Kinder Morgan adds new customers for Northeast gas pipeline project

Kinder Morgan Inc. (NYSE: KMI) announced Sept. 29 that its subsidiary, Tennessee Gas Pipeline Co. (TGP), has executed agreements with producers, local distribution companies (LDCs) and a New York end-use market participant totaling 627,000 dekatherms per day (Dth/d) for the Supply Path component of the proposed Northeast Energy Direct Project (NED).

The agreements will provide a direct supply link from abundant natural gas fields in Pennsylvania to existing and future Northeast and New England markets, and firm transport of incremental supplies for delivery at or near Wright, New York, the company added. From the Wright area, shippers can deliver into the Market Path component of the NED project for transport to Dracut, Massachusetts, or into TGP’s existing pipeline system or into the Iroquois Gas Transmission system.

These incremental gas supplies will help meet New York and New England’s growing consumer and industrial gas needs, as well as helping to bolster electric reliability in the region. TGP is continuing to negotiate with additional potential shippers on the NED project, including LDCs and others, and expects to announce these commitments and others at a later date.

NED’s Supply Path component, from northeastern Pennsylvania to Wright, New York, is scalable up to 1.2 billion cubic feet per day (Bcf/d), and its Market Path component is scalable up to 1.3 Bcf/d. The NED project, including the Supply Path and Market Path components, has a planned in-service date of November 2018, subject to regulatory approvals. Additionally, the NED Supply Path component and associated agreements are subject to approval by the Kinder Morgan board of directors.

“We are pleased to secure these additional commitments to the NED project, augmenting the commitments we previously announced on the project’s Market Path. This is the next step in TGP’s efforts to provide a transformative solution to reduce energy costs in the region,” said KMI East Region Gas Pipelines President Kimberly S. Watson.

“The NED project will provide a direct link between the abundant, domestic natural gas fields in Pennsylvania and existing and future Northeast markets. We are excited to support the producer community as it looks to ensure the continued development of acreage and the LDC and end-use markets in need of securing additional gas supplies for electric and gas reliability and growth needs,” Watson added.

Kinder Morgan is the largest energy infrastructure company in North America. It owns an interest in or operates 84,000 miles of pipelines and 165 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.