Enterprise Announces Acadian Gas Pipeline System Expansion and Extension

The plan to expand and extend the Acadian natural gas system was announced by Enterprise Products Partners L.P. This project will deliver growing volumes of natural gas from the Haynesville Shale to the liquefied natural gas market in South Louisiana.

The company announced that the project will include construction of an approximately 80-mile pipeline that will originate near Cheneyville, Louisiana on Enterprise’s Acadian Haynesville Extension to third party interconnects near Gillis, Louisiana.

The company also plans to increase capacity on the Acadian Haynesville Extension by adding horsepower at its Mansfield compressor station in De Soto Parish.

Once the expansion and extension project is completed, it will increase the Acadian system’s capability to transport Haynesville natural gas production from 1.8 billion cubic feet per day to 2.1 billion cubic feet per day. The company said that the project is supported by long-term customer contracts and is expected to begin service in mid-2021.

 “The Haynesville region currently produces approximately 11 billion ft3/d of natural gas, which is expected to grow to approximately 14 billion ft3/d by 2025,” said A.J. ‘Jim’ Teague, chief executive officer of Enterprise’s general partner. “The expansion and extension of the Acadian system enhances our capability to link supply to some of the most attractive markets in the US. Once this project is completed, our Acadian system will be able to deliver a total of 2.1 billion ft3/d of Haynesville production into the LNG market, South Louisiana industrial complex and other interconnects that serve attractive southeastern US markets.”


Oxy Selling Stake in Plains All American for $650 Million

Occidental Petroleum is in the process of cutting costs and focusing on debt reduction after buying Anadarko Petroleum for $30 billion and is now planning to sell its stake in Plains All American Pipeline for $650 million.

The company previously agreed to sell Anadarko's Africa assets to the French energy major Total for $8.8 billion, including a massive liquefied natural gas development and export project in Mozambique. It is also considering to sell assets in the deepwater Gulf or in Colorado's DJ Basin, where Anadarko was the leading producer, energy analysts said.

Oxy is taking on roughly $40 billion in debt to complete this deal, including loans and Anadarko's existing debt load, while making a bet on relatively healthy oil prices going forward. Anadarko is also considering selling at least a stake in Anadarko's pipeline spinoff firm, Western Gas Partners and Oxy's stake in Western is estimated at $7 billion or so.


Second Train Completed at Corpus Christi LNG Project

Train 2 of Cheniere Energy’s liquefaction project in Corpus Christi, Texas, has been declared substantially complete, Cheniere Energy announced Tuesday.

The engineering, procurement and construction partner for the project was Bechtel Oil, Gas and Chemicals. Cheniere said that the commissioning of Train 2 is complete and Bechtel has turned over care, custody and control of the facility to Cheniere.

The company now has seven liquefaction trains, five liquefaction trains in operation at its Sabine Pass LNG export terminal in Louisiana and the two at Corpus Christi. Each train is capable of liquefying about 700 MMcfd of gas.

According to the sale and purchase agreements, the first commercial delivery from the new unit is expected to occur in May 2020, Chieniere said.


Cameron LNG Reaches Final Stage of Train 1 Commissioning

Sempra Energy's Cameron LNG export terminal in Louisiana has reached the final stage of the startup process known as commissioning for its first production unit. The company is planning to construct three production units in total, which are known in the industry as trains at the Cameron LNG export terminal.

Joint venture with the general contractors McDermott International and Chiyoda International Corp. have started introducing natural gas from a pipeline feeding the facility into Train 1 of the liquefied natural gas plant, which signals the end of the construction phase of the project and is regarded as a precursor of LNG production.

"We are extremely proud of the Cameron LNG project team for this achievement and their remarkable safety performance," McDermott International Senior Vic President Mark Coscio said in a statement. "Their accomplishment is more than just a project milestone; it is an impressive feat of engineering and construction. Once Train 1 is fully operational, it will have the capacity to produce 4 million tonnes of LNG per year."

Cameron LNG began commercial operations in July 2009 as a $900 million LNG import terminal, but later Sempra Energy decided to take advantage of record natural gas production from U.S. shale basins to redevelop the Hackberry, Louisiana facility into an export terminal.

In addition to Cameron LNG, the company is also developing the Energia Costa Azul LNG facility in Baja California, Mexico and is seeking to develop the Gulf Coast LNG terminal near Port Arthur.


