Kinder Morgan's Northeast Energy Direct Pipeline Picks Up More Gas Capacity Commitments

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Researched by Industrial Info Resources (Sugar Land, Texas)--Tennessee Gas Pipeline Company (TGP), a subsidiary of Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), recently agreed to supply up to 627,000 dekatherms per day (Dth/d) of gas for the Supply Path component of the proposed Northeast Energy Direct (NED) pipeline project. TGP will link Pennsylvania's booming natural gas fields to existing and future markets in the Northeast and New England regions. Industrial Info is tracking $1.54 billion in active projects involving TGP, about $1 billion of which are related to NED.

As part of the agreement, TGP also will transport incremental supplies to areas in or near Wright, New York, from which shippers can transport gas to Dracut, Massachusetts, via the Market Path component of the NED. Shippers also will be able to use the NED to deliver into to the Iroquois Gas Transmission system or TGP's own existing pipeline system, according to a press release from Kinder Morgan.

Gas shipped on the Market Path component is expected to help meet New York state and New England's growing demand for cheap natural gas.

The NED project currently has a planned in-service date of November 2018, although it still is seeking regulatory approvals. The Supply Path component, which runs from northeastern Pennsylvania to Wright, is scalable up to 1.2 billion cubic feet per day (Bcf/d), while the Market Path component, which runs from Wright to Dracut, is scalable up to 1.3 Bcf/d.

Among the major sections of the pipeline that are being tracked by Industrial Info:

• The $275 million installation of 135 miles of 30-inch-diameter transmission pipeline from Troy, Pennsylvania, to Wright, New York. For details on this construction project, see Industrial Info's project report.
• The $85 million installation of 177 miles of 36-inch-diameter transmission pipeline from Niagara County, New York, to Dracut, Massachusetts. For details on this construction project, see Industrial Info's project report.

Industrial Info also is tracking several natural gas compressor stations along the pipeline's path, including:

• $75 million Market Path station near Hudson, New York. For details on this construction project, see Industrial Info's project report.
• $75 million Market Path station near Greenfield, Massachusetts. For details on this construction project, see Industrial Info's project report.
• $75 million Market Path station near Lowell, Massachusetts. For details on this construction project, see Industrial Info's project report.
• $30 million Supply Path station in Montrose, Pennsylvania. For details on this construction project, see Industrial Info's project report.
• $30 million Supply Path station near Schoharie, New York. For details on this construction project, see Industrial Info's project report.
• $30 million Market Path station near Delhi, New York. For details on this construction project, see Industrial Info's project report.

"This is the next step in TGP's efforts to provide a transformative solution to reduce energy costs in the region," said Kimberly S. Watson, the president of Kinder Morgan's East Region Gas Pipelines. "The NED project will provide a direct link between the abundant, domestic natural gas fields in Pennsylvania and existing and future Northeast markets."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.