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PAA and Cheniere announce long-term natural gas storage agreement

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LNG Industry,

Plains All American Pipeline L.P (PAA) and Cheniere Energy Partners L.P. have announced that Pine Prairie Energy Center LLC (a subsidiary of PAA) has entered a 10-year firm storage service agreement with Sabine Pass Liquefaction LLC (a subsidiary of Cheniere). The agreement states that Pine Prairie will supply 8 billion ft3 of firm natural gas storage capacity to Cheniere in order to meet the needs of the Sabine Pass facility. This will commence in 2018.

Ben Reese, the Senior Vice President at PAA Natural Gas Storage, said: “We are excited to extend our existing relationship with Cheniere well into the next decade, and look forward to providing critical storage and balancing needs throughout commissioning and operations of the Sabine Pass facility.

“As demand for natural gas continues to grow, PAA’s flexible, reliable and highly interconnected gas storage assets are uniquely located to provide high injection, withdrawal and balancing services to meet the diverse, growing needs of the market.”

Corey Grindal, the Vice President of Supply at Cheniere, added: “Pine Prairie has been a good partner in helping us manage the variability in loads during commissioning of Train 1 at our Sabine Pass LNG terminal.

“We expanded our relationship with Pine Prairie because the storage facility is located in a place where we can easily access our existing infrastructure connected to the terminal. With this new agreement, we will be able to more effectively manage the load swings as we construct and operate our liquefaction trains at Sabine Pass.”

Edited from press release by David Rowlands

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