Midcontinent Express Pipeline LLC (MEP), a 50/50 joint venture between
Kinder Morgan Energy Partners, L.P. (NYSE:KMP) and Energy Transfer
Partners, L.P. (NYSE:ETP), completed a successful binding open season
for a 300,000 dekatherms per day expansion of a portion of MEP's
planned pipeline system. The capacity was awarded to two shippers,
Chesapeake Energy Marketing, Inc. and National Fuel Marketing Company,
LLC. Subject to MEP's application and receipt
of the necessary regulatory approvals, the expansion project will take
the main segment of MEP's Zone 1 from the
previously sold out capacity of 1.5 billion cubic feet per day (Bcf/d)
to a total capacity of 1.8 Bcf/d. The main segment originates near the
planned interconnect locations with Energy Transfer's
Houston Pipe Line system and Kinder Morgan's
Natural Gas Pipeline Company of America in the Paris, Texas, area and
terminates near the planned interconnect location with Columbia Gulf
Transmission near Waverly, La. In addition, MEP was successful in
subscribing the existing capacity available on the 30-inch segment from
the Bennington, Okla., area to the Paris, Texas, area.
"MEP is extremely delighted with the results
of the MEP expansion open season," said Steve
Kean, president of Kinder Morgan's natural gas
pipelines. "We now have 1.8 Bcf/d of binding
long-term contracts supporting the MEP project which will assure that
the participating customers have sufficient pipeline capacity to
accommodate their future needs. MEP can also be expanded up to 2.0 Bcf/d
with more compression if demand for additional capacity is needed."
"The overwhelming success of this project
demonstrates the continued demand for pipeline infrastructure, which is
necessary to connect the rapidly expanding natural gas production areas
to consumers throughout the United States,"
said Energy Transfer senior vice president Lee Hanse. "Energy
Transfer is pleased to see the success of this pipeline, and we will
continue to pursue pipeline projects requested by producers and markets
throughout the country."
Kinder Morgan Energy Partners, L.P. (NYSE:KMP) is a leading pipeline
transportation and energy storage company in North America. KMP owns an
interest in or operates more than 25,000 miles of pipelines and 165
terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2
and other products, and its terminals store petroleum products and
chemicals and handle bulk materials like coal and petroleum coke. KMP is
also the leading provider of CO2 for enhanced
oil recovery projects in North America.