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Kinder Morgan gets US FERC go-ahead for project to supply Sabine Pass

Washington (Platts)--21 Nov 2017 533 pm EST/2233 GMT


The US Federal Energy Regulatory Commission late Monday approved a Kinder Morgan pipeline expansion that will deliver feedgas to a fifth liquefaction train at Cheniere Energy's Sabine Pass LNG export terminal in Louisiana.

The $151 million Sabine Pass Expansion Project will add 600,000 Dt/d of north-to-south firm service.

It will replace a meter station in Acadia Parish, add a tap and lateral to connect to the export terminal in Cameron Parish, make changes to three delivery interconnects to allow receipts of gas as well as delivery, and add 15,900 hp of compression in Acadia Parish. It also entails addition of less than 1.5 miles of header pipeline to connect the compressor station to three existing pipeline interconnects.

Kinder Morgan Louisiana Pipeline and Sabine Pass Liquefaction have signed a precedent agreement for the full capacity of the project under a 20-year term, according to the FERC order (CP17-22).

FERC's order notes there is some overlap of facilities with Kinder Morgan's previously approved Lake Charles Expansion Project, intended to serve the Magnolia LNG project in Lake Charles, Louisiana. However, Kinder Morgan now expects to build the Sabine Pass Expansion Project first. The Magnolia project has received regulatory approval but is still seeking long-term contracts and awaiting a final investment decision, amid a well-supplied global market.

--Maya Weber, maya.weber@spglobal.com

--Edited by Alisdair Bowles, alisdair.bowles@spglobal.com

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