Southern Star Central Corp. and NextEra US Gas Assets LLC began a binding open season for the Sooner Trails Pipeline project, the companies said Aug. 20. The pipeline will 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. Each would own half of the project. 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, Okla., and go to markets in Bryan County and also in Lamar County, 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. The pipeline is subject to approval from the Federal Energy Regulatory Commission. The pre-FERC filing process has begun, the companies said.
"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," said Jerry Morris, president and CEO of Southern Star.
Parties interested in firm transportation agreements can submit bids from Aug. 20 to September 18.
The bids will help the companies determine whether to pursue the project and define its final parameters. The pipeline could be in service in early 2018.
Southern Star Central Corp. is based in Owensboro, Ky.
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