Williams Partners advances Gulf Connector Project

Williams Partners L.P. has announced that Transcontinental Gas Pipe Line Company, LLC (Transco) has filed an application with the Federal Energy Regulatory Commission (FERC) seeking authorization to construct a 475,000 dekatherm per day (Dth/d) expansion in Texas and Louisiana to connect U.S. natural gas supplies with global liquefied natural gas (LNG) markets.

Constructed in two phases, the Gulf Connector Project is designed to deliver 75,000 Dth/d to Freeport LNG Development, L.P.’s liquefaction project by the second half of 2018, and 400,000 Dth/d to Cheniere Energy’s Corpus Christi liquefaction terminal in 2019. Pending appropriate regulatory approvals, construction on the first phase of the project will begin in the third quarter of 2017 in order to be placed into service during the second half of 2018.

Both of the liquefaction facilities are currently under construction. The Freeport LNG export terminal will have three liquefaction trains with expected aggregate export capacity of 15.3 million tonnes per annum (mtpa) and is planned to commence operations in phases between September 2018 and August 2019.

Cheniere Energy’s Corpus Christi liquefaction terminal is proposed to have up to five liquefaction trains (two of which are under construction) with expected aggregate nominal production capacity of up to 22.5 mtpa of LNG. Trains one and two at the Corpus Christi liquefaction terminal are expected to reach substantial completion in 2019.

The Gulf Connector Project involves adding compression and making the natural gas flow bi-directional on a portion of the Transco system between Louisiana and South Texas. The project has been designed to provide incremental firm transportation from Transco’s Station 65 in St. Helena Parish, La. to mainline interconnects with proposed header pipelines in Wharton County, Texas and San Patricio County, Texas.

The project, which is included in Williams Partners’ 2016 and 2017 growth capital plan that includes US$1.3 billion in 2016 and US$2.4 billion in 2017 for Transco expansions and other interstate pipeline growth projects, is fully subscribed by Osaka Gas Trading & Export, LLC, whose affiliate is a limited partner of Freeport LNG Development, L.P., and Corpus Christi Liquefaction, LLC, a subsidiary of Cheniere Energy. Both have executed long-term, firm transportation agreements with Transco.

Rory Miller, senior vice president of Williams Partners’ Atlantic-Gulf operating area, said:

“This project underscores how the abundance of natural gas in the U.S. is changing the global energy landscape. The U.S. is projected to become the world’s third-largest LNG supplier in five years. Projects like Gulf Connector, which leverage existing gas pipeline infrastructure, make it possible to connect abundant domestic supply with emerging international markets, giving a boost to the U.S. economy while helping meet the world’s increasing energy needs.”