$2.25 Billion Assets in Haynesville Shale Basin Acquired by DTE Midstream

DTE Midstream has announced that it will acquire 100% of the assets from Momentum Midstream and Indigo Natural Resources. DTE Midstream has entered into an agreement to acquire a gathering system and gathering pipeline in the Haynesville shale formation of Louisiana.

As per the agreement, the purchase price will be of US$2.25 billion in cash, plus a US$400 million milestone payment upon completion of the gathering pipeline in the second half of 2020. The selling companies are the primary gas producers supplying the system.

"DTE's non-utility operations continue to grow, perform well and fit nicely into our planned utility and non-utility mix," said Jerry Norcia, president and CEO of DTE Energy. "This acquisition is highly accretive, has world-class resources, has excellent access to large markets, and is in the early- to mid-cycle development phase. It checks all of our boxes," Norcia added.

The acquisition assets includes an existing gathering system and a 150 mile gathering pipeline that is under construction and which will be in service in the second half of 2020.


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.”


Commonwealth LNG Permit Application Accepted by FERC

The permit application filed by Commonwealth LNG to build an export terminal in southwest Louisiana was formally accepted by Federal Energy Regulatory Commission on Tuesday morning.

The project is expected to be in service by the second quarter of 2023 as per the timeline submitted in Commonwealth LNG's application. The proposed export terminal will receive 390.6 billion cubic feet of natural gas per day from a pipeline to make 8.4 million metric tons of LNG per year.

The company is seeking permission to build six liquefied natural gas production units known as trains on a 393-acre property along the Calcasieu Ship Channel about 50 miles south of Lake Charles.

FERC's formal acceptance of the permit application is an important step in moving the proposed project closer to a final investment decision, said Commonwealth LNG President and CEO Paul Varello in a statement.


252 Mile Pipeline Proposed by Port Arthur LNG

Port Arthur LNG proposed the 252-mile Port Arthur Pipeline Louisiana Connector Extension Project that will include approximately a 48-inch diameter pipeline stretching from near Port Arthur, Texas, to Delhi, Louisiana, in Richland Parish.

According to Port Authur LNG, here will be two compressor stations, one in Richland Parish and another one in Allen Parish. The company held a meeting Wednesday night in south Louisiana for those who may be impacted by the proposed pipeline.

“We’re in the very early stages. All of these projects are regulated by the federal energy regulatory commission. Part of that process involves reaching out to the public, giving them the opportunity to come and learn about our project, to see if the project may or may not affect them, personally, directly," Jim Thompson, environmental project manager, said.

The process to even start construction on the project is still a few years out as Thompson said “We expect to file our application in February of 2020 and receive approval from the Federal Energy Regulatory Commission in early 2021. The pipeline, however, won’t start construction until 2022."

Once the construction starts, the company is estimating that it will only take six to nine months to complete the pipeline, pending Federal Energy Regulatory Commission approvals.


Louisiana Sabine Pass 6 LNG Export Train to Be Built by Cheniere

The biggest supplier of U.S. LNG is planning to build a sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana, Cheniere Energy said on Monday.

The company has a $2.5 billion contract with Bechtel, the lead contractor building its LNG terminals. It gave Bechtel the notice to proceed with the construction of Sabine 6 and expects the unit to enter service in 2023.

Cheniere’s subsidiary, Cheniere Energy Partners LP has entered into five-year, $1.5 billion senior secured credit facilities with 29 banks and financial institutions to fund a portion of Sabine 6 and a third LNG berth at the plant.

Also all remaining necessary regulatory approvals for the project is expected to receive by the end of 2019, the company said.


$30 Billion Louisiana Driftwood LNG Project Eyes Final Decision in 2019

Final investment decision to build the proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana will be taken in 2019, Tellurian Inc confirmed on Wednesday.

The company said that it is on track to make a final investment decision and start construction in 2019. The operations will begin in 2023 and is project is designed to produce 27.6 million tonnes per annum (MTPA) of LNG or about 4 billion cubic feet per day (bcfd) of natural gas.

