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Cheniere launches open season on pipeline

17 Mar 2017, 7.22 pm GMT

Cheniere launches open season on pipeline

Houston, 17 March (Argus) — US LNG producer Cheniere Energy has launched an open season for a pipeline that would move natural gas from Oklahoma to growing Gulf coast and southeast markets.

The company has secured commitments on the planned 200-mile (322km) pipeline known as Midship from US independent producers Devon Energy, Gulfport Energy and Marathon Oil. It is seeking additional commitments through a binding open season to create a 1.35 Bcf/d (38mn m³/d) line.

The open season for Midship began today and runs through 30 March. Cheniere is aiming to bring the project on line in early 2019.

The Midship line will carry gas from producers in the Stack and Scoop, two rapidly developing oil and gas fields in Oklahoma's Anadarko basin, and deliver into Bennington, Oklahoma, the TexOk hub in east Texas and the Perryville hub in Louisiana.

The pipeline will "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," Cheniere chief executive Jack Fusco said.

Cheniere operates the Sabine Pass export terminal on the Louisiana coast. Demand for gas there continues to grow as the terminal expands. Intake at Sabine Pass hit an all-time high this week of about 2.3 Bcf/d, up from an average of about 1.7 Bcf/d in January, according to pipeline flow data.

Cheniere filed a request this week with the US Federal Energy Regulatory Commission to begin commissioning its fourth liquefaction train at the export terminal. That train is scheduled to come online in August. The third train produced its first cargo in January.

The company plans to have five trains at the terminal, each with a peak liquefaction capacity of 5mn t/yr, or about 670mn cf/d.

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