TGP concludes open season for South System line; starts one for Lone Star project

Kinder Morgan Energy Partners LP subsidiary Tennessee Gas Pipeline Co. LLC (TGP) completed a successful binding open season for its South System flexibility project for 500,000 dth/day of north-to-south natural gas transportation capacity on its system.

MexGas Supply, formerly known as MGI Supply, the gas supply arm of Petroleos Mexicanos, has been awarded 100% of the project capacity.

Anticipated project capital is $187 million, with service beginning as early as Jan. 1, 2015.

Separately, TGP initiated a binding open season Oct. 9 for its proposed Lone Star expansion project, which includes an incremental 300,000 dth/day 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 Oct. 31.

“The volumes committed are sufficient to justify building the project,” TGP said.

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