Permian Global Access Pipeline project looking for shippers

The Permian Global Access Pipeline (PGAP), owned by Tellurian, is conducting a binding open season to secure prospective shippers for its proposed project.

The proposed pipeline is 42-inch diameter interstate natural gas pipeline connects the Permian Basin in Texas to the rapidly growing natural gas market in Southwest Louisiana. It originates at the Waha Hub in Pecos County, Texas, and ends at Gillis, La.

The pipeline will cost an estimated $3.7 billion to construct and will have the capacity to transport at least two billion cubic feet of natural gas a day. Construction is slated to begin in 2021 and should be in service in 2023.

The PGAP is part of Tellurian’s proposed $7.3 billion pipeline network. It is expected to create approximately 15,000 jobs in Texas and Louisiana.  

“Permian producers have recently paid $9.00 per mmBtu to move their natural gas away from the wellhead, reflecting the acute need for infrastructure development in the basin. By contrast, Southwest Louisiana is a market expected to grow 300 percent in the next five years. 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,” Tellurian President and CEO Meg Gentle said.

The open season began at 12 p.m. Central time on April 8, 2019 and it runs through May 24 at 4 p.m. Central time.