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Cheniere's $1B Midship gas pipeline receives FERC approval


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Cheniere's $1B Midship gas pipeline receives FERC approval

The Federal Energy Regulatory Commission issued a Natural Gas Act certificate to Cheniere Energy Inc.'s Midship Pipeline Co. LLC to build a 200-mile natural gas mainline from the Anadarko Basin in Oklahoma to interstate pipeline connections that would move the gas to Gulf Coast and Southeast markets.

FERC approved the pipeline project in an Aug. 13 order. Commissioner Richard Glick dissented, disagreeing with the commission's determination that the project is in the public interest and will not have a significant effect on the climate and environment. Glick said the commission's public-need finding depended on commercial agreements that add up to only 64% of the pipeline's proposed transportation capacity of almost 1.5 billion standard cubic feet of gas per day.

Midship Pipeline applied for the project in May 2017. The company said the pipeline would create a "critical link" between Oklahoma production areas and export facilities on the Gulf Coast. Cheniere is the developer of the Sabine Pass and Corpus Christi LNG export projects in Louisiana and Texas.

Project shippers Marathon Oil Co. and Gulfport Energy Corp. asked FERC in July to move quickly to authorize the project.

The project includes 200 miles of 36-inch mainline in Oklahoma with three compressor stations and metering and regulation stations as well as over 34 miles of lateral pipeline and related facilities. Midship estimated the total cost of the project at just over $1 billion. (FERC docket CP17-458)