Cheniere Energy Inc has announced that it may build a new pipeline to link its Louisiana expansion project to other pipelines in major shale-gas producing regions as it seeks to diversify its risk, reports LNG Industry.
Cheniere’s Sabine Pass facility has been expanding since its production began in 2016 but needs additional natural gas beyond current supplies to reach its planned ‘Stage 5’ capacity, top company officials said.
“We will likely build a pipeline to where we can access other pipelines. That will get us Haynesville (shale gas), any additional Marcellus (gas) that will come down, mid-continent, Permian as well as Eagleford as it continues to be developed,” said Corey Grindal, Cheniere’s chief operating officer.
Cheniere previously retooled some of its pipeline infrastructure to send gas to its Sabine Pass facility in Louisiana, but those pipelines now shoulder additional demand and are unavailable, Grindal said.
The exporter already spends US$800 million a year in pipeline transit fees to transport 7.5 billion Ft3 per day of natural gas from 26 different pipelines to its LNG plants in Texas and Louisiana, CEO Jack Fusco told reporters at the LNG2023 conference in Vancouver. He gave no detail about the new pipeline’s cost or size. Read the entire story.