Texas Eastern is seeking non-binding shipper interest in potential firm transportation service from Katy to Gillis, with an indicative configuration designed to provide up to 2 Bcf/d if the project proceeds.
Published by Allstream Insiders
Allstream Insiders Summary
Enbridge’s Texas Eastern Transmission, LP has opened a non-binding open season for its proposed Katy to Gillis Expansion Project, testing market interest in potential firm natural-gas transportation service from Katy, Texas, to Gillis, Louisiana. According to Texas Eastern’s October 7 notice, the contemplated arrangement is intended to offer shippers a seamless Katy-to-Gillis transportation path of up to 2 billion cubic feet per day.
The open season runs through October 30, 2026. It is not a binding capacity award, construction authorization or final commercial agreement. Texas Eastern said it will use submitted service requests to evaluate the project’s scope, feasibility, timing and commercial viability before determining a configuration that could move forward.
What Texas Eastern is testing in the Katy to Gillis open season
Texas Eastern is evaluating a path-specific transportation concept that would combine capacity between Katy and Vidor with service across its existing Zone STX and Zone WLA systems between Vidor and Gillis. The company said the proposed configuration is intended to accommodate varying supply sources and market preferences.
| Indicative path | Receipt zone | Delivery zone |
|---|---|---|
| Katy to Vidor | STX | WLA |
| Vidor to Gillis | WLA | WLA |
| Gillis to Vidor | WLA | WLA |
Interested parties may also propose alternative receipt points, delivery points or paths for Texas Eastern’s consideration. The routes in the notice are indicative, and the company said final rates would remain subject to further evaluation, negotiation and any necessary regulatory approvals.
How Mustang Express fits into the proposed transportation path
Texas Eastern said it plans to enter into firm transportation-capacity agreements with Mustang Express Pipeline, LLC for service from Katy to Vidor. The notice describes Mustang as a Texas intrastate pipeline being built by an affiliate of ARM Energy Holdings, LLC and designed to transport up to 2.5 Bcf/d from supply points in the Katy, Colorado County and Waller County areas to the Port Arthur LNG Phase II export facility and other delivery points.
According to the notice, Mustang has identified potential expansion work that could extend its route to Vidor and increase capacity above its initial design. Mustang’s pursuit of those expansions is contingent on sufficiently favorable results from the open season and continued shipper demand. Texas Eastern’s up-to-2-Bcf/d Katy-to-Gillis concept is therefore a proposed transportation arrangement, not confirmation that the Mustang expansion work has been sanctioned.
What schedule Texas Eastern disclosed
If constructed, the Katy to Gillis Expansion Project has a target in-service date in the first quarter of 2031. Texas Eastern also said it is willing to evaluate opportunities for earlier service, subject to project development, market support, economics, regulatory approvals and other considerations.
That timing is a company target tied to an evaluated project, not a committed startup date. The notice does not establish a final route, executed precedent agreements, final rates or a construction start.
What shippers are being asked to submit
Texas Eastern’s service-request form calls for a requested maximum daily quantity, contract term, proposed receipt and delivery points, reservation rate, requested service-commencement date and proposed credit support. The notice requests completed forms during the open-season period, which starts at 2:00 p.m. on October 7 and closes at 4:00 p.m. on October 30, using the time zones stated in the notice.
Texas Eastern said a submitted or accepted service request does not create an allocation, reservation, award of capacity or binding obligation. After the open season closes, the company expects to assess market interest and may contact parties that submitted requests to discuss potential transportation arrangements and precedent agreements.
Allstream perspective: a commercial test for Gulf Coast gas transportation capacity
Allstream perspective: The notice identifies a potential route from Texas supply areas toward the Vidor and Gillis portions of the Texas Eastern system, with a stated objective of creating up to 2 Bcf/d of seamless service. The proposed use of Mustang capacity from Katy to Vidor makes the open season relevant to the broader commercial question of how new or expanded Texas gas supply routes could serve Gulf Coast demand points.
For the infrastructure market, the current milestone is shipper-interest gathering rather than an awarded project scope. The notice does not identify engineering, equipment, construction or service packages. Commercial commitments, project configuration, regulatory progress and any later procurement disclosures would be the next indicators that the proposal has advanced beyond the open-season stage.
