El Paso Pipeline To Serve Two Prominent Marcellus Shale Producers

April 2010 Vol. 237 No. 4

El Paso Corp’s wholly owned subsidiary, Tennessee Gas Pipeline Company (TGP), has executed binding, 20-year term agreements with Chesapeake Energy Marketing, Inc. and StatOil Natural Gas LLC, for 100% of the capacity for its Northeast Upgrade Project. The project will provide 636,000 Dth/d of incremental firm transportation capacity from TGP’s 300 Line in Pennsylvania to an interconnect in New Jersey to serve growing markets in the Northeast.

The Northeast Upgrade Project has an estimated cost of $400 million with a majority of the capital spending taking place during 2013. A spring 2011 FERC filing date is anticipated with a scheduled Nov. 1, 2013 in-service date. An open season began in March.

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