Cheniere Inks Contracts for Construction of Midship Natural Gas Pipeline

Researched by Industrial Info Resources (Sugar Land, Texas)--Midship Pipeline Company LLC, a subsidiary of Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas), has signed precedent agreements with foundation shippers to support the construction of a 200-mile natural gas pipeline. Midship also has launched a binding open season to solicit additional long-term commitments from shippers. Industrial Info is tracking $651 million in active projects related to the Midship Pipeline.

The Midship Pipeline is designed to connect production from the emerging STACK and SCOOP resource plays in Oklahoma's Anadarko Basin to growing markets in the U.S. Southeast and Gulf Coast regions, according to a press release from Cheniere. It will include a new mainline, several laterals, compressor stations and interconnects.

Industrial Info is tracking progress on the $425 million mainline segment that will transport up to 1.4 billion standard cubic feet per day of natural gas from Kingfisher County to Bennington, Oklahoma, with a diameter of 30 to 36 inches. Currently, it is expected to begin construction in mid-2018. Cheniere also is at work on a $36 million lateral pipeline, which involves the construction of 20 miles of 24-inch-diameter transmission pipe from Kingfisher County to Durant County in Oklahoma. For more information, see Industrial Info's project reports on the mainline and lateral.

Midship has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation (NYSE:DVN) (Oklahoma City, Oklahoma), Marathon Oil Corporation (NYSE:MRO) (Houston) and Gulfport Energy Corporation (NASDAQ:GPOR) (Oklahoma City), according Cheniere. Specific points of delivery will include Bennington, Oklahoma; the TexOk hub near Atlanta, Texas; and the Perryville Hub near Tallulah, Louisiana.

The project also involves the construction of three compressor stations in Oklahoma: a $70 million station in Pauls Valley, a $60 million station in El Reno and a $60 million station in Durant. The Pauls Valley and El Reno stations each will feature a pair of 15,000-horsepower Mars turbine-driven compressor gas packages, while the Durant station will feature a pair of 21,000-horsepower Titan packages. For more information, see Industrial Info's project reports on the Pauls Valley, El Reno and Durant stations.

The open season is expected to commence at 9 a.m. CDT on Friday, March 17, and end at 3 p.m. CDT on Thursday, March 30, according Cheniere. Following the open season, Midship Pipeline Company plans to submit its official 7C application to the U.S. Federal Energy Regulatory Commission (FERC); it currently expects the pipeline to go into service in early 2019.

"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," said Jack Fusco, the president and chief executive officer of Cheniere, in the press release.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.