Tellurian Inc.’s Permian Global Access Pipeline LLC (PGAP) earlier this month withdrew the National Environmental Policy Act (NEPA) prefiling request with the US Federal Energy Regulatory Commission (FERC) for its proposed 625-mile, 42-in. OD natural gas pipeline. PGAP’s planned route from Waha, Tex., to Gillis, La., crossed 24 counties and 4 parishes.
The pipeline would have provided as much as 2.3 bcfd of incremental firm transportation service to markets in Southwest Louisiana, including Tellurian’s planned 27.6-million tonne/year Driftwood LNG liquefaction plant. Tellurian is still seeking customers for Driftwood, which it hopes to start building in 2021. Tellurian earlier this year delayed PGAP construction as part of cost-cutting related to Driftwood LNG (OGJ Online, Aug. 13, 2020).
PGAP said in the letter withdrawing the prefiling that it continues to believe that in time the pipeline would provide significant benefits, but that the arrival of the COVID-19 pandemic, ensuing collapse of domestic and global energy commodity prices, reduced consumption, and the addition of alternative transportation solutions out of the Permian basin had reduced need for the project to the point that it was no longer viable.
The company added that in the event market conditions rebound and the market needs an additional transportation solution, it would host a new open season and work with FERC to reestablish the NEPA prefiling review process.
PGAP filed with its NEPA prefiling request with FERC on Aug. 20, 2019. FERC approved the request Sept. 13, 2019.
