Cheniere initiates binding open season for Midship Pipeline

Cheniere Energy said Friday its Midship Pipeline Co. subsidiary has signed shipper agreements to support construction of a 200-mile, 36-inch interstate natural gas pipeline project.

A binding open season has been launched for the so-called Midship Pipeline project, Kallanish Energy reports.

Midship is needed to create pipeline capacity of up to 1.4 billion cubic feet per day (Bcf/d) of firm transportation to connect production from the STACK and SCOOP plays in Oklahoma’s Anadarko Basin to Gulf Coast and Southeast U.S. markets.

The proposed pipeline has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy, Marathon Oil and Gulfport Energy.

Midship is expected to include roughly 200 miles of 36-inch new mainline, several laterals, compressor stations and interconnects. The line 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 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 began last Friday, and runs through March 30. Following the open season, Midship plans to submit its official Federal Energy Regulatory Commission application and currently targets in-service for early 2019.