NGPL, Cheniere in 20-year gas transportation deal

Natural Gas Pipeline Company of America said it has signed an agreement with Corpus Christi Liquefaction, a unit of Cheniere, to provide the LNG export project with natural gas transportation capacity.

According to the agreement, NGPL, which is operated by Kinder Morgan, will provide Corpus Christi Liquefaction with 385,000 dekatherms per day of southbound natural gas transportation capacity on NGPL’s expanded Gulf Coast mainline system for a 20-year term.

NGPL expects to invest approximately $212 million in facilities to enable it to complete the first phase of its Gulf Coast market expansion project, which will increase NGPL’s total southbound capacity from multiple receipt points, including the Rockies express pipeline interconnection at Moultrie, Illinois, to existing and growing markets along Texas and the Louisiana Gulf Coast, company said in a statement.

NGPL President David Devine and Corey Grindal, Vice President of Supply and Marketing for Cheniere said that with the increase of the Marcellus and Utica shale gas production rises and markets continue to grow, this deal will secure reliability and deliverability of the Corpus Christi liquefaction project.

The Gulf Coast market expansion project will include the reversal of four compressor stations in Victoria, Wharton, Montgomery and Angelina counties, Texas, the addition of a new compressor station in Cass County, Texas, and minor pipe replacement and upgrades along the NGPL system in Texas.

The project is expected to be placed fully into service by July 2019.

Image: Kinder Morgan