Tennessee

Industry Brief

Kinder Morgan Energy Partners LP’s Tennessee Gas Pipeline Co. LLC (TGP) has signed a binding, 20-year firm transportation precedent agreement with Mitsubishi Corp. of Japan to ship 600,000 Dth/d of natural gas earmarked for the proposed Cameron LNG liquefaction facility in Hackberry, LA, which is slated to begin liquefied natural gas (LNG) exports in the second half of 2017. Mitsubishi will serve as the foundation shipper for TGP’s Southwest Louisiana Supply Project, which is designed to provide transportation from various supply basins in Ohio, Pennsylvania, Texas and Louisiana to Cameron Interstate Pipeline, which connects directly to the Cameron LNG Terminal. Kinder Morgan does not own Cameron Interstate Pipeline or the Cameron LNG facility. Sempra Energy, Mitsubishi and Mitsui & Co. Ltd. recently signed 20-year tolling capacity and joint venture agreements for the terminal (see Daily GPI, May 17).

May 21, 2013

Industry Briefs

The U.S. Army Corps of Engineers has issued a permit to Tennessee Gas Pipeline Co. LLC (TGP) for its Northeast Upgrade Project after determining that it is in the public interest and would not adversely affect the environment. An environmental impact statement (EIS) for the project is not necessary, in part because the Federal Energy Regulatory Commission (FERC) gave its approval in May 2012 (see NGI, June 4, 2012). The Northeast Upgrade Project calls for expanding TGP’s existing 24-inch diameter 300 Line by building five, 30-inch diameter pipeline loops and modifying four existing compressor stations. The $400 million project would allow an additional 636,000 Dth/d of natural gas to be transported via the 300 Line to markets in the Northeast. An interconnection with the Algonquin Gas Transmission line also is to be built in Mahwah, NJ.

April 8, 2013

Tennessee’s Northeast Upgrade Receives Army Corps Permit

The U.S. Army Corps of Engineers (USACE) has issued a permit to Tennessee Gas Pipeline Co. LLC (TGP) for its Northeast Upgrade Project after determining that it is in the public interest and would not adversely affect the environment.

April 3, 2013

Industry Briefs

East Tennessee Natural Gas (ETNG) pipeline has executed agreements with Eastman Chemical Co. to provide an additional 86 MMcf/d of firm gas transportation capacity for 25 years to Eastman’s Kingsport, TN, facility. The projects have a combined capital cost of about $120 million and include modifying existing ETNG facilities and building a new 6.4-mile pipeline extension. Coupled with Eastman’s current contracts, ETNG will provide 121 MMcf/d of firm capacity to the Kingsport facility when the projects are completed. The first project, for service of 25 MMcf/d, is expected to begin in November. The Kingsport Expansion Project, to provide 61 MMcf/d, is expected to be in service during the first quarter of 2015. The projects are subject to board and regulatory approvals. ETNG is a unit of Spectra Energy Corp. and Spectra Energy Partners LP.

January 15, 2013

Industry Brief

DTE Pipeline Co. began Tuesday began operation of its Bluestone Gathering pipeline system in Susquehanna County, PA. The southern portion of the pipeline connects gas production of Southwestern Energy to the Tennessee Gas Pipeline in Lenox Township, PA (see Shale Daily, July 6, 2011). The pipeline has a capacity of 275 million cubic feet per day. The remaining 32 miles of pipeline will interconnect with the Millennium Pipeline in Sanford, NY and should be completed in January, DTE said. Bluestone Gathering is being developed as the Bluestone Pipeline Co. of Pennsylvania LLC, Bluestone Gas Corp. of New York Inc. and Susquehanna Gathering Co. I LLC, all of which are subsidiaries of DTE Pipeline, an affiliate of DTE Energy. Bluestone is DTE’s first natural gas gathering project outside Michigan. DTE Pipeline also is a 40% owner of the Vector Pipeline, 26.25% owner of the Millennium Pipeline and 33% owner of the recently announced Nexus Gas Transmission System.

December 6, 2012

Industry Briefs

Friday morning Kinder Morgan Inc.’s Tennessee Gas Pipeline lifted a critical day 1 operational flow order (OFO) that had been in effect for balancing parties downstream of its Station 249 in zones 5 and 6 (see Daily GPI, Aug. 31).

September 4, 2012

Tennessee Marcellus Discount to Persist, Says Bentek

Tennessee Gas Pipeline (TGP) Zone 4 cash basis will remain weak for a while, although it will see an uplift of about 50 cents at the end of the year when the pipeline’s Northeast Supply Diversification project and National Fuel’s Northern Access expansion come online, Bentek Energy LLC said in a recent market note.

August 27, 2012

Kinder Completes Tennessee, El Paso Natural Gas Drop Down

Kinder Morgan Energy Partners LP (KMP) has completed the acquisition of 100% of Tennessee Gas Pipeline (TGP) and a 50% interest in El Paso Natural Gas (EPNG) pipeline from Kinder Morgan Inc. (KMI) for $6.22 billion, KMP said Monday.

August 14, 2012

Kinder Dropping Down Tennessee, El Paso Natural Gas

Kinder Morgan Energy Partners LP (KMP) is acquiring 100% of Tennessee Gas Pipeline (TGP) and a 50% interest in El Paso Natural Gas (EPNG) pipeline from Kinder Morgan Inc. (KMI) for $6.22 billion.

August 8, 2012

Trio Seeks Shippers for Commonwealth Pipeline

Inergy Midstream LP, UGI Energy Services Inc. and Capitol Energy Ventures Corp., a unit of WGL Holdings Inc., are conducting a non binding open season for shippers to transport natural gas volumes on the proposed Commonwealth Pipeline, which would carry Marcellus and Utica Shale production to market.

May 8, 2012