Tennessee Gas and Mitsubishi Sign Cameron Transportation Deal (USA)

Tennessee Gas Pipeline Company, L.L.C. (TGP), a unit of Kinder Morgan Energy Partners, has signed a binding, 20-year firm transportation precedent agreement with Mitsubishi Corporation (MC) of Japan to ship 600,000 dekatherms per day of natural gas earmarked for the proposed Cameron LNG liquefaction facility in Hackberry, La., which is slated to begin LNG exports in the second half of 2017.

MC 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.

“TGP is pleased to partner with Mitsubishi Corporation, a world class organization and leader in the energy industry, on this strategic project,” said Kimberly Watson, TGP president. “TGP’s unique footprint, connecting key conventional and shale supply areas from the South Texas Eagle Ford to the Utica and Marcellus in Ohio and Pennsylvania, and access to the Haynesville shale supply area and the Perryville Hub in Louisiana, makes our Southwest Louisiana Supply Project an ideal fit to serve the future supply needs of Mitsubishi Corporation and the planned Cameron LNG complex. TGP’s diverse supply footprint continues to provide opportunities in the growing southwest Louisiana market.”

The Southwest Louisiana Supply Project is designed to provide transportation to the growing southwest Louisiana market. The project includes additional interconnections with shale supply, new pipeline laterals and enhancements to TGP’s existing pipeline system to allow for bi-directional flow to the region. TGP will hold a binding open season for additional interest in its project at a later date.

[mappress]
LNG World News Staff, May 17, 2013; Image: Sempra