TULSA, Okla.–(BUSINESS WIRE)–Williams Partners L.P. (NYSE: WPZ) announced today that it has executed long-term contracts with two shippers for Gulf Connector, a 475,000 dekatherm per day expansion of the Transco pipeline system to connect U.S. natural gas supplies with global liquefied natural gas (LNG) markets.
Gulf Connector will deliver gas for the Cheniere Energy, Inc. (NYSE: LNG) Corpus Christi liquefaction project and a shipper in Freeport LNG Development, L.P.’s liquefaction project near Freeport, Texas. Both the Corpus Christi and Freeport liquefaction facilities are currently under construction.
The Gulf Connector project involves adding compression and making the natural gas flow bi-directional on a portion of the Transco system between Louisiana and south Texas, pending appropriate regulatory approvals. It’s designed to provide incremental firm transportation from Transco’s Station 65 in St. Helena Parish, La., to mainline interconnects with proposed header pipelines in Wharton County, Texas and San Patricio County, Texas.
“Gulf Connector is another great example of Williams Partners leveraging our existing infrastructure to serve new and growing market opportunities for North America’s natural gas,” said Rory Miller, senior vice president of Williams Partners’ Atlantic-Gulf operating area.
As previously announced, Williams Partners is also building the Gulf Trace Project to serve Cheniere’s Sabine Pass Liquefaction project in Cameron Parish, La., the first large-scale LNG export facility in operation in the continental United States. The first shipment of LNG from that facility is expected late February or March and the Gulf Trace Project is expected to be completed in early 2017. Both Gulf Connector and the Gulf Trace Project are included in Williams Partners’ 2016 growth capital funding plan.
Cheniere’s Corpus Christi export terminal is proposed to have up to five liquefaction trains (two of which are under construction) with expected aggregate nominal production capacity of up to 22.5 million tonnes per annum (mtpa) of LNG. Train 1 and 2 are expected to become operational in late 2018 and mid-2019, respectively.
The Freeport LNG export terminal will have three liquefaction trains with expected aggregate export capacity of 15.3 mtpa. The Freeport export facility is also planned to commence operations in phases between September 2018 and August 2019.
Transco is a wholly owned subsidiary of Williams Partners, of which Williams (NYSE: WMB) owns controlling interests and is the general partner. Transco is the nation’s largest and fastest-growing interstate natural gas transmission pipeline system. It delivers natural gas to customers through its 10,200-mile pipeline network whose mainline extends nearly 1,800 miles between South Texas and New York City. The system is a major provider of cost-effective natural gas services that reach U.S. markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.
About Williams Partners
Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North American natural gas infrastructure, owns 60 percent of Williams Partners, including all of the 2 percent general-partner interest. www.williams.com
About Cheniere Energy, Inc.
Cheniere Energy, Inc., a Houston-based energy company primarily engaged in LNG-related businesses, owns and operates the Sabine Pass LNG terminal and Creole Trail Pipeline in Louisiana. Through its subsidiary, Cheniere Energy Partners, L.P., Cheniere is developing liquefaction projects at the Sabine Pass LNG terminal and near Corpus Christi, Texas. Cheniere is also exploring a limited number of opportunities directly related to its existing LNG business. For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, filed with the Securities and Exchange Commission.
About Freeport LNG Development, L.P.
Freeport LNG Development, L.P., owns and operates an existing LNG regasification terminal located near Freeport, Texas. Through its subsidiary, Freeport LNG Expansion, L.P., it is constructing the gas liquefaction and LNG export project at the Quintana Island Terminal. Michael Smith controls the general partner of Freeport LNG Development, L.P. Freeport LNG Development, L.P.’s limited partners are: Freeport LNG Investments, LLLP, and FLNGI Option Holdco, LLC, each owned by Michael S. Smith; GIP II FLNG, L.P. and GIP II FLNG Holdings Partnership 2, LLC, each owned by Global Infrastructure Partners; and Turbo LNG, LLC, a wholly owned subsidiary of Osaka Gas Co., Ltd. For additional information, go to www.FreeportLNG.com.
Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the partnership’s annual reports filed with the Securities and Exchange Commission.