Skip to main content

Market Overview

Tennessee Gas Pipeline Closes Successful Open Season For North-to-South Transportation Capacity To Mexico

Share:

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that KMP's Tennessee Gas Pipeline Company (TGP) successfully closed a binding open season for its South System Flexibility Project for 500,000 dekatherms per day (Dth/d) of capacity. MexGas Supply, formerly known as MGI Supply, the natural gas supply arm of Petróleos Mexicanos, has been awarded 100 percent of the project capacity. Anticipated project capital is $187 million, with service beginning as early as Jan. 1, 2015.

“We are pleased to award MexGas the South System Flexibility Project capacity, which will provide more than 900 miles of north-to-south transportation capacity on the TGP system from Tennessee to Texas and expand Kinder Morgan's transportation service to Mexico,” said East Region Natural Gas Pipeline President Kimberly S. Watson. “Mexico is increasing development of its energy infrastructure to meet the country's rapidly growing demand, and this project builds upon our long-standing relationship with MexGas to provide additional natural gas transportation to complement Mexico's development plans.”

In addition, TGP initiated a binding open season Oct. 9 for its proposed Lone Star expansion project, which includes an incremental 300,000 Dth/d 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, 2014. The volumes committed are sufficient to justify building the project.

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 52,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $120 billion. It owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interests of KMP and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. For more information please visit www.kindermorgan.com.

 

Related Articles (KMP)

View Comments and Join the Discussion!

Posted-In: News Press Releases

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com