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.

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