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.