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Producers urge US regulators to approve Cheniere Oklahoma pipeline

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Reuters are reporting that at least two exploration and production companies have urged US federal energy regulators to expedite approval of Cheniere Energy Inc’s proposed US$1.025 billion Midship natural gas pipeline in Oklahoma.

Gulfport Energy Corp and Marathon Oil Corp both told the US Federal Energy Regulatory Commission (FERC) that Midship is needed because current gas pipeline infrastructure cannot accommodate anticipated demand from the South-Central Oklahoma Oil Province (SCOOP) and the Sooner Trend Anadarko Basin Canadian and Kingfisher (STACK) plays in the Anadarko basin in Oklahoma.

“Delays in the project’s timely commencement of construction would create a detrimental delay in the ability of large quantities of stranded gas to reach the market, adversely impacting producers, shippers and consumers,” Gulfport said in a filing with FERC.

Cheniere wants to construct and operate about 377 km of new pipeline, three compressor stations, a booster station and other facilities in Oklahoma.

Cheniere has said it was targeting completion of the project in early 2019.

The Midship project is designed to deliver 1.44 billion ft3 per day of gas from the STACK and SCOOP plays to existing pipelines near Bennington, Oklahoma, for transport to Gulf Coast and southeast markets where demand for the fuel for domestic consumption and LNG export is growing.

1 billion ft3 of gas is enough to fuel about five million US homes for a day.

Total US LNG export capacity is expected to jump to 8.8 billion ft3 per day in 2019, 10.1 billion ft3 per day in 2020 and 10.8 billion ft3 per day in 2021 from 3.8 billion ft3 per day in 2018, which should make the country the third-biggest LNG exporter by capacity in 2019.

Most of the US LNG export terminals, including Cheniere’s Sabine Pass in Louisiana, are located or being built along the Gulf of Mexico in Louisiana and Texas.

Cheniere filed an application to build Midship in May 2017.

Read the article online at: https://www.lngindustry.com/liquefaction/31072018/producers-urge-us-regulators-to-approve-cheniere-oklahoma-pipeline/

 

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