After getting approval last week from the Federal Energy Regulatory Commission to begin construction of a 200-mile natural gas pipeline in Oklahoma, Cheniere Energy, Inc. gave the go-ahead orders to construction companies.
Cheniere issued what is called a Notice to Proceed to four different companies including Strike, LLC, M.G. Dyess, Inc., TRC Pipeline Services, LLC and Cenergy, LLC. They are to start work on the Midship Pipeline that will carry natural gas from Kingfisher south to the state line where it will connect to other transmission facilities, carrying the gas to the gulf coast.
The FERC approval came last week (OKEnergyToday)giving the Houston company permission to start construction as soon as possible. The pipeline is expected to be in full operation by the end of the year. The line is jointly owned by Cheniere Energy and EIG Global Energy Partners.
To complete financing of the Midship Project, Midship Pipeline entered into senior secured credit facilities with total commitments of up to approximately $680 million. The credit facilities consist of an approximate $615 million construction loan facility and a $65 million revolving credit facility.
The Midship Project is being developed to create pipeline capacity of up to 1,440,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets.
The Midship Project is expected to consist of approximately 200 miles of 36 inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from STACK and SCOOP processing plants and provide deliveries to Bennington, Oklahoma, as well as access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana.
Midship Pipeline has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation, Marathon Oil Corporation, and Gulfport Energy Corporation.