Southern Star Central Corp. and NextEra US Gas Assets LLC said they have begun a binding open season for the Sooner Trails Pipeline project. If approved, the pipeline is expected to connect new receipt points in Oklahoma to interstate pipeline markets for natural gas in Oklahoma and Texas.
The companies also signed a letter of intent for a joint venture that will build and own the pipeline. Under the letter of intent, each company would own 50 percent of the proposed joint venture. An affiliate of NextEra Energy would build the pipeline, and Southern Star would operate it through an affiliate or affiliates.
The 250-mile pipeline will run through Kingfisher, Canadian, Grady, Stephens, Garvin, Carter and Bryan counties in Oklahoma, and go to markets in Bryan County and also in Lamar County in Texas. The primary delivery point is in Lamar County at the Lamar Hub.
Up to 1.2 million dekatherms per day of natural gas will be available from the Sooner Pipeline, which is subject to approval from the Federal Energy Regulatory Commission. The pre-FERC filing process has begun, the companies said.
Jerry Morris, president and CEO of Southern Star, siad “The Sooner Trails Pipeline project will help alleviate constraints associated with the rapid development of natural gas from the Scoop and Stack production plays and offer supply diversity to meet growing demand for clean, efficient natural gas in the region”.
Parties interested in firm transportation capacity on the Sooner Trails Pipeline can submit binding bids before 4:00 PM CCT on September 18, 2015.
Bids received during the open season will help Southern Star and NextEra Energy determine whether to pursue the proposed project and define the final parameters of the project. If it is decided to move forward after evaluating the binding bids, and subject to FERC approval, Southern Star and NextEra Energy anticipate service provided through the proposed pipeline in early 2018.
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