Southern Star and NextEra Energy announce binding open season for Sooner Trails Pipeline
August 20, 2015
OWENSBORO, KY and JUNO BEACH, FL – Southern Star Central Corp. and NextEra US Gas Assets, LLC, an indirect, wholly owned subsidiary of NextEra Energy, Inc. (NYSE: NEE) today announced the commencement of a binding open season for the Sooner Trails Pipeline project, which is expected to connect new receipt points in Kingfisher, Canadian, Grady, Stephens, Garvin, Carter, and Bryan Counties in Oklahoma to interstate and intrastate pipeline markets in Bryan County, Oklahoma and Lamar County, Texas. The companies also announced the signing of a letter of intent that outlines the potential terms of a joint venture that is expected to construct and own the Sooner Trails Pipeline. Under the letter of intent, each company would own 50 percent of the proposed joint venture. An affiliate of NextEra Energy would construct the project and Southern Star, through one or more of its affiliates, would operate the pipeline.
Subject to Federal Energy Regulatory Commission (FERC) approval, the approximately 250 mile Sooner Trails Pipeline project will extend from Kingfisher County, Oklahoma and travel southeast to its primary delivery point in Lamar County, Texas with the development of the Lamar Hub. The Sooner Trails Pipeline is expected to provide up to 1.2 million dekatherms per day (Dth/d) and offer timely, cost-effective access to natural gas for expanding local distribution companies, industrial users, natural gas fired generation, and other regional demands. The Sooner Trails Pipeline will be developed under FERC jurisdiction. Sooner Trails has filed to begin the FERC pre-filing process in order to develop the project in a timely manner.
“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 chief executive officer of Southern Star Central Corp. “This is another exciting opportunity to invest in a high-quality natural gas pipeline that we expect to be fully contracted,” said TJ Tuscai, chief executive officer of NextEra US Gas Assets. “We expect the new Sooner Trails Pipeline route to support the physical takeaway capability and production growth in the SCOOP and STACK plays and provide new markets for shippers and producers across the region.”
Southern Star invites parties interested in firm transportation capacity on the Sooner Trails Pipeline to submit binding bids between 9:00 AM Central Clock Time (CCT) on August 20, 2015 and 4:00 PM CCT on September 18, 2015.
The binding bid(s) received during this open season will assist Southern Star and NextEra Energy in determining whether to pursue the proposed project and defining the final parameters of such project. If it is decided to move forward after evaluating the binding bids, Southern Star and NextEra Energy will, subject to FERC approval, install the necessary facilities to serve all or a portion of the requested capacity. If a binding open season is successful, Southern Star and NextEra Energy anticipate service provided through the proposed pipeline in early 2018.
Additional information regarding the project may be obtained by contacting Philip Rullman at (270) 852-4440 or Jim Neukam at (270) 852-4665. Interested parties may access Open Season information at: www.soonertrailspipeline.com under the “Open Season” tab.
About Southern Star Central Corp.
Southern Star is a leading transporter of natural gas to America’s heartland, with approximately 5,825 miles of interstate natural gas transmission pipeline in the Midwest and Mid-Continent regions of the United States. Our pipeline system, facilities and almost 500 employees are located in Oklahoma, Texas, Missouri, Kansas, Wyoming, Colorado and Nebraska, with our headquarters in Owensboro, Kentucky. It serves metropolitan areas in Missouri (Kansas City, St. Louis, Springfield, St. Joseph and Joplin), Kansas (Wichita, Kansas City, Topeka and Lawrence) and Oklahoma (Oklahoma City). Southern Star has a significant presence in Oklahoma, and has been a corporate citizen of this state for over 100 years. Our Vision is to “Be the Best Pipeline in North America.” Our employees are passionate about safety, being good and responsible neighbors and citizens, continuous learning and growth, and providing exceptional customer service. Southern Star has been recognized as an industry leader in terms of pipeline safety and customer service, routinely ranking in the Top 3 in its peer group by the Mastio and Company Natural Gas Transportation Studies. Southern Star is a locally managed private company. For more information, please visit Southern Star’s website: www.southernstarcentralcorp.com.