Kinder Morgan Energy Partners LP announced that its Tennessee Gas Pipeline Co. (TGP) successfully closed a binding open season for its South System Flexibility Project. The binding season secured 500,000 dekatherms per day (Dth/d) of capacity. The natural gas supply arm of Petróleos Mexicanos, MexGas Supply—formerly known as MGI Supply—was awarded 100% of the project capacity. Expected project capital is $187 million. The project is scheduled to begin service as early as Jan. 1, 2015.

“We are pleased to award MexGas the South System Flexibility Project capacity, which will provide more than 900 miles of north-to-south transportation capacity on the TGP system from Tennessee to Texas and expand Kinder Morgan’s transportation service to Mexico,” said Kimberly S. Watson, east region natural gas pipeline president.

TGP also launched a binding open season for its proposed Lone Star expansion project, which includes an incremental 300,000 Dth/d of firm transportation from Tennessee to South Texas. TGP secured an unnamed foundation shipper for the project and will announce further details when the open season closes on Oct. 31. Committed volumes are sufficient to proceed with the project.