Cheniere's Midship pipeline seeks permission to be placed in service

Houston — Cheniere Energy's about 1.4 Bcf/d Midcontinent Supply Header Interstate Pipeline is seeking permission from US regulators to be placed into commercial service by April 17 to meet shipper needs.

The project, which began commissioning in February after facing weather and construction delays, is designed to move gas to Gulf Coast markets from Oklahoma's Anadarko Basin. Cheniere operates LNG export terminals in Louisiana and Texas.

Pipeline construction is complete and restoration of areas affected by the project is proceeding, Midship said in a letter to the Federal Energy Regulatory Commission Tuesday. About 925 MMcf/d of the pipeline's capacity has been contracted for firm service, according to filings with FERC.

Midship will augment Cheniere's feedgas supplies at its LNG export terminals and provide another outlet for producers in the prolific SCOOP and STACK plays to reach downstream markets. The Houston-based company operates five trains at Sabine Pass and is building a sixth, while it operates two trains at Corpus Christi Liquefaction and is building a third. It has also proposed a midscale liquefaction expansion at the Texas site.

The pipeline has precedent agreements with Devon Energy, Marathon Oil, Gulfport Energy, and Cheniere's Corpus Christi export facility.

The pipeline runs from the Anadarko Basin in Oklahoma to interstate pipeline connections near Bennington, assisting gas flows to Gulf Coast and Southeast markets.

Last summer, Midship's construction experienced weather and other unexpected complications, delaying its interim startup by six months and inflating construction costs. Among other things, heavy rains along portions of the pipeline's route caused problems related to erosion control, topsoil loss, dewatering, and stabilization.