Cheniere Energy and a Washington D.C. private equity firm have received approval from the Federal Energy Regulatory Commission on Wednesday to build the 200-mile Midship Pipeline. The project will move natural gas from Oklahoma to destinations along the Gulf Coast and southeastern United States in Oklahoma.
In a statement issued by the companies, $680 million in financing was secured for the 36-inch diameter natural gas pipeline and a notice was issued for contractors Strike LLC, M.G. Dyess, TRC Pipeline Services and Cenergy LLC to proceed with construction.
The Midship Pipeline is designed to move 1.4 billion cubic feet of natural gas per day from Oklahoma's SCOOP and STACK shale plays to delivery point just north of the Red River near Bennington, Oklahoma. The project is expected to be placed in service by the end of the year.
The pipeline will connect to Kinder Morgan's Midcontinent Express Pipeline and the Boardwalk Pipeline Partners-owned Gulf Crossing Pipeline, allowing natural gas from Oklahoma to move to the TexOk Hub near Atlanta, Texas and the Perryville Hub near Tallulah, Louisiana.