$3.7 billion Gas Line to be Built in Permian Basin

We’ve seen it on a smaller scale in Oklahoma.  The success of the STACK and SCOOP oil plays has led to construction of more pipeline services to carry the oil and gas out of the play into storage areas.

Now another major pipeline has been announced for the much larger Permian Basin. It’s a $3.7 billion project announced by Tellurian, a company headquartered in Houston.

Tellurian’s Permian Global Access Pipeline LLC plans to build a 42-inch diameter interstate natural gas pipeline connecting the Permian Basin to Southwest Louisiana. The company says the line will have the capacity to move two billion cubic feet of natural gas a day.

Tellurian hopes to begin construction in 2021 and have the pipeline finished and operational in 2022. To prepare for it, the firm is offering a non-binding open season in an effort to secure prospective shippers.

President and CEO Meg Gentle said, “Natural gas production from the Permian is expected to exceed 12 billion cubic feet per day by 2023 and continue to grow through the middle of the decade. New pipeline infrastructure will be needed to reach growing export and industrial demand in Southwest Louisiana and to establish crude production flow assurance.”

He said once the company secures commitments from prospective customers, the company will begin the regulatory permitting process in the next few months.

The proposed pipeline will stretch approximately 625 miles and connect supply sources originating at or near the Waha Hub in Pecos County, Texas and will deliver gas near Gillis, Jefferson Davis Parish, Louisiana. The pipeline system is anticipated to have multiple receipt and delivery locations connecting multiple common gathering points and third-party pipelines.