Midship has launched a binding open season to solicit additional long-term commitments from shippers. Cheniere claims that the transactions contemplated by the precedent agreements are subject to the satisfaction of a number of conditions.
The project is being developed in order to create pipeline capacity of up to 1.4 million dekatherms per day of firm transportation to connect production from the STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma, US, to Gulf Coast and Southeast markets. In addition to the main pipeline, the project will involve several laterals, compressor stations and interconnects that 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.
In the statement, Cheniere claims that Midship has already secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corp., Marathon Oil Corp. and Gulfport Energy Corp.
The President and CEO of Cheniere, Jack Fusco, said: “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.
"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."
In the statement, Cheniere claims that the open season is expected to end at 3.00 p.m. CDT on 30 March 2017. Following this, Midship is planning to submit its official FERC 7C application, and is currently targeting in-service of the project in early 2019. Cheniere would need acceptable commercial and financial arrangements, which may include project financings and offerings by it or its subsidiaries of debt or equity, and regulatory and other approvals before construction can start on the proposed project.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20032017/cheniere-subsidiary-signs-agreements-to-support-interstate-gas-pipeline/