EnLink Midstream LLC, Dallas, has reached a final investment decision (FID) for stage one of its first brownfield natural gas expansion project in Louisiana with plans to expand Jefferson Island Storage & Hub (JISH) by about 8 bcf.
FID came following strong commercial interest and is backed by investment-grade credit customers under long-term contracts, the company said as part of its second-quarter 2024 earnings report Aug. 6.
Stage 1 of the expansion project at JISH, expected to cost about $85 million, is expected to begin service in 2028, increasing working gas storage to 10 bcf from 2 bcf.
For the quarter, EnLink Midstream had net income of $67 million and net cash provided by operating activities of $162.6 million, compared with net income of $50 million and net cash provided by operating activities of $293.3 million in this year’s first quarter.
The company delivered a quarter in line with expectations, said EnLink president and chief executive officer Jesse Arenivas.
"Our Louisiana team is executing on a multiprong growth strategy and moving projects toward commercialization, such as the 'Henry Hub to the River' project announced last quarter and the JISH expansion announced today, to supply the high-demand market for natural gas,” he said.
The $70-million Henry Hub to the River project is expected to add about 210 MMcfd of additional natural gas compression capacity in Louisiana. In-service is expected in fourth-quarter 2025.