The first phase will likely comprise 16.6 MTPA and together the projects would produce over 150 MTPA of LNG. The company is also developing three pipelines in Louisiana - the 4.0-bcfd Driftwood pipe, the 2.0-bcfd Haynesville Global Access and the 2.0-bcfd Delhi Connector - and the 2.0-bcfd Permian Global Access in Texas and Louisiana.


Open Seasons on Two Proposed Pipelines by Tellurian in Louisiana

Tellurian is seeking to secure prospective shippers for a previously announced natural gas pipeline, Haynesville Global Access Pipeline (HGAP) and newly proposed Delhi Connector Pipeline (DCPL). Both pipelines are expected to be a 42 inch diameter and will have the capacity to transport up to 2 billion cubic feet per day of natural gas.

The HGAP is approximately 160 mile interstate pipeline that will interconnect existing pipeline and production facilities in DeSoto Parish to the existing and proposed infrastructure located near Gillis in Calcasieu Parish, Louisiana. The DCPL is approximately 180 mile interstate pipeline connecting the Perryville/Delhi Hub in Richland Parish, Louisiana to Gillis, Louisiana.

HGAP is estimated to cost just over US$1 billion to construct and the construction is projected to begin in 2022, with an in-service date of mid-2023. DCPL is estimated to cost approximately US$1.4 billion to construct and the construction is projected to begin as early as 2021, with an in-service date as early as 2023.

“Tellurian has recognized the critical need we have in the US for additional natural gas infrastructure that can leverage our country’s prolific shale resources. We are willing to invest and build a pipeline network that connects to key US producing shale basins, detangling the existing pipeline and regional bottlenecks and facilitating the flow of natural gas to feed Southwest Louisiana’s growing industrial demands, which is estimated at 20+ billion ft3/d by 2025,” said Tellurian President and CEO, Meg Gentle.


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.


Open Season for Permian Global Access Pipeline Announced

Permian Global Access Pipeline LLC, a subsidiary of Tellurian has announced that it is conducting a binding open season to secure prospective shippers for its proposed Permian Global Access Pipeline project.

The proposed pipeline is a 42 in. diameter interstate natural gas pipeline originating at the Waha Hub in Pecos County, Texas, and terminating at Gillis, Louisiana, north of Lake Charles, Louisiana.

It is estimated to cost approximately US$3.7 billion to construct and will have the capacity to transport at least 2 billion cubic feet of natural gas per day. Construction could begin as early as 2021 and the pipeline is targeted to be in service as early as 2023.

The open season will begin at noon Central time on Monday 8 April 2019 and runs through Friday 24 May 2019 at 4 pm CT.


Train 5 of Sabine Pass Liquefaction Project Achieves Substantial Completion

In a statement released by Cheniere Energy Partners, L.P, the company has achieved Substantial Completion of Train 5 of the Sabine Pass liquefaction project in Cameron Parish, Louisiana.

According to the statement, commissioning has been completed and Cheniere Partners’ EPC partner Bechtel Oil, Gas and Chemicals Inc. has turned over care, custody, and control of Train 5 to Cheniere Partners.

Under sale and purchase agreements (SPAs) with Centrica plc and Total Gas & Power North America, Inc., the date of first commercial delivery is expected to occur in August 2019, upon which the term of each of these SPAs commences.

Cheniere Partners and Bechtel have now declared Substantial Completion on five liquefaction trains at the SPL Project ahead of each train’s guaranteed completion date and within project budgets.

Financial results of LNG sales from Train 5 going forward will be reflected in the statement of operations of Cheniere Partners and its applicable affiliates with the achievement of Substantial Completion.


FERC Approves $680M Project: 200-Mile Pipeline Moving NatGas from Oklahoma to Gulf Coast Will Connect to Kinder & Boardwalk Pipe

Cheniere Energy and a Washington D.C. private equity firm have received approval from the Federal Energy Regulatory Commission on Wednesday to build the 200-mile Midship Pipeline. The project will move natural gas from Oklahoma to destinations along the Gulf Coast and southeastern United States in Oklahoma.

In a statement issued by the companies, $680 million in financing was secured for the 36-inch diameter natural gas pipeline and a notice was issued for contractors Strike LLC, M.G. Dyess, TRC Pipeline Services and Cenergy LLC to proceed with construction.

