PGAP is estimated to cost approximately $3.7 billion to construct and will have the capacity to transport at least two billion cu. ft. of natural gas a day.
Tellurian announced April 8 that its subsidiary Permian Global Access Pipeline LLC is conducting a binding open season to secure prospective shippers for its PGAP project. PGAP is a proposed 42-in.-diameter interstate natural gas pipeline originating at the Waha Hub in Pecos County, Texas, and terminating at Gillis, La., north of Lake Charles. 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 cu. ft. 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 export facility near Lake Charles, La.
"Permian producers have recently paid $9 per mmBTU to move their natural gas away from the wellhead, reflecting the acute need for infrastructure development in the basin," President and CEO Meg Gentle said. "By contrast, southwest Louisiana is a market expected to grow 300 percent 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."
About Tellurian Inc.
Tellurian was founded by Charif Souki and Martin Houston and is led by President and CEO Meg Gentle. Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes a 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas.
For more information, visit www.tellurianinc.com.
Today's top stories