Cheniere Energy is considering building a new pipeline to connect its Louisiana liquefied natural gas (LNG) export facility to other pipelines in key shale gas-producing regions, reported Reuters.
According to top company officials, since production started in 2016, Cheniere’s Sabine Pass facility has been growing, but to attain its anticipated “Stage 5” capacity, more natural gas is required than is now available.
Speaking to journalists, Cheniere chief operating officer Corey Grindal said: “We will likely build a pipeline to where we can access other pipelines.
“That will get us Haynesville (shale gas), any additional Marcellus (gas) that will come down, mid-continent, Permian as well as Eagleford as it continues to be developed.”
Earlier, Cheniere modified some of its pipeline infrastructure to provide gas to its Sabine Pass complex in Louisiana.
However, Grindal said those pipelines can no longer handle the increased demand.
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By GlobalDataSeparately, Cheniere CEO Jack Fusco said the company pays $800m annually in pipeline transit fees to transport 7.5 billion cubic feet per day of natural gas from 26 different pipelines to its LNG plants in Texas and Louisiana.
No other detail about the pipeline’s cost or size was provided by Fusco.
Earlier this year, Cheniere initiated the permitting process for the proposed Sabine Pass Stage 5 Expansion Project.
Once operational, the project will have a production capacity of nearly 20 million tonnes per year (mtpa) of LNG.
Last month, Norwegian energy company Equinor signed a 15-year deal to buy 1.75mtpa of LNG from Cheniere.