Tennessee Gas Pipeline Co. ("Tennessee"), a wholly owned subsidiary of El Paso Corp., on Tuesday announced the results of a binding open season for its 300 Line Expansion Project.
Equitable Energy LLC, a subsidiary of Equitable Energy, executed a binding precedent agreement for a 15-year term and was awarded 300,000 Dth/d, which represents 100 percent of the project's capacity. The project links Equitable's Appalachian production to northeast markets. The expansion facilities will consist of approximately 125 miles of 30-inch pipe loop and approximately 46,000 horsepower of additional compression facilities to be constructed in Tennessee's existing pipeline corridor in Pennsylvania and New Jersey. Tennessee has entered into a fixed price agreement to lock in its pipe costs.
"We're excited to have Equitable, a major gas producer in the Appalachian basin, become one of the largest shippers on our system," said Bryan Neskora, Chief Commercial Officer of Tennessee. "This project strengthens Tennessee's position in the Northeast with diversified supplies and a significant increase in capacity to serve this region."
"Equitable's participation in this project exemplifies our commitment to support the expansion of much needed pipeline capacity out of the Appalachian Basin," said Randall Crawford Senior Vice President of Equitable Resources. "The project enables Equitable to deliver more of our produced gas to the highly valued Northeast markets."
Construction of the project is subject to regulatory approval from the Federal Energy Regulatory Commission ("FERC") and other agencies.
Tennessee plans to file its certificate application with the FERC during the second quarter of 2009, with phased construction anticipated during 2010 and 2011, pending receipt of the necessary regulatory approvals for the project.
For more information on the 300 Line Expansion Project, visit project web site at www.elpaso.com/tgp300lineexpansion/default.shtm.
El Paso Corp. owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers.