USA: El Paso Completes Open Seasons for Long Term Gas Capacity

The Elba Express Company (EEC) and Southern Natural Gas Company (SNG), units of Kinder Morgan’s El Paso Pipeline Partners, 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.