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Kinder Morgan to Further Increase Storage Capacity at Edmonton Terminal

Tuesday, March 27, 2012 9:00 AM

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that Kinder Morgan Canada Terminals has entered into a long-term contract with a major Canadian producer to support the construction of an additional 1.2 million barrels of merchant storage capacity at Trans Mountain pipeline’s Edmonton terminal in Strathcona County, Alberta. Kinder Morgan previously announced in November 2011 that it had signed definitive commercial agreements to support the construction of 2.4 million barrels of storage at the Edmonton facility. The total value of the current expansion now totals $284 million with all 3.6 million barrels of storage capacity expected to be in service by late 2013.

Bill Henderson, vice president of Kinder Morgan Canada Terminals, said, “This increase in storage capacity demonstrates the importance and flexibility of Trans Mountain’s Edmonton storage hub, and the unparalleled upstream and downstream connectivity inherent in the location of the facility.”

“The Edmonton hub will also play a very important staging role for crude oil in the Trans Mountain pipeline expansion proposal,” said Ian Anderson, president of Kinder Morgan Canada, the operator of both Trans Mountain and the Edmonton terminal. Kinder Morgan is currently in active discussions with other companies for further expansion that will ultimately allow for over 6 million barrels of dedicated storage at the terminal.

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 approximately 29,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP and Kinder Morgan Management, LLC (NYSE: KMR) have an enterprise value of over $40 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI, KMP and KMR constitute the largest midstream energy entity in the United States with an enterprise value of over $65 billion. For more information please visit www.kindermorgan.com.

This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.

(Source: Business Wire )
(Source: Quotemedia)

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