$540MM Louisiana Pipeline Project Clears Hurdle

$540MM Louisiana Pipeline Project Clears Hurdle
FERC has granted approval for Enable Midstream to construct and operate the Gulf Run Pipeline project.

Enable Midstream Partners, LP. (NYSE: ENBL) reported Wednesday that it has secured Federal Energy Regulatory Commission (FERC) approval to construct and operate the Gulf Run Pipeline project under section 7(c) of the Natural Gas Act.

Announced in 2018, Gulf Run will extend from North Louisiana to the Gulf Coast and carry natural gas originating in the Haynesville, Marcellus, Utica, and Barnett shale plays as well as the Mid-Continent region, according to Enable’s website. In addition, the company stated the planned 42-inch-diameter pipeline is backed by a 20-year commitment for 1.1 billion cubic feet per day (Bcf/d) from cornerstone shipper Golden Pass LNG.

ExxonMobil (NYSE: XOM) and Qatar Petroleum are adding liquefaction and export capabilities to their Golden Pass facility, located in Sabine Pass, Texas, according to the Golden Pass LNG website. Enable also pointed out that Gulf Run will boast approximately 1.7 Bcf/d of capacity.

GulfRuncompstationsmap620This map from the Gulf Run Pipeline project website shows the new pipeline's route in western Louisiana. IMAGE SOURCE: Enable Midstream

“We appreciate FERC’s thoughtful review of the project and all of the hard work from our best-in-class project team to reach this important milestone,” Enable President and CEO Rod Sailor remarked in a written statement. “Gulf Run makes significant use of existing assets, reducing the project’s coast and environmental impact. With FERC approval and the demand for LNG increasing globally, the project is well-positioned to add new customer commitments.”

Enable pointed out the contractor bidding process is underway for the estimated $540 million Gulf Run project, which will run from Westdale to Starks in Louisiana. The company anticipates placing the 135-mile (217-kilometer) pipeline into service late next year.

To contact the author, email mveazey@rigzone.com.



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