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.
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
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