Tennessee Gas Pipeline Company, L.L.C. (TGP), a subsidiary of Kinder Morgan Energy Partners, L.P. (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 was awarded to six different shippers. The awarded capacity will provide firm transportation service for Marcellus and Utica production from receipt points as far north as Mercer, Penn., for delivery to multiple delivery points on the 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.
“We are extremely pleased with the results of the open season, which indicate that demand for clean, efficient natural gas is continuing to drive production growth in the Utica, Marcellus and other shale resource plays; and Kinder Morgan’s assets are well positioned to serve those plays,” said Kinder Morgan East Region Natural Gas Pipeline President Kimberly S. Watson. “The capacity subscribed in this open season also supports continued growth in Gulf Coast consumption markets and provides more supply for Gulf Coast end-uses, including processing, fractionation and liquefaction.”