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Plains All American Pipeline and Cheniere sign agreement

Published by , Editorial Assistant
Tanks and Terminals,

Plains All American Pipeline, L.P. (PAA) and Cheniere Energy Partners, L.P. (Cheniere) have announced that PAA’s subsidiary, Pine Prairie Energy Center, LLC (Pine Prairie), has entered into a 10 year firm storage service agreement with Cheniere Energy Partners’ 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’s Sabine Pass Liquefaction facility.

“We 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,” said Senior Vice President Ben Reese at PAA Natural Gas Storage. “As demand for natural gas continues to grow, PAA’s 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.”

“Pine 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,” said Corey Grindal, Vice President of Supply at Cheniere. “We 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.”

Adapted from press release by Francesca Brindle

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