As
the 580-mile Matterhorn Express prepares to go in service next quarter, a new
long-haul gas pipeline is looking to step forward as the next major Gulf Coast midstream
project.
DeLa
Express, an affiliate of Moss Lake Partners, has taken its first big step,
asking FERC to begin the Pre-Filing
Review Process for it proposed DeLa Express Project.
If
completed, the 42-inch, 690-mile pipeline would transport liquids-rich Delaware
Basin natural gas to markets in and around Lake Charles, Louisiana. The plan
includes five laterals, eight compressor stations and several meter stations.
The
project is designed to address increased export demand for natural gas liquids (NGL)
as European nations continue to limit imports from Russia. As part of the
project, Moss Lake hopes to build an NGL export facility in the Hackberry,
Louisiana parish of Cameron.
The
DeLa pipeline, according to the plans, would provide 2 Bcf/d of capacity from
the Permian Basin to Port Arthur, Texas, and Cameron Parish, Louisiana. More
than 95% of the pipeline route is co-located with or parallel to existing
utility rights of way, the company has said.
NGLs
are part of a wet, natural gas flow, which is separated into a liquid mixture
through a cooling process. With the use of heat and pressure, the mixture
splits into fuels such as propane, ethane and butane. These differ from liquid
natural gasses (LNG), usually methane, can be liquified by reducing temperature
levels.
Moss
Lake, a private midstream investor, headquartered in Houston, said it hopes
to have the project certified by April 2026 and in-service in the second
quarter of 2028, eventually shipping as much as 2 Bcf/d of natural gas.
The
proposed timeline for the project, outlined by the company as a series of key
milestones, shows it has already conducted public open houses in May and is continuing
the process in June. Moss Lake has also developed a preliminary public
participation plan to assist with stakeholder communications and the dissemination
public information throughout the project’s lifecycle.
If
all goes well, DeLa Express said it will file its Section 7 application in
February 2025, in anticipation of receiving FERC certification.
Of
course, before we get to that point the pipeline will have to attract customers.
Unlike most other recently proposed pipelines, such as the Apex Pipeline, the
DeLa will be crossing state lines into Louisiana. In this scenario, shipments
could bypass some anticipated Permian bottlenecking, en route to the Gulf.
One
positive the project has going for it is that the administration’s LNG
permitting pause on new facilities does not affect Hackberry NGL, because it
will load NGL products on ocean-going ships for exportation to U.S. trading
partners.
Another
plus is that Moss Lake also plans to supply LNG facilities along the Gulf Coast
with low-nitrogen feed gas.
“Hackberry’s NGL proposed export facility will have significant freight advantages over the long-term due to its close proximity to the ocean, and the fact that there is significantly less congestion than at other ports in the U.S. Gulf Coast, some of which is due to the natural geography of the area,” Jeff Frase told The American Press of Lake Charles, Louisiana.
With
producers likely to fill capacity on the Matterhorn faster than initially
expected some constraints in Permian are likely to occur until the 155-mile Saguaro
Connector pipeline, connecting to Mexico Pacific’s in-development Saguaro LNG
export facility, comes on line in 2029.
An open season for the DeLa pipeline is expected by June. P&GJ