HOUSTON--(BUSINESS WIRE)--Natural Gas Pipeline Company of America LLC (NGPL) today announced an agreement with Corpus Christi Liquefaction, LLC, a subsidiary of Cheniere Energy, Inc., to provide the Corpus Christi Liquefaction Project with 385,000 dekatherms per day of southbound natural gas transportation capacity on NGPL’s expanded Gulf Coast mainline system for a 20-year term. NGPL expects to invest approximately $212 million in facilities to enable it to complete the first phase of its Gulf Coast Market Expansion Project, which will increase NGPL’s total southbound capacity from multiple receipt points, including the Rockies Express Pipeline (REX) interconnection at Moultrie, Illinois, to existing and growing markets along Texas and the Louisiana Gulf Coast.
“We are pleased to move forward with this project as gas production increases in the Utica and Marcellus shale and markets continue to grow along the Gulf Coast,” said NGPL President David Devine. “Additionally, we are delighted to provide transportation for Cheniere to bring attractively-priced supply to their LNG export facility being developed near Corpus Christi, Texas.”
“Once again, we have the pleasure of working with Kinder Morgan and NGPL to secure transportation capacity that will provide additional certainty of gas supply for the Corpus Christi Liquefaction Project, which is now under construction,” said Corey Grindal, Vice President of Supply and Marketing for Cheniere. “It’s important that we secure access to pipeline capacity to ensure reliability and deliverability of natural gas to our liquefaction facility.”
The Gulf Coast Market Expansion project will include the reversal of four compressor stations in Victoria, Wharton, Montgomery and Angelina counties, Texas, the addition of a new compressor station in Cass County, Texas, and minor pipe replacement and upgrades along the NGPL system in Texas. Pending regulatory approvals, the project is expected to be placed fully into service by July 2019.
NGPL is one of the largest interstate pipeline systems in the country with approximately 9,200 miles of pipeline, more than 1 million horsepower of compressor facilities and 288 billion cubic feet of working gas storage. Kinder Morgan, Inc. operates NGPL and owns a 20 percent interest in the pipeline company. Myria Holdings Inc. owns the remaining interest.
About Cheniere Energy, Inc.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged in LNG-related businesses and currently has two liquefaction projects under construction - Sabine Pass Liquefaction located in Louisiana and Corpus Christi Liquefaction located in Texas.
Cheniere Energy Cautionary Language:
This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s business strategy, plans and objectives, including the development, construction and operation of the liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorization and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, and (vi) statements regarding future discussions and entry into contracts. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.