The United States regulator issued an order authorizing the expansion of its existing 129 system and the construction of the Coastal Bend Header project, that would transport up to 1.42 billion cubic feet of natural gas per day to the Freeport LNG terminal in Texas.
Proposed by the Houston-based Gulf South, the new capacity of Index 129 will be divided in two parts, 700 million cubic feet per day will be provided as southbound capacity on the northern portion of Gulf South’s Index 129 and 700 mcf per day will be provided as northbound capacity on the southern portion of Index 129.
The expansion of the Index 129 is estimated to cost $145 million, the filing reads.
The Coastal Bend Header is a 66-mile-long, 36-inch-diameter pipeline lateral and new compressor station in Wharton and Brazoria counties, Texas, with a price tag of $545 million.
Full transportation capacity of the feeder pipeline has been booked by BP Energy Company, Chubu US Gas Trading, Osaka Gas Trading & Export and E.ON Global Commodities North America, on 20-year firm transportation agreements.
Freeport LNG is constructing three liquefaction trains at the existing terminal to provide export capacity of approximately 13.9 mtpa of LNG.
The first two trains are on schedule to commence operations by September 2018 and February 2019, respectively. The third train is expected to be in operation approximately six months following the second train, or, in August 2019, according to Freeport LNG.
The company is adding the fourth liquefaction train that will up the production capacity by further five million tons of LNG per year.
LNG World News Staff