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Cheniere Commits to Midship Pipeline, Offering Additional Capacity

Cheniere Energy Inc.’s Midship Pipeline Co. LLC has secured customer precedent agreements to support its 200-mile, 36-inch diameter interstate pipeline project and has launched a binding open season.

Midship would create up to 1.4 million Dth/d of firm capacity to connect production from the STACK (Sooner Trend of the Anadarko Basin in Canadian and Kingfisher counties) and SCOOP (South Central Oklahoma Oil Province) plays in the Anadarko Basin in Oklahoma with Gulf Coast and Southeast markets.

Besides the 200-mile mainline, the project would include several laterals, compressor stations and interconnects to allow for STACK and SCOOP processing plant receipts. Facilities would allow for deliveries to Bennington, OK, the TexOk hub near Atlanta, TX, as well as the Perryville Hub near Tallulah, LA.

Commitments to the project have been secured from affiliates of Cheniere, Devon Energy Corp., Marathon Oil Corp., and Gulfport Energy Corp.

"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 [liquefied natural gas] platform along the entire value chain," said Cheniere CEO Jack Fusco.

The open season runs through 3:00 p.m. CDT March 30. Midship plans to submit its 7C application to FERC after the open season.

Plans are for the project to be in service during early 2019.

The Federal Energy Regulatory Commission began the prefiling process for the project last November [PF17-3]. Midship would have two zones. Zone 1 would involve 200 miles of new pipeline from the Okarche Processing Plant in Okarche, OK, to Bennington. Zone 2 would involve leasing 353 miles of existing pipeline from Midcontinent Express Pipeline LLC and/or Gulf Crossing Pipeline Co. LLC, Cheniere said. The leased capacity would run from Bennington to Tallulah.

At the recent CERAWeek by IHS Markit conference in Houston, Cheniere touted itself as the largest physical natural gas buyer in the country. Executives said the company has a substantial and diverse pipeline capacity portfolio.

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