Cheniere’s Midship unit signs deals with foundation shippers, kicks off open season for proposed 200-mile gas pipeline.
Cheniere Energy, Inc. subsidiary Midship Pipeline Co., LLC, has proposed building a 200-mile 36-inch interstate natural gas pipeline linking the emerging STACK and SCOOP resource plays in Oklahoma’s Anadarko Basin to Gulf Coast and Southeast markets, Cheniere announced Friday.
“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 Cheniere President and CEO Jack Fusco in a written statement. “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.”
Midship has signed precedent agreements with foundation shippers – Cheniere, Devon Energy Corp., Marathon Oil Corp. and Gulfport Energy Corp. – to support construction of the pipeline, which would provide up to 1,400,000 Dekatherms per day of firm transportation, Cheniere stated.
In addition, Midship has launched a binding open season to solicit additional long-term shipper commitments for the proposed project. Cheniere stated the open season will run from 9 a.m. Central time on March 17 to 3 p.m. Central on March 30. Subsequently, Midship plans to submit its official 7C application with the Federal Energy Regulatory Commission.
The Midship Project would comprise new mainline pipeline, several laterals, compressor stations and interconnects tied to STACK and SCOOP processing plants, Cheniere noted. It would provide deliveries to Bennington, Okla., the TexOk hub near Atlanta, Texas, and the Perrysville Hub near Tallulah, La., the company added.
Cheniere anticipates an early 2019 in-service date for the proposed Midship Project.
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