Tellurian Announces Binding Open Season for the Permian Global Access Pipeline
HOUSTON--(BUSINESS WIRE)-- Tellurian (NASDAQ: TELL) announced today that its subsidiary Permian Global Access Pipeline LLC is conducting a binding open season to secure prospective shippers for its proposed PGAP project (PGAP). PGAP is a proposed 42-inch diameter interstate natural gas pipeline originating at the Waha Hub in Pecos County, Texas, and terminating at Gillis, Louisiana, north of Lake Charles, Louisiana. The pipeline connects the prolific Permian Basin in Texas to the rapidly growing natural gas market in Southwest Louisiana. PGAP is estimated to cost approximately ~$3.7 billion to construct and will have the capacity to transport at least two billion cubic feet of natural gas a day. Construction could begin as early as 2021 and the pipeline is targeted to be in service as early as 2023.
PGAP is part of Tellurian’s proposed pipeline network. The network represents an anticipated overall investment of approximately ~$7.3 billion in U.S. infrastructure, and is expected to create approximately 15,000 jobs in Texas and Louisiana. The investment is incremental to the $15.2 billion investment that Tellurian plans for Driftwood LNG, a proposed liquefied natural gas (LNG) export facility near Lake Charles, Louisiana.
President and CEO Meg Gentle said, “Permian producers have recently paid $9.00 per mmBtu to move their natural gas away from the wellhead, reflecting the acute need for infrastructure development in the basin. By contrast, Southwest Louisiana is a market expected to grow 300% in the next five years. The Permian Global Access Pipeline is critical infrastructure that will interconnect stranded Permian gas production with growing markets, reduce flaring, and provide a valuable cleaner fuel to reduce urban pollution and carbon globally.”
The open season will begin at noon Central time on Monday, April 8, 2019 and runs through Friday, May 24, 2019 at 4 p.m. Central time. Interested parties are encouraged to contact Joey Mahmoud, President of PGAP or Mac Broderick, VP of PGAP at +1.832.962.4000 for more information.
About Tellurian Inc.
Tellurian was founded by Charif Souki and Martin Houston and is led by President and CEO Meg Gentle. Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol “TELL”.
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words “anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,” “forecast,” “initial,” “intend,” “may,” “plan,” “potential,” “project,” “proposed,” “should,” “will,” “would,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements herein relate to, among other things, the cost, construction, capacity, timing and impact of the PGAP project and Tellurian’s other projects, and the PGAP open season. These statements involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. These risks include the matters discussed in Item 1A of Part I of the Annual Report on Form 10-K of Tellurian for the fiscal year ended December 31, 2018, and other filings of Tellurian with the Securities and Exchange Commission, all of which are incorporated by reference herein. The forward-looking statements in this press release speak as of the date of this release. Although Tellurian may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by securities laws.
SVP Public Affairs and Communication
Director, Investor Relations
Source: Tellurian Inc.
Released April 8, 2019