Financing was secured to build a natural gas pipeline from Midcontinent plays, and two other pipes launched and extended open seasons in announcements made around March 1.

Cheniere Energy Inc. (NYSE American: LNG) and funds and accounts managed by EIG Global Energy Partners announced March 1 that Midship Pipeline Co. LLC has issued Notice to Proceed to Strike LLC, M.G. Dyess Inc., TRC Pipeline Services LLC, and Cenergy LLC to construct the Midship natural gas pipeline and related compression and interconnect facilities (the Midship Project). The Midship Project received final Notice to Proceed from the Federal Energy Regulatory Commission (FERC) in February and is expected to be placed in service by the end of 2019. Midship Pipeline is indirectly and jointly owned by Cheniere and EIG.

The Midship Project is being developed to create pipeline capacity of up to 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 growing Gulf Coast and Southeast markets.

The project is expected to consist of approximately 200 miles of 36-inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from Stack and Scoop processing plants and provide deliveries to Bennington, Okla., as well as access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, La. Midship Pipeline has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corp., Marathon Oil Corp., and Gulfport Energy Corp.

To complete financing of the Midship Project, Midship Pipeline entered into senior secured credit facilities with total commitments of up to approximately $680 million. The credit facilities consist of an approximate $615 million construction loan facility and a $65 million revolving credit facility. Proceeds from these credit facilities will be used to fund a portion of the costs of developing, constructing and placing into service the Midship Project, to fund working capital requirements, and for related general corporate purposes.

Grand Prix Pipeline LLC, a wholly owned subsidiary of Targa Resources Corp. (NYSE: TRGP), has launched an open season commencing March 1 and closing March 29 to gauge shipper interest in firm interstate transportation service for NGL from Lea County, N.M. to an interconnect point near the High Plains natural gas processing facility in Midland County, Texas.

This open season will provide an opportunity for shippers to secure firm capacity for NGL transportation for the term of their transportation service agreements. The final volume of capacity for both committed and uncommitted service on the project, as well as final origin points for service, will be determined by Targa in part based on the results of this open season.

It is recommended that interested potential shippers submit signed NDAs on or before 5 p.m. Central Standard Time, March 8, 2019, to give those shippers adequate time to evaluate the open season documents. Please visit Targa’s online Tariff Directory to view the Open Season Notice and download a copy of the NDA. Inquiries about the Open Season or this notice should be directed to:

Elizabeth B. Hawkins
VP & Assistant General Counsel
Targa NGL Pipeline Company LLC
811 Louisiana Street, Suite 2100
Houston, TX 77002-1400
EHawkins@targaresources.com

Jupiter Energy Group , a privately held midstream company that provides crude oil producers and gas plants with logistics and offtake solutions, announced a 90-day extension of the open season that commenced on Nov. 30 for binding shipper commitments on the Jupiter Pipeline, which is expected to be operational in fourth-quarter 2020. The open season will now conclude on May 31.

The Jupiter Pipeline will be a 650-mile, 36-inch-diameter crude oil pipeline with origination points near Crane, Texas and Gardendale / Three Rivers, Texas, and an offtake point in Brownsville, Texas. As designed, it will be the only pipeline out of the Permian Basin that will access all three deep water ports in Texas (Houston, Corpus Christi and Brownsville) and will have direct access to a fully capable VLCC loading facility off coast at Brownsville.

“We’re very pleased with the results of the initial open season period for the Jupiter Pipeline. The supplemental period validates our belief that the interest for transportation commitments on the pipeline is as substantial as expected," said Albert Johnson, President of Jupiter Pipeline LLC.

Additional information regarding the Jupiter Pipeline and the open season can be found at https://www.jupiterpipeline.com.

Onshore