Midship Pipeline

From Global Energy Monitor
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Midship Pipeline, or Midcontinent Supply Header Interstate Pipeline is an operating natural gas pipeline.[1]

Location

The pipeline runs from Kingfisher County, Oklahoma, to Bennington, Oklahoma.[1]

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Project Details

  • Operator: Midship Pipeline Company, LLC[1]
  • Owner: Midship Pipeline Company, LLC[2]
  • Parent Company: Cheniere Energy, EIG Global Energy Partners[1][2]
  • Proposed capacity: 1,400 Million cubic feet per day[3]
  • Current Capacity: 1,100 Million cubic feet per day[3][4]
  • Length: 233 miles / 375 km[3]
  • Diameter: 36 inches[4]
  • Status: Operating[5]
  • Start Year: 2020[3]
  • Cost: US $1,486 million[3]
  • Financing: US$500 million equity investment by EIG Global Energy Partners[6]; US$680 million debt financing from Commonwealth Bank of Australia, Crédit Agricole, ING, Korea Development Bank, National Australia Bank, Société Générale, Sumitomo Mitsui Banking Corporation, Natixis and Bank of China[7]

Background

The pipeline carries natural gas from Oklahoma production basins to an LNG facility in Louisiana for export to Asia.[3][1]

The Midship Pipeline is operated by Midship Pipeline Company, LLC, a subsidiary of Cheniere Energy.[1] Midship Pipeline Company is a joint venture between Cheniere, a liquefied natural gas company, and EIG Global Energy Partners, a private equity firm.[8] [1]

in May 2017, Midship filed an application with the U.S. Federal Energy Regulatory Commission (FERC) for authorisation to construct and operate the pipeline. It received the approval in August 2018.[8] The pipeline began operations in April 2020.[5]

Environmental Impact

In May 2017 Cheniere filed its Application for a Certificate of Public Convenience and Necessity with the Federal Energy Regulatory Commission in Docket No. CP17-458-000.[9] FERC issued a Draft Environmental Impact Statement (DEIS) in February 2018. The DEIS found that the Midship Pipeline would contribute significantly to the emission of Greenhouse Gases (GHGs) and contribute to climate change:[9]

"The GHG emissions from the downstream end-use of the products transported by the MIDSHIP Project would increase the atmospheric concentration of GHGs, in combination with past and future emissions from all other sources, and contribute incrementally to climate change that produces the impacts previously described."

According to the United States' Energy Information Agency, the pipeline would bring natural gas from Oklahoma production basins to existing pipeline infrastructure. The FERC docket was amended on September 6, 2019 to reflect a decreased capacity from 1.4 billion cubic feet per day (Bcf/d) to 1.1 Bcf/d.[3]

Financing

In June 2017, the private equity firm EIG Global Energy Partners made a US$500 million equity investment in the Midship Pipeline project.[6] Construction of the project was also supported by US$680 million debt financing, closed in February 2019, from Commonwealth Bank of Australia, Crédit Agricole, ING, Korea Development Bank, National Australia Bank, Société Générale, Sumitomo Mitsui Banking Corporation, Natixis and Bank of China.[7]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Midship Pipeline Company, LLC, Cheniere, accessed February 2018
  2. 2.0 2.1 "Cheniere and EIG Complete Financing and Issue Full Notice to Proceed on Midship Pipeline Project". Business Wire. 01 March, 2019. Retrieved 31 August, 2023. {{cite web}}: Check date values in: |access-date= and |date= (help)CS1 maint: url-status (link)
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 Natural Gas Data, Pipeline Projects.XLS Energy Information Agency, accessed August 2023
  4. 4.0 4.1 "Midship Pipeline". Cheniere. Retrieved 2023-08-31.
  5. 5.0 5.1 In the first half of 2020, about 5 Bcf/d of natural gas pipeline capacity entered service, U.S. Energy Information Administration, Aug. 24, 2020
  6. 6.0 6.1 Sybil Layag, "Cheniere's Midship gas pipeline project secures up to $500M from EIG funds", S&P Global, Jun. 2, 2017
  7. 7.0 7.1 "Midship Pipeline (312.9KM) Additional Facility 2019", IJGlobal, accessed Sep. 18, 2020
  8. 8.0 8.1 "Midship Natural Gas Pipeline, Oklahoma, USA". Hydrocarbons Technology. Retrieved 31 August, 2023. {{cite web}}: Check date values in: |access-date= (help)CS1 maint: url-status (link)
  9. 9.0 9.1 DRAFT ENVIRONMENTAL IMPACT STATEMENT FOR Midship Pipeline Company, LLC – Midcontinent Supply Header Interstate Pipeline Project, FERC, February 2018.

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External resources

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