LNG Construction Advances as California Pipeline Politics Heat Up

Engineering and construction activity is advancing at two major Gulf Coast LNG export projects, according to separate reports from Rigzone. Meanwhile, a campaign to restart offshore California oil flows is drawing political fire, highlighting continued pipeline and infrastructure challenges.

CB&I has won a contract to build five large LNG storage tanks for the Commonwealth LNG project in Cameron Parish, Louisiana, Rigzone reported on May 29. Each tank will have a capacity of 1.77 million cubic feet.

In a separate development also reported by Rigzone on May 29, Cheniere Partners has given Bechtel a 'limited notice to proceed' for early engineering and procurement activities related to the expansion of the Sabine Pass LNG facility.

These Gulf Coast infrastructure investments contrast with ongoing political and legal battles over pipelines elsewhere. According to a third Rigzone report from May 29, a group of Democratic lawmakers is probing Sable Offshore Corp.'s campaign to restart oil flows from the Santa Ynez unit off the coast of California. The legislators warned Sable's CEO about the "long-term legal and financial ramifications of collaborating with the Trump administration to circumvent California law."

For Bakken shale producers, the growth of LNG export capacity on the Gulf Coast represents a critical outlet for associated natural gas production. While the Bakken is primarily an oil play, its gas production requires pipeline takeaway and market access. The political opposition facing pipeline projects in California, however, serves as a reminder of the regulatory hurdles that can delay or block infrastructure development crucial for oil and gas transportation.