The Midship Pipeline is designed to move 1.4 billion cubic feet of natural gas per day from Oklahoma's SCOOP and STACK shale plays to delivery point just north of the Red River near Bennington, Oklahoma. The project is expected to be placed in service by the end of the year.

The pipeline will connect to Kinder Morgan's Midcontinent Express Pipeline and the Boardwalk Pipeline Partners-owned Gulf Crossing Pipeline, allowing natural gas from Oklahoma to move to the TexOk Hub near Atlanta, Texas and the Perryville Hub near Tallulah, Louisiana.


Louisiana Project Receiving Investment from Indian Gas Importer as U.S. Continues to Work With Foreign Energy Companies

The U.S. is continuing to see signs of the country’s initiative to export energy under the Trump administration.

A proposed Driftwood project in Louisiana will be receiving an investment from Petronet, an Indian gas importer. Petronet LNG signed an initial agreement on Thursday with Tellurian Inc. to buy liquefied natural gas.

Last week, Qatar Petroleum and Exxon teamed up through a $10 billion project to expand a LNG export plant in Texas.

U.S. Secretary of Energy Rick Perry said, “The deal (Qatar and Exxon) is proof that two of the world’s top energy producers can work together and “support rather than subvert an open energy marketplace,”

A high level U.S.-India commercial dialogue to advance trade and investment ties sealed the agreement. Through a video link, Amos Hochstein, Senior Vice President in Tellurian Inc, signed the memorandum of understanding with Petronet LNG managing director Prabhat Singh.


Sunoco Pipeline to Pay Over $5 Million After Three Oil Spills

Sunoco Pipeline will pay more than $5.4 million to settle with the state of Louisiana and the federal government after three oil spills occurred in Texas, Louisiana, and Oklahoma.

In a Thursday agreement to pay civil penalties and state enforcement costs, the company hopes to resolve the alleged violations of the Clean Water Act from the three oil spills that occurred between 2012 and 2015. Pipeline corrosion was the cause of the spills.

550 barrels of oil in Tyler County, Texas spilled in 2013. 4,500 barrels in Caddo Parish, La. In 2015, and then 40 barrels in Grant County, Okla in 2015.

The settlement includes agreements for Sunoco to perform inspections related to corrosion.


Cheniere Energy Requests Permission to Bring Billion Dollar Midship NatGas Pipeline in Oklahoma Into Service

Cheniere Energy Inc asked U.S. energy regulators on Friday for permission to start working on their $1.025 billion Midship natural gas pipeline in Oklahoma.

The company asked the FERC for authorization to start building the proposed 234-mile pipeline in three segments. The project is expected to be complete by early 2019, Cheniere said.

Midship is designed to deliver 1.44 billion cubic feet per day (bcfd) of gas from the Anadarko basin to existing pipelines near Bennington, Oklahoma to transport liquefied natural gas to Gulf Coast and Southeast markets.

Expectation of total U.S. LNG export capacity should rise to 8.3 bcfd by the end of 2019 and 9.6 bcfd by the end of 2020 from 3.8 bcfd now.

Most of the U.S. LNG export terminals are located or being built along the Gulf of Mexico in Louisiana and Texas


$550 Million Pipeline Project Proposed by CenterPoint in Louisiana and Texas

A $550 million natural gas pipeline project is being proposed by a pipeline company backed by Houston’s CenterPoint energy to feed the liquefied natural gas exporting business along the Gulf Coast.

Oklahoma-based Enable Midstream Partners said the proposed 165-mile gas pipeline will stretch across the Texas state line from northwestern Louisiana to southwestern Louisiana, taking gas from the Haynesville shale and other regions to be shipped down to new LNG export terminals in Louisiana and Texas.

"We are excited about this opportunity to diversify and expand Enable's transportation footprint to connect directly to U.S. Gulf Coast markets," said Enable Chief Executive Rod Sailor.

The goal is to complete the project as early as 2022.

