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Cheniere achieves milestones for Midship pipeline project

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World Pipelines,

Cheniere Energy, Inc. (Cheniere) announced that it has achieved important regulatory and financial milestones related to the development of its previously announced 200 mile, 36 in. interstate natural gas pipeline project; the Midship project).

Midship Pipeline Company, LLC (Midship) has filed an application for a Certificate of Public Convenience and Necessity with the Federal Energy Regulatory Commission (FERC) with respect to the Midship project. Midship currently targets receipt of FERC authorisation in early 2018 and in-service of the Midship project in late 2018 or early 2019.

"The filing of the FERC application is an important development for the Midship project as we continue to progress the project forward. Midship is being developed to provide a solution to producers in the Anadarko Basin that will ensure their product can reach growing demand markets along the Gulf Coast, including LNG exports," said Jack A. Fusco, Cheniere's President and Chief Executive Officer. "The Midship project demonstrates the capability and breadth of the Cheniere platform as we continue to execute on our project development plans."

In addition to filing the FERC application, Midship Holdings, LLC (Midship Holdings) has entered into agreements with investment funds managed by EIG Global Energy Partners (EIG) under which EIG-managed funds have committed to make an investment of up to US$500 million (the EIG Investment) in the Midship project, subject to the terms and conditions contained in the applicable agreements. Subject to Midship Holdings making a positive Final Investment Decision with respect to the Midship project, the EIG Investment, and equity contributed by Cheniere, is intended to ensure that the project has the equity funding expected to be required to develop and construct up to the full project design of 1 440 000 Dth/d of throughput capacity. Credit Suisse acted as exclusive financial advisor to Cheniere on the EIG Investment.

"We are pleased to once again work with Cheniere on this important American energy infrastructure project," said Wallace Henderson, Managing Director of EIG. "EIG has previously worked with Cheniere on the Corpus Christi Liquefaction terminal, and is now excited to extend that successful relationship further along the LNG and midstream value chain."

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. di. 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. As previously disclosed, Midship has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation, Marathon Oil Corporation, and Gulfport Energy Corporation to support initial construction of approximately 1 000 000 Dth/d of capacity.

Midship Holdings would require acceptable financing arrangements, which may include project financings and offerings by it or its subsidiaries of debt or equity, and regulatory and other approvals before the proposed project begins construction.

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