Enable Midstream Partners has announced plans to develop a new interstate natural gas transportation project, named as Gulf Run Pipeline project in Louisiana, US, with an investment of $550m.
Image: Enable Midstream to invest $550m to develop the Gulf Run Pipeline project in Louisiana. Photo: courtesy of outgunned21/Freeimages.com.
The 265km long Gulf Run Pipeline project, which is aimed to be placed into service in 2022, will be developed by the Oklahoma-based midstream company’s subsidiary Enable Gulf Run Transmission.
According to Enable Midstream Partners, the new natural gas pipeline will deliver natural gas sourced from Louisiana producers to emerging liquefied natural gas (LNG) export markets on the Gulf Coast.
The Gulf Run Pipeline project, which will be laid between Westdale to Starks with an extension to Gillis, is expected to become a critical link between growing natural gas production in Louisiana and global markets with increasing demand.
Additionally, the Gulf Run Pipeline will use the company’s subsidiary Enable Gas Transmission’s existing transportation infrastructure to offer access to some of the leading natural gas producing regions in the US such as Haynesville, Utica, Marcellus and Barnett shales and also the Mid-Continent region.
The proposed natural gas pipeline project is supported by a precedent agreement with an undisclosed cornerstone shipper under which it will supply 1.1 billion cubic feet per day of natural gas to the latter’s LNG export facility for 20 years.
Enable Midstream Partners is expected to begin the permitting process for the new natural gas pipeline project shortly. The company has also launched a non-binding open season for the Louisiana gas pipeline project, in order to get additional commitment for its firm transportation capacity.
Enable Midstream president and CEO Rod Sailor said: “We are excited about this opportunity to diversify and expand Enable’s transportation footprint to connect directly to U.S. Gulf Coast markets.
“This project is another example of Enable leveraging its existing assets to provide customers with creative and cost-effective market solutions.”
Construction of the Gulf Run Pipeline project will be based on a final investment decision by the cornerstone shipper for the LNG export facility and also an approval from the Federal Energy Regulatory Commission.