Chevron unit secures pipeline capacity to move LNG to US markets
Washington (Platts)--7Nov2005
Chevron Global Gas Monday said it had signed a binding agreement with
Kinder Morgan Energy Partners LP to be one of the anchor shippers in a 3.2
Bcf/d pipeline system that will be connected to Cheniere Energy's Sabine Pass
liquefied natural gas terminal in Cameron Parish, Louisiana.
Chevron said the agreement provides it with up to 1 Bcf/d of capacity in
the new pipeline and 600,000 Mcf/d interconnect capacity to the existing
pipeline operated by Kinder Morgan Inc's Natural Gas Pipeline Company of
America that is adjacent to the Sabine Pass LNG terminal site. The new
pipeline system will provide access to Chevron's Sabine and Bridgeline
pipelines, which connect to Henry Hub, the company said.
"This agreement is key to advancing Chevron's effort to provide the US
market with new sources of natural gas, and is a significant step forward in
our overall strategy of building complete gas value chains," John Gass,
president of Chevron Global Gas, said in a statement.
"This pipeline, combined with our capacity in the Sabine Pass LNG
terminal, will allow us the unique opportunity to flexibly link all key
consuming markets east of the Rockies with Chevron's LNG projects," said Randy
Curry, president of Chevron Natural Gas.
Subject to regulatory approvals, the proposed 137-mile pipeline would
extend to Evangeline Parish, Louisiana, and connect with 11 interstate
pipelines that serve the eastern half of the US. The new pipeline is planned
to be in service in 2009, coinciding with Chevron's Sabine Pass terminal
commitments, the company said.
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