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.
