Tennessee Gas Pipeline Company, L.L.C. (TGP), a subsidiary of Kinder Morgan Energy Partners, L.P. (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 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.”
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 more than 54,000 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 fourth largest energy company in North America with a combined enterprise value of approximately $105 billion. It owns an interest in or operates more than 82,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO 2 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 and EPB and shares in Kinder Morgan Management, LLC (NYSE: KMR). For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include those enumerated in Kinder Morgan’s reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, Kinder Morgan undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. Because of these uncertainties, readers should not place undue reliance on these forward-looking statements.
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