logo
  Join        Login             Stock Quote

Kinder Morgan Receives Strong Binding Commercial Support to Move Light Condensate on Cochin

Tuesday, June 5, 2012 9:30 AM


Kinder Morgan Energy Partners, L.P. (NYSE: KMP), today announced it has completed a successful binding open season for its Cochin Reversal project which will allow the company to offer a new service to move light condensate from Kankakee County, Ill., to existing terminal facilities near Fort Saskatchewan, Alberta, Canada. During the open season, Kinder Morgan received more than 100,000 barrels per day of board-approved binding commitments for a minimum 10-year term. The approximately $225 million project involves Kinder Morgan modifying the western leg of its Cochin Pipeline to connect to Explorer Pipeline Company’s pipeline in Kankakee County and to reverse the product flow to move the condensate northwest to Fort Saskatchewan.

“We are very pleased with the results of this open season and the strong commercial support we received demonstrates the need for cost-effective access to light condensate from both the Eagle Ford Shale and the U.S. Gulf Coast to the rapidly growing Canadian market,” said Tom Bannigan, president of KMP’s Products Pipeline group.

Subject to the timely receipt of necessary regulatory approvals and necessary capital improvements, light condensate shipments could begin as early as July 1, 2014. Based upon hydraulic models which were refined during the open season, the project is currently expected to provide approximately 95,000 barrels per day of light condensate capacity on Cochin, providing a new source of supply to meet the growing demand for this product.

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, currently transporting propane and ethane-propane mix to the midwestern United States and eastern Canadian petrochemical and fuel markets. 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 is the largest midstream and the fourth largest energy company (based on combined enterprise value) in North America with an enterprise value of over $90 billion. It owns an interest in or operates approximately 75,000 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. Kinder Morgan, Inc. (NYSE: KMI) owns the general partner interest of Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. 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)

Advertisement
Advertisement



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.