Kinder Morgan Energy Partners, L.P. says that KMP's Tennessee Gas Pipeline Company (TGP) successfully closed a binding open season for its South System Flexibility Project for 500,000 dekatherms per day (Dth/d) of capacity. MexGas Supply, formerly known as MGI Supply, the natural gas supply arm of Petróleos Mexicanos, has been awarded 100 percent of the project capacity. Anticipated project capital is $187 million, with service beginning 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 East Region Natural Gas Pipeline President Kimberly S. Watson. 'Mexico is increasing development of its energy infrastructure to meet the country's rapidly growing demand, and this project builds upon our long-standing relationship with MexGas to provide additional natural gas transportation to complement Mexico's development plans.'