American Oil and Gas Reporter - September 2024 - 19

IndustryDigest
Cheniere To Sell LNG
To Portugal-Based Galp
HOUSTON-Cheniere Energy
Marketing LLC has reached a long-term
liquefied natural gas sale and purchase
agreement (SPA) with Lisbon-based
Galp Energia in which Galp will
purchase approximately 0.5 million
tonnes per annum of Cheniere's LNG
for 20 years.
Cheniere says it expects deliveries to
commence in the early 2030s subject to,
among other things, a positive final
investment decision regarding the
second train of the Sabine Pass
Liquefaction Expansion Project.
Cheniere adds that the agreement
includes a limited number of early
cargoes to be purchased by Galp before
the expansion is complete.
" We are pleased to enter into this
long-term agreement with Galp, a
leader across Iberia's energy sector,
which reinforces the critical role U.S.
natural gas is expected to play in
Europe's energy mix into the second
half of this century, " says Jack Fusco,
Cheniere's president and chief
executive officer. " We look forward to
providing our flexible, reliable and
cleaner burning LNG to Galp under
this new long-term agreement. This
SPA is expected to provide further
support for the SPL Expansion Project,
and demonstrates continued
momentum as we progress
development of the project. "
According to Cheniere, the SPL
Expansion Project is designed to
accommodate as much as 20 mtpa of
LNG, inclusive of estimated
debottlenecking opportunities. ❒
Enterprise Obtains
Piñion Midstream
HOUSTON-An affiliate of
Enterprise Products Partners LP has
entered a definitive agreement to acquire
Piñon Midstream for $950 million.
According to Enterprise, Piñon
Midstream's assets include
approximately 50 miles of natural gas
gathering and re-delivery pipelines, five
three-stage compressor stations, 270
million cubic feet a day of hydrogen
sulfide and carbon dioxide treating
facilities-with an expansion to 450
MMcf/d of capacity on pace to be
completed in the second half of 2025-
and two of the Permian's basin's
highest capacity and deepest acid gas
injection wells. As part of the
transaction, Enterprise says it is
evaluating locations for a third injection
well to support as much as 750 MMcf/d
of total treating capacity.
Enterprise mentions that the business
is supported by fee-based contracts with
long-term acreage dedications, including
minimum volume commitments. The
relevant area of the Delaware Basin-
which lies mainly in Lea County, N.M.,
and Winkler County, Tx.-has more
than 7,500 remaining well locations and
access to at least six geologic production
benches, the company estimates.
" We believe the Piñon management
team has developed the premier sour
natural gas treating system in the
Delaware Basin, " says A. J. " Jim "
Teague, co-chief executive officer of
Enterprise's general partner. " These
assets accelerate our entry into this
region by at least three or four years.
These assets are highly complementary
to our midstream energy system and
provide us an excellent entry point into
the eastern flank of the Delaware Basin
for us to expand our natural gas
processing footprint. Our entry will
provide producers a choice for reliable
and value-added processing services. "
Enterprise says it expects to complete
the transaction in the fourth quarter. ❒
Natural Gas Storage
Continues To Approach
Historical Averages
WASHINGTON-Underground
natural gas storage in the United States
stood at 3.334 trillion cubic feet on Aug.
23, 12.1% above the five-year average,
according to the U.S. Energy
Information Administration. That was
228 Bcf more than a year ago, when gas
storage stood at 3.106 Tcf.
Gas storage in the East Region was
754 Bcf on Aug. 23, 8.3% above the
five-year average, and 9 Bcf more than
a year ago, EIA reports.
In the Midwest, gas storage stood at
909 Bcf on Aug. 23, 11.4% above the
five-year average and 62 Bcf more than
a year ago.
In the Mountain Region, EIA
continues, gas storage was 266 Bcf on
Aug 23, 41.5% above the five-year
average and 55 Bcf more than a year
ago.
The Pacific Region's gas in storage
was 287 Bcf on Aug. 23, 9.1% above
the five-year average and up 41 Bcf
from a year ago.
In the South-Central Region, gas
storage levels on Aug 23 were 1.119
Tcf, 10.8% above the five-year
average and up 63 Bcf from a year
ago. ❒
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SEPTEMBER 2024 19

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American Oil and Gas Reporter - September 2024

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