Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that KMP’s Tennessee Gas Pipeline Company (TGP) has awarded Antero Resources (NYSE: AR) 100 percent of the capacity offered in TGP’s binding open season for its proposed Broad Run Flexibility and Broad Run Expansion Projects. The open season, which closed April 11, totaled 790,000 dekatherms per day (Dth/d) for long-term firm capacity for 15 years on the Broad Run Lateral in West Virginia and on TGP’s 100 and 500 mainlines. Anticipated capital cost of the projects totals approximately $782 million, which includes horsepower and piping modifications at existing stations, and one new compressor station on the Broad Run Lateral, all in West Virginia; two new TGP mainline compressor stations in Tennessee and Kentucky; and modifications to five existing mainline compressor stations in Kentucky.
“We are extremely pleased to award this capacity to Antero Resources and look forward to a long-term, mutually beneficial business relationship,” said Kinder Morgan East Region Natural Gas Pipeline President Kimberly S. Watson. “The results of the Broad Run open season demonstrate that demand for clean, efficient natural gas is continuing to drive production growth in the Marcellus, Utica and other shale resource plays, and that our assets are well positioned to serve those plays. The capacity subscribed in this open season also underscores continued growth in Gulf Coast consumption markets and the need for more supply for processing, fractionation and liquefaction, and other end uses in the area.”
A 790,000 Dth/d precedent agreement with Antero Resources consists of two components:
- The Broad Run Flexibility Project provides 590,000 Dth/d of firm transportation capacity from TGP’s Broad Run Lateral in TGP Zone 3 to mutually agreeable delivery points in TGP Zone 1. The anticipated in-service date of the Broad Run Flexibility Project is Nov. 1, 2015.
- The Broad Run Expansion Project provides an incremental 200,000 Dth/d of firm transportation capacity on the same capacity path. The anticipated in-service date of the Broad Run Expansion Project is Nov. 1, 2017.
Antero Resources is an independent oil and natural gas company engaged in the acquisition, development and production of unconventional oil and liquids-rich natural gas properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. The company’s website is located at www.anteroresources.com.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 third largest energy company in North America with a combined enterprise value of approximately $100 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, 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, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. 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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