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(Reuters)
Oklahoma could have a direct role in the historic trade agreement reached by President Trump with European Commission President Ursula von der Leyen, one that gives the EU a $750 billion energy commitment with the U.S.
Few details of the energy impact are available but this much is known. As a result of the deal, Cheniere Energy and its LNG product will be big winners. So will NextEra Energy.
Cheniere runs the largest LNG export terminals in the country and some of that gas used in the manufacture of the liquid natural gas comes from the STACK and SCOOP plays in Oklahoma. It ships the natural gas from the gas-rich Anadareko Basin to existing lines connecting the Gulf Coast and southeast U.S. markets.
The Midship line, consisting of 36-inch pipe and built in 2018, was bilt by the Midcontinent Suupply Header Interstate Pipeline company, a subsidiary of Cheniere Energy. Built at a cost of $1 billion, the line can deliver up to 1.4 billion cubic feet of natural gas a day and begins near Kingfisher and ends near Bennington in southern Oklahoma.
The massive EU deal will not only be good for Cheniere Energy but to Howard Energy Partners, a San Antonio-based company that in February acquired equity interests in the 200-mile FERC-regulated pipeline. With the acquisition, HEP assumed operatorship of the line.
At the time of the deal, Howard Energy Partners’ Chairman and CEO Mike Howard commented.
“We are excited about acquiring an interest in Midship, further expanding our footprint in the SCOOP/STACK plays in the Anadarko Basin,”he said. “We have operated natural gas gathering pipelines in Oklahoma for years and this acquisition is consistent with our strategy of scaling and integrating assets in basins that support long term natural gas demand.”
Another U.S. based company that will benefit from the European Commission deal, in which the EU will pay 15% tariffs and not the 30% as threatened by President Trump, is NextEra. This is the same company that’s made news in recent months in Oklahoma in its attempts to locate a 5,000-acre solar farm near Porter in Wagoner County.
The county denied a permit for the project and NextEra, known for its wind farm operations throughout the state, has challenged the decision in Wagoner County District Court.
NextEra could benefit from Europe’s deep commitment to renewable energy. While the deal was announced, Europe has also been making stronger partnerships in Africa and the Middle East. European firms such as TotalEnergies and Siemens Energy are making the most of those growing deals.
Both also have extensive operations in the U.S. Siemens is known for its wind turbines used in the construction of wind farms in the state and elsewhere.
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