The East Texas operating subsidiary of Midcoast Energy LLC, an affiliate of ArcLight Capital Partners LLC, has put its 150-mile, 36-in. OD CJ Express pipeline expansion project in east Texas into service and executed a firm transportation agreement and natural gas purchase and sales agreement with Golden Pass LNG Terminal LLC (Qatar Petroleum 70%, ExxonMobil 30%).
Midcoast in February 2020 entered into definitive, long-term anchor shipper agreements in support of CJ Express, which adds compression and pipeline to Midcoast's existing East Texas pipeline system (OGJ Online, Feb. 26, 2020). The expansion will increase gathering capabilities in the Shelby trough area of the Haynesville shale and increase Midcoast's Clarity pipeline capacity to Gulf Coast demand centers to about 1 bcfd.
The new commercial agreements with Golden Pass LNG will become effective after completion of an extension of the Midcoast Clarity pipeline in the Beaumont area to a new interconnect with Golden Pass Pipeline LLC. The construction of new facilities and effective date of long-term commitments will align with Golden Pass LNG's feedgas needs, Midcoast said.