Shale

Tellurian Inc. launched an open season to gauge interest in a 200-mile pipeline that would carry 2 Bcf/d of natural gas from the Haynesville Shale to southwest Louisiana, where the company is proposing an LNG export terminal.

The Haynesville Global Access Pipeline is one of three gas pipelines Tellurian is developing alongside its 27.6 million-tonne-per-annum Driftwood LNG export terminal. The 2-Bcf/d Permian Global Access Pipeline would run from the Waha Hub in Pecos County, Texas, to Gillis, La., and the 4-Bcf/d Driftwood Pipeline would directly feed the LNG terminal. Together, the three lines are expected to cost about $7 billion.

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Tellurian President and CEO Meg Gentle said in a Feb. 21 news release that the Haynesville line would help feed growing markets in southwest Louisiana, where she sees natural gas reaching roughly 12 Bcf/d by 2025. "[The Haynesville Global Access Pipeline] will improve the connection between north and southwest Louisiana, debottlenecking existing pipeline routes and providing shippers access to expanding markets," she said.

The company said it expects to begin construction on the $1.4 billion Haynesville line in 2022, with the project entering service in mid-2023.

Tellurian is offering equity stakes in subsidiary Driftwood Holdings for $1,500 per tonne. Company spokeswoman Joi Lecznar said the Haynesville pipeline would fall under Driftwood Holdings, and therefore be part of the investment. The equity stake would also cover capital costs for the Driftwood LNG export terminal, the construction of the Driftwood Pipeline and the purchase of upstream reserves for drilling.

Tellurian in November 2017 closed on a deal to acquire natural gas production assets and acreage in the Haynesville, securing net production of 4 MMcf/d from 19 producing wells.