Kinder Morgan To Proceed with Northeast Energy Direct Project

Kinder Morgan announced Thursday its board of directors authorized subsidiary, Tennessee Gas Pipeline Company (TGP), to proceed with the $3.3 billion Northeast Energy Direct (NED) project’s “market path” segment from Wright, NY too Dracut, MA.

The 30-inch, 1.3 Bcf/d pipeline, designed to serve natural gas utilities and electricity generation customers in New England, will help alleviate New England’s high natural gas and electricity costs caused by the severely limited capacity currently in the region. NED will be an extension off of KMI’s existing TGP pipeline, which has safely delivered natural gas to New England since the 1950s.

According to the independent electric system operator ISO New England, New Englanders paid over $7 billion more for electricity during the winters of 2013 and 2014 than what they paid for electricity during the winter of 2011, largely as a result of the existing lack of pipeline capacity servicing the region.

Independent studies have concluded that the New England region will require 2 Bcf/d of gas capacity over the coming years.

NED is expected to begin service in November 2018.

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