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    Tellurian Withdraws Permian Pipe Application


Covid-19, market changes have made the project uneconomic

by: Dale Lunan

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Tellurian Withdraws Permian Pipe Application

LNG developer Tellurian has asked the US Federal Energy Regulatory Commission (Ferc) to withdraw its proposed 2.3bn ft3/day Permian Global Access Pipeline Project (PGAP) from the commission’s pre-filing process. It made the request in a December 1 filing with Ferc.

The 625-mile pipeline, which carried an estimated cost of $4.2bn, would have crossed 24 counties in Texas and four parishes in Louisiana, and would have provided incremental firm transportation service to markets in southwest Louisiana. 

It was one of four pipelines Tellurian has in various stages of development. The others – the 4bn ft3/day Driftwood pipeline, the 2bn ft3/day Haynesville Global Access pipeline and the 2bn ft3/day Delhi Connector project – are all in Louisiana and remain on the company’s development roster.

Tellurian maintains that PGAP, at some point in the future, will be a viable project with “significant” benefits. But “with the arrival of the Covid-19 pandemic, ensuing collapse of the domestic and global energy commodity prices, reduced consumption and the addition of alternative transportation solutions out of the Permian Basin, PGAP has re-evaluated the project’s need and determined that current market conditions do not support the economic thresholds to pursue the project further at this time,” it said in its filing.

In the event market conditions change, Tellurian said PGAP would host a new open season and work with the commission to re-establish the pre-filing process.