Kinder Morgan Enters into Long-Term Transportation and Storage
Agreement with CenterPoint Energy
HOUSTON, April 18 /PRNewswire-FirstCall/ -- Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it has entered into a long-term agreement with CenterPoint Energy Resources Corp. to provide the natural gas utility with firm transportation and storage services through its Texas intrastate pipeline system. Under terms of the agreement, CenterPoint Energy has contracted for 1 billion cubic feet (Bcf) per day of transportation capacity and 16 Bcf of storage capacity, effective April 1, 2007.
"We are delighted that through this agreement KMP will become the main transporter of natural gas for the Houston area's largest local distribution company," said Chairman and CEO Richard D. Kinder. "The flexibility offered through our Texas intrastate system will help ensure that CenterPoint Energy has access to reliable and diverse supplies of natural gas in order to meet the growing demand in the Houston metropolitan area for many years to come." Kinder noted that KMP is also pursuing projects to expand the transport and storage capabilities of the Texas intrastate system to take advantage of increasing gas production in East Texas and pending LNG supplies targeted for the Texas Gulf Coast, and that the company's relationship with CenterPoint Energy will help facilitate those efforts.
KMP's Texas intrastate system is comprised of approximately 6,000 miles of pipelines with a peak transport and sales capacity of about 5 Bcf of natural gas per day. KMP owns or controls about 25 Bcf of working gas capacity at various storage facilities connected to the intrastate system, and owns the West Clear Lake natural gas storage facility, which has a capacity of approximately 100 Bcf. The KMP Texas intrastate system is already connected to the vast majority of the CenterPoint Energy city gates that will require service under the new agreement.
Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America and owns or operates more than 27,000 miles of pipelines and approximately 145 terminals. Its pipelines transport more than 2 million barrels/day of gasoline and other petroleum products and up to 9 billion cubic feet/day of natural gas; and, its terminals handle over 80 million tons of coal and other bulk materials annually and have a liquids storage capacity of about 70 million barrels for petroleum products and chemicals. KMP is also the leading provider of CO2 for enhanced oil recovery projects in the United States.
The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI), one of the largest energy transportation, storage and distribution companies in North America. Combined, the two companies have an enterprise value of more than $35 billion.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 Form 10-K and 10-Q as filed with the Securities and Exchange Commission.
SOURCE Kinder Morgan Energy Partners, L.P.
CONTACT: Rick Rainey, Media Relations, +1-713-369-9452, or Mindy Mills, Investor Relations, +1-713-369-9490, both of Kinder Morgan -0- Apr/18/2006 13:53 GMT