Whistler Pipeline LLC, which transports up to 2 Bcf/d of natural gas from the Permian Basin in West Texas to the Aqua Dulce hub in South Texas, has inked an agreement to expand the system to Cheniere Energy Inc.’s Corpus Christi LNG facility.
The ADCC Pipeline joint venture (JV) calls for building a 43-mile, 42-inch diameter natural gas extension from Agua Dulce to the liquefied natural gas export terminal.
Pending approvals, ADCC could transport up to 1.7 Bcf/d, expandable to 2.5 Bcf/d. Service is set to begin in 2024.
Whistler, a 450-mile, 42-inch system, is owned by a consortium including WhiteWater, MPLX LP and a JV between Stonepeak Partners and West Texas Gas Inc. It also operates an 85-mile, 36-inch diameter lateral that provides connectivity to the Midland sub-basin of the Permian.
WhiteWater in May said it planned to boost Whistler’s mainline capacity from the Permian to 2.5 Bcf/d by installing three compressor stations. The expansion is scheduled to be in service in September 2023.
In June, through subsidiary Cheniere ADCC Investments LLC, Houston-based Cheniere acquired a 30% equity interest in ADCC to develop the Whitewater expansion, Cheniere said in a regulatory filing. The future commitment is to spend up to $93 million to fund the equity interest.
Earlier this month Cheniere unveiled a revised long-term capital allocation plan to invest in organic LNG export growth, while returning more capital to shareholders.
Cheniere in June sanctioned the third stage of the Corpus project, and in August, it pre-filed for Corpus trains 8 and 9 with the Federal Energy Regulatory Commission.
The near-term goal, CEO Jack Fusco said, is to “achieve a 60 million ton/year platform.” The South Texas project was Cheniere’s second export facility after Sabine Pass in Louisiana. A brownfield expansion of Sabine Pass also is on the table.
“These expansion projects are the low hanging fruit, as it satisfies construction operations and financial optimization,” Fusco said. “Over the longer term, we see a line of sight to growth projects on both sides, which could bring our total capacity to approximately 90 million tons/year, or double our size today.”
