HOUSTON–(BUSINESS WIRE)–Tennessee Gas Pipeline Company, L.L.C. (TGP), a Kinder Morgan company, today announced the start of its non-binding PowerServeTM open season, a new, customized, flexible firm service designed to meet the unique needs of gas-fired generators specifically in the Northeast and New England. PowerServe firm service will utilize assets of TGP’s proposed Northeast Energy Direct Project (NED), including regional storage, line pack and legacy TGP facilities across its existing broad Northeast market footprint. TGP will leverage its uniquely valuable connectivity to low-cost gas supply and interconnecting pipelines and proximity of TGP’s system to electric power generation load centers in New England and upstate New York to provide PowerServe service. TGP is offering up to 740,000 dekatherms per day of natural gas transportation capacity in the open season. The amount of capacity and specific assets required to provide the no-notice and non-ratable hourly service components of the PowerServe service will be determined following the close of the open season based on shipper interest as indicated in submitted service request forms (SRFs).
Among the planned terms and conditions, TGP’s PowerServe will provide enhanced hourly flow rights and no-notice service so gas-fired generators can flow gas without confirmation of upstream supply. The no-notice component will be available under either a Storage Service option or an Automatic Park and Loan option, both of which will be supported by regional storage and/or line pack. PowerServe is intended to be subscribed by power plant operators or by customers serving power plant operators such as electric distribution companies, natural gas marketers or aggregators.
Power plant operators can contract directly with TGP or can obtain temporary capacity from an electric distribution company or other suppliers contracting for PowerServe. Capacity release options will be available to facilitate transfer of PowerServe service to power plant operators, or firm transportation service to other shippers on TGP. Understanding the requirements of generators and those who supply them, TGP will entertain varying term lengths with corresponding rates.
During this open season, potential shippers will be able to select, subject to agreement by TGP, a combination of primary receipt points along the NED Supply Path and Market Path components, including pipeline interconnections at Wright, New York, and at locations connecting storage assets to the Supply Path and/or Market Path. Delivery points will be available on the NED facilities, as well as on TGP’s existing facilities throughout the Northeast.
TGP’s NED project is designed to address the critical need for additional pipeline infrastructure and firm transportation service in the Northeast and New England, including the enhanced and flexible service elements often desired by gas-fired generators to meet their unique operating needs. The project includes upgrades to TGP’s existing system and construction of new, critically needed infrastructure in Pennsylvania, New York, Massachusetts, New Hampshire and Connecticut. TGP’s NED project has a planned in-service date as early as November 2018.
The Supply Path of the project originates in the dry gas heart of the Marcellus Shale along TGP’s existing 300 Line in northeast Pennsylvania and extends to Wright, New York, and is scalable up to 1.2 billion cubic feet per day (Bcf/d).
The Market Path of the project originates at Wright, New York, and extends to Dracut, Massachusetts, and points beyond Dracut, utilizing the unique market reach of TGP’s legacy system and is scalable up to 1.3 Bcf/d.
TGP’s NED project is designed to maximize the use of existing energy corridors in order to minimize impacts to the environment and landowners. The Market Path of the NED project in Massachusetts and New Hampshire is 91 percent co-located with existing energy corridors.
As currently configured, NED project facilities are composed of the following:
NED Supply:
NED Market:
TGP’s NED project facilities are scalable to provide up to 1.2 Bcf/d of capacity on the Supply Path and scalable to provide up to 1.3 Bcf/d of capacity on the Market Path. TGP intends to construct and place into service the facilities that are ultimately required to provide the firm transportation services as contracted.
TGP’s NED Market Path is anchored by executed binding precedent agreements totaling over 560,000 dekatherms per day of firm transportation capacity.
Discussions with various potential shippers interested in subscribing for firm capacity on TGP’s NED Market path expansion are ongoing (including for traditional FTA service), and Supply Path binding precedent agreements continue to be executed.
The open season started on Sept. 9, 2015 and will close at 4 p.m. central time on October 29, 2015.
In order to submit a request for service in this open season, a potential shipper must submit, by the end of the open season period: (1) a service request form (SRF) indicating the quantity and capacity path for the transportation service component, the no-notice quantities under the no-notice service option selected by potential shipper, and the primary term for the requested service; and (2) as may be required by TGP, creditworthiness information as set forth in Article XXVI, Section 4.1 of the General Terms & Conditions of TGP’s FERC Gas Tariff.
More information about the PowerServe open season can be accessed at:
http://webapps.elpaso.com/PortalUI/DefaultKM.aspx?TSP=TGPD
Submit bids via email to:
Becky Mack (for deliveries on Market Path)
Rebecca_Mack@kindermorgan.com
Jay Pugh (for deliveries on Supply Path)
Jay_Pugh@kindermorgan.com
Submit written bids to:
Tennessee Gas Pipeline Company, L.L.C.
1001 Louisiana Street, Suite 1000, Houston, TX 77002
Attn: Sital Mody, Vice President, Marketing & Business Development
Questions regarding this open season should be directed to Sital Mody at (713) 420-4336.
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and 165 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. Kinder Morgan is the largest midstream and third largest energy company in North America with an enterprise value of approximately $115 billion. 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.