Transportation deal signed for Cameron LNG

Tennessee Gas Pipeline Co. LLC has signed a binding, 20-year firm transportation precedent agreement with Mitsubishi Corp. to ship 600,000 dekatherms/day of natural gas to the proposed Cameron LNG liquefaction plant at Hackberry, La.

Cameron LNG, a subsidiary of Sempra Energy, has sales agreements totaling 12 million tonnes/year of LNG, full capacity of the proposed facility (OGJ Online, May 4, 2012). Cameron LNG has received Department of Energy approval to export LNG to countries with which the US has free trade agreements and has applied to DOE for exports to other countries and to the Federal Energy Regulatory Commission for a permit to build the plant.

To service the agreement, Tennessee Gas Pipeline, a subsidiary of Kinder Morgan Energy Partners LP, can access natural gas in conventional and unconventional plays in Ohio, Pennsylvania, Texas, and Louisiana.