Cheniere’s Midship open season ends March 30
Cheniere Energy’s (ticker: LNG) Midship Pipeline Company, LLC has signed agreements with foundation shippers to support construction of a 200 mile, 36-inch interstate natural gas pipeline project and has launched a binding open season for shippers—known as the Midship project.
Cheniere said the commitments are from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation (ticker: DVN), Marathon Oil Corporation (ticker: MRO), and Gulfport Energy Corporation (ticker: GPOR).
The Midship project targets pipeline capacity of up to 1,400,000 Dekatherms per day (or approximately 1.4 Bcf/day) of firm transportation to connect production from the emerging STACK and SCOOP to Gulf Coast and Southeast markets.
Cheniere said the Midship’s 36-inch diameter new mainline pipeline, several laterals, compressor stations and interconnects 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.
“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.
Cheniere said the Open Season is expected to end at 3:00 p.m. CDT on Thursday, March 30, 2017.
Midship pipeline project map. Source: Cheniere
Cheniere said Zone 1 will consist of approximately 198 miles of 36-inch-diameter new build pipeline that will begin at or near the Okarche Processing Plant near Okarche, Oklahoma and end at Bennington, Oklahoma. The proposed new build facilities will include a total of three (3) compressor stations, eight (8) receipt meters, depending on shipper interest and the following two (2) laterals:
- Chisholm Lateral – approximately 20 miles of 30-inch-diameter new build pipeline that will begin at the Chisholm Processing Plant in Kingfisher County and end on the mainline of the Midship project near the Okarche Processing Plant.
- Velma Lateral – approximately 13 miles of 12-inch-diamater new build pipeline that will begin at the Velma Processing Plant in Stephens County and connects to the Sholem Processing Plant ending in Garvin County.
Zone 2 will consist of approximately 353 miles of pipeline capacity leased from the existing Midcontinent Express Pipeline and/or Gulf Crossing pipelines, operated by Kinder Morgan and Boardwalk Partners, respectively. The proposed leased capacity will begin at Bennington, Oklahoma and end near Tallulah, Louisiana. Depending on approval of the lease or leases, up to three (3) delivery meters are planned at Bennington to receive gas from Zone 1.
Following the Open Season, Midship plans to submit its official FERC 7C application. Cheniere said it targets construction to begin Q2 of 2018, with completion and an in-service target date of early 2019, assuming receipt of all approvals and project financing.