FERC Approves Commissioning of $13 Billion Freeport LNG’s Export Plant

Federal regulators on Thursday approved a commissioning step for the Freeport LNG’s $13 billion Freeport liquefied natural gas (LNG) export plant in Texas. FERC approved Freeport’s request to introduce hazardous fluids to commission the liquefaction flare pilot system, a step in the process LNG terminals go through as they prepare for service.

According to U.S. engineering firm McDermott International Inc., which is building the plant, expects the first train at Freeport to enter commercial service in the third quarter, Train 2 to enter service in the first quarter of 2020 and Train 3 in the second quarter of 2020. Williams Cos Inc., is building a pipe to connect the plant to the interstate gas system.

Each train at Freeport will have the capacity to produce about 5 million tons per annum (MTPA) of LNG or around 0.7 billion cubic feet per day (bcfd) of natural gas. In addition, Freeport is developing a fourth 5-MTPA liquefaction train at the facility and could make a final investment decision on the train in the second quarter of 2019 with the plant entering service in 2023 or 2024.


$15 Billion Rio Grande LNG Gets Green Light from PHMSA

According to PHMSA’s Deputy Associate Administrator Massoud Tahamtani, the proposed Rio Grande liquefied natural gas export terminal project complies with federal pipeline safety standards. He noted that the facility is being designed to withstand winds up to 150 miles per hour, in a letter of determination made public early Tuesday morning.

FERC will use PHMSA's review to determine if the facility will receive a permit to start construction on six production units that will be able to make more than 16 million metric tons of LNG per year. A final permit decision by FERC is expected in July.

NextDecade Corp will be developing Rio Grande LNG which is one of two proposed export terminals being developed by the company. The company is also in the process of seeking state and federal approval to build the Galveston Bay LNG export terminal in Texas City.

NextDecade is expecting to make a final investment decision on the project during the third quarter, if approved by federal regulators. The liquefied natural gas export terminal and the supporting Rio Bravo pipeline are expected to result in more than $15 billion of private investment and create more than 5,000 construction jobs.


Alaska Governor Praises Proposed $43 Billion Gas Pipeline

Alaska Governor Bill Walker on Tuesday spoke in Anchorage about the benefits of a proposed major liquified natural gas project, saying it would create thousands of jobs and generate up to $2 billion a year in revenue for the state.

The pipeline is being pursued by the state with Chinese partners who signed an agreement this month in attempt to advance the $43 billion project that would move gas from the North Slope to Asia.

The agreement calls on the groups to explore by May 31 next year the feasibility of investing in the Alaska project as well as pursue terms to advance the project.

Walker said the agreement was a significant step for the pipeline project as it helped to build relationships with Chinese officials and got the project on the White House's radar.

The goal is to have construction begin in 2019 with the pipeline operational by 2024 or 2025, assuming the project clears the many hurdles still in its way, including regulatory reviews.

San Francisco Gate

FERC Declines to Reconsider Oregon LNG Pipeline, Supporters Still Committed to Project

Proposed route of the Pacific Gas Connector Pipeline project ( Pacific Gas Connector Pipeline )

Proposed route of the Pacific Gas Connector Pipeline project (Pacific Gas Connector Pipeline)

Supporters of a 232-mile LNG pipeline want FERC to reconsider its original ruling to reject the project that would terminate in Coos Bay, Oregon for gas transport to markets in Asia.

The Jordan Cove Energy Project, the Pacific Gas Connector Pipeline, the state of Wyoming, and the Wyoming Pipeline Authority sent a request to FERC asking it to reconsider the project, but FERC reaffirmed its original ruling from March of this year by denying the requests.

FERC ruled back in March that there was little evidence to support the need for the pipeline. It also said that the project did not significantly benefit the public and would affect nearly 160 miles of privately owned lands and nearly 630 landowners.

Supporters of the project are arguing that there is economic benefit from the pipeline from its increased natural gas production, taxes, and royalties.

Pipeline builder Veresen Inc. said it is disappointed in FERC’s decision to reject the project but that it remains committed to the pipeline. The company also said it may consider another appeal or sending another application to FERC.

Environmentalists opposed to the project applauded FERC’s decision saying the state of Oregon should be focused on projects that improve energy efficiency and “expanding clean energy industry,” rather than fossil fuels.

The Pacific Connector Gas Pipeline project is a proposed pipeline that would transport up to 1 billion cubic feet of natural gas per day from Malin, Oregon to the Jordan Cove LNG terminal in Coos Bay, Oregon. From there, the natural gas would be transported to international markets.

Pacific Connector Gas Pipeline
Houston Chronicle