MOSCOW (MRC) -- Transcontinental Gas Pipe Line Company, LLC (Transco), a subsidiary of Williams Partners, filed an application with the Federal Energy Regulatory Commission (FERC) seeking authorization to construct a 475 MMcfd expansion in Texas and Louisiana to connect US natural gas supplies with global LNG markets, said Hydrocarbomprocessing.
Constructed in two phases, the Gulf Connector project is designed to deliver 75 MMcfd to Freeport LNG Development, L.P.’s liquefaction project by the second half of 2018, and 400 MMcfd 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 MMtpy 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 MMtpy 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, included in Williams Partners’ 2016 and 2017 growth capital plan that includes USD1.3 B in 2016 and USD2.4 B 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, LP, and Corpus Christi Liquefaction, LLC, a subsidiary of Cheniere Energy. Both have executed long-term, firm transportation agreements with Transco.
Williams Partners is also building the Gulf Trace Project to serve Cheniere Energy’s Sabine Pass Liquefaction project in Cameron Parish, La., the first large-scale LNG export facility in operation in the continental United States. The Gulf Trace Project is expected to be completed in the first quarter of 2017.
As MRC wrote before, in late November 2014, Williams Olefins extended its October ethylene force majeure allocation at its Geismar, Louisiana plant, keeping its sales allocation for November at 0%.
Williams, headquartered in Tulsa, Okla., is one of the leading energy infrastructure companies in North America. It owns controlling interests in both Williams Partners L.P. and Access Midstream Partners, L.P. through its ownership of 100% of the general partner of each partnership. Additionally, Williams owns approximately 66% and 50% of the limited partner units of Williams Partners L.P. and Access Midstream Partners, L.P., respectively. On June 15, 2014 Williams proposed the merger of Williams Partners and Access Midstream Partners. The proposed merger has been approved by boards of each partnership and is expected to close in early 2015.
MRC