Houston, TX - Tennessee Gas Pipeline Company (TGP), a unit of Kinder Morgan Energy Partners, L.P., has signed a binding, 15-year firm transportation precedent agreement with Seneca Resources Corporation, the wholly owned exploration and production subsidiary of National Fuel Gas Company to ship 158,000 dekatherms per day of natural gas to eastern Canadian markets on the Niagara Expansion Project. Subject to regulatory approvals, the approximately $29 million Niagara Expansion Project is expected to begin service Nov. 1, 2015.
Seneca will serve as the foundation shipper for TGP’s Niagara Expansion Project, which is designed to provide transportation from the prolific Marcellus Shale in Pennsylvania to TGP’s interconnect with TransCanada Pipeline in Niagara County, N.Y., to serve growing markets in eastern Canada. TGP will provide for the expansion capacity through a combination of existing capacity, pipeline looping, compressor station modifications and off-system capacity on the interstate pipeline system of National Fuel Gas Supply Corporation, also a wholly owned subsidiary of National Fuel.
“TGP is pleased to partner with Seneca, a leading producer of natural gas in the Appalachian Region, on this strategic project,” said Natural Gas Pipelines East Region President Kimberly S. Watson. “TGP’s unique footprint, connecting key shale supply areas from the Marcellus, makes our Niagara Expansion Project an ideal fit to serve the growing supply needs of eastern Canada.”
In November, 2012, TGP placed in service its Northeast Supply Diversification Project under which it began exporting natural gas to Canada. “In addition to strengthening TGP’s position as the premier pipeline in the Northeast, the Niagara Expansion Project will provide TGP’s customers with increased market diversity by increasing the transportation capacity between Marcellus supplies and markets in eastern Canada,” Watson said.
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 more than 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 $105 billion. It owns an interest in or operates more than 82,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO 2 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.