Enterprise Products Partners L.P. announced that it recently started commercial service on its new Gillis Lateral pipeline and the associated expansion of its existing Acadian Haynesville Extension system to serve the growing liquefied natural gas (“LNG”) market on the Gulf Coast. The approximately 80-mile Gillis Lateral originates near Alexandria, Louisiana on Enterprise’s Acadian Haynesville Extension system and extends to third party pipeline interconnects near Gillis, Louisiana, including multiple pipelines serving LNG export facilities. The recently completed Gillis Lateral pipeline has the capability to transport approximately 1 billion cubic feet per day (“Bcf/d”) of natural gas.
“By leveraging the flexibility of our Acadian system, Enterprise is providing natural gas producers in the growing Haynesville shale, one of the most lucrative natural gas plays in the U.S., with access to the higher valued global LNG market,” said Natalie Gayden, senior vice president, Natural Gas Assets for Enterprise’s general partner. “This environmentally responsible project will facilitate delivery of affordable, clean-burning U.S. natural gas to developing nations living in energy poverty that may otherwise rely on highly polluting solids, such as wood, coal and animal waste for heating and cooking. The Gillis Lateral is fully subscribed with long-term, firm commitments from shippers.”
To accommodate the additional volumes, Enterprise increased capacity on its Acadian Haynesville Extension pipeline from 1.8 Bcf/d to 2.1 Bcf/d by increasing horsepower at its Mansfield compressor station in DeSoto Parish. The Legacy Acadian and Haynesville Extension pipelines are part of the Acadian Gas Pipeline system, which is comprised of approximately 1,300 miles of natural gas pipelines and leased underground storage. It links natural gas supplies in Louisiana and offshore Gulf of Mexico to distribution companies, electric utility plants and industrial customers located primarily in the Baton Rouge/New Orleans/Mississippi River corridor area. Enterprise’s 378-mile Haynesville Gathering system has a capacity of approximately 1.3 Bcf/d, can treat up to 810 million cubic feet per day of natural gas and provides a significant and reliable source of supply for the Acadian system.