Tellurian subsidiary Permian Global Access Pipeline LLC, or PGAP, is holding a binding open season to secure prospective shippers for a proposed 42-inch interstate natural gas pipeline connecting the Permian basin in Texas to southwestern Louisiana.
Originating at the Waha Hub in Pecos County, Texas, and terminating at Gillis, north of Lake Charles, the proposed pipeline will extend 625 miles with the capacity to transport 2 billion cubic feet of gas per day. The pipeline connects the prolific Permian Basin in Texas to the rapidly growing natural gas market in Southwest Louisiana.
The open season began Monday and runs through Friday, May 24.
PGAP is part of Tellurian’s proposed Tellurian Pipeline Network and incremental to the $15.2 billion investment that Tellurian plans for Driftwood LNG, a proposed LNG export facility near Lake Charles. The project is expected to create approximately 15,000 jobs in Texas and Louisiana.
At a cost of $3.7 billion, construction on PGAP is projected to begin as early as 2021 with an in-service target as early as 2023.
“Permian producers have recently paid $9/MMbtu to move their natural gas away from the wellhead, reflecting the acute need for infrastructure development in the basin,” says Tellurian President and CEO Meg Gentle. “By contrast, Southwest Louisiana is a market expected to grow 300% in the next five years.”