Kinder Morgan Inc. (KMI) has announced that Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline and Tennessee Gas Pipeline Company (TGP) have entered into 15-year firm transportation agreements and a multi-year storage agreement with Cheniere Energy Inc. through its subsidiary, Corpus Christi Liquefaction LLC.
Under the transportation and storage agreements, KMI will provide 550 000 dekatherms per day (Dth/d) of firm natural gas transportation service, as well as 3 billion ft3 of natural gas storage capacity to serve the Corpus Christi LNG export facility.
The LNG project is being designed and permitted for up to three trains, with aggregate design production capacity of approximately 13.5 million tpy of LNG.
The natural gas transportation service can be increased to 800 000 Dth/d upon the completion of certain conditions in the Kinder Morgan Texas Pipeline agreement.
KMI will expand its existing Texas intrastate pipeline system in South Texas to provide 250 000 Dth/d of firm transportation and 100% of the storage services. It will also expand its TGP Pipeline to provide 300 000 Dth/d of firm transportation from various Zone 1 receipt points near its Station 87 Pool located in Portland, Tennessee, US.
The construction of the facilities necessary to support these services will be coordinated with the startup of the LNG export facility, which is expected in 2018/2019.
KMI expects to invest approximately $187 million for this project.
Tom Martin, KMI’s President of Natural Gas Pipelines, said: “We are pleased to provide transportation and storage services that access diverse supply basins to Corpus Christi Liquefaction for this LNG export opportunity […] The need for additional natural gas transportation services continues to increase, and Kinder Morgan’s portfolio of natural gas assets across the United States is well positioned to serve infrastructure expansion opportunities and meet increasing market demand.”
Corey Grindal, Vice President of Supply and Marketing for Cheniere, added: “This agreement builds on our existing relationship with Kinder Morgan, which will also service a portion of our Sabine Pass Liquefaction terminal in Louisiana, and moves us closer to securing the supply infrastructure needed to provide natural gas to our Corpus Christi LNG export facility […] Access to multiple and diverse supply basins and an extensive pipeline network are both important factors for securing the natural gas required to meet our customers’ needs.”
Adapted from press release by Callum O'Reilly