Midship Pipeline Co. LLC applied to build and operate a new natural gas pipeline in Oklahoma that would deliver 1,440 MMcf/d of new firm transportation capacity to growing Gulf Coast and Southeast markets.
Midship, indirectly owned by Cheniere Energy Inc., submitted an abbreviated application for a Natural Gas Act certificate on May 31, asking the Federal Energy Regulatory Commission to approve the Midcontinent Supply Header pipeline project by February 2018, which would allow the pipeline to enter service by April 2019.
The approximately 199.4-mile pipeline project would provide firm transportation capacity from the South Central Oklahoma Oil Province and the Sooner Trend Anadarko Basin Canadian and Kingfisher plays in the Anadarko Basin in Oklahoma to pipelines near Bennington, Okla. The 36-inch-diameter pipeline system would also include three compressor stations, two lateral pipelines and related facilities. The Chisholm lateral would include 20.3 miles of 30-inch-diameter pipeline and would be installed and operated in Kingfisher County, Okla. The Velma lateral would consist of 13.6 miles of 16-inch-diameter pipeline and would run through Stephens, Carter and Garvin counties in Oklahoma.
"The Midship project will provide a critical link between these production areas and growing demand centers, including liquefied natural gas ... export facilities on the Gulf Coast," the company said in the application.
The project is estimated to cost approximately $1.03 billion, the company said, "and responds to market demand for firm takeaway capacity, as evidenced by the significant long-term contractual commitments"
Those commitments include precedent agreements with shippers Devon Gas Services LP, Marathon Oil Co. and Gulfport Energy Corp., plus Corpus Christi Liquefaction LLC, a Cheniere affiliate. The three foundation shippers and Corpus Christi have contracted for a combined 825 MMcf/d of firm transportation for a minimum of 10 years each. (FERC docket CP17-458)