As U.S. LNG export project development accelerates in the coming years, a lot more natural gas pipeline capacity will be needed to supply the numerous liquefaction facilities vying for a piece of the global gas market pie. That’s particularly true for a small stretch of the Gulf Coast from the Sabine River on the Texas-Louisiana border to the Calcasieu Pass Ship Channel — where the bulk of planned export capacity additions are concentrated — even as transportation bottlenecks are emerging for getting natural gas supply to the area. To address the growing demand, a number of pipeline expansions are planned or proposed to bring more supply into the region or deliver feedgas across the “last mile” to these multibillion-dollar facilities. In today’s RBN blog, we continue our series highlighting some of these LNG-related pipeline projects, this time focusing on ones aiming to feed exports out of southwestern Louisiana.
In Part 1, we started with an overview of some of the U.S. LNG export projects driving midstream development along the Gulf Coast, including those that are already operational, have reached a final investment decision (FID), or are fully subscribed and on the cusp of reaching FID. In Louisiana (or just across the Texas border), these include Venture Global’s (VG) soon-to-be-operational Calcasieu Pass; QatarEnergy and ExxonMobil’s Golden Pass; the first phase of Sempra Energy’s Port Arthur LNG; and VG’s Plaquemines LNG in southeastern Louisiana, including Phases 1 and 2. In southeastern Texas, Cheniere sanctioned its Corpus Christi Stage III project last summer, while NextDecade’s Rio Grande LNG in Brownsville, TX, is also closing in on FID.
In addition, there are numerous others that are working to secure the regulatory approvals and/or commercial commitments to reach FID. As we’ve discussed in previous blogs and the LNG Voyager Quarterly, Tellurian’s Driftwood LNG near Lake Charles, LA, for one, has begun initial construction activity under a limited notice to proceed (LNTP) and the developer has also increased production from its Haynesville Shale acreage. Among the others that would increase gas demand in Louisiana in the long term are VG’s CP2 LNG in Cameron Parish and Delta LNG in Plaquemines Parish. On the Texas side, Cheniere is considering another midscale expansion at Corpus Christi, while Cameron LNG and Freeport LNG’s Train 4 expansions are also in the running. (For a complete list and map of projects, including offshore facilities, see the LNG Voyager Quarterly.)
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