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Cheniere Energy (LNG) Attains Midship Project Milestone
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Cheniere Energy, Inc. (LNG - Free Report) has attained major regulatory and financial milestones with respect to the development of its earlier announced interstate natural gas pipeline operation -- 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") relating to the Midship Project. Midship expects to receive FERC authorization by early 2018 and the project is scheduled to come online in late 2018 or early 2019.
Apart from filing the FERC application, Midship Holdings, LLC ("Midship Holdings") has entered into agreements with investment funds managed by EIG Global Energy Partners ("EIG"). According to the agreement, EIG-managed funds have committed to make an investment of about $500 million (the "EIG Investment") in the Midship Project which is subject to the terms and conditions enclosed in the applicable agreements.
Subject to Midship Holdings making a positive final investment decision related with the Midship Project, the EIG Investment along with the equity contributed by Cheniere will ascertain that the project has the requisite funds for the development and construction of its design..Credit Suisse acted as exclusive financial advisor to Cheniere on the EIG Investment.
The Midship Project is being developed to build pipeline capacity of about 1,440,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to emerging Gulf Coast and Southeast markets. The project will consist of about 200 miles of 36 inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will deliver receipts from STACK and SCOOP processing plants. It will supply deliveries to Bennington, Oklahoma and have access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana.
As revealed earlier, Midship has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation (DVN - Free Report) , Marathon Oil Corporation (MRO - Free Report) and Gulfport Energy Corporation (GPOR - Free Report) to sustain initial construction of about 1,000,000 Dekatherms per day of capacity.
Midship Holdings will need suitable financing arrangements, which may comprise project financings and offerings by the company or its subsidiaries to clear debt or equity and facilitate regulatory and other approvals before the proposed project starts construction.
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Cheniere Energy (LNG) Attains Midship Project Milestone
Cheniere Energy, Inc. (LNG - Free Report) has attained major regulatory and financial milestones with respect to the development of its earlier announced interstate natural gas pipeline operation -- 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") relating to the Midship Project. Midship expects to receive FERC authorization by early 2018 and the project is scheduled to come online in late 2018 or early 2019.
Apart from filing the FERC application, Midship Holdings, LLC ("Midship Holdings") has entered into agreements with investment funds managed by EIG Global Energy Partners ("EIG"). According to the agreement, EIG-managed funds have committed to make an investment of about $500 million (the "EIG Investment") in the Midship Project which is subject to the terms and conditions enclosed in the applicable agreements.
Subject to Midship Holdings making a positive final investment decision related with the Midship Project, the EIG Investment along with the equity contributed by Cheniere will ascertain that the project has the requisite funds for the development and construction of its design..Credit Suisse acted as exclusive financial advisor to Cheniere on the EIG Investment.
The Midship Project is being developed to build pipeline capacity of about 1,440,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to emerging Gulf Coast and Southeast markets. The project will consist of about 200 miles of 36 inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will deliver receipts from STACK and SCOOP processing plants. It will supply deliveries to Bennington, Oklahoma and have access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana.
As revealed earlier, Midship has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation (DVN - Free Report) , Marathon Oil Corporation (MRO - Free Report) and Gulfport Energy Corporation (GPOR - Free Report) to sustain initial construction of about 1,000,000 Dekatherms per day of capacity.
Midship Holdings will need suitable financing arrangements, which may comprise project financings and offerings by the company or its subsidiaries to clear debt or equity and facilitate regulatory and other approvals before the proposed project starts construction.
Investor confidence on the Cheniere Energy stock is reflected in its price chart. Shares of the company have gained 4.7% in the last three months, while the Oil & Gas – U.S. Exploration & Production industry saw a decline of 16.9%.
Cheniere Energy currently has a Zacks Rank #3 (Hold). You can see can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>