TGP awards backhaul capacity to serve Utica, Marcellus shales

Kinder Morgan Energy Partners LP

Tennessee Gas Pipeline Co. LLC (TGP), a subsidiary of Kinder Morgan Energy Partners LP (NYSE: KMP), has completed a successful open season for incremental, north to south natural gas transportation capacity on the TGP system totaling 500,000 dekatherms per day (Dth/d).

A binding open season closed Dec. 11, and 400,000 Dth/d of long-term capacity and 100,000 Dth/d of short-term capacity were awarded to six different shippers.

The awarded capacity will provide firm transportation services for Marcellus and Utica production from receipt points as far north as Mercer, Pennsylvania, for delivery to multiple delivery points on the US Gulf Coast. Capital expenditures are approximately $150 million. Capacity bids were for volumes well in excess of the capacity offered and TGP will be evaluating further capacity expansions.

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