Enable Midstream Announces FERC Approval of the Gulf Run Pipeline Project

Rhea-AI Summary

Enable Midstream Partners, LP (NYSE: ENBL) announced FERC's approval for the Gulf Run Pipeline project, enabling natural gas transport from key U.S. regions to the Gulf Coast. Supported by a 20-year commitment for 1.1 Bcf/d from Golden Pass LNG, the 42-inch pipeline boasts a capacity of 1.7 Bcf/d. The project, estimated at $540 million, utilizes existing assets to minimize costs and environmental impact, with operations expected by late 2022. This milestone positions ENBL favorably amidst rising global LNG demand.

Positive

• FERC approval for the Gulf Run Pipeline project enhances infrastructure for natural gas distribution.
• The project is backed by a long-term commitment from Golden Pass LNG for 1.1 Bcf/d of natural gas.
• Estimated project cost of $540 million, benefiting from favorable pipe acquisition prices.

Negative

• None.

Enable Midstream Partners, LP (NYSE: ENBL) announced today that the Federal Energy Regulatory Commission (“FERC”) has granted approval to construct and operate the Gulf Run Pipeline project under section 7(c) of the Natural Gas Act. The project is designed to transport natural gas from some of the most prolific natural gas producing regions in the U.S., including the Haynesville, Marcellus, Utica and Barnett shales and the Mid-Continent region, to the U.S. Gulf Coast and is backed by a 20-year commitment for 1.1 billion cubic feet per day (Bcf/d) from cornerstone shipper Golden Pass LNG. The planned 42-inch pipeline provides for approximately 1.7 Bcf/d of capacity, allowing for upside potential beyond Golden Pass LNG’s commitment.

“We appreciate FERC’s thoughtful review of the project and all of the hard work from our best-in-class project team to reach this important milestone,” said Rod Sailor, president and CEO. “Gulf Run makes significant use of existing assets, reducing the project’s cost and environmental impact. With FERC approval and the demand for LNG increasing globally, the project is well-positioned to add new customer commitments.”

The cost for the project is currently estimated at approximately $540 million, and pipe for the project was recently acquired at favorable pricing relative to market. The contractor bidding process is underway, and the project is anticipated to be placed into service in late 2022.

ABOUT ENABLE MIDSTREAM PARTNERS

Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable’s assets include approximately 14,000 miles of natural gas, crude oil, condensate and produced water gathering pipelines, approximately 2.6 Bcf/d of natural gas processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50%), approximately 2,200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion cubic feet of storage capacity. For more information, visit https://enablemidstream.com.

FORWARD-LOOKING STATEMENTS

Some of the information in this press release may contain forward-looking statements. Forward-looking statements give our current expectations and contain projections of results of operations or of financial condition, or forecasts of future events. Words such as “could,” “will,” “should,” “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements pertaining to our expectations of plans, strategies, objectives, growth and anticipated financial and operational performance, as updated by this press release. Forward-looking statements can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed.

A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. However, when considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in this press release and our Annual Report on Form 10-K for the year ended Dec. 31, 2020 (Annual Report). Those risk factors and other factors noted throughout this press release and in our Annual Report could cause our actual results to differ materially from those disclosed in any forward-looking statement. You are cautioned not to place undue reliance on any forward-looking statements.

Any forward-looking statements speak only as of the date on which such statement is made, and we undertake no obligation to correct or update any forward-looking statement, whether as a result of new information or otherwise, except as required by applicable law.

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FAQ

What is the Gulf Run Pipeline project by ENBL?

The Gulf Run Pipeline project is designed to transport natural gas from key U.S. production areas to the Gulf Coast, with a capacity of 1.7 Bcf/d.

When is the Gulf Run Pipeline expected to start operations?

The Gulf Run Pipeline project is anticipated to begin operations in late 2022.

What is the capacity of the Gulf Run Pipeline?

The Gulf Run Pipeline has a planned capacity of approximately 1.7 billion cubic feet per day (Bcf/d).

Who is the cornerstone shipper for the Gulf Run Pipeline?

The cornerstone shipper for the Gulf Run Pipeline is Golden Pass LNG, which has committed to 1.1 Bcf/d.

How much is the Gulf Run Pipeline project estimated to cost?

The Gulf Run Pipeline project is estimated to cost approximately $540 million.