The East Texas operating subsidiary of Midcoast Energy LLC, a portfolio company of ArcLight Capital Partners, said Feb. 25 it has made a positive final investment decision and entered into definitive, long-term anchor shipper agreements in support of its CJ Express Expansion Project.
CJ Express will add compression and pipeline facilities at multiple locations on Midcoast’s existing East Texas pipeline system. The expansion activities will increase gathering capabilities in the high-growth Shelby Trough area of the Haynesville Shale and increase Midcoast’s Clarity pipeline transmission capacity to Gulf Coast demand centers to approximately 1 billion cubic feet per day (Bcf/d).
Midcoast expects CJ Express to be completed in early 2021.
A large part of the oil and gas industry will go into a “financial intensive care unit” over the next few months as shale producers enter survival mode, an expert says.
Research firm Rystad Energy also predicts the impact of the coronavirus outbreak on global oil markets to worsen as world economies continue to lockdown.
Several industry experts agree that the Russian move was directly targeted at the U.S. shale oil industry, which will bear the brunt of the price war.