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Tennessee Gas Pipeline Announces ‘PowerServe’ Open Season

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ProjectNotesTennessee Gas Pipeline Co. announced Sept. 9 the start of its non-binding PowerServe open season, a new, customized, flexible firm service designed to meet the needs of gas-fired generators specifically in the Northeast and New England.

PowerServe firm service will utilize assets of Tennessee Gas Pipeline’s proposed Northeast Energy Direct Project (NED), including regional storage, line pack and legacy Tennessee Gas Pipeline facilities across its existing broad Northeast market footprint. Tennessee Gas Pipeline will leverage its uniquely valuable connectivity to low-cost gas supply and interconnecting pipelines and proximity of Tennessee Gas Pipeline’s system to electric power generation load centers in New England and upstate New York to provide PowerServe service.

Tennessee Gas Pipeline is offering up to 740,000 dekatherms per day of natural gas transportation capacity in the open season. The amount of capacity and specific assets required to provide the no-notice and non-ratable hourly service components of the PowerServe service will be determined following the close of the open season based on shipper interest as indicated in submitted service request forms (SRFs).

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Among the planned terms and conditions, Tennessee Gas Pipeline’s PowerServe will provide enhanced hourly flow rights and no-notice service so gas-fired generators can flow gas without confirmation of upstream supply. The no-notice component will be available under either a Storage Service option or an Automatic Park and Loan option, both of which will be supported by regional storage and/or line pack. PowerServe is intended to be subscribed by power plant operators or by customers serving power plant operators such as electric distribution companies, natural gas marketers or aggregators.

Power plant operators can contract directly with Tennessee Gas Pipeline or can obtain temporary capacity from an electric distribution company or other suppliers contracting for PowerServe. Capacity release options will be available to facilitate transfer of PowerServe service to power plant operators, or firm transportation service to other shippers on Tennessee Gas Pipeline. Understanding the requirements of generators and those who supply them, Tennessee Gas Pipeline will entertain varying term lengths with corresponding rates.

During this open season, potential shippers will be able to select, subject to agreement by Tennessee Gas Pipeline, a combination of primary receipt points along the NED Supply Path and Market Path components, including pipeline interconnections at Wright, New York, and at locations connecting storage assets to the Supply Path and/or Market Path. Delivery points will be available on the NED facilities, as well as on Tennessee Gas Pipeline’s existing facilities throughout the Northeast.

Tennessee Gas Pipeline’s NED project is designed to address the critical need for additional pipeline infrastructure and firm transportation service in the Northeast and New England, including the enhanced and flexible service elements often desired by gas-fired generators to meet their unique operating needs. The project includes upgrades to Tennessee Gas Pipeline’s existing system and construction of new, critically needed infrastructure in Pennsylvania, New York, Massachusetts, New Hampshire and Connecticut. Tennessee Gas Pipeline’s NED project has a planned in-service date as early as November 2018.

The Supply Path of the project originates in the dry gas heart of the Marcellus Shale along Tennessee Gas Pipeline’s existing 300 Line in northeast Pennsylvania and extends to Wright, New York, and is scalable up to 1.2 billion cubic feet per day (Bcf/d).

The Market Path of the project originates at Wright, New York, and extends to Dracut, Massachusetts, and points beyond Dracut, utilizing the unique market reach of Tennessee Gas Pipeline’s legacy system and is scalable up to 1.3 Bcf/d.

Tennessee Gas Pipeline’s NED project is designed to maximize the use of existing energy corridors in order to minimize impacts to the environment and landowners. The Market Path of the NED project in Massachusetts and New Hampshire is 91 percent co-located with existing energy corridors.

As currently configured, NED project facilities are composed of the following:

NED Supply:
  • 41 miles of 36-in. pipeline looping along TGP’s existing 300 Line in northeast Pennsylvania
  • 132 miles of 30-in. pipeline from Tennessee Gas Pipeline’s existing 300 Line around Troy, Pennsylvania, to Wright, New York
  • Compression facilities sufficient to meet the needs of contracted services.
NED Market:
  • 188 miles of 30-in. pipeline from Wright, New York to Dracut, Massachusetts
  • Identified lateral facilities in Massachusetts and Connecticut
  • Compression facilities sufficient to meet the needs of contracted services.

Tennessee Gas Pipeline’s NED project facilities are scalable to provide up to 1.2 Bcf/d of capacity on the Supply Path and scalable to provide up to 1.3 Bcf/d of capacity on the Market Path. Tennessee Gas Pipeline intends to construct and place into service the facilities that are ultimately required to provide the firm transportation services as contracted.

Tennessee Gas Pipeline’s NED Market Path is anchored by executed binding precedent agreements totaling over 560,000 dekatherms per day of firm transportation capacity.

Discussions with various potential shippers interested in subscribing for firm capacity on Tennessee Gas Pipeline’s NED Market path expansion are ongoing (including for traditional FTA service), and Supply Path binding precedent agreements continue to be executed.

The open season started on Sept. 9, and will close at 4 p.m. central time on Oct. 29, 2015. Follow this link for more information about the PowerServe open season. Questions regarding this open season should be directed to Sital Mody, vice president, marketing & business development, at 713-420-4336.

To submit bids, email Becky Mack (for deliveries on Market Path) Rebecca_Mack@kindermorgan.com and Jay Pugh (for deliveries on Supply Path) Jay_Pugh@kindermorgan.com. Written bids can be submitted to Tennessee Gas Pipeline Company, L.L.C., 1001 Louisiana St., Suite 1000, Houston, TX 77002, attn: Sital Mody, Vice President, Marketing & Business Development.

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