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Tellurian announces binding open season for PGAP project

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LNG Industry,

Tellurian has announced that its subsidiary, Permian Global Access Pipeline LLC, is carrying out a binding open season to secure prospective shippers for its proposed Permian Global Access Pipeline (PGAP) project.

PGAP is a proposed 42 in. diameter interstate natural gas pipeline originating at the Waha Hub in Pecos County, Texas, terminating at Gillis, Louisiana, north of Lake Charles, Louisiana. According to the statement, the pipeline connects the Permian Basin in Texas to the growing gas market in Southwest Louisiana. It is estimated that the construction of PGAP will cost approximately US$3.7 billion, and that, when complete, it will be capable of transporting at least 2 billion ft3/d of natural gas. Construction could start as early as 2021, and the pipeline is targeted to enter service as early as 2023.

Tellurian claims that PGAP is part of its proposed pipeline network. This network represents an anticipated overall investment of approximately US$7.3 billion in US infrastructure, and is expected to create approximately 15 000 jobs in Texas and Louisiana. The investment is incremental to the US$15.2 billion investment that the company plans for Driftwood LNG – a proposed LNG export plant near Lake Charles.

President and CEO, Meg Gentle, said: “Permian producers have recently paid US$9.00/million Btu to move their natural gas away from the wellhead, reflecting the acute need for infrastructure development in the basin. By contrast, Southwest Louisiana is a market expected to grow 300% in the next five years. 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.”

The open season reportedly commenced on 8 April, and will run until 24 May this year.

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