Williams Partners L.P. said Monday it will expand the capacity of its Transco pipeline system to serve Cheniere Energy’s Sabine Pass (Louisiana) Liquefaction project.
The Sabine Pass LNG terminal being developed in Cameron Parish will connect U.S. natural gas supplies with global LNG markets.
“Transco has executed an agreement with Sabine Pass Liquefaction L.C. as the anchor shipper, which provides a transportation contract quantity that is sufficient to proceed with execution of the Gulf Trace project,” Williams said.
The Sabine Pass LNG export facilities are currently under construction and scheduled to be completed in phases starting as early as the fourth quarter of 2015.
“Gulf Trace is a pivotal project at an extremely important time for Transco and the U.S. natural gas industry as a whole,” said Rory Miller, senior vice president of Williams Partners’ Atlantic-Gulf operating area.
The Sabine Pass LNG terminal will be the first large-scale LNG export facility in operation in the United States, Williams said.
Several LNG off-take shippers are expected to export LNG from the project to various markets overseas.
“The Gulf Trace project will make Transco’s production area mainline and southwest Louisiana lateral systems bi-directional from Station 65 in St. Helena Parish, La. to Cameron Parish, La,” Williams said.
A new, 8-mile 36-inch lateral pipeline and two new compressor stations are also planned to support the Sabine Pass LNG facility.
The estimated project cost for Gulf Trace is approximately $300 million and the target in-service date is early 2017, Williams said.
Completion is subject to approvals by the Federal Energy Regulatory Commission (FERC), among others.