Midcoast Energy today announced it put into service its CJ Express Expansion Project. Besides, the company said it also executed a firm transportation agreement and natural gas purchase and sales agreement with Golden Pass LNG Terminal, LLC.
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Midcoast Energy on completing its CJ Express Expansion Project and new shipper agreement
This Tuesday, East Texas operating subsidiary of Midcoast Energy and an affiliate of ArchLight Capital Partners, announced it put its CJ Express Expansion Project into service. Moreover, the company said it signed a natural gas purchase and sales agreement with Golden Pass LNG Terminal, LLC.
Midcoast Energy is a full-service natural gas and natural gas liquids (NGL) midstream business headquartered in Houston, Texas. Therefore, the company has gathering and processing platforms operating in the Anadarko and East Texas supply basins of North America. Besides, the firm engages in the transporting and marketing of natural gas and natural gas liquids through its Logistics and Marketing segment.
Affiliates of Qatar Petroleum and ExxonMobil own golden Pass LNG Terminal. Also, it is a $10 billion project to add liquefaction and export capabilities to an existing liquefied natural gas import terminal near Sabine Pass, Texas.
In this sense, its owners estimate its capacity will be around 16 million tons of LNG per year. Besides, the project will utilize existing tanks, berths, and pipeline infrastructure and add new facilities for natural gas pretreatment and liquefaction.
Potentialities of the projects
In fact, CJ Express added compression and pipeline facilities at multiple locations on Midcoast’s existing East Texas pipeline system. Accordingly, it increased Midcoast’s Clarity pipeline transmission capacity to Gulf Coast demand centers to approximately 1 Bcfd.
Besides, the completed expansion will increase gathering capabilities in the high-growth Shelby Trough area of the Haynesville Shale. Indeed, CJ Express was anchored by long-term transportation agreements with two creditworthy shippers.
On the other hand, the new commercial agreements with Golden Pass LNG will become effective after completing an extension. In fact, this is related to the Midcoast Clarity pipeline in the Beaumont area. Accordingly, this expansion will develop a new interconnect with Golden Pass Pipeline, LLC.
Therefore, new facilities and the effective date of long-term commitments will align with Golden Pass LNG’s feed-gas needs.