A unit of
Kinder Morgan Energy Partners, L.P.
), Tennessee Gas Pipeline Company, L.L.C., has inked a binding
20-year firm transportation standard agreement with Japan's
DAWSON GEOPHYS (DWSN): Free Stock Analysis
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Per the agreement, Mitsubishi will transport 600,000 dekatherms
per day of natural gas designated for the planned Cameron LNG
liquefaction facility in Hackberry, La. The facility is scheduled
to commence LNG exports in the second half of 2017.
Mitsubishi will act as the foundation shipper for Tennessee's
Southwest Louisiana Supply Project, which is intended to offer
shipping from various supply basins in Ohio, Pennsylvania, Texas
and Louisiana to Cameron Interstate Pipeline that connects
directly to the Cameron LNG Terminal.
Kinder Morgan is not the owner of Cameron Interstate Pipeline or
the Cameron LNG facility. The Southwest Louisiana Supply Project
is planned to provide transportation to the booming southwest
Louisiana market. The project comprises further interconnections
with shale supply, new pipeline laterals and augmentation to
Tennessee's existing pipeline system to facilitate bi-directional
flow to the region. Tennessee is likely to carry out a binding
open season for additional interest in its project at a later
The Tennessee partnership with Mitsubishi will assist the former
in expanding its foothold as well as connecting the conventional
and shale supply areas from the South Texas Eagle Ford to the
Utica and Marcellus in Ohio and Pennsylvania. It will also
improve access to the Haynesville shale supply area and the
Perryville Hub in Louisiana, making the Southwest Louisiana
Supply Project suitable for the latest Mitsubishi-Kinder Morgan
tie up for the Cameron LNG facility.
Kinder Morgan carries a Zacks Rank #3 (short-term Hold rating).
However, there are other stocks in the oil and gas industry like
Dawson Geophysical Company
Exterran Holdings, Inc.
) that appear more attractive in the short term. All three stocks
carry a Zacks Rank #1 (Strong Buy).