Cheniere Energy Requests Permission to Bring Billion Dollar Midship NatGas Pipeline in Oklahoma Into Service

Cheniere Energy Inc asked U.S. energy regulators on Friday for permission to start working on their $1.025 billion Midship natural gas pipeline in Oklahoma.

The company asked the FERC for authorization to start building the proposed 234-mile pipeline in three segments. The project is expected to be complete by early 2019, Cheniere said.

Midship is designed to deliver 1.44 billion cubic feet per day (bcfd) of gas from the Anadarko basin to existing pipelines near Bennington, Oklahoma to transport liquefied natural gas to Gulf Coast and Southeast markets.

Expectation of total U.S. LNG export capacity should rise to 8.3 bcfd by the end of 2019 and 9.6 bcfd by the end of 2020 from 3.8 bcfd now.

Most of the U.S. LNG export terminals are located or being built along the Gulf of Mexico in Louisiana and Texas

Source:
Reuters

U.S. Gasoline Increases to Highest Seen Since 2008 Following Alabama Pipeline Blast

According to Bloomberg data, gasoline prices in New York increased the most in almost eight years to 15 percent in intraday trading, and its premium to crude prices increased 60 percent after the gasoline pipeline explosion and fire in Shelby County, Alabama on Monday, which killed one person and injured several others.

For the second time in two months, Columbia Pipeline shut down its mainline that carries oil products from the U.S. refining center in Houston to the New York Harbor. The first shutdown occurred in September after a section of its Line 1 leaked hundreds of thousands of gallons of gasoline, causing a line shutdown for 12 days and cutting supplies to 50 million Americans in the Southeast.

The possible upcoming gasoline shortages prompted gasoline traders to act fast, booking more tankers for replacement fuel supplies from Europe.

The Southeast is incredibly dependent on pipeline supplies from Colonial Pipeline’s line as there are no refineries between Alabama and Pennsylvania that produce a substantial amount of transportation fuels.

Although precautionary actions are in place after the Monday pipeline blast in Alabama, officials say it is still too early to know just how much the blast will affect the gas supply in the Southeast and along the East Coast.

Source:
Bloomberg
ABC News