TGP upgrade boosts Marcellus gas transport

Tennessee Gas Pipeline Co., a subsidiary of Kinder Morgan Energy Partners LP, on Nov. 1 placed in service the fully subscribed Northeast Upgrade Project (NEUP), boosting capacity on its 300 Line system in Pennsylvania and New Jersey by 636 MMcfd of natural gas and providing additional takeaway capacity from the Marcellus shale area.

NEUP is underpinned by 20-year term agreements with Chesapeake Energy Marketing Inc. and Statoil Natural Gas LLC for 100% of its capacity (OGJ Online, Feb. 18, 2010). The project cost about $500 million, up from initial estimates of $400 million.

TGP also placed its roughly $65-million Marcellus Pooling Point (MPP) project into service as scheduled on Nov. 1. The fully subscribed project provides about 240 MMcfd of additional firm Marcellus transportation capacity on TGP’s pipeline system in Pennsylvania.

The company said it is making progress on $300 million of additional previously announced TGP expansion projects.

Contact Christopher E. Smith at [email protected].