Natural Gas Pipeline Company of America LLC (NGPL) has announced an agreement with Corpus Christi Liquefaction, LLC – a subsidiary of Cheniere Energy, Inc. – to provide the Corpus Christi Liquefaction project with 385 000 dekatherms per day (Dth/d) of southbound natural gas transportation capacity on NGPL’s expanded Gulf Coast mainline system for a 20 year term.
NGPL expects to invest approximately US$212 million in facilities to enable it to complete the first phase of its Gulf Coast Market Expansion Project, which will increase NGPL’s total southbound capacity from multiple receipt points, including the Rockies Express Pipeline (REX) interconnection at Moultrie, Illinois, to existing and growing markets along Texas and the Louisiana Gulf Coast.
Comments on the agreement
“We are pleased to move forward with this project as gas production increases in the Utica and Marcellus shale and markets continue to grow along the Gulf Coast,” said NGPL President David Devine. “Additionally, we are delighted to provide transportation for Cheniere to bring attractively-priced supply to their LNG export facility being developed near Corpus Christi, Texas.”
“Once again, we have the pleasure of working with Kinder Morgan and NGPL to secure transportation capacity that will provide additional certainty of gas supply for the Corpus Christi Liquefaction Project, which is now under construction,” said Corey Grindal, Vice President of Supply and Marketing for Cheniere. “It’s important that we secure access to pipeline capacity to ensure reliability and deliverability of natural gas to our liquefaction facility.”
The Gulf Coast Market Expansion project will include the reversal of four compressor stations in Victoria, Wharton, Montgomery and Angelina counties, Texas, the addition of a new compressor station in Cass County, Texas, and minor pipe replacement and upgrades along the NGPL system in Texas.Pending regulatory approvals, the project is expected to be in service by July 2019.
Edited from press release by Angharad Lock