Kinder Morgan Inc. (KMI) announced that Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline and Tennessee Gas Pipeline Co. 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 agreements, KMI will provide 550,000 dekatherms per day (Dth/d) of firm natural gas transportation service and 3 billion cubic feet of gas storage capacity in support of the LNG export facility being developed near Corpus Christi, Texas. The project is being designed and permitted for up to three trains, with production capacity of about 13.5 million tonnes per annum of LNG. Service can be increased to 800,000 Dth/d upon the completion of certain conditions in the Kinder Morgan Texas Pipeline agreement.
KMI’s existing Texas intrastate pipeline system in South Texas will be expanded to provide 250,000 Dth/d of firm transportation and 100% of the storage services. The company’s TGP Pipeline will be expanded to provide 300,000 Dth/d of firm transportation from various Zone 1 receipt points near its Station 87 Pool in Portland, Tenn. Construction of facilities in support of these services will be coordinated with the startup of the LNG export facility, which is expected in 2018 or 2019. KMI plans to invest about $187 million for this project.
The agreements are subject to Corpus Christi Liquefaction making a final investment decision to construct the Corpus Christi Liquefaction Project.
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