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Cheniere seeks regulator approval for Midship pipeline

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World Pipelines,

Reuters has reported that US liquefied natural gas company Cheniere Energy Inc, has asked US energy regulators for permission to start work on the company’s US$1.025 billion Midship natural gas pipeline in Oklahoma.

Cheniere asked the US Federal Energy Regulatory Commission (FERC) for authorisation to start building the proposed 234 mile (377 km) pipeline in three segments.

Cheniere said it expects to complete the project in early 2019.

In July, two US production companies, Gulfport Energy Corp and Marathon Oil Corp, asked FERC to approve Midship because current gas infrastructure cannot accommodate anticipated demand from the South-Central Oklahoma Oil Province (SCOOP) and the Sooner Trend Anadarko Basin Canadian and Kingfisher (STACK) plays in Oklahoma.

Midship is designed to deliver 1.44 billion ft3/d of gas from the Anadarko basin to existing pipelines near Bennington, Oklahoma, for transport to Gulf Coast and Southeast markets where demand for the fuel for domestic consumption and liquefied natural gas (LNG) export is growing.

Total US LNG export capacity is expected to rise to 8.3 billion ft3/d by the end of 2019 and 9.6 billion ft3/d by the end of 2020, from 3.8 billion ft3/d now. This should make the country the third-biggest LNG exporter by capacity in 2019.

Most of the US LNG export terminals, including Cheniere’s Sabine Pass in Louisiana, are located or being built along the Gulf of Mexico in Louisiana and Texas.

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