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Sempra LNG & Midstream, Boardwalk Pipeline Partners, LP announce natural gas open season for Permian-Katy pipeline

August 14, 2017 12:00 pm

SAN DIEGO, Aug. 11, 2017 – Sempra LNG & Midstream and Boardwalk Pipeline Partners, LP today announced the start of a non-binding open season to solicit interest for firm natural gas transportation service on the proposed Permian – Katy Pipeline project (P2K) that will connect abundant natural gas supplies from the Permian Basin to growth markets on the Texas Gulf Coast and Mexico.
The approximately 470-mile, 42-inch pipeline project is proposed to transport up to 2 billion cubic feet per day (Bcfd) of natural gas from the Waha Hub Headers in the Permian Basin to Katy and the Houston Ship Channel. The Texas Gulf Coast is one of the largest, most diversified natural gas markets in the world and the P2K project will promote additional demand and liquidity by delivering incremental and abundant Permian natural gas supplies within easy reach of this dynamic market center.
The offering would provide access to increasing natural gas supplies to meet the growing demand of LNG export projects, power generation, petrochemical industry and pipeline exports to Mexico.
The open season bid period is scheduled to begin 1:00 PM CST, Monday August 14, 2017 and continue until 4:00 PM CST, Thursday September 14, 2017. Interested parties are encouraged to submit their written request to P2Kinfo@sempraglobal.com.
The proposed P2K project’s initial capacity will range between 1.5 Bcfd to 2.0 Bcfd with estimated transport rates between $0.45 to $0.55 dependent upon individual shipper’s maximum daily transport quantity, final project design capacity and requested receipt and delivery locations. A phased-in approach for the capacity could start as early as December 2019.
Sempra LNG & Midstream leads Sempra Energy’s (NYSE: SRE) efforts to develop, own and operate midstream natural gas infrastructure, LNG receipt terminals and liquefaction facilities. Additional information about Sempra LNG & Midstream can be found at SempraLNGM.com.
Boardwalk Pipeline Partners, LP (NYSE: BWP) is a midstream master limited partnership that primarily transports and stores natural gas and liquids for its customers. Additional information about Boardwalk Pipeline Partners, LP can be found at www.bwpmlp.com.