HOUSTON--(BUSINESS WIRE)--
Tellurian (NASDAQ: TELL) announced today that its subsidiary Permian Global Access Pipeline LLC (PGAP) is offering a non-binding open season to secure prospective shippers for a proposed 42-inch diameter interstate natural gas pipeline connecting the Permian Basin in Texas to Southwest Louisiana. PGAP is estimated to cost approximately $3.7 billion to construct and will have the capacity to transport two billion cubic feet of natural gas a day. Construction is projected to begin as early as 2021 and the pipeline is targeted to be in service as early as 2022.
PGAP is part of Tellurian’s previously announced proposed Tellurian Pipeline Network that represents a $7.0 billion investment in U.S. infrastructure, creating 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, “Natural gas production from the Permian is expected to exceed 12 billion cubic feet per day by 2023 and continue to grow through the middle of the decade. New pipeline infrastructure will be needed to reach growing export and industrial demand in Southwest Louisiana and to establish crude production flow assurance. We hope to attract interest in PGAP from both producer and consumer shippers and look forward to securing commitments to begin the regulatory permitting process in the next few months.”
The proposed pipeline will stretch approximately 625 miles and connect supply sources originating at or near the Waha Hub in Pecos County, Texas and will deliver gas near Gillis, Jefferson Davis Parish, Louisiana. The pipeline system is anticipated to have multiple receipt and delivery locations connecting multiple common gathering points and third-party pipelines.
The open season will begin at noon central time on Wednesday, March 21, 2018 and runs through Friday, May 25, 2018 at 4 p.m. central time. Interested parties are encouraged to contact Joey Mahmoud, President of PGAP at 832.320.9228 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”.
For more information, please visit www.tellurianinc.com.
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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,” “should,” “will,” “would,” “proposed,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements herein relate to, among other things, the cost, capacity, timing, impact, location and other aspects of PGAP and Tellurian’s other projects, and future demand for PGAP capacity. 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 for the fiscal year ended December 31, 2017 filed by Tellurian with the Securities and Exchange Commission (the “SEC”) on March 15, 2018, and other filings with the SEC, 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.
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