HOUSTON--(BUSINESS WIRE)--Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it has reached agreement, subject to customary approvals, with key local natural gas distribution companies (LDCs) throughout New England to transport approximately 500,000 dekatherms per day (Dth/d) of long-term firm transportation on the market path component of Tennessee Gas Pipeline Company’s (TGP) Northeast Energy Direct Project. Included in this key group are: The Berkshire Gas Company, Columbia Gas of Massachusetts, Connecticut Natural Gas Corporation, Liberty Utilities (EnergyNorth Natural Gas) Corp., National Grid, Southern Connecticut Gas Corporation and three other LDCs. Negotiations with additional customers on both the market path and supply path components of the Northeast Energy Direct Project are continuing and agreements are expected to be announced soon.
“We are extremely pleased to provide a key solution to New England’s long-term energy infrastructure needs,” said Natural Gas Pipelines East Region President Kimberly S. Watson. “Multiple studies continue to suggest there is a need for up to 2 billion cubic feet per day (Bcf/d) of new pipeline capacity into New England and neighboring markets, and the commitment by the LDCs represents a critical milestone in the development of TGP’s role in solving the need for new energy infrastructure. TGP provides unmatched supply diversity, including access to the prolific Marcellus shale, making the Northeast Energy Direct Project an ideal solution to satisfy rapidly growing natural gas demand that is forecasted in the Northeast and New England in the years ahead.”
Northeast Energy Direct has capacity scalable from approximately 800,000 Dth/d to 1.2 Bcf/d, or ultimately up to 2.2 Bcf/d, depending on final customer commitments. Capacity will include a combination of new pipeline, existing pipeline, additional pipeline loops, new compressor stations, station modifications and metering and measurement equipment in Pennsylvania, New York, Massachusetts, Connecticut, New Hampshire and Rhode Island. TGP plans to begin the pre-filing process with the Federal Energy Regulatory Commission in September 2014. Subject to receiving sufficient commitments for capacity as well as regulatory approval, the project is expected to begin service in November 2018.
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 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 $110 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 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.