Houston Chronicle

Enable Midstream Launches Nonbinding Open Season for New Gulf Coast Gas Pipeline

Enable Midstream Partners out of Oklahoma City, launched a nonbinding open season to gather additional interest for natural gas transportation capacity on the Gulf Run Pipeline, a planned interstate transportation project designed to connect US gas supplies to LNG export markets on the Gulf Coast.

The project is backed by an unnamed cornerstone shipper for a 20-year, 1.1 bcfd of firm capacity service, according to the Oil & Gas Journal.

Up to an estimated 165 miles of large-diameter pipeline will be constructed from northern Louisiana to Gulf Coast markets.

The project is designed to utilize the company’s transportation system to provide access to gas-producing regions, including the Haynesville, Marcellus, Utica, and Barnett shales as well as the Midcontinent region.

The project is expected to be placed into service in 2022.

The open season continues through Oct. 26.

Oil & Gas Journal
Seeking Alpha

Tellurian's Driftwood LNG Export Terminal on Track for Projected 2023 Start

U.S liquefied natural gas company Tellurian Inc said on Wednesday that construction of its Driftwood LNG export Terminal in Louisiana remains on track to begin operations in 2023.

The company said it was on schedule to announce its $27.5 billion project’s partners in the third or fourth quarter.

Tellurian said it has about 25 customers already interested in partnering with and buying gas from the project. They are one of over two dozen LNG export projects looking to enter service in the next decade.

Tellurian estimated that FERC would approve construction of Driftwood in January 2019, which would enable Tellurian to make a final investment decision and begin building the project during the first half of 2019.

Current partners include Total SA, General Electric Co, and Bechtel.

Driftwood will have the capacity to produce 27.6 million tonnes per annum of LNG or 4 billion cubic feet per day of gas.


Bayou Bridge Pipeline Company Sued for Records by Environmental Groups

The Bayou Bridge Pipeline Company was sued on Tuesday in Baton Rouge by three environmental groups that are fighting a proposed 162-mile pipeline designed to cross southern Louisiana.

The environmental groups petitioned a state court to have the pipeline company release records regarding land it expropriated and communication with government officials regarding the matter.

The petition argues that Bayou Bridge Pipeline company is using eminent domain to take land for the pipeline and is therefore subject to the state’s public records law.


Federal Appeals Court to Hear Arguments For, Against Bayou Bridge Pipeline

Builders of the Bayou Bridge crude oil pipeline is asking a federal appeals court to overturn a judge's order that stopped construction work on a segment of the pipeline in Louisiana.

A U.S. District judge in February issued a preliminary injunction that stopped all pipeline work in the Atchafalaya Basin in Louisiana until a lawsuit issued by environmental groups over the project could be resolved.

But a different panel from the appeals court said in March that the preliminary injunction is to be suspended pending a final decision by the 5th Circuit, which is scheduled to hear arguments from supporters and opponents of the project this week.

Construction continued in the environmentally sensitive area two days after the March decision to suspend the preliminary injunction. The 162-mile pipeline is designed to run through approximately 25 miles of the basin.

Opponents of the Bayou Bridge Pipeline argue that the U.S. Army Corps of Engineers violated the Clean Water Act and other environmental laws when it approved a permit for the project to run through the basin.

Bayou Bridge is a joint venture of Energy Transfer Partners and Phillips 66.

ABC News

Tellurian Seeks Shipper Backing for Proposed $3.7 Billion NatGas Pipeline

LNG firm Tellurian is looking for shippers to back its proposed Permian Global Access natural gas pipeline that would run from the Permian Basin in West Texas to southwest Louisiana.

The project would be part of Tellurian's $7 billion pipeline network of projects in Texas and Louisiana designed to support its Driftwood LNG, a proposed natural gas export facility near Lake Charles, Louisiana.

The proposed $3.7 billion, 625-mile pipeline would have the capacity to transport 2 billion cubic feet of gas per day. It is designed to take natural gas from Pecos County, Texas to Jefferson Davis Parish in Louisiana.

Tellurian CEO Meg Gentle said new pipeline infrastructure is needed to help reach growing export and industrial demand in Louisiana as natural gas production in the Permian is expected to spike.

Fuel Fix