Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced its
Kinder Morgan crude/condensate pipeline (KMCC) is in service and
available to transport volumes to the Houston Ship Channel. The
approximately $215 million pipeline is supported by long-term
contractual commitments and has a capacity of 300,000 bpd. The pipeline,
which is comprised of 65 miles of new-build construction and 113 miles
of converted natural gas pipeline, originates in the Eagle Ford Shale
and delivers crude/condensate to multiple terminaling facilities that
provide access to local refineries, petrochemical plants and docks on
the Texas Gulf Coast. Including joint ventures and other projects, KMP’s
planned investments related to the Eagle Ford Shale now total more than
$800 million.
“We are pleased to offer Eagle Ford producers safe, reliable and
efficient pipeline service to the Texas Gulf Coast,” said KMP Products
Pipeline President Tom Bannigan. The project was completed on time and
under budget and will be immediately accretive to cash available to KMP
unitholders.
In addition to its connectivity to third-party terminaling facilities,
KMCC will tie into Kinder Morgan’s planned petroleum condensate
processing facility to be located near the company’s Galena Park
terminal on the Houston Ship Channel. This approximately $200 million
facility will have an initial throughput capacity of 50,000 bpd, is
being supported by a fee-based contract with a major oil customer and
can be expanded up to 100,000 bpd. The project is in the final design
phase and is expected to be in service by the first quarter of 2014.
Kinder Morgan’s other Eagle Ford assets include:
-
Eagle
Ford Gathering LLC – a joint venture with Copano Energy, LLC that
provides natural gas gathering, transportation, processing and
fractionation services to various customers;
-
EagleHawk
Field Services LLC – a joint venture between Kinder Morgan Energy
Partners (25 percent) and a subsidiary of BHP Billiton (75 percent)
which owns, operates and is actively developing natural gas and
condensate gathering facilities; and
-
Camino
Real Gathering System – provides gas and oil gathering for
producers.
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.
