Tellurian (NASDAQ: TELL) said Feb. 21 it launched an open season for a new $1.4 billion pipe aimed at connecting production from the Haynesville and Bossier shale plays to growing demand for natural gas in Southwest Louisiana.
Haynesville Global Access Pipeline LLC (HGAP), a subsidiary of Houston-based Tellurian, is offering the non-binding open season to secure prospective shippers for the proposed 42-inch natural gas pipeline. HGAP is estimated to have the capacity to transport up to 2 billion cubic feet of natural gas per day. Construction is projected to begin in 2022, with an in-service date of mid-2023.
HGAP is part of Tellurian’s previously announced proposed Tellurian Pipeline Network, a project that represents a $7 billion investment in U.S. infrastructure and will create roughly 15,000 jobs in Texas and Louisiana, according to the company press release. The investment is incremental to the $15.2 billion investment that Tellurian plans for Driftwood LNG, a proposed LNG export facility near Lake Charles, La.
President and CEO Meg Gentle said in a statement, “HGAP will connect the Haynesville Shale with growing markets in Southwest Louisiana, where natural gas demand is expected to triple, reaching approximately 12 billion cubic feet per day by 2025. Louisiana continues to serve as the U.S. natural gas market hub, requiring additional infrastructure to efficiently deliver gas from fields in the Northeast U.S., the Midwest and Texas to local and global markets. HGAP will improve the connection between North and Southwest Louisiana, debottlenecking existing pipeline routes and providing shippers access to expanding markets.”
The proposed pipeline will stretch about 200 miles and interconnect with the Midcontinent Express and Gulf Crossing pipelines in Claiborne Parish and to other pipelines located near Gillis in Calcasieu Parish, La. The pipeline system is anticipated to have multiple receipt and delivery locations, connecting industrial facilities and other third-party pipelines.
The open season will begin on Feb. 21, and run to 4 p.m. CT April 6, the release said.
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