Kinder Morgan’s El Paso Natural Gas Pipeline Signs Long-Term Contract to Serve Customers in Mexico

  Kinder Morgan’s El Paso Natural Gas Pipeline Signs Long-Term Contract to
  Serve Customers in Mexico

Business Wire

HOUSTON -- November 14, 2012

El Paso Natural Gas (EPNG), owned by Kinder Morgan Energy Partners, L.P.
(NYSE: KMP) and Kinder Morgan, Inc. (NYSE: KMI), has entered into a 25-year
transportation precedent agreement in connection with plans to build a new
pipeline to serve customers in Mexico. Terms call for EPNG, acting through its
affiliate Sasabe Pipeline Company, to initially provide approximately 200
million cubic feet per day of firm transportation capacity via a new, 60-mile,
36-inch diameter lateral pipeline that would extend from EPNG’s existing south
mainlines, near Tucson, Ariz., to the U.S.-Mexico border, terminating at
Sasabe, Ariz. The proposed Sasabe Pipeline would interconnect via a new
international border crossing with a 36-inch diameter natural gas pipeline to
be built in Mexico.

According to Mark Kissel, president of Kinder Morgan’s Natural Gas Pipelines
West Region, this natural gas infrastructure project would benefit both the
United States and Mexico. “This agreement supports the ongoing development of
the approximately $200 million Sasabe Lateral pipeline, which would create new
jobs in Arizona, and also provide a market for transporting abundant,
low-priced U.S. gas production to Mexico. In addition, the project will help
Mexico meet its environmental goals of converting existing fuel-oil-fired
power generation plants to efficient, clean burning natural gas and also
having natural gas supplies available for new plants in the future.”

In May 2012, the Mexican Comisión Federal de Electricidad (CFE) issued an
international public invitation for companies to bid on constructing a new
natural gas pipeline from the U.S.-Mexico border near Sasabe to Guaymas,
Sonora, to supply existing fuel-oil-fired power generation plants that will be
converted to natural gas, along with other new natural gas fired power
generation plants that will be built during the next 15 years. The CFE
invitation specified that a new U.S. pipeline would be required to terminate
at Sasabe and connect existing natural gas transmission infrastructure in the
United States to the planned pipeline in Mexico. Sempra International
announced earlier that its Mexican business unit has been awarded two
contracts by CFE “to construct, own and operate an approximately 500-mile
(820-kilometers), $1billion pipeline network connecting the Northwestern
states of Sonora and Sinaloa.” The Sasabe Pipeline would interconnect with
this recently awarded pipeline network.

The Sasabe Pipeline requires approval by the Federal Energy Regulatory
Commission (FERC) and a presidential permit for an interconnection/border
crossing at the international boundary at Sasabe. EPNG initiated the National
Environmental Policy Act pre-filing process with the FERC in April 2012. It is
anticipated that FERC certificate and presidential permit applications will be
filed in early 2013. Subject to regulatory approvals, construction of the
Sasabe Lateral would begin in the first quarter of 2014, with anticipated
in-service in September 2014.

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline
transportation and energy storage company and one of the largest publicly
traded pipeline limited partnerships in America. It owns an interest in or
operates approximately 53,000 miles of pipelines and 180 terminals. The
general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder
Morgan is the largest midstream and the third largest energy company 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, CO[2]
and other products, and its terminals store petroleum products and chemicals
and handle such products as ethanol, coal, petroleum coke and steel. KMI owns
the general partner interest of KMP and El Paso Pipeline Partners, L.P. (NYSE:
EPB), along with limited partner interests in KMP and EPB and shares in Kinder
Morgan Management, LLC (NYSE: KMR). For more information please visit

This news release includes forward-looking statements. These forward-looking
statements are subject to risks and uncertainties and are based on the beliefs
and assumptions of management, based on information currently available to
them. Although Kinder Morgan believes that these forward-looking statements
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 include those enumerated in Kinder Morgan’s reports filed with the
Securities and Exchange Commission. Forward-looking statements speak only as
of the date they were made, and except to the extent required by law, Kinder
Morgan undertakes no obligation to update or review any forward-looking
statement because of new information, future events or other factors. Because
of these uncertainties, readers should not place undue reliance on these
forward-looking statements.


Kinder Morgan Energy Partners
Richard Wheatley, (713) 420-6828
Media Relations
Mindy Mills Thornock, (713) 369-9490
Investor Relations
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