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Plains All American Pipeline and Cheniere sign agreement

 

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Plains All American Pipeline, L.P. (PAA) and Cheniere Energy Partners, L.P. (Cheniere) have announced that PAA鶹ýӳs subsidiary, Pine Prairie Energy Center, LLC (Pine Prairie), has entered into a 10 year firm storage service agreement with Cheniere Energy Partners鶹ýӳ subsidiary, Sabine Pass Liquefaction, LLC. Under the new agreement, Pine Prairie will provide 8 billion ft3 of firm natural gas storage capacity to Cheniere beginning in 2018 to serve the storage needs of the company鶹ýӳs Sabine Pass Liquefaction facility.

鶹ýӳWe are excited to extend our existing relationship with Cheniere well into the next decade, and look forward to providing critical storage and balancing needs throughout commissioning and operations of the Sabine Pass facility,鶹ýӳ said Senior Vice President Ben Reese at PAA Natural Gas Storage. 鶹ýӳAs demand for natural gas continues to grow, PAA鶹ýӳs flexible, reliable and highly interconnected gas storage assets are uniquely located to provide high injection, withdrawal and balancing services to meet the diverse, growing needs of the market.鶹ýӳ

鶹ýӳPine Prairie has been a good partner in helping us manage the variability in loads during commissioning of Train 1 at our Sabine Pass LNG terminal,鶹ýӳ said Corey Grindal, Vice President of Supply at Cheniere. 鶹ýӳWe expanded our relationship with Pine Prairie because the storage facility is located in a place where we can easily access our existing infrastructure connected to the terminal. With this new agreement, we will be able to more effectively manage the load swings as we construct and operate our liquefaction trains at Sabine Pass.鶹ýӳ


Adapted from press release by