Cheniere Energy Inc. announced March 17, that Midship Pipeline Co. LLC has signed precedent agreements with foundation shippers to support construction of a 200 mile 36-in. interstate natural gas pipeline project and has launched a binding open season to solicit additional long-term commitments from shippers.
The transactions contemplated by the precedent agreements are subject to satisfaction of various conditions.
The Midship Project is being developed to create pipeline capacity of up to 1,400,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets. The Midship Project is expected to consist of approximately 200 miles of 36-in. diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from STACK and SCOOP processing plants and provide deliveries to Bennington, Oklahoma, the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana.
Midship, a wholly owned subsidiary of Cheniere, has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corp., Marathon Oil Corp. and Gulfport Energy Corp.
“We are pleased to help facilitate a market solution to STACK and SCOOP producers as they continue to make exciting progress in this important resource basin,” said Jack Fusco, Cheniere’s President and CEO. “Not only will the Midship Project help meet the Anadarko Basin’s need for additional natural gas takeaway and serve demand along the Gulf Coast, it also demonstrates the uniquely integrated market solution Cheniere can provide by leveraging our LNG platform along the entire value chain.”
The open season commenced at 9 a.m. CDT on March 17 and ends at 3 p.m. CDT on March 30. Following the open season, Midship plans to submit its official FERC 7C application and currently targets in-service of the Midship Project in early 2019. Cheniere would require acceptable commercial and financing arrangements, which may include project financings and offerings by it or its subsidiaries of debt or equity, and regulatory and other approvals before the proposed project begins construction.Tags: Anadarko Basin, Cheniere Energy, Midship Pipeline Project, Oklahoma, SCOOP play, STACK Play, Texas