El Paso Pipeline Partners' Units Complete Successful Open Seasons for Natural Gas Capacity Totaling up to Approximately 1 Billion Cubic Feet Per Day
Long-Term, Firm Capacity Commitments Support Growth in Southeast U.S.
HOUSTON--(BUSINESS WIRE)-- The Elba Express Company, L.L.C. (EEC) and Southern Natural Gas Company, L.L.C. (SNG), units of Kinder Morgan's El Paso Pipeline Partners, L.P. (NYS: EPB) , have completed successful open seasons for incremental, long term gas transportation capacity of almost 600 million cubic feet per day (MMcf/d), supporting southeastern infrastructure growth and, specifically, the needs of customers in the states of Georgia, South Carolina and northern Florida. The open seasons also attracted interest in further phasing of the expansion of up to 400 MMcf/d, which would bring the total expansion to as much as 1 billion cubic feet per day. The north-to-south expansion capacity on the EEC system, including interconnects and delivery points with SNG and other pipelines and shippers, is expected to become available in phases, with service commencing as early as June 2016 and all phases in service by about April 2019. Total capital invested by SNG and EEC to accommodate the initial phase of 600 MMcf/d is expected to be in excess of $200 million.
"We are extremely pleased with the results of the open seasons, which indicate that demand for clean, efficient natural gas is continuing to support infrastructure growth in the southeastern United States, in large part as the result of Marcellus, Utica and other shale developments in the Midwest and Northeast. The capacity subscribed in the open seasons also will serve to supply gas to support the Elba Liquefaction Project which continues to make strong progress in its development," said Kinder Morgan East Region Natural Gas Pipeline President Kimberly S. Watson.
The EEC open season ended August 7. The SNG open season, which supported deliveries and capacity held on the Elba Express Pipeline, ended July 31. SNG and EEC have signed precedent agreements with shippers for all of the capacity. Such precedent agreements are conditioned on receipt of board approvals, elections regarding the phasing of certain volumes, receipt of acceptable Federal Energy Regulatory Commission authorization, and construction of all necessary facilities. SNG will subscribe for capacity on EEC in order to provide seamless transportation service to the SNG customers under this expansion. The bids also included a bid to turnback existing capacity on EEC which EEC has been able to resell as part of the open season.
El Paso Pipeline Partners (NYS: EPB) is a publicly traded pipeline limited partnership. It owns an interest in or operates more than 13,000 miles of interstate natural gas transportation pipelines in the Rockies and the Southeast, natural gas storage facilities with a capacity of nearly 100 billion cubic feet and LNG assets in Georgia. The general partner of EPB is owned by Kinder Morgan, Inc. (NYS: KMI) . Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $115 billion. It owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 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 Kinder Morgan Energy Partners, L.P. (NYS: KMP) and El Paso Pipeline Partners, L.P. (NYS: EPB) , along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYS: KMR) and EPB. For more information please visit http://www.kindermorgan.com and http://www.eppipelinepartners.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 EPB 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 EPB'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, EPB 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.
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The article El Paso Pipeline Partners' Units Complete Successful Open Seasons for Natural Gas Capacity Totaling up to Approximately 1 Billion Cubic Feet Per Day originally appeared on Fool.com.
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