KMP and Seneca Resources to support Niagara expansion project

Tennessee gas pipeline company (TGP), a unit of Kinder Morgan Energy Partners, L.P., has signed a binding 15 year firm transportation precedent agreement with Seneca Resources Corporation, the wholly owned exploration and production subsidiary of National Fuel Gas Company (NFG), to ship 158 000 dekatherms per day of natural gas to eastern Canadian Markets on the Niagara Expansion.

Subject to regulatory approvals, the approximately US$ 29 million Niagara Expansion Project is expected to begin service 1st November 2015.

Seneca will serve as the foundation shipper for TGP’s Niagara Expansion Project, which is designed to provide transportation from the prolific Marcellus Shale in Pennsylvania to TGP’s interconnect with TransCanada Pipeline in Niagara County, New York, to serve growing markets in eastern Canada.

TGP will provide for the expansion capacity through a combination of existing capacity, pipeline looping, compressor station modifications and off-system capacity on the inter-state pipeline system of National Fuel Gas Supply Corporation, also a wholly owned subsidiary of National Fuel.

“TGP is pleased to partner with Seneca, a leading producer of natural gas in the Appalachian Region, on this strategic project,” said Natural Gas Pipelines East Region President Kimberly S. Watson. “TGP’s unique footprint, connecting key shale supply areas from the Marcellus, makes our Niagara Expansion Project an ideal fit to serve the growing supply needs of eastern Canada.”

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/17122013/kmp_and_seneca_resources_enter_agreement_to_support_niagara_expansion_project/