Permian gas pipeline could ease bottlenecks, give global access

By Luke Geiver | April 08, 2019

For $3.7 billion, Permian Global Access Pipeline LLC intends to build a shale gas pipeline that would connect the Permian shale play to Lake Charles, Louisiana. The shale gas would be utilized by Tellurian Inc., a publicly traded natural gas entity looking to source natural gas from the U.S. for export across the globe.

An open season call on the pipeline has been started. If completed, the pipeline will use a 42-inch diameter line to move roughly two billion cubic feet per day of natural gas. For Tellurian, the pipeline is only part of a larger infrastructure buildout plan. In total, Tellurian wants to invest $7.3 billion in U.S. infrastructure in addition to another $15.2 billion on a liquified natural gas export facility in Lake Charles.

The Permian is currently one of the top shale gas producing regions in the world. Meg Gentle, CEO, said producers there have had to pay $9.00/mmBtu just to move their gas from the region to outside markets.

The proposed pipeline would originate in Pecos County, Texas. Construction could be finished by 2023.

The U.S. currently has one LNG export facility located in Louisiana. By 2021, the U.S. Energy Information Administration believes the country will house five LNG export facilities capable of exporting 9.2 bcf/d.

According to April data from the EIA, the Permian is producing more than 14 mcf/d of shale gas.

Gentle said in addition to helping Permian producers, some of the natural gas sourced from West Texas could be used in Louisiana.

“Southwest Louisiana is a market expected to grow 300 percent in the next five years,” she said. “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.”

Earlier this year, Tellurian also signed a long-term offtake deal with India for LNG sourced from the U.S.