Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and BP North America
(NYSE: BP) today announced the execution of long-term commercial
agreements to provide BP condensate processing services and storage at
Kinder Morgan’s terminals located on the Houston Ship Channel. BP has
committed over 40,000 barrels per day (bpd) of throughput at Kinder
Morgan’s petroleum condensate facility which will split condensate into
various components such as light and heavy naphthas, kerosene and gas
oil. The approximately $200 million facility has been designed to
provide future processing expansions up to 100,000 bpd throughput. BP
also will lease an additional 750,000 barrels of storage that Kinder
Morgan will add at its Galena Park terminal. The expansion is part of
Kinder Morgan’s approximately $75 million investment to construct five
tanks that will connect to its condensate facility with new piping,
manifolds and pumps. The company expects the new storage tanks and
condensate facility to be in service in the first quarter of 2014.
“BP is proud to participate in a project that helps unlock additional
domestic energy production and offers US Producers an alternative home
for their condensate barrels,” said Paul Reed, Chief Executive of BP’s
integrated supply and trading business. “This long-term commitment
demonstrates BP’s desire to provide its customers with flexibility in
managing their feedstock and product needs and enhances our strategic
relationship with Kinder Morgan.”
“We are pleased to enter into these contracts with BP, which reflect
continued strong demand to bring Eagle Ford Shale production to the Gulf
Coast,” said Tom Bannigan, president of Kinder Morgan’s Products
Pipelines. “Our splitter facility combined with our Eagle Ford to
Houston crude/condensate pipeline and associated Houston Ship Channel
storage facilities offer customers like BP unparalleled connectivity to
the full range of Gulf Coast markets including refineries, chemical
companies, gasoline blenders, outbound pipelines and marine facilities.”
About BP
BP has invested more in the United States over the last five years than
any other oil and gas company. With more than $52 billion in capital
spending between 2007 and 2011, BP invests more in the U.S. than in any
other country. The company is the second largest producer of oil and gas
in the U.S., a major oil refiner and a leader in alternative energy
sources including wind power and biofuels. BP provides enough energy
each year to light the entire country. With 23,000 U.S. employees, BP
supports nearly a quarter of a million domestic jobs through its
business activities. For more information, view our BP in America
animation video at http://www.youtube.com/watch?v=I6n9cZ1xxQw
or visit www.bp.com.
About Kinder Morgan
Kinder Morgan is the largest midstream and the fourth largest energy
company (based on combined enterprise value) in North America with a
combined enterprise value of approximately $100 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.
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