Cheniere and EIG Complete Financing and Issue Full Notice to Proceed on Midship Pipeline Project
March 01 2019 - 8:30AM
Business Wire
Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) and
funds and accounts managed by EIG Global Energy Partners (“EIG”)
announced today that Midship Pipeline Company, LLC (“Midship
Pipeline”) 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 in February 2019 and is expected to be placed
in service by the end of 2019. Midship Pipeline is indirectly and
jointly owned by Cheniere and EIG.
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.
Midship Project
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 Midship 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, Oklahoma,
as well as access to downstream markets including the TexOk hub
near Atlanta, Texas, and the Perryville Hub near Tallulah,
Louisiana. Midship Pipeline has secured commitments from
subsidiaries and/or affiliates of Cheniere, Devon Energy
Corporation, Marathon Oil Corporation, and Gulfport Energy
Corporation.
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of
liquefied natural gas (LNG) in the United States, reliably
providing a clean, secure, and affordable solution to the growing
global need for natural gas. Cheniere is a full-service LNG
provider, with capabilities that include gas procurement and
transportation, liquefaction, vessel chartering, and LNG delivery.
Cheniere has one of the largest liquefaction platforms in the
world, consisting of the Sabine Pass and Corpus Christi
liquefaction facilities on the U.S. Gulf Coast, with expected
aggregate nominal production capacity of 36 million tonnes per
annum of LNG operating or under construction. Cheniere is also
pursuing liquefaction expansion opportunities and other projects
along the LNG value chain. Cheniere is headquartered in Houston,
Texas, and has additional offices in London, Singapore, Beijing,
Tokyo, and Washington, D.C.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Annual Report on Form 10-K for the fiscal
year ended December 31, 2018, filed with the Securities and
Exchange Commission.
About EIG Global Energy Partners
EIG Global Energy Partners (“EIG”) specializes in private
investments in energy and energy-related infrastructure on a global
basis and has $22.4 billion under management as of September 30,
2018. Since 1982, EIG has been one of the leading providers of
institutional capital to the global energy industry, providing
financing solutions across the balance sheet for companies and
projects in the oil and gas, midstream, infrastructure, power and
renewables sectors globally. EIG has committed over $29.1 billion
to 341 portfolio investments in 36 countries. EIG is headquartered
in Washington, D.C., with offices in Houston, London, Sydney, Rio
de Janeiro, Hong Kong and Seoul. Visit www.eigpartners.com to learn
more.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements” within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical or present facts or conditions, included herein are
“forward-looking statements.” Included among “forward-looking
statements” are, among other things, (i) statements regarding
Cheniere’s business strategy, plans and objectives, including the
development, construction and operation of the Midship Project,
(ii) statements regarding expectations regarding regulatory
authorizations and approvals, (iii) statements regarding the
business operations and prospects of third parties, (iv) statements
regarding potential financing arrangements and (v) statements
regarding future discussions and entry into contracts. Although
Cheniere believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. Cheniere’s actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in Cheniere’s periodic reports that are filed with and
available from the Securities and Exchange Commission. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Other than as
required under the securities laws, Cheniere does not assume a duty
to update these forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20190301005082/en/
Cheniere Energy, Inc.InvestorsRandy Bhatia,
713-375-5479Megan Light, 713-375-5492orMedia RelationsEben
Burnham-Snyder, 713-375-5764
EIG Global Energy PartnersSard Verbinnen & Co.Robert
Rendine / Brandon Messina, 212-687-8080
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