Cheniere inks pipeline deal to deliver gas to Corpus Christi LNG export plant

US LNG exporting giant Cheniere has signed a deal with Whistler Pipeline to expand the latter’s existing pipeline in order to deliver natural gas from the Permian Basin to the Corpus Christi LNG export plant in Texas.

Whistler Pipeline is a consortium consisting of MPLX, WhiteWater, and a joint venture between Stonepeak and West Texas Gas.

The consortium operates a 724 kilometers long pipeline that transports natural gas from the Waha Header in the Permian Basin to Agua Dulce, Texas.

Units of Whistler Pipeline and Cheniere have now executed agreements to move forward with the construction of ADCC Pipeline, a new joint venture between the two companies, according to a statement by WhiteWater.

The new pipeline would be about 69 kilometers long and would connect the terminus near Agua Dulce to the Corpus Christi LNG plant.

Launch in 2024

WhiteWater said the ADCC pipeline would transport up to 1.7 billion cubic feet per day (Bcf/d) of natural gas, expandable to 2.5 Bcf/d of natural gas.

Also, the firm expects the pipeline to go into service in 2024, pending the receipt of customary regulatory and other approvals.

WhiteWater did not reveal any additional information.

In June 2022, Cheniere, through its unit Cheniere ADCC Investments, acquired a 30 percent equity interest in ADCC Pipeline, according to a filling with SEC.

Cheniere said it has a future commitment of up to $93 million to fund its equity interest.

Huge expansion plans

The operator of the Sabine Pass and Corpus Christi terminals recently revealed plans to increase the company’s liquefaction capacity to about 90 mtpa as part of its “20/20 Vision” long-term capital allocation plan.

Cheniere’s Sabine Pass plant in Louisiana now has six operational trains with a capacity of about 30 mtpa, while the firm took a final investment decision on Stage 3 expansion at its Corpus Christi LNG export plant in Texas.

The expansion will add about 10 mtpa to the three-train 15 mtpa Corpus Christi plant.

In addition to this, Cheniere is planning to build Corpus Christi midscale trains 8 and 9, each with a capacity of 1.64 mtpa, and one 220,000-cbm LNG storage tank.

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