Citing “the growing need for additional natural gas takeaway from the Permian Basin,” co-CEO Tom Long said the project under consideration would combine new and existing pipelines to serve coastal gas hubs.
A 260-mile newbuild pipeline would extend eastward from the Midland sub-basin along existing rights-of-way, interconnecting with Energy Transfer’s existing 36-inch pipeline near Fort Worth, TX, management said.
Energy Transfer Permit Download
Air Permits
Pipeline Permits
“From there, it would interconnect with our existing assets with available capacity…to markets at Carthage, as well as to Katy, Beaumont, and the Houston Ship Channel and other markets along the Gulf Coast, including deliveries” to the Gillis and Henry hubs, Long said.
The “bottom line is we will take Permian Basin molecules and deliver them to the best markets on the Gulf Coast,” said co-CEO Mackie McCrea.
He told analysts the proposed project’s targeted gas takeaway capacity would be between 1.5 and 2 Bcf/d.
“Given the proposed route and our ability to utilize existing assets, we believe we could complete construction…in two years or less” after taking a final investment decision, said Long.
Energy Transfer also reported that it broke ground earlier this year on another project: the expected 1.65-Bcf/d-capacity Gulf Run Pipeline, which will carry natural gas from the Haynesville Shale to the Gulf Coast.
The 135-mile interstate pipeline is backed by a 20-year, 1.1 Bcfd commitment by cornerstone shipper Golden Pass LNG LLC, Long said.
In addition to the committed Golden Pass capacity, “we’ve got about 500-plus” Mcf/d of gas transport capacity “that we’re looking to sell. We’re aggressively tying that into our conversations for those producers that would like to reach the markets at the end of the Gulf Run,” said McCrea.
Enable Midstream Partners LP, which Energy Transfer acquired in December, proposed Gulf Run in 2018.
Long said construction on Gulf Run “is expected to be completed by the end of 2022.”
Additional Oil & Gas Projects
