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NorthAmOil PIPELINES & TRANSPORT NorthAmOil
NextDecade, Enbridge partner on pipeline
TEXAS
LNG developer NextDecade has announced that it has partnered with midstream operator Enbridge to develop the Rio Bravo pipeline pro- ject. The pipeline is designed to support Next- Decade’s proposed Rio Grande LNG export terminal in Brownsville, Texas.
The two companies revealed on September 18 that they had signed a memorandum of under- standing (MoU) to jointly develop the pipeline. They anticipate finalising the terms of the agree- ment during the fourth quarter of this year.
The Rio Bravo pipeline would move natu- ral gas from the Agua Dulce hub near Corpus Christi to the Port of Brownsville, where Nex- tDecade’s LNG plant will be located. It would have a capacity of 4.5bn cubic feet (127mn cubic metres). The pipeline still requires approval from the US Federal Energy Regulatory Commission (FERC) before construction on it can proceed.
NextDecade’s chairman and CEO, Matt Schatzman, noted Enbridge’s experience of oper- ating in the area where the pipeline and LNG plant would be located. “With its Texas Eastern pipeline and recently completed Valley Cross- ing pipeline, Enbridge has extensive permitting, construction and operating experience in the
State of Texas, especially in South Texas,” he said. “Our existing infrastructure fits very well with the Brownsville location,” Enbridge’s pres- ident of gas transmission and midstream, Bill Yardley, commented. “This is a continuation of our strategy to bring our major project execution and permitting capability to the expanding LNG
export efforts in North America.”
NextDecade has said that the 27mn tonne per
year (tpy) Rio Grande LNG would be the largest LNG project linking associated gas output in the Permian Basin to global markets. However, both its pipeline and liquefaction terminal – as well as two other LNG plants proposed for the Port of Brownsville – are facing local opposition on concerns over their cumulative environmental impact when combined with other projects in the area.
Last month, NextDecade pushed back a final investment decision (FID) on Rio Grande LNG to the fourth quarter of this year. The MoU with Enbridge appears to be a step towards this, however.
According to a recent investor presentation, the company still anticipates bringing the termi- nal online in 2023.™
Enterprise to expand Acadian system
LOUISIANA
ENTERPRISE Products Partners announced on September 19 that it would expand and extend its Acadian pipeline system. The plan is aimed at delivering growing volumes of natural gas from Lousiana’s Haynesville shale play to the LNG market on the state’s coast.
The move comes shortly after a second export project – Cameron LNG – entered commercial service in Louisiana. Another project, Venture Global LNG’s Calcasieu Pass, is currently under development, with the operator having taken a final investment decision (FID) last month.
“The Haynesville region currently produces approximately 11bn cubic feet [312mn cubic metres] per day of natural gas, which is expected to grow to approximately 14 bcf [396 mcm] per day by 2025,” the CEO of Enterprise’s general partner, Jim Teague, said in a statement. “The expansion and extension of the Acadian system enhances our capability to link supply to some of the most attractive markets in the US.”
The Acadian system includes the Legacy Aca- dian and Haynesville Extension pipelines and comprises roughly 1,300 miles (2,092km) of gas pipelines in total. It links gas supplies in Louisi- ana and offshore in the Gulf of Mexico with local distribution companies, electric utility plants
and industrial customers. These are located pri- marily in the Baton Rouge, New Orleans and Mississippi River corridor area.
The expansion project will include con- struction of a roughly 80-mile (129-km) pipe- line originating near Cheneyville, Louisiana to third-party interconnects near Gillis, Louisiana. The interconnects will include multiple pipelines serving LNG export facilities in South Louisiana and south-east Texas.
As part of the project, Enterprise is also intending to increase capacity on the Acadian Haynesville Extension by adding horsepower at its Mansfield compressor station in De Soto Par- ish. When the expansion and extension project is completed, the Acadian system’s capacity will rise from 1.8 bcf (51 mcm) per day to 2.1 bcf (59 mcm) per day.
Enterprise’s 357-mile Haynesville gather- ing system has a capacity of roughly 1.3 bcf (37 mcm) per day and can treat up to 810mn cubic feet (23 mcm) per day of gas. Enterprise has said the gathering system provides a “significant and reliable” source of supply for the Acadian system.
Enterprise says the expansion project is sup- ported by long-term contracts and is anticipated to enter service in mid-2021.™
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w w w . N E W S B A S E . c o m Week 38 24•September•2019