Kinder Morgan Offers Pipeline Capacity to LNG Project Developers
Kinder Morgan Energy Partners is holding an open season to determine interest in a new pipeline project along the Gulf Coast that would transport regasified LNG to markets and to interconnections with other major pipelines, in particular its affiliate Natural Gas Pipeline Co. of America. The open season continues until March 2.
The 77-mile pipeline KM LNG Pipeline project would provide takeaway capacity for potential LNG terminals along the coasts of Texas and Louisiana. Kinder Morgan said it plans to invest $89 million to build 23 miles of new pipeline and meter facilities and will utilize an existing 30-inch diameter pipeline to minimize environmental impacts.
The KM LNG Pipeline would originate near Sabine Pass, TX, in eastern Jefferson County and run to just south of Lake Arthur, LA, in northeastern Cameron Parish, LA. The pipeline would be capable of transporting 1 Bcf/d of gas.
The company said it already has obtained a pre-arranged conditional precedent agreement for capacity on the system, which would become operational in the first quarter of 2009. It is targeting three of the many proposed terminals along the Gulf Coast: ExxonMobil's Golden Pass terminal (1 Bcf/d), Sempra's Cameron LNG (1.5 Bcf/d) and Cheniere's Sabine Pass terminal (2.6 Bcf/d).
ExxonMobil is planning to build its own pipeline along the Gulf Coast to support the proposed LNG terminals. It's 120-mile 36-inch diameter pieline with two miles of 24-inch diameter line, would
There also are two other proposed projects that would be in the immediate vicinity of the pipeline: Sempra's Port Arthur terminal (1.5 Bcf/d) and Cheniere's Creole Trail project (2.6 Bcf/d). In total, the five terminals near the pipeline have an expected sendout capacity for 9.2 Bcf/d of gas. There are about 13 other Gulf Coast and offshore Gulf of Mexico LNG terminals in the planning stages and one terminal, Trunkline LNG in Lake Charles, LA, that is operational.
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