Tellurian announced that its subsidiary Permian Global Access Pipeline LLC is conducting a binding open season to secure prospective shippers for its proposed PGAP project (PGAP). PGAP is a proposed 42-inch diameter interstate natural gas pipeline originating at the Waha Hub in Pecos County, Texas, and terminating at Gillis, Louisiana, north of Lake Charles, Louisiana. The pipeline connects the prolific Permian Basin in Texas to the rapidly growing natural gas market in Southwest Louisiana. PGAP is estimated to cost approximately ~$3.7 billion to construct and will have the capacity to transport at least two billion cubic feet of natural gas a day. Construction could begin as early as 2021 and the pipeline is targeted to be in service as early as 2023.
PGAP is part of Tellurian’s proposed pipeline network. The network represents an anticipated overall investment of approximately ~$7.3 billion in U.S. infrastructure, and is expected to create 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.
President and CEO Meg Gentle said, “Permian producers have recently paid $9.00 per mmBtu 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 will begin at noon Central time on Monday, April 8, 2019 and runs through Friday, May 24, 2019 at 4 p.m. Central time. Interested parties are encouraged to contact Joey Mahmoud, President of PGAP or Mac Broderick, VP of PGAP at +1.832.962.4000 for more information.
