Kinder Morgan announces initial anchor shippers for Northeast Energy Direct project

Kinder Morgan Energy Partners, L.P. (KMP) has reached an agreement, subject to customary approvals, with key local natural gas distribution companies (LDCs) throughout New England to transport approximately 500 000 Dth/d of long-term firm transportation on the market path component of Tennessee Gas Pipeline Company’s (TGP) Northeast Energy Direct project. Included in this key group are: The Berkshire Gas Company, Columbia Gas of Massachusetts, Connecticut Natural Gas Corporation, Liberty Utilities (EnergyNorth Natural Gas) Corp., National Grid, Southern Connecticut Gas Corporation and three other LDCs. Negotiations with additional customers on both the market path and supply path components of the Northeast Energy Direct project are continuing and agreements are expected to be announced soon.

“We are extremely pleased to provide a key solution to New England’s long-term energy infrastructure needs,” said Natural Gas Pipelines East Region President Kimberly S. Watson. “Multiple studies continue to suggest there is a need for up to 2 billion ft³/d of new pipeline capacity into New England and neighbouring markets, and the commitment by the LDCs represents a critical milestone in the development of TGP’s role in solving the need for new energy infrastructure. TGP provides unmatched supply diversity, including access to the prolific Marcellus shale, making the Northeast Energy Direct project an ideal solution to satisfy rapidly growing natural gas demand that is forecasted in the Northeast and New England in the years ahead.”

Northeast Energy Direct has capacity scalable from approximately 800 000 Dth/d to 1.2 billion ft³/d, or ultimately up to 2.2 billion ft³/d, depending on final customer commitments. Capacity will include a combination of new pipeline, existing pipeline, additional pipeline loops, new compressor stations, station modifications and metering and measurement equipment in Pennsylvania, New York, Massachusetts, Connecticut, New Hampshire and Rhode Island. TGP plans to begin the pre-filing process with the Federal Energy Regulatory Commission in September 2014. Subject to receiving sufficient commitments for capacity as well as regulatory approval, the project is expected to begin service in November 2018.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/31072014/kinder-morgan-announces-initial-anchor-shippers-for-northeast-energy-direct-project-693/