More gas for $10B Golden Pass LNG as it pools resources with Entergy Texas and Kinder Morgan

Intending to fuel Southeast Texas’ natural gas growth to address the rising energy demand, Louisiana-headquartered Entergy Texas, a subsidiary of a Fortune 500 electric company Entergy Corporation, has joined forces with Kinder Morgan (KMI), a North American energy infrastructure player, and the Golden Pass liquefied natural gas (LNG) terminal (GPX) export project in Sabine Pass, Texas.  

After the withdrawal of Zachry, which filed for Chapter 11 relief under the United States Bankruptcy Code in May 2024, was officially confirmed with the court’s approval in August 2024, its joint venture (JV) partner in the Golden Pass LNG project in Texas, Chiyoda International Corporation (CIC), together with CB&I, a JV partner, and the Golden Pass LNG terminal agreed to amend the engineering, procurement, and construction (EPC) contract and associated commercial terms in November 2024 to complete the full scope of Train 1. 

Chiyoda recently confirmed its commitment to working collaboratively with CB&I and the GPX LNG export terminal, which the ExxonMobil–QatarEnergy JV is developing, to complete the construction of the Golden Pass LNG project. Discussions are still ongoing about amending the contract for trains 2 and 3. 

In the meantime, a new fuel supply agreement, inked by Entergy Texas, Kinder Morgan, and Golden Pass LNG, is anticipated to strengthen reliability, lower costs, and power growth in Southeast Texas by securing natural gas supply as part of Kinder Morgan’s $1.7 billion Trident Intrastate Pipeline project. The 216-mile project is designed to transport Permian Basin and other natural gas supply at the Katy hub to the LNG and industrial corridor near Port Arthur in Texas, delivering additional diverse supply to growing and currently constrained areas.

Eliecer Viamontes, President and CEO of Entergy Texas, commented: “This strategic partnership demonstrates our commitment to delivering long-term value for our customers and communities. The agreement also serves as a critical component for our Southeast Texas Energy Plan (or STEP Ahead plan). By securing a reliable and sustainable fuel supply, we are building the foundation for a stronger energy future.”

Moreover, the agreement between the trio is perceived to bring several key regional benefits incorporated into Entergy Texas’ STEP Ahead plan, including lower costs by accessing competitive natural gas markets through the Katy hub, allowing the firm to pass fuel savings directly to its customers. The partnership’s goal is to ensure a steady natural gas supply for the company’s proposed Legend and Lone Star power stations.

The trio’s agreement is said to unlock enhanced flexibility and resiliency, with the new pipeline boosting Entergy Texas’ ability to adapt and maintain reliable operations across nearly all of its power plants, encapsulating the company’s Spindletop underground natural gas storage caverns. In addition, this collaboration is seen as a way to bolster further economic development expansion in the region.

Sital Mody, KMI Natural Gas President, underscored: “We are pleased to support our customers’ growing needs for natural gas. We believe our Trident Intrastate Pipeline project is critical to meeting rising power, industrial and LNG demand in Texas and are excited to work with Entergy Texas and Golden Pass LNG as we continue to provide reliable and affordable energy solutions to the state.”

This pipeline, which is scheduled to be operational in early 2027, aligning with the start of major industrial projects across Southeast Texas, is expected to transport approximately 1.5 billion cubic feet of gas per day. However, possible expansion opportunities of up to 2.8 billion cubic feet per day are also on the table to secure future energy supply.

Jeff Hammad, Chief Commercial Officer for Golden Pass LNG, pointed out: “This strategic project enhances Golden Pass LNG’s access to a reliable supply of natural gas for our LNG terminal and helps us achieve our mission to be the premier supplier of LNG from North America.”

The Golden Pass LNG export project, which is slated to be put into operation in late 2025, is envisioned to add natural gas liquefaction and export capabilities to the existing terminal in Sabine Pass, spurring hundreds of direct jobs and supporting the supply of cleaner energy, given the dominant view of LNG as a bridge fuel during the energy transition to a more sustainable future.

Since Port Arthur is portrayed as one of the few deepwater ports along the Gulf Coast suitable for LNG carriers, the $10 billion investment in infrastructure about 10 miles (16.09 kilometers) south of Port Arthur in Jefferson County on the Sabine-Neches Waterway is said to secure a perfect fit for an LNG terminal with an estimated annual send-out capacity of around 18 million tons.

After QatarEnergy and ExxonMobil hammered out the details to market independently LNG produced at the terminal, ExxonMobil LNG Asia Pacific (EMLAP) got the exclusive rights to market 30% of Golden Pass LNG volumes with QatarEnergy Trading marketing the remaining 70%.