HOUSTON--(BUSINESS WIRE)--Natural Gas Pipeline Company of America LLC (NGPL) today announced that
it is seeking non-binding solicitations of interest for a second phase
of its Chicago Market Expansion Project and its Gulf Coast Southbound
Expansion Project. NGPL is seeking customer interest in additional
expansion capacity following the success of Phase 1 of these projects,
demonstrating the company’s commitment to grow its business in line with
customer needs. This follows the recent announcement of a capital
contribution of $623 million from NGPL’s parent companies, Kinder
Morgan, Inc. and Brookfield Infrastructure Partners L.P., which was used
to pay down the majority of its term loan balance and all of its
revolving credit facility borrowings.
“As NGPL begins construction of the first phase of its Chicago Market
Expansion Project and prepares to file a Certificate application with
the Federal Energy Regulatory Commission (FERC) for the Gulf Coast
Southbound Expansion Project, we are pleased to present new,
cost-effective expansion capacity opportunities to the market,” said
NGPL President David Devine. “We believe these projects provide benefits
to our various customers, including local distribution companies, power
plants, producers and marketers, and emerging markets in Mexico and LNG
liquefaction. As the national pipeline grid continues its
transformation, NGPL’s transmission and storage assets are uniquely
positioned to move gas supplies to both traditional and emerging markets
with the highest value. We look forward to working with all interested
parties to develop the second phase of each of these projects.”
The FERC approved NGPL’s request for a Certificate for the first phase
of the Chicago Market Expansion Project on March 17, 2016. This project
will increase NGPL’s capacity by 238,000 dekatherms per day (Dth/d) and
provide natural gas transportation service on its Gulf Coast mainline
system from the Rockies Express Pipeline (REX) interconnection in
Moultrie County, Illinois, to points north on NGPL’s system. The first
phase of this project, which is fully subscribed under long-term
customer contracts, is expected to be placed into service in the fourth
quarter of 2016. Phase 2 of the project would include construction of
additional compression facilities at NGPL’s new Compressor Station 312
currently under construction in Livingston County, Illinois, and it
would provide up to 200,000 Dth/d of incremental firm transportation
service to markets in the Chicago area from the existing REX
interconnection or other receipt points along NGPL’s system. The
targeted in-service date for Phase 2 will be determined based upon
shippers’ needs as determined in the solicitation process.
The Gulf Coast Southbound Expansion Project is a market-driven response
to access increasing domestic natural gas supplies available to NGPL for
delivery to growing industrial demand in the Gulf Coast area. The first
phase of the project, which is fully subscribed under long-term customer
contracts, is designed to transport 460,000 Dth/d of incremental firm
transportation service from NGPL’s interstate pipeline interconnects in
Illinois, Arkansas and Texas to points south on NGPL’s pipeline system
in South Texas. NGPL expects to file a 7(c) certificate application with
the FERC in the third quarter of 2016, and the first phase is expected
to be placed into service in the fourth quarter of 2018 pending
regulatory approval. The proposed second phase of this project will
provide for up to 250,000 Dth/d of incremental firm transportation
service to existing and expanding markets in NGPL’s Texas and Louisiana
Gulf Coast service areas from existing or new receipt points in the
Midwest. Pending regulatory approvals, the projected in-service date for
Phase 2 is the fourth quarter of 2019.
For additional information on the Gulf Coast Southbound Expansion
Project, contact Jason Sweeney, director of business development for
NGPL, at Jason_sweeney@kindermorgan.com
or (713) 420-6055. For additional information on the Chicago Market
Expansion Project, contact Frank Strong, director of business
development for NGPL, at CMEP@kindermorgan.com
or (630) 725-3051. Visit the Kinder Morgan web site at www.kindermorgan.com
for additional information on both projects.
About NGPL
NGPL owns one of the largest interstate pipeline systems in the country
with approximately 9,200 miles of pipeline, more than 1 million
horsepower of compressor facilities and 288 billion cubic feet of
working gas storage. NGPL is jointly owned by Kinder Morgan, Inc. and
Brookfield Infrastructure Partners L.P., and Kinder Morgan operates the
system.
This release includes forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995. Generally
the words “expects,” “believes,” “anticipates,” “plans,” “will,”
“shall,” “estimates,” and similar expressions identify forward-looking
statements, which are generally not historical in nature.
Forward-looking statements are subject to risks and uncertainties and
are based on the beliefs and assumptions of management, based on
information currently available to them. Although the Company believes
that these forward-looking statements are based on reasonable
assumptions, it can give no assurance that any such forward-looking
statements will materialize. Forward-looking statements speak only as of
the date they were made, and except to the extent required by law, the
Company undertakes no obligation to update any forward-looking statement
because of new information, future events or other factors. Because of
these risks and uncertainties, readers should not place undue reliance
on these forward-looking statements.
