Midship natural gas pipeline financing agreed
Published by Lydia Woellwarth,
Cheniere Energy, Inc. and funds and accounts managed by EIG Global Energy Partners have announced that Midship Pipeline Company, LLC has issued Notice to Proceed to Strike, LLC, M.G. Dyess, Inc., TRC Pipeline Services, LLC, and Cenergy, LLC to construct the Midship natural gas pipeline and related compression and interconnect facilities (the ‘Midship Project’). The Midship Project received final Notice to Proceed from the Federal Energy Regulatory Commission in February 2019 and is expected to be placed in service by the end of 2019. Midship Pipeline is indirectly and jointly owned by Cheniere and EIG.
To complete financing of the Midship Project, Midship Pipeline entered into senior secured credit facilities with total commitments of up to approximately US$680 million. The credit facilities consist of an approximate US$615 million construction loan facility and a US$65 million revolving credit facility. Proceeds from these credit facilities will be used to fund a portion of the costs of developing, constructing, and placing into service the Midship Project, to fund working capital requirements, and for related general corporate purposes.
The Midship Project is being developed to create pipeline capacity of up to 1 440 000 dth/d of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets. The Midship Project is expected to consist of approximately 200 miles of 36 in. diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from STACK and SCOOP processing plants and provide deliveries to Bennington, Oklahoma, as well as access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana. Midship Pipeline has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation, Marathon Oil Corporation, and Gulfport Energy Corporation.
Read the article online at: https://www.worldpipelines.com/project-news/04032019/midship-natural-gas-pipeline-financing-agreed/
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