Fresh From The Cupboard, page-988

Leap Year, I’m posting some info for you on the Kinder Morgan Louisiana Pipeline and the Lake Charles Expansion Project and a couple of photos of where the pipeline runs on the property.


The Magnolia LNG and Lake Charles Expansion Projects consist of the LNG terminal and KMLP facilities.

KMLP operates a 133-mile-long natural gas pipeline system that originates at the Cheniere Sabine Pass LNG terminal in Cameron Parish, Louisiana and was designed to transport natural gas to various delivery points in Cameron, Calcasieu, Jefferson Davis, Acadia, and Evangeline Parishes. The KMLP pipeline was constructed to provide its two anchor shippers, Total Gas & Power North America and Chevron U.S.A. Inc., the means to import LNG into the United States using a south-to-north transportation path. The KMLP would provide the Magnolia LNG Project with up to approximately 1,400,000 dekatherms per day of capacity on its system through a north-to-south transportation path. In order to provide service to the Magnolia LNG Project prior to operation of the LNG terminal, the Lake Charles Expansion Project would begin operation in January 2018.

In order to accommodate Magnolia’s request for natural gas service at the LNG terminal, KMLP’s existing pipeline system would require modifications at several locations. In addition to the facilities within the LNG terminal that would be owned and operated by KMLP (i.e., Magnolia Meter Station and interconnect pipeline), the Lake Charles Expansion Project includes the following components (collectively referred to as the KMLP facilities): a new compressor station; new low and high pressure header pipelines; and modifications at a total of six existing meter stations in Acadia and Evangeline Parishes. These facilities would be constructed, owned, and operated by KMLP. The proposed facilities would be located in close proximity to one another within Acadia Parish. A new compressor station, Compressor Station 760, would be constructed about 6 miles southwest of Eunice in northern Acadia Parish, Louisiana. The compressor station would be adjacent to KMLP’s existing pipeline easement, the Pine Prairie Energy Center, LLC (Pine Prairie) Meter Station, and the proposed low and high pressure header pipelines.

The Lake Charles Expansion Project includes the following: construction and operation of a new interconnect pipeline and meter station within Magnolia’s LNG terminal site in Calcasieu Parish; a new compressor station in Acadia Parish; new low and high pressure natural gas header pipelines that would be located adjacent to the existing KMLP easement in Acadia Parish; and modifications at six existing meter stations in Acadia and Evangeline Parishes; of these, five would be modified to allow the bi-directional flow of natural gas and three would be connected to the new header pipelines (two meter stations would be both modified to allow the bi-directional flow of natural gas and interconnected to the new header pipelines).

The LNG terminal located on the south shore of the Industrial Canal would receive natural gas via a new interconnect pipeline and meter station to be constructed and owned by KMLP; the Magnolia Meter Station and interconnect pipeline would tie into KMLP’s existing interstate pipeline system that traverses the southern side of the LNG terminal.

The Lake Charles Expansion Project is to provide domestic feed gas to the Magnolia LNG Project. Magnolia entered into a binding liquefaction tolling agreement with Meridian LNG Holdings Corporation in July 2015. Magnolia entered into non-binding term sheets with four companies, including Brightshore Overseas Ltd; Gas Natural SDG, SA; LNG Holdings Corp.; and AES Latin American Development, Ltd. Magnolia continues commercial negotiations with other potential customers.

Magnolia would not take ownership of the natural gas feedstock after receiving it from KMLP, but would only provide services for natural gas pre-treatment, vaporization, LNG storage, and marine services, including loading of LNG carriers and barges. After loading, the LNG would enter into the owner’s custody. Magnolia Project with existing KMLP 42” pipeline

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Magnolia Meter Station and Interconnect Pipeline

Construction and operation of the Magnolia Meter Station would facilitate the transportation of up to 1.4 Bcf/d of natural gas (feed gas) from KMLP’s existing interstate pipeline system to the LNG terminal. The Magnolia Meter Station would connect to KMLP’s existing 42-inch-diameter pipeline using a 36-inch-diameter tap and about 40 feet of 36-inch-diameter pipeline riser (referred to as the interconnect pipeline). Both the Magnolia Meter Station and interconnect pipeline would be entirely within the LNG terminal. The meter station would include metering equipment, auxiliary equipment and controls, and one auxiliary building. Although the Magnolia Meter Station and interconnect pipeline would be within the LNG terminal, these facilities would be owned and operated by KMLP.


Competing Projects

Competing projects using this pipeline include: Sabine Pass, Golden Pass, Cameron, Entergy, Delfin and possibly others. With Qatar and Exxon set to proceed with a $10 Billion export terminal at Golden Pass you can see why access to capacity is important!!!!

Surely I’m not asking too much by expecting GV to update investors on these issues, as well as providing a general breakdown of the $6 Million expenses in the recent quarterly (given it eclipses the $4.5 Million spent on staff and administration). Updates like these would go a long way toward providing a little more trust in management, especially when considered against past speculation, excuses and third party news via LNG affiliates and twitter posts.

Sometimes I think I’m the only one here who actually gives a SH#% what management is doing when they’re not having lunch at Morton’s Steak House.

Timbo, you sure you can’t tell em to provide us with a few more facts????