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Kinder Morgan Announces Binding Open Season to Move Light Condensate on Cochin

Monday, April 23, 2012 2:00 PM


Kinder Morgan Energy Partners, L.P. (NYSE: KMP), today announced the launch of a binding open season to solicit market interest for its Cochin Reversal Project, which would enable the company to offer a new service to move light condensate from Kankakee County, Ill., to existing terminal facilities near Fort Saskatchewan, Alberta, Canada. The project involves Kinder Morgan modifying the western leg of its Cochin Pipeline to connect to the Explorer Pipeline Company in Kankakee County and to reverse the product flow to move the condensate northwest to Fort Saskatchewan. Subject to shipper support, timely regulatory approvals and necessary capital improvements, light condensate shipments could begin on July 1, 2014. The project will provide approximately 75,000 barrels per day of light condensate capacity on Cochin, providing a new source of supply to meet the growing demand for diluent.

“Our proposal will provide the rapidly growing Canadian market with very cost-effective access to light condensate from both the Eagle Ford Shale and the U.S. Gulf Coast,” said Don Lindley, vice president of business development for KMP’s Products Pipeline group. “This open season was prompted by significant, tangible interest expressed in the proposed reversal.”

Kinder Morgan is seeking binding commitments from interested customers for a minimum contract term of 10 years and 5,000 barrels per day minimum annual volume commitment. The binding open season will begin today and ends May 31, 2012, at 5 p.m. CDT. Signed Transportation Service Agreements by prospective shippers must be submitted on or before 5 p.m. CDT May 31, 2012, to Karen Kabin, director of business development in Kinder Morgan’s Products Pipeline group, at (713) 369-9268. Those interested in obtaining more detailed information about this open season can visit the Kinder Morgan web site.

Cochin is a multi-product pipeline consisting of approximately 1,900 miles of 12-inch pipeline operating between Fort Saskatchewan, Alberta, and Windsor, Ontario. Cochin traverses three provinces in Canada and seven states in the United States, transporting propane and ethane-propane mix to the midwestern United States and eastern Canadian petrochemical and fuel markets. The pipeline includes 31 pump stations spaced at 60-mile intervals and five U.S. propane terminals. Underground storage, owned by third parties, is available at Fort Saskatchewan and Windsor.

Explorer Pipeline is a nearly 1,900-mile common carrier pipeline system that transports refined petroleum products, feedstock and diluent from the Gulf Coast throughout the Midwest.

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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