June 21, 2018 / 3:30 PM / a month ago

Cheniere Oklahoma Midship natgas pipe gets positive environmental report

(Reuters) - Cheniere Energy Inc’s proposed $1.025 billion Midship natural gas pipeline in Oklahoma got a positive environmental report from staff at the U.S. Federal Energy Regulatory Commission (FERC) on Thursday.

Cheniere wants to construct and operate about 234 miles (377 km) of new pipeline, three compressor stations, a booster station and other facilities in Oklahoma.

Cheniere said it was reviewing the FERC report and was still targeting completion of the project in early 2019.

The Midship project is designed to deliver 1.44 billion cubic feet per day (bcfd) of gas from the STACK and SCOOP plays in the Anadarko basin in Oklahoma to existing pipelines near Bennington, Oklahoma, for transport to Gulf Coast and southeast markets where demand for the fuel for domestic consumption and liquefied natural gas (LNG) export is growing.

One billion cubic feet of gas is enough to fuel about five million U.S. homes for a day.

Total U.S. LNG export capacity is expected to rise to 3.9 bcfd by the end of 2018, 8.7 bcfd by the end of 2019 and 10.1 bcfd by the end of 2020 from 3.8 bcfd now, which should make the country the third-biggest LNG exporter by capacity in 2019.

Most of the U.S. LNG export terminals, including Cheniere’s Sabine Pass in Louisiana, are located or being built along the Gulf of Mexico in Louisiana and Texas.

The FERC staff said approval of the project would result in “some adverse environmental impacts.” They added, however, that “these impacts would be reduced to less-than-significant levels” with the implementation of the steps recommended by the company and the FERC staff report.

Reporting by Scott DiSavino; Editing by Tom Brown

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