Gas Pipeline Project Halted Amid Pandemic
(AP) — A natural gas pipeline that would have connected an oil field in New Mexico and Texas to markets in the Gulf Coast has been halted as the fossil fuel industry struggles during the coronavirus pandemic.
Officials with Permian Global Access Pipeline, a subsidiary of Houston-based natural gas producer Tellurian, withdrew its application to build the 625-mile (1,005-kilometer) pipeline, the Carlsbad Current-Argus reported.
The pipeline would have crossed 24 Texas counties and four Louisiana parishes to transport natural gas stemming from the Permian Basin in west Texas and southeast New Mexico, officials said.
Several countries and states enacted travel bans and other business restrictions to limit the spread of COVID-19, resulting in declining oil and gas prices as people are using less fuel around the world.
As a result, many major oil and gas projects were stopped as companies sought to cut spending, including the pipeline project.
Permian Global Access Pipeline LLC President Joey Mahmoud said that current market conditions meant the project was not financially viable and that the company could resume if the market recovers.
Related News
From Archive
- Oil pipeline struck during fiber optic construction spills into L.A. storm drains
- Utility strike at center of Dallas explosion investigation
- Gas line strike destroys three homes in Ohio neighborhood
- $1 billion Ohio River Tunnel project awarded in Pittsburgh
- Las Vegas advances multibillion-dollar water pipeline expansion
- Final Lake Erie sewer tunnel project set to begin after decades-long $3 billion effort
- Inside Infrastructure: Utility locators warn of systemic failures in damage prevention process
- Senate passes PIPELINE Safety Act aimed at strengthening buried utility protection
- $104 million Lynchburg, Va., tunnel nears breakthrough beneath Blackwater Creek
Comments