Tennessee Gas Pipeline successfully closes open season for South System Flexibility Project

Kinder Morgan Energy Partners, L.P. (KMP) has announced that its Tennessee Gas Pipeline Company (TGP) successfully closed a binding open season for its South System Flexibility Project for 500 000 dkth/d of capacity. MexGas Supply, formerly known as MGI Supply, the natural gas supply arm of Petróleos Mexicanos, has been awarded 100% of the project capacity. Anticipated project capital is US$ 187 million, with service beginning as early as 1 January 2015.

“We are pleased to award MexGas the South System Flexibility Project capacity, which will provide more than 900 miles of north-to-south transportation capacity on the TGP system from Tennessee to Texas and expand Kinder Morgan’s transportation service to Mexico,” said East Region Natural Gas Pipeline President Kimberly S. Watson. “Mexico is increasing development of its energy infrastructure to meet the country’s rapidly growing demand, and this project builds upon our long-standing relationship with MexGas to provide additional natural gas transportation to complement Mexico’s development plans.”

In addition, TGP initiated a binding open season on 9 October for its proposed Lone Star expansion project, which includes an incremental 300 000 dkth/d of firm transportation from Tennessee to South Texas for future infrastructure projects. TGP has secured an unnamed foundation shipper for this project and will announce the results and further details upon the close of the open season, which is scheduled for 31 October 2014. The volumes committed are sufficient to justify building the project.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/15102014/tennessee-gas-pipeline-successfully-closes-open-season-for-south-system-flexibility-project-914/