El Paso unit expands Marcellus pipeline presence

Tennessee Gas Pipeline Co., a wholly owned unit of El Paso Corp., Houston, executed binding, 20-year term agreements with Chesapeake Energy Marketing Inc. and StatOil Natural Gas LLC for 100% capacity on its Northeast Upgrade Project in the Marcellus shale.

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Feb. 18 -- Tennessee Gas Pipeline Co., a wholly owned unit of El Paso Corp., Houston, executed binding, 20-year term agreements with Chesapeake Energy Marketing Inc. and StatOil Natural Gas LLC for 100% capacity on its Northeast Upgrade Project in the Marcellus shale. The project will provide 636 MMcfd of incremental firm transportation capacity from TGP's 300 Line in Pennsylvania to an interconnect in New Jersey for shipment to Northeast markets.

El Paso expects to file its Northeast Upgrade plans with the US Federal Energy Regulatory Commission in spring 2011 to meet a scheduled Nov. 1, 2013, in-service date. El Paso plans to hold an open season this month to gauge additional shipper interest with final capacity awarded in March 2010.

The project will cost about $400 million.

Williams Cos. Inc. entered joint-ventures in 2009 with both Rex Energy and Atlas Pipeline Partners LP fortifying its position in the Marcellus shale (OGJ Online July 9, 2009 and Apr. 2, 2009).

Contact Christopher E. Smith at chriss@ogjonline.com.